Attachment J.2 - Initial Environmental Examination (IEE).pdf

Bureau for Resilience and Food Security

INITIAL ENVIRONMENTAL EXAMINATION

PROJECT/ACTIVITY DATA

Project/Activity Name: Green Recovery Investment Platform (GRIP) Geographic Location(s) (Country/Region): Global Amendment (Yes/No), if Yes indicate # (1, 2...): No Implementation Start/End Date (FY or M/D/Y): FY 2022 - FY2030 Solicitation/Contract/Award Number(s): TBD Implementing Partner(s): TBD Bureau Tracking ID: RFS-22-01-007 Tracking ID of Related RCE/IEE (if any): N/A Tracking ID of Other, Related Analyses: RFS-20-04-004

ORGANIZATIONAL/ADMINISTRATIVE DATA

Implementing Operating Unit(s): RFS Other Affected Operating Unit(s): DDI Lead BEO Bureau: RFS

Funding Account(s) (if available): tba Original Funding Amount: $2,350,000 FY2021 DA Funding Prepared by: Jeremy Foster, DDI/EEI Energy Division Date Prepared: January 2022

ENVIRONMENTAL COMPLIANCE REVIEW DATA

Analysis Type: Initial Environmental Examination Environmental Determination(s): X Categorical Exclusion(s)

X Deferral - per 22 CFR 216.3(a)(7) IEE Expiration Date: September 30, 2030 Additional Analyses/Reporting Required: none Climate Risks Identified (#): 6 ‘Low Risk’ Climate Risks Identified; 4 Deferrals Climate Risks Addressed (#): 6 ‘Low Risk’ Climate Risks Addressed; 4 Deferrals

USAID/RFS IEE RFS-22-01-007

THRESHOLD DETERMINATION AND SUMMARY OF FINDINGS

PROJECT SUMMARY

USAID and the U.S. Government (USG) more broadly are committed to dramatically and rapidly scaling up actions to address climate change adaptation and mitigation in developing countries.

The Agency is also committed to supporting a global economic and social recovery from the COVID-19 pandemic that addresses long-standing societal and economic inequities.

Collectively, the world has a signal opportunity to promote more sustainable economies and services - a green recovery. The Green Recovery Investment Platform (GRIP) is intended to catalytically use public resources to stimulate private sector finance and private sector actions that support an equitable green recovery. Specifically, the contract’s purpose is to mobilize private finance and private sector actions that support the transition to an equitable and resilient net-zero economy while stimulating recovery from the COVID-19 pandemic. The activities implemented under GRIP would support three primary objectives: (1) Develop and scale effective partnerships and solutions to achieve transformational change; (2) Foster an inclusive enabling environment to build shared vision and accelerate collective action; and (3) Advance learning and development community capacity to mobilize catalytic private sector partnerships and finance.

Driven by market demand, the contract embraces innovative approaches to achieve its purpose, such as co-creation and gender lens investing. The contract is envisioned as a small, core set of centrally coordinated technical and institutional support activities, with the majority of tasks completed through sub-contracts and grants-under-contract. GRIP would support the urgent needs and opportunities that the private sector and USAID, in conjunction with other USG interagency partners, identify to achieve progress toward a broad-based, equitable green recovery. GRIP is a signature tool USAID will use, combined with other mechanisms and actions, to accomplish climate finance, mitigation, and adaptation goals as presented in the USAID Climate Strategy 2022-2030.1

GRIP builds on the lessons learned from USAID’s extensive experience in mobilizing finance and private sector actions and incorporates successful approaches from previous efforts, including INVEST, HEARTH, CEADIR, CATALYZE, West Africa Trade and Investment Hub, Feed the Future Market Systems and Partnerships, Feed the Future Partnering for Innovation, Aceli Africa, Green Invest Asia, the Private Financing Advisory Network (PFAN) and the Integrated Land and Governance (ILRG) program. GRIP provides a centrally managed platform that USAID Operating Units around the world can use through buy-ins to obtain customized services to efficiently create and manage partnerships that advance the green recovery. GRIP also pursues a learning and capacity building agenda to enhance and scale up successful approaches, identify and resolve challenges, and persuasively convey the story of successes achieved. The GRIP Scope of Work (SOW) is included as Annex 4 to this IEE.

1 As of February 2022, the draft USAID Climate Strategy 2022-2030 was in circulation for Public Review.

USAID/RFS IEE RFS-22-01-007

https://www.usaid.gov/sites/default/files/documents/USAID-Climate-Change-Strategy-2022-2030-Offical-Draft.pdf https://www.usaid.gov/invest https://www.usaid.gov/sites/default/files/documents/HEARTH_Overview_Oct2020.pdf https://www.climatelinks.org/projects/ceadir-climate-economic-analysis-development-investment-and-resilience https://www.usaid.gov/catalyze https://westafricatradehub.com/ https://agrilinks.org/msp https://www.partneringforinnovation.org/ https://aceliafrica.org/ https://greeninvestasia.com/ http://pfan.net/ https://land-links.org/project/integrated-land-and-resource-governance-ilrg/

ENVIRONMENTAL DETERMINATIONS

This project is a global field support mechanism subject to USAID Mission and Operating Unit buy-in. The majority of technical work under GRIP is expected to be conducted through grants-under-contract and sub-contracts issued by the GRIP prime contractor. The details of many interventions will not be defined until after GRIP is awarded, but will fall under categories of activities as laid out in Table 1 below.

The majority of the GRIP activities have been classified as Categorical Exclusions, comprising Activity 1.4, Activity 2.2, Activity 2.3, Activity 2.4, Activity 3.1 and Activity 3.2 (see Table 1). All of these activities are associated with analyses, academic studies, education/technical assistance training, workshop/meeting facilitation and/or document/information transfer in support of GRIP implementation. It is determined that for any USAID Operating Unit buy-in to GRIP that funds these types of activities, then the GRIP Contracting Officer’s Representative (COR) must complete a Level of Review Confirmation Form (Annex 2) to document their COR review and confirm the specific proposed activity(ies) fall within the scope of activities identified herein prior to implementation of those activities. This Form requires RFS Bureau Environmental Officer (BEO) and DDI BEO concurrence, as well as concurrence from the cognizant Mission or Regional Environmental Officer (MEO, REO) where the activity(ies) will be implemented. The Form must be fully cleared during the buy-in process. For recurring events and activities (i.e., an annual training event held in the same location, covering the same topic every year), only one submission of a Level of Review Confirmation Form must be completed by the COR for BEO and M/REO concurrence over the period of the buy-in. Similar activities may also be grouped across Operating Units with only one form submitted.

The remaining activities addressed in this IEE include GRIP interventions associated with the establishment of private sector partnerships (Activity 1.1), the design of investment fund/vehicles (Activity 1.2), project development support (Activity 1.3), and technical assistance for policy reform (Activity 2.1). At the time of GRIP’s award, specific information necessary to assign a 22 CFR 216 Threshold Decision for these activities is not available. Per 22 CFR 216 §216.3(a)(7) a Deferral of Threshold Decision has been determined for these four categories of activities, as significant activity aspects will be unidentified at the time of authorization.

When a USAID Operating Unit funds a buy-in to GRIP for interventions that are categorized under Activity 1.1, Activity 1.2, Activity 1.3, or Activity 2.1, then that Operating Unit will work with RFS to prepare a Supplemental IEE (SIEE) using the GRIP SIEE Template (Annex 3) to resolve the deferral and include a comprehensive Climate Risk Management (CRM) analysis.

Clearance / Concurrence from RFS BEO, DDI BEO, RFS or Mission Climate Integration Lead (CIL) and cognizant M/REO must be obtained by the GRIP COR prior to the RFS cognizant Office Director or Mission Director approving the SIEE and accompanying CRM analysis. The SIEE will be completed by the Mission during the buy-in process, and must be finalized before implementation begins on any Deferred Activities, or before sub-contract or grant-under-contract award for implementation of Deferred Activities.

If a buy-in includes both Categorical Exclusion activities, and Deferral of Threshold Decision activities, then the Level of Review Confirmation Form can be completed to allow the

USAID/RFS IEE RFS-22-01-007

https://docs.google.com/document/d/1XAW4gZbYabmT1MW8nQH9ydJT32kd6uN8/edit#heading=h.30j0zll https://docs.google.com/document/d/1XAW4gZbYabmT1MW8nQH9ydJT32kd6uN8/edit#heading=h.30j0zll https://docs.google.com/document/d/1XAW4gZbYabmT1MW8nQH9ydJT32kd6uN8/edit#heading=h.30j0zll

Categorical Exclusion activity implementation to proceed, even though the SIEE is not yet approved for those activities that fall under the Deferral of Threshold Decision.

TABLE 1: ENVIRONMENTAL DETERMINATIONS

Activities2 Categorical

Exclusion Citation (if applicable)

Negative Determination

Positive Determination3 Deferral4

Objective 1: Develop and Scale Effective Partnerships and Solutions to Achieve Transformational Change

Activity 1.1: Facilitate public-private partnerships to enhance equitable natural climate solutions

§216.3(a)(7) - Additional analysis and

SIEE/CRM

required For planned Activity

1.1 interventions

Activity 1.2: Design climate finance investment funds and new investment vehicles

§216.3(a)(7) - Additional analysis and

SIEE/CRM

required for planned Activity

1.2 interventions

Activity 1.3: Analyze potential investment opportunities and provision of project development support

§216.3(a)(7) - Additional analysis and

SIEE/CRM

required for planned Activity

1.3 interventions

Activity 1.4:

Enterprise and organizational capacity development

§216.2(c)(2)(i) - Education, technical assistance or training

Objective 2: Foster an Inclusive Enabling Environment to Build Shared Vision and Accelerate Collective Action

Activity 2.1: Support for policy reform to attract climate finance

§216.3(a)(7) - Additional analysis and

SIEE/CRM

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

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

2 Illustrative interventions/tasks which may comprise these Activities are presented in Section 1.2 Project/Activity Overview of the GRIP IEE.

required for planned Activity

2.1 interventions

Activity 2.2:

Institutional capacity building for government agencies engaged in climate finance

§216.2(c)(2)(i) - Education, technical assistance or training

Activity 2.3: Convene and provide technical assistance for networks focused on green enterprises and/or climate finance

§216.2(c)(2)(i) - Education, technical assistance or training

Activity 2.4: Support peer-to-peer relationships and connections between green businesses and investors

§216.2(c)(2)(i) - Education, technical assistance or training

Objective 3: Advance Learning and Development Community Capacity to Mobilize Catalytic Private Sector Partnership and Finance

Activity 3.1: Evaluate interventions, and create/disseminate material on lessons learned

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

§216.2(c)(2)(v) - Document and information transfer

Activity 3.2: Develop investment tools and provide training to public, private, and nonprofit entities on climate finance best practices.

§216.2(c)(2)(i) - Education, technical assistance or training

CLIMATE RISK MANAGEMENT

Through GRIP, USAID seeks to support integrated climate risk management and build sustainable systems that allow for a just transition, model exposure to climate risks, improve preparations and put plans in place to enable countries to respond quickly after climate-related shocks. The private sector and development finance institutions (DFIs) are important partners in providing the tools and finance to support these new approaches to managing risk. GRIP is a signature tool USAID would use, combined with other mechanisms and actions, to accomplish these climate finance, mitigation, and adaptation goals.

ADS 201mal states that all Operating Units must complete an Activity-level CRM analysis with a few exceptions, including:

“1.5) Projects or activities funded using only [Global Climate Change] GCC/Adaptation funds” and that

“All exceptions must be documented in Activity Approval Memos (AAMs) and Environmental Compliance Analyses such as IEEs, as appropriate. In addition, if there is not sufficient information upon which to complete a meaningful assessment during the design process, OUs may document a deferral, in part or full, to a specified pre-award or post-award juncture, but in no event later than before major programmatic implementation begins.”

Accordingly, GRIP activities fully implemented with GCC/Adaptation funds do not require a CRM analysis.

All the GRIP activities that received a Categorical Exclusion Determination in this IEE (Activity 1.4, Activity 2.2, Activity 2.3, Activity 2.4, Activity 3.1 and Activity 3.2) have undergone CRM analysis as required and were deemed to have “Low” risk. This is documented in the Activity-level CRM Summary Table (Annex 1). Accordingly, those activities may be implemented without further CRM analysis once the required Level of Review Confirmation Form is completed.

As presented in the Activity-level CRM Summary Table (Annex 1), a Deferral of Threshold Decision has been determined for interventions associated with Activity 1.1, Activity 1.2, Activity 1.3, and Activity 2.1. At the time of GRIP’s award, specific information necessary to assess climate risk and determine opportunities to strengthen climate resilience for these activities is not available. If/when a USAID Operating Unit buy-in intends to fund a Deferred Activity, then a CRM analysis will be conducted as part of the required SIEE to resolve any Deferred Activity, and will be documented in a supplemental Activity-level CRM Summary Table. The sole exception will be when the activity is fully funded with GCC/Adaptation funds, in which case CRM is not required.

BEO SPECIFIED CONDITIONS OF APPROVAL

As noted in Table 1 above, all planned interventions associated with GRIP Activities 1.4, 2.2, 2.3, 2.4, 3.1, and 3.2. would not directly, indirectly, or cumulatively present adverse environmental or social impacts. Pursuant to 22 CFR 216(c), these activities would qualify for a Categorical Exclusion. It is determined that for any USAID Operating Unit buy-in to GRIP that funds these types of activities, then the GRIP COR must complete a Level of Review Confir mation Form (Annex 2) to document their COR review and confirm the specific proposed activity falls within the scope of activities identified herein prior to implementation. This Form also requires RFS Bureau Environmental Officer (BEO) concurrence.

For Objective 1 and 2 interventions, particularly as they relate to the establishment of partnerships (Activity 1.1.), design of investment funds/vehicles (Activity 1.2), project development support (Activity 1.3), and technical assistance for policy reform (Activity 2.1) USAID does not yet have sufficient information for meaningful environmental analysis, and a threshold decision cannot be reached. Per CFR 216.3(a)(7), a Deferral of Threshold Decision is permissible when specific aspects of activities are unidentified at the time of authorization.

If any USAID Operating Unit funds a buy-in to GRIP for interventions that are categorized under Activity 1.1, Activity 1.2, or Activity 2.1, then that Operating Unit will work with RFS to prepare a Supplemental IEE (SIEE) using this GRIP SIEE Template (Annex 3) to resolve the deferral and include a comprehensive CRM analysis (CRM is not required if the activity is fully funded by GCC/Adaptation as specified in ADS 201mal). The SIEE will be completed by the Mission during the buy-in process, and must be finalized before implementation begins on any Deferred Activities, or before sub-contract or grant-under-contract award for implementation of Deferred Activities.

If a buy-in includes both Categorical Exclusion activities, and Deferral of Threshold Decision activities, then the Level of Review Confirmation Form can be completed to allow the Categorical Exclusion activity implementation to proceed, even though the SIEE is not yet approved for those activities that fall under the Deferral of Threshold Decision.

In addition to the conditions presented in Section 5 of this IEE, the authorized terms for this Deferral of Threshold Decision are as follows:

● CFR 216.3(a)(7) allows for an environmental review to be performed after USAID OU funds are obligated through a buy-in to GRIP, if the specific activities to be funded are unidentified at the time of obligation. The GRIP COR would ensure that the required environmental review occurs at the earliest time in which a meaningful review can be undertaken, but in no event should implementation of any Deferred Activities commence prior to an SIEE being approved. The GRIP SIEE Template (Annex 3) will be used to document the findings from this environmental review.

● The GRIP COR would ensure that appropriate language to carry out the requirements of Deferred Activities is incorporated into relevant award documents, including requirements relating to development of SIEEs or any Amendment to this IEE. Relevant award language shall ensure that implementation plans would be modified in accordance with the environmental review.

● The GRIP COR would (1) ensure an irreversible commitment of resources would be avoided until the environmental review is completed, and (2) ensure appropriate environmental reviews are completed for incremental funding actions as Sub-activities are identified.

USAID/RFS IEE RFS-22-01-007

https://docs.google.com/document/d/1XAW4gZbYabmT1MW8nQH9ydJT32kd6uN8/edit#heading=h.30j0zll

● The GRIP COR would resolve any Deferred Activity with the RFS BEO and cognizant MEO as part of the SIEE as required by this document.

Activities which may respond to COVID-19 must follow guidance contained in the RFS COVID-19 Programmatic IEE, including precautionary measures utilized to prevent the spread of this disease.

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 and requirements in this document as stated above and in Sections 3, 4, and 5 of the IEE and any additional B/M/REO Specified Conditions of Approval.

USAID APPROVAL OF INITIAL ENVIRONMENTAL EXAMINATION (IEE)

PROJECT/ACTIVITY NAME: Green Recovery Investment Platform (GRIP)

Bureau Tracking ID: RFS-22-01-007

Approval: Carol Jenkins - Clear 02/16/2022 Carol Jenkins, RFS Center for Agriculture-Led Growth Director Date

Approval: Jeffrey Haeni - Clear 2/17/2022 Jeffrey Haeni , DDI Center for Environment, Energy, and Infrastructure (EEI) Director

Date

Clearance: Sashi Jayatileke - Clear 02/15/2022 Sashi Jayatileke, GRIP RFS COR Date

Clearance: Kristin O’Planick - Clear 02/16/2022 Kristin O’Planick, GRIP RFS Activity Manager Date

Clearance: Jeremy Foster - Clear 02/15/2022 Jeremy Foster, GRIP DDI Activity Manager

Clearance: Patrick Smith - Clear 01/26/2022 Patrick Smith, GRIP Design Lead Date

Clearance: Faith Bartz Tarr - Clear 02/07/2022 Faith Bartz Tarr, RFS/CA Climate Integration Lead (CIL) Date

Clearance: Jami Montgomery - Clear 02/9/2022 Jami Montgomery, RFS Co-CIL Date

Clearance: Adrienne Antoine - Clear 2/16/2022 Adrienne Antoine, DDI Co-CIL Date

USAID/RFS IEE RFS-22-01-007

https://ecd.usaid.gov/document.php?doc_id=52769 https://ecd.usaid.gov/document.php?doc_id=52769

Concurrence: Carol Zurawski -Clear 2/17/22 Carol Zurawski, DDI Bureau Environmental Officer (BEO) Date

Concurrence:

William Thomas, RFS Bureau Environment Officer (BEO) Date

INITIAL ENVIRONMENTAL

EXAMINATION

CONTENTS

1.0 PROJECT/ACTIVITY DESCRIPTION 5

1.1 PURPOSE OF the IEE 5

1.2 PROJECT/ACTIVITY OVERVIEW 5

1.3 PROJECT/ACTIVITY DESCRIPTION 5

2.0 BASELINE ENVIRONMENTAL INFORMATION 6

2.1 LOCATIONS AFFECTED AND ENVIRONMENTAL CONTEXT (ENVIRONMENT,

PHYSICAL, CLIMATE, SOCIAL, Threatened and ENDANGERED species) 6

2.2 APPLICABLE AND APPROPRIATE PARTNER COUNTRY AND OTHER

INTERNATIONAL STANDARDS (E.G. WHO), ENVIRONMENTAL AND SOCIAL LAWS,

POLICIES, AND REGULATIONS 6

2.3 COUNTRY/MINISTRY/MUNICIPALITY ENVIRONMENTAL CAPACITY ANALYSIS (AS

APPROPRIATE) 6

3.0 ANALYSIS OF POTENTIAL ENVIRONMENTAL RISK 7

4.0 ENVIRONMENTAL DETERMINATIONS 7

4.1 RECOMMENDED ENVIRONMENTAL DETERMINATIONS 7

4.2 CLIMATE RISK MANAGEMENT 7

5.0 CONDITIONS AND MITIGATION MEASURES 8

5.1 CONDITIONS 8

5.2 AGENCY CONDITIONS 9

5.3 MITIGATION MEASURES 10

6.0 LIMITATIONS OF THIS INITIAL ENVIRONMENTAL EXAMINATION 11

7.0 REVISIONS 12

ATTACHMENTS: 12

1.0 PROJECT/ACTIVITY DESCRIPTION

1.1 PURPOSE OF THE IEE

The purpose of this Initial Environmental Examination (IEE) 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 interventions 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 (CRM) process in accordance with USAID policy (specifically, ADS 201mal).

This IEE is a critical element of USAID’s mandatory environmental review and compliance process meant to achieve environmentally sound design and implementation. Potential environmental impacts should be addressed through formal environmental mitigation and monitoring plans (EMMPs) and/or Environmental Assessments (EAs), if needed.

1.2 PROJECT/ACTIVITY OVERVIEW

The Green Recovery Investment Platform (GRIP) is intended to catalytically use public resources to stimulate private sector finance and private sector actions that support an equitable green recovery. Specifically, the contract’s purpose is to mobilize private finance and private sector actions that support the transition to an equitable and resilient net-zero economy while stimulating recovery from the COVID-19 pandemic. The activities implemented under GRIP would support three primary objectives: (1) Develop and scale effective partnerships and solutions to achieve transformational change; (2) Foster an inclusive enabling environment to build shared vision and accelerate collective action; and (3) Advance learning and development community capacity to mobilize catalytic private sector partnerships and finance.

Driven by market demand, the contract embraces innovative approaches to achieve its goals, such as co-creation and gender lens investing. The contract is envisioned as a small, core set of centrally coordinated technical and institutional support activities, with the majority of tasks completed through grants under contract and sub-contracts. GRIP would support the urgent needs and opportunities that the private sector and USAID, in conjunction with other USG interagency partners, identify to achieve progress toward a broad-based, equitable green recovery.

USAID/RFS IEE RFS-22-01-007

https://www.usaid.gov/our_work/environment/compliance/22cfr216 https://www.usaid.gov/ads/policy/200/201mal

Activities and illustrative interventions that may be implemented under GRIP, categorized by the three primary objectives, may include:

Objective 1: Develop and Scale Effective Partnerships and Solutions to Achieve Transformational Change

● Facilitate public-private partnerships to enhance equitable natural climate solutions - Partnering with companies to ‘green’ their supply chains, enhance supplier incomes, and promote COVID recovery; Working with insurance providers to expand climate risk or index insurance products;

● Design climate finance investment funds and new investment vehicles - Providing or mobilizing catalytic capital, seed grants, blended finance such as first loss guarantees and lending incentives, finance and partnerships for nature based solutions; “recovery grants” for green businesses impacted by the COVID-19 pandemic; Technical assistance for the design of investment funds or green bonds; Increasing lending for adaptation in smallholder agriculture; and facilitating direct co-investment opportunities;

● Analyze potential investment opportunities and provision of project development support - Conducting market research to determine potential climate finance mechanisms for project developers to access; Increasing the pipeline of bankable projects through project preparation activities, aggregation of smaller projects, or seed funding; and Providing transaction advisory support for design/commissioning of renewable energy projects.

● Enterprise and organizational capacity development - Delivery of remote and in-person technical assistance/training, and facilitation of workshops/meetings.

Objective 2: Foster an Inclusive Enabling Environment to Build Shared Vision and Accelerate Collective Action

● Support for policy reform to attract climate finance - Formulation, adaptation or application of technical or financial standards appropriate to national and international contexts, such as carbon equivalence standards or corporate/industry disclosure requirements; Helping countries increase the transparency and standardization of their carbon market; supporting the introduction of new financial products (e.g. green bonds) to support climate action; Enhancing policies to stimulate private investment in climate-friendly development solutions; Clarifying and strengthening the land and resource rights upon which sustainable investment depends

● Institutional capacity building for government agencies engaged in climate finance - Delivery of remote and in-person technical assistance/training; academic research, analyses and studies; dissemination of documents/information; and facilitation of workshops/meetings.

● Convene and provide technical assistance for networks focused on green enterprises and/or climate finance - Delivery of remote and in-person technical training; academic research, analyses and studies; dissemination of documents/information; and facilitation of workshops/meetings.

● Support peer-to-peer relationships and connections between green businesses and investors - Delivery of remote and in-person technical assistance/training;

academic research, analyses and studies; dissemination of documents/information; and facilitation of workshops/meetings.

Objective 3: Advance Learning and Development Community Capacity to Mobilize Catalytic Private Sector Partnership and Finance

● Evaluate interventions, and create/disseminate material on lessons learned - Academic research, analyses and studies; dissemination of documents/information; and facilitation of workshops/meetings.

● Develop investment tools and provide training to public, private, and nonprofit entities on climate finance best practices - Delivery of remote and in-person technical assistance/training; academic research, analyses and studies; dissemination of documents/information; and facilitation of workshops/meetings.

Would this project/activity involve construction as defined by ADS 201 and 303? Yes ☐ No X5

2.0 BASELINE ENVIRONMENTAL INFORMATION

2.1 LOCATIONS AFFECTED AND ENVIRONMENTAL CONTEXT

As a global project, GRIP interventions may be implemented within any USAID partner country.

GRIP will be managed from Washington DC by the USAID Bureau for Resilience and Food Security (RFS) in collaboration with the USAID Bureau for Development, Democracy, and Innovation (DDI). Specific geographic locations of activities funded by RFS and DDI will be determined based on needs expressed by USAID Operating Units. GRIP would be predominantly funded by buy-ins from USAID Missions, which are responsible for addressing the environmental context where Mission-funded GRIP interventions are implemented. Location specific information and analysis will be added in the Mission-level SIEE.

2.2 APPLICABLE AND APPROPRIATE PARTNER COUNTRY AND OTHER INTERNATIONAL

STANDARDS (E.G. WHO), ENVIRONMENTAL AND SOCIAL LAWS, POLICIES, AND REGULATIONS

As a global project, GRIP interventions may be implemented within any USAID partner country.

GRIP will be managed from Washington DC by the USAID Bureau for Resilience and Food Security (RFS) in collaboration with the USAID Bureau for Development, Democracy, and Innovation (DDI). For any USAID/Washington-funded GRIP activity (i.e. funded by RFS or DDI), Mission concurrence will be required prior to implementation of that activity in a USAID partner country; Implementation must adhere to all environmental and social laws, policies, and regulations following guidance from the regional/country USAID Mission where the intervention is being implemented. For any other Operating Unit buying-in to the GRIP mechanism, they will be responsible for ensuring the interventions they fund adhere to all governing environmental and social laws, policies, and regulations

5 Construction, as defined by ADS 201 and 303, includes: construction, alteration, or repair (including dredging and excavation) of buildings, structures, or other real property and includes, without limitation, improvements, renovation, alteration and refurbishment. The term includes, without limitation, roads, power plants, buildings, bridges, water treatment facilities, and vertical structures. In the box below, describe any construction planned for this project/activity. Refer to ADS 201maw for required Construction Risk Management procedures.

USAID/RFS IEE RFS-22-01-007

https://www.usaid.gov/sites/default/files/documents/1865/201maw.pdf

3.0 ANALYSIS OF POTENTIAL ENVIRONMENTAL RISK

GRIP must work with public and private sector actors to mobilize private resources for actions that stimulate transformational change toward more inclusive, environmentally sustainable economic models. While Objectives 2 and 3 focus on the enabling environment and learning as tools to achieve transformation, Objective 1 activities center on resource mobilization toward specific adaptation and mitigation actions, and achieves transformative impacts through innovation, demonstration, and scaling of proven approaches.

COMPONENT 1: DEVELOP AND SCALE EFFECTIVE PARTNERSHIPS AND SOLUTIONS TO ACHIEVE

TRANSFORMATIONAL CHANGE

TABLE 3A. POTENTIAL IMPACTS

Activity Potential environmental and social impacts Activity 1.1: Facilitate public-private partnerships to enhance equitable natural climate solutions

Deferral. §216.3(a)(7) - Environmental Review After Authorization of Financing

The potential environmental/social impacts of Activity 1.1 will be dependent on the nature and objectives of the specific public-private partnerships that are formed through USAID Operating Unit buy-ins to GRIP. This deferral will be resolved, and impacts determined, through the completion of a Supplemental IEE after authorization of financing but before implementation of any activities.

Activity 1.2: Design climate finance investment funds and new investment vehicles

Deferral. §216.3(a)(7) - Environmental Review After Authorization of Financing

The potential environmental/social impacts of Activity 1.2 will be dependent on the structure of the specific investment funds/vehicles funded through USAID Operating Unit buy-ins to GRIP, and the types of interventions those specific funds/vehicles are expected to finance. This deferral will be resolved, and impacts determined, through the completion of a Supplemental IEE after authorization of financing but before implementation of any activities.

Activity 1.3: Analyze potential investment opportunities and provision of project development support

Deferral. §216.3(a)(7) - Environmental Review After Authorization of Financing

The potential/social impacts of Activity 1.3 will be dependent on the nature/type of specific projects (i.e. renewable energy, land/water management, etc) funded through USAID Operating Unit buy-ins to GRIP. This deferral will be resolved, and impacts determined, through the completion of a Supplemental IEE after authorization of financing but before implementation of any activities.

Activity 1.4: Enterprise and organizational capacity development

Categorical Exclusion Determination as Activity 1.4 interventions are classified as §216.2(c)(2)(i) - Education, technical assistance or training

COMPONENT 2: FOSTER AN INCLUSIVE ENABLING ENVIRONMENT TO BUILD SHARED VISION AND ACCELERATE

COLLECTIVE ACTION

TABLE 3B. POTENTIAL IMPACTS

Activity Potential environmental and social impacts Activity 2.1: Support for policy reform to attract climate finance

Deferral. §216.3(a)(7) - Environmental Review After Authorization of Financing

Though the specifics of Activity 2.1 interventions that will be funded through USAID Operating Unit buy-ins to GRIP still need to be defined, there are multiple potential environmental and social impacts that could result from any policy reform. This deferral will be resolved, and impacts determined, through the completion of a Supplemental IEE after authorization of financing but before implementation of any Activity 2.1 interventions.

Activity 2.2: Institutional capacity building for government agencies engaged in climate finance

Categorical Exclusion Determination as Activity 2.2 interventions are classified as §216.2(c)(2)(i) - Education, technical assistance or training.

Activity 2.3: Convene and provide technical assistance for networks focused on green enterprises and/or climate finance

Categorical Exclusion Determination as Activity 2.3 interventions are classified as §216.2(c)(2)(i) - Education, technical assistance, or training programs except to the extent such programs include activities directly affecting the environment; and/or §216.2(c)(2)(v) - Document and information transfer.

Activity 2.4: Support peer-to-peer relationships and connections between green businesses and investors

Categorical Exclusion Determination as Activity 2.4 interventions are classified as §216.2(c)(2)(i) - Education, technical assistance, or training programs except to the extent such programs include activities directly affecting the environment.” Though the actual projects funded by investors would be subject to comprehensive environmental/social impact analysis, the forging of relationships between investors and green businesses is not expected to have any adverse impact.

COMPONENT 3: ADVANCE LEARNING AND DEVELOPMENT COMMUNITY CAPACITY TO MOBILIZE CATALYTIC PRIVATE

SECTOR PARTNERSHIP AND FINANCE

TABLE 3B. POTENTIAL IMPACTS

Activity Potential environmental and social impacts Activity 3.1: Evaluate interventions, and create/disseminate material on lessons learned

Categorical Exclusion Determination as Activity 3.1 interventions are classified as §216.2(c)(2)(i) - Education, technical assistance, or training programs except to the extent such programs include activities directly affecting the environment.

Activity 3.2: Develop investment tools and provide training to public, private, and nonprofit entities on climate finance best practices.

Categorical Exclusion Determination as Activity 3.2 interventions are classified as §216.2(c)(2)(iii) - Analyses, studies, academic or research workshops and meetings,” and §216.2(c)(2)(v) Document and information transfers.

4.0 ENVIRONMENTAL DETERMINATIONS

4.1 RECOMMENDED ENVIRONMENTAL DETERMINATIONS

The following table summarizes the recommended determinations based on the environmental analysis conducted. Upon approval, these determinations become affirmed, per 22 CFR 216.

Specified conditions, detailed in Section 5, become mandatory obligations of implementation, per ADS 204.

TABLE 4: ENVIRONMENTAL DETERMINATIONS

Activities6 Categorical

Exclusion Citation (if applicable)

Negative Determination

Positive Determination

Deferral8

Objective 1: Develop and Scale Effective Partnerships and Solutions to Achieve Transformational Change

Activity 1.1: Facilitate public-private partnerships to enhance equitable natural climate solutions

§216.3(a)(7) - Additional analysis and

SIEE/CRM

required For planned Activity

1.1 interventions

Activity 1.2: Design climate finance investment funds and new investment vehicles

§216.3(a)(7) - Additional analysis and

SIEE/CRM

required for planned Activity

1.2 interventions

Activity 1.3: Analyze potential investment opportunities and provision of project

§216.3(a)(7) - Additional analysis and

SIEE/CRM

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

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

6 Illustrative interventions/tasks which may comprise these Activities are presented in Section 1.2 Project/Activity Overview of the GRIP IEE.

development support required for planned Activity

1.3 interventions

Activity 1.4:

Enterprise and organizational capacity development

§216.2(c)(2)(i) - Education, technical assistance or training

Objective 2: Foster an Inclusive Enabling Environment to Build Shared Vision and Accelerate Collective Action

Activity 2.1: Support for policy reform to attract climate finance

§216.3(a)(7) - Additional analysis and

SIEE/CRM

required for planned Activity

2.1 interventions

Activity 2.2:

Institutional capacity building for government agencies engaged in climate finance

§216.2(c)(2)(i) - Education, technical assistance or training

Activity 2.3: Convene and provide technical assistance for networks focused on green enterprises and/or climate finance

§216.2(c)(2)(i) - Education, technical assistance or training

Activity 2.4: Support peer-to-peer relationships and connections between green businesses and investors

§216.2(c)(2)(i) - Education, technical assistance or training

Objective 3: Advance Learning and Development Community Capacity to Mobilize Catalytic Private Sector Partnership and Finance

Activity 3.1: Evaluate interventions, and create/disseminate material on lessons learned

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

§216.2(c)(2)(v) - Document and information transfer

Activity 3.2: Develop investment tools and provide training to public, private, and nonprofit entities on climate finance best practices.

§216.2(c)(2)(i) - Education, technical assistance or training

4.2 CLIMATE RISK MANAGEMENT

This section summarizes the methodology used and findings of the Climate Risk Management (CRM) Screening, in accordance with ADS 201mal. The project design team, in consultation with the RFS and DDI Climate Integration Leads (CIL), considered the potential effect of climate risks/stressors on the sustainability of the project (changing precipitation patterns, rising temperature, floods, droughts, fires, landslides, etc.) in addition to the impact of project activities on the climate (increased greenhouse gas emissions, land use changes, etc.).

ADS 201mal states that all OUs must complete activity-level CRM with a few exceptions, including:

“1.5) Projects or activities funded using only GCC/Adaptation funds” and that

“All exceptions must be documented in Activity Approval Memos (AAMs) and Environmental Compliance Analyses such as IEEs, as appropriate. In addition, if there is not sufficient information upon which to complete a meaningful assessment during the design process, OUs may document a deferral, in part or full, to a specified pre-award or post-award juncture, but in no event later than before major programmatic implementation begins.”

Accordingly, GRIP activities fully implemented with GCC/Adaptation funds do not require a CRM analysis because their objective is to enhance adaptation both during and after GRIP implementation.

All the GRIP activities that received a Categorical Exclusion Determination in this IEE (Activity 1.4, Activity 2.2, Activity 2.3, Activity 2.4, Activity 3.1 and Activity 3.2) have undergone Climate Risk Management analysis as required and were deemed to have “Low” risk. This is documented in the Activity-level Climate Risk Management (CRM) Summary Table (Annex 1).

Accordingly, those activities may be implemented without further CRM analysis once the required Level of Review Confirmation Form is completed.

As presented in the Activity-level Climate Risk Management (CRM) Summary Table (Annex 1), a Deferral of Threshold Decision has been determined for interventions associated with Activity 1.1, Activity 1.2, Activity 1.3, and Activity 2.1. At the time of GRIP’s award, specific information necessary to assess climate risk and determine opportunities to strengthen climate resilience for these activities is not available. If a USAID Operating Unit buy-in intends to fund a Deferred Activity, then a CRM analysis will be conducted as part of the required SIEE to resolve

USAID/RFS IEE RFS-22-01-007

any Deferred Activity, and will be documented in a supplemental Activity level CRM Summary Table.

5.0 CONDITIONS AND MITIGATION MEASURES

5.1 CONDITIONS

The environmental determinations in this IEE are contingent upon full implementation of the following general implementation and monitoring requirements, as well as ADS 204 and other relevant requirements.

5.1.1 During Pre-Award:

5.1.1.1 Pre-Award Briefings: As feasible, the design team and/or the cognizant environmental officer(s) (e.g., MEO, REO, BEO) would provide a pre-award briefing for potential offerors on environmental compliance expectations/responsibilities at bidders’ conferences, if any are conducted.

5.1.1.2 Solicitations: The design team, in coordination with the CO, would ensure solicitations include environmental compliance requirements and evaluation criteria. CO would ensure technical and cost proposal requirements include approach, staffing, and budget sufficient for complying with the terms of this IEE.

5.1.1.3 Awards: The COR, in coordination with the CO, would ensure all awards and sub-awards include environmental compliance requirements.

5.1.2 During Post-Award:

5.1.2.1 Post-Award Briefings: The COR and/or the cognizant environmental officer(s) (e.g., MEO, REO, BEO) would provide post-award briefings for the Implementing Partner(s) (IP) on environmental compliance responsibilities.

5.1.2.3 Workplans and Budgeting: The COR would ensure the IP integrates environmental compliance requirements in work plans and budgets to comply with requirements, including EMMP implementation and monitoring.

5.1.2.4 Staffing: The COR, in coordination with the IP, would ensure all awards have staffing capacity to implement environmental compliance requirements.

5.1.2.5 Records Management: The COR would maintain environmental compliance documents in the official project/activity file and upload records to the designated USAID environmental compliance database system.

5.1.2.6 Host Country Environmental Compliance: The COR would ensure the IP complies with applicable and appropriate host country environmental requirements unless otherwise directed in writing by USAID. However, in the case of a conflict between the host country and USAID requirements, the more stringent shall govern.

5.1.2.7 Work Plan Review: The COR would ensure the IP verifies, at least annually or when activities are added or modified, that activities remain within the scope of the IEE. Activities outside of the scope of the IEE cannot be implemented until the IEE is amended.

5.1.2.8 IEE Amendment: If new activities are introduced or other changes to the scope of this IEE occur, an IEE Amendment would be required.

5.1.2.14 USAID Monitoring Oversight: The COR or designee, with the support of the cognizant environmental officer(s) (e.g., MEO, REA, BEO), would ensure monitoring of compliance with established requirements (e.g., by desktop reviews, site visits, etc.).

5.1.2.16 Environmental Compliance Mitigation and Monitoring Plan: For any planned interventions that have been determined to have any potential adverse environmental impact, the COR would ensure the IP develops, obtains approval for, and implements Environmental Mitigation and Monitoring Plans (EMMPs) that are responsive to the stipulated environmental compliance requirements.

5.1.2.17 Environmental Compliance Reporting: The COR would ensure the IP includes environmental compliance in regular project/activity reports, using indicators as appropriate; develops and submits the Environmental Mitigation and Monitoring Reports (EMMRs); and completes and submits a Record of Compliance (RoC) describing their implementation of EMMP requirements in conjunction with the final EMMR or at the close of sub activities (as applicable). And where required by Bureaus or Missions, ensure the IP prepares a closeout plan consistent with contract documentation for COR review and approval that outlines responsibilities for end-of-project operation, the transition of other operational responsibilities, and final EMMR with lessons learned.

5.1.2.18 Corrective Action: When noncompliance or unforeseen impacts are identified, IPs notify the COR, place a hold on activities, take corrective action, and report on the effectiveness of corrective actions. The COR initiates the corrective action process and ensures the IP completes and documents their activities. Where required by Bureaus or Missions, ensure Record of Compliance is completed.

5.2 AGENCY CONDITIONS

5.2.1 Sub-award Screening: The COR would ensure the IP uses an adequate environmental screening tool to screen any sub-award applications and to aid in the development of EMMPs.

5.2.2 Supplemental IEEs (SIEEs): A SIEE will be prepared for any activity funded through GRIP for which a Deferral of Threshold Decision was determined. The SIEE would provide more thorough analysis of the planned activities, additional geographic context and baseline conditions, a full CRM Analysis, as well as activity specific mitigation and monitoring requirements.

5.2.3 Other Supplemental Analyses: The COR would ensure supplemental environmental analyses that are called for in the IEE are completed and documented.

5.2.4 Resolution of Deferrals: A Supplemental IEE will be completed by a Mission buying in to this mechanism during the buy-in process, and must be finalized before implementation begins on any Deferred Activities, or before sub-contract or grant-under-contract award for implementation of Deferred Activities. The AOR/COR will ensure that the SIEE is completed and approved by Mission and BEO before the subject activities are implemented.

5.2.5 Positive Determination: If a Positive Determination threshold determination was made, the COR would ensure a Scoping Statement, and if required an Environmental Assessment (EA), is completed and approved by the BEO before the subject activities are implemented.

5.2.6 Compliance with human subject research requirements: The AM, A/COR shall assure that the IP and sub-awardees, -grantees, and -contractors demonstrate completion of all requirements for ethics review and adequate medical monitoring of human subjects who participate in research trials carried out through this IEE and ensure appropriate records are maintained. All documentation demonstrating completion of required review and approval of human subject trials must be in place prior to initiating any trials and cover the period of performance of the trial as described in the research protocol.

5.3 MITIGATION MEASURES

The mitigation measures presented in this section constitute the minimum required based on available information at the time of this IEE and the environmental analysis in Section 4. These measures shall provide general direction for completing the project/activity Environmental Mitigation and Monitoring Plan (EMMP) and/or the EA and PERSUAP, if required.

COMPONENT/ACTIVITY 1: DEVELOP AND SCALE EFFECTIVE PARTNERSHIPS AND SOLUTIONS TO ACHIEVE

TRANSFORMATIONAL CHANGE

TABLE 5A. SUMMARY OF MITIGATION MEASURES FOR ACTIVITY 1

Activity Mitigation Measure(s) Activity 1.1: Facilitate public-private partnerships to enhance equitable natural climate solutions

Deferral. §216.3(a)(7) - Environmental Review After Authorization of Financing

Appropriate mitigation measures for potential environmental/social impacts will be determined after the design specifics of the individual partnerships funded through USAID Operating Unit buy-ins to GRIP are known. This deferral will be resolved, and mitigation measures documented, through the completion of a Supplemental IEE after authorization of financing but before implementation of any Activity 1.1 interventions.

Activity 1.2: Design climate finance investment funds and new investment vehicles

Deferral. §216.3(a)(7) - Environmental Review After Authorization of Financing

Appropriate mitigation measures for potential environmental/social impacts will be determined after the design specifics of the individual investment funds/vehicles funded through USAID Operating Unit buy-ins to GRIP are known. This deferral will be resolved, and mitigation measures documented, through the completion of a Supplemental IEE after authorization of financing but before implementation of any Activity 1.2 interventions.

Activity 1.3: Analyze potential investment opportunities and provision of project development support

Deferral. §216.3(a)(7) - Environmental Review After Authorization of Financing

Appropriate mitigation measures for potential environmental/social impacts will be determined after the specifics of the projects receiving support through USAID Operating Unit buy-ins to GRIP are known.This deferral will be resolved, and mitigation measures documented, through the completion of a Supplemental IEE after authorization of financing but before implementation of any Activity 1.3 project development interventions.

Activity 1.4: Enterprise and organizational capacity development

N/A - Categorical Exclusion Determination…