J.4 Initial Environmental Examination LAC-IEE-22-48 ETD (ME - SURGES).pdf

BUREAU/MISSION/PROJECT

USAID 216 ACRO TEMPLATE VERSION 2, MARCH 2018

INITIAL ENVIRONMENTAL EXAMINATION

PROJECT/ACTIVITY DATA

Project/Activity Name: SOUTHERN MEXICO GENERATING

EMPLOYMENT AND SUSTAINABILITY (SURGES)

Geographic Location(s) (Country/Region): Mexico / southern Mexico Amendment (Yes/No), if Yes indicate # (1, 2...): No Implementation Start/End Date (FY or M/D/Y): FY 2022 to FY 2027 If Amended, specify New End Date:

Solicitation/Contract/Award Number(s):

Implementing Partner(s):

Bureau Tracking ID: LAC-IEE-22-48 Tracking ID of Related RCE/IEE (if any):

Tracking ID of Other, Related Analyses:

ORGANIZATIONAL/ADMINISTRATIVE DATA

Implementing Operating Unit(s):

(e.g. Mission or Bureau or Office)

USAID/Mexico

Other Affected Operating Unit(s):

Lead BEO Bureau: LAC Funding Account(s) (if available): ESF Original Funding Amount: $30M If Amended, specify funding amount:

If Amended, specify new funding total:

Prepared by: Gabriel Sanchez Date Prepared: December 7, 2021

ENVIRONMENTAL COMPLIANCE REVIEW DATA

Analysis Type: x Environmental Examination ☐Deferral Environmental Determination(s): ☐Categorical Exclusion(s) x Negative ☐Positive ☐Deferred (per 22 CFR 216.3(a)(7)(iv)

IEE Expiration Date (if applicable):

Additional Analyses/Reporting Required:

Climate Risks Identified (3): Low ___2___ Moderate ___1___ High ___0___ Climate Risks Addressed (1): Low ___0___ Moderate ___1___ High ___0___ about:blank about:blank

THRESHOLD DETERMINATION AND SUMMARY OF FINDINGS

PROJECT/ACTIVITY SUMMARY

The Southern Mexico Generating Employment and Sustainability (SURGES) activity will catalyze investment, create jobs, and increase incomes in priority value chains (e.g. coffee, cacao, eco-tourism, sustainable livestock) in southern Mexico. SURGES will use a market systems approach1 to catalyze private and public sector investments to improve competitiveness and generate employment while promoting sustainable practices. SURGES will contribute to reducing Greenhouse Gas (GHG) emissions through sustainable land use, selection of value chains, and the promotion of climate smart practices. This five-year initiative will aim to mobilize $250 million of investment and sales, among other outcomes.

The SURGES Activity is composed of three components:

● Component 1: Incomes increased through sustainable market systems. Work under Objective 1 will focus on building partnerships with the private sector and will result in increased producer and small business knowledge of market standards. For agricultural and non-agricultural value chains, the activity will pursue the adoption of climate smart practices; foster increased productivity by increasing access to quality inputs and improved management of soil fertility and water resources; reduce post-harvest losses;

facilitate more direct linkages to input and output markets (buyers); and enhance value perceptions of environmental and social sustainability through formative research and social behavior change communications.

● Component 2: Investment in sustainable productive and natural ecosystems catalyzed. Work under this Objective aims to facilitate linkages with current and planned investment funds and credit facilities to unlock investments in sustainable value chains in southern Mexico. Stakeholder consultations conducted by the design team indicate a potential capital imbalance with too few bankable opportunities chasing an abundant supply of investment capital and debt finance. The activity will build local capacity to develop and implement bankable projects in priority value chains, and scale green finance mechanisms to incentivize efforts to prevent deforestation and reduce greenhouse gas emissions.

● Component 3: Improved policy and regulatory environment for sustainable public and private investments in productive and natural ecosystems. SURGES will promote stakeholder coordination and dialogue to promote a policy and regulatory environment that is conducive to investment and innovation. To build collective action, SURGES will facilitate multi-stakeholder dialogues between policy makers, private sector, and local communities to generate and implement a common agenda to address

1 Downing, Jeanne. “Market Systems Resilience: A Framework for Measurement.” USAID 2018. A market system is a dynamic space—incorporating resources, roles, relationships, rules and results—in which private and public actors collaborate, coordinate, and compete for the production, distribution, and consumption of goods and services.

Structurally, market systems are a part of complex interconnected and nested or hierarchical systems. On the ground, we see such interconnections among value chains (e.g., the linkages and dependencies between maize, animal feed, and dairy).

challenges related to entrepreneurship, opening a business, agribusiness development, and trade. To the extent possible, SURGES will leverage existing policy dialogue and information sharing mechanisms.

This activity will be implemented in three to five states throughout southern Mexico. The activity will be implemented in Chiapas and Oaxaca and offerors will be able to propose additional states from the following list: Campeche, Quintana Roo, Yucatan, Tabasco, and Veracruz. Offerrors will propose additional states based on where they see the highest potential to achieve the activity’s goals including increased employment, sales, investment and environmental impact.

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

Deferra l3

Component 1: Incomes increased through sustainable market systems [Technical Assistance and Integration into Sustainable Markets] x ☐ ☐

Component 2:

Investment in sustainable productive and natural ecosystems catalyzed.[Technical Assistance] x ☐ ☐

Component 3: Improved policy and regulatory environment for sustainable public and private investments in productive and natural ecosystems.[Dialogue Coordination] 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.

CLIMATE RISK MANAGEMENT

In accordance with Executive Order 13677 on Climate-Resilient International Development, as of September 2016, all USAID projects and activities require being managed for climate risks.

The Climate Risk Management (CRM) process was undertaken and from this the Mission Environmental Officer/Climate Integration Lead determined that the climate risks associated with the SUR-Generating Employment and Sustainability activity are low to moderate.

The identified risks indicate that climate change will unlikely materially impact achievement or sustainability of project or activity outcomes. The climate risks identified for the SURGES award include the potential for declines in agricultural productivity, disrupted trading patterns due to floods/droughts/storms, and potential increased risk and cost borne by financial institutions due to extreme weather events. See Annex 1 for the complete CRM table.

BEO SPECIFIED CONDITIONS OF APPROVAL

Conditions for approval are listed in Section 5 of this document. In addition, 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

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 in Sections 3, 4, and 5 of the IEE and any BEO Specified Conditions of Approval.

LAC-IEE-22-48

INITIAL ENVIRONMENTAL

EXAMINATION

CONTENTS

1.0 PROJECT/ACTIVITY DESCRIPTION 6

1.1 PURPOSE OF the IEE 6

1.2 PROJECT/ACTIVITY OVERVIEW 6

1.3 PROJECT/ACTIVITY DESCRIPTION 7

2.0 BASELINE ENVIRONMENTAL INFORMATION 9

2.1 LOCATIONS AFFECTED AND ENVIRONMENTAL CONTEXT (ENVIRONMENT,

PHYSICAL, CLIMATE, SOCIAL, Threatened and ENDANGERED species) 9

2.2 APPLICABLE AND APPROPRIATE PARTNER COUNTRY AND OTHER

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

POLICIES, AND REGULATIONS 10

2.3 COUNTRY/MINISTRY/MUNICIPALITY ENVIRONMENTAL CAPACITY ANALYSIS (AS

APPROPRIATE) 11

3.0 ANALYSIS OF POTENTIAL ENVIRONMENTAL RISK 11

4.0 ENVIRONMENTAL DETERMINATIONS 12

4.1 RECOMMENDED ENVIRONMENTAL DETERMINATIONS 12

4.2 CLIMATE RISK MANAGEMENT 14

5.0 CONDITIONS AND MITIGATION MEASURES 14

5.1 CONDITIONS 14

5.2 AGENCY CONDITIONS 16

5.3 MITIGATION MEASURES 16

6.0 LIMITATIONS OF THIS INITIAL ENVIRONMENTAL EXAMINATION 19

7.0 REVISIONS 20

ATTACHMENTS: 20

Annex 1. Activity Climate Risk Management Summary Table 21

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).

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.

The purpose of this IEE is to analyze the potential environmental impacts proposed under the new Sembrando Oportunidades (SO) activity.

1.2 PROJECT/ACTIVITY OVERVIEW

Mexico faces high poverty and extreme income inequality, especially in its southern states.4 Poverty worsened from 2018 to 2020, and was further exacerbated as COVID restrictions on travel and commerce took an economic toll. By the end of 2020, 44 percent of Mexico’s population was living in poverty.5 Poverty in southern Mexico is even higher. Of the eleven states with the highest poverty in Mexico in 2020, seven are in the south (see Figure 1).

Poverty is one driver (of others) for out-migration from southern Mexico. From 2000–2010, emigration ranged from 17.6 percent of the population in Oaxaca to 5.1 percent in Tabasco. As a result of this focused poverty and migration, the Government of Mexico (GOM) has prioritized economic development of its southern states. The region also hosts a large immigrant population from Central America, most of whom originally set out to cross the border into the United States.

Growth and private investment in southern Mexico lags. A high perception of risk from financial institutions precludes many in southern Mexico from accessing even small loans to start or expand small businesses, especially women and young entrepreneurs. Without sufficient capital to invest in new technologies and quality inputs, agricultural and non-agricultural productivity has stagnated and entrepreneurship opportunities remain limited. Mexico’s business environment is unattractive for many businesses. Southern Mexico has poor connectivity between its territories and the north of Mexico, due to a rugged topography that hinders the construction of adequate roads and digital infrastructure. Southern Mexico has the highest priced and least reliable energy. Despite growing availability of finance for economic investments nationwide, southern Mexico lacks bankable projects for investment. For these reasons, and

4 For the purposes of this activity, southern Mexico includes Campeche, Chiapas, Oaxaca, Quintana Roo, Yucatan, Tabasco, and Veracruz.

5 Porcentaje, número de personas y carencias promedio por indicador de pobreza, 2018 – 2020, CONEVAL.

https://www.usaid.gov/our_work/environment/compliance/22cfr216 https://www.usaid.gov/ads/policy/200/201mal others, much of southern Mexico has been excluded from the growth experienced in Mexico’s northern and central states. Furthermore, natural assets are disappearing, and climate change is looming. Southern Mexico is rich in natural resources. However, the accelerating rates of deforestation have a deleterious impact on its trajectory, and alarms all from indigenous communities, to commodity exporters, to the international community.6 Further, the impact of climate change has become increasingly apparent. A joint report by the Food and Agriculture Organization and the GOM showed that parts of the Yucatan Peninsula, Veracruz and Oaxaca are at risk of complete loss of production by 2099 due to climate change. 7

1.3 PROJECT/ACTIVITY DESCRIPTION

The SURGESActivity is composed of three components:

● Component 1: Incomes increased through sustainable market systems. Work under Objective 1 will focus on building partnerships with the private sector and will result in increased producer and small business knowledge of market standards. For agricultural and non-agricultural value chains, the activity will pursue the adoption of climate smart practices; foster increased productivity by increasing access to quality inputs and improved management of soil fertility and water resources; reduce post-harvest losses;

facilitate more direct linkages to input and output markets (buyers); and enhance value perceptions of environmental and social sustainability through formative research and social behavior change communications.

● Component 2: Investment in sustainable productive and natural ecosystems catalyzed. Work under this Objective aims to facilitate linkages with current and planned investment funds and credit facilities to unlock investments in sustainable value chains in southern Mexico. Stakeholder consultations conducted by the design team indicate a potential capital imbalance with too few bankable opportunities chasing an abundant supply of investment capital and debt finance. The activity will build local capacity to develop and implement bankable projects in priority value chains, and scale green finance mechanisms to incentivize efforts to prevent deforestation and reduce greenhouse gas emissions.

● Component 3: Improved policy and regulatory environment for sustainable public and private investments in productive and natural ecosystems. SURGES will promote stakeholder coordination and dialogue to promote a policy and regulatory environment that is conducive to investment and innovation. To build collective action, SURGES will facilitate multi-stakeholder dialogues between policy makers, private sector, and local communities to generate and implement a common agenda to address challenges related to entrepreneurship, opening a business, agribusiness development, 6 According to the Forests Global Watch (2020), Mexico has the fifth highest deforestation rate in Latin America and the 10th highest in the world driven mostly by expansion for agriculture and ranching. In 2019, Mexico experienced the highest deforestation rate of the past 20 years, with Campeche leading the list of states with highest forest loss, followed by Chiapas, Quintana Roo, and Yucatan.

7 FAO-SAGARPA, (2014) Mexico: The agricultural sector before the challenge of climate change.

and trade. To the extent possible, SURGES will leverage existing policy dialogue and information sharing mechanisms.

This activity will be implemented in three to five states in southern Mexico. The activity will be implemented in Chiapas and Oaxaca and offerors will be able to propose additional states from the following list: Campeche, Quintana Roo, Yucatan, Tabasco, and Veracruz. Offerrors will propose additional states based on where they see the highest potential to achieve the activity’s goals including increased employment, sales, investment and environmental impact.

TABLE 2: DEFINED OR ILLUSTRATIVE PROJECTS/ACTIVITIES AND SUB-ACTIVITIES

Component 1: Incomes increased through sustainable market systems [Assistance and Training]

Education, technical assistance (including demonstration plots), or training programs may include or lead to activities that directly affect the environment (such as construction of small facilities or procurement of equipment).

Component 2: Investment in sustainable productive and natural ecosystems catalyzed[ Technical Assistance and advisory work such as analysis, modeling, strategy development and stakeholder engagement and coordination aimed at improving local private sector integration into sustainable markets]

Advisory services related to improving the enabling environment for increased market integration may suggest activities such as land clearing for increased agricultural production or infrastructure development that have the potential to cause environmental degradation and/or negative social impacts.

Component 3: Improved policy and regulatory environment for sustainable public and private investments in productive and natural ecosystems.

The development of analyses, studies, surveys, baseline studies, pre-feasibility assessments, assessments,, academic or research workshops and meetings and information transfers may lead to potential environmental degradation associated with policies that expanded agricultural practices which could result in land use alterations, soil erosion, habitat fragmentation and loss for wildlife and potential impacts on water availability.

Potential social impacts include improved livelihoods.

Will this project/activity involve construction8 as defined by ADS 201 and 303? Yes x No

8 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.

If yes, describe iThn the space below:

The SURGES activity IEE contemplates interventions that entail small scale (area less that 1000m2) infrastructure development.

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

2.0 BASELINE ENVIRONMENTAL INFORMATION

2.1 LOCATIONS AFFECTED AND ENVIRONMENTAL CONTEXT (ENVIRONMENT,

PHYSICAL, CLIMATE, SOCIAL, THREATENED AND ENDANGERED SPECIES)

Mexico

Twelve countries comprise 10 percent of global land surface and are home to almost 70 percent of the planet’s species. They are Brazil, Colombia, China, Mexico, Ecuador, Indonesia, Madagascar, Peru, Australia, Democratic Republic of Congo, Papua New Guinea, and Venezuela, and are described as “megadiverse”. In its almost two million square kilometers, Mexico contains only 1.5 percent of the world’s terrestrial and insular surface but hosts 10 percent of all biological diversity. Mexico has documented 564 species of mammals (30% endemic); 1,240 species of reptiles and amphibians (50% and 64% endemic, respectively); 2,695 species of fish (10% endemic) and 1,150 species of birds (20% endemic)7 (Jimenez Sierra, et al 2014).

Mexico also has enormous cultural diversity that is closely connected to biodiversity use and conservation (e.g., 291 living languages or languages in use). It is also the main center of plant species domestication in Mesoamerica, with almost 120 species of domesticated plants. The evolutionary processes of domestication are gradual and continuous, and indigenous populations have played a crucial role in the selection and management of species for adaptation into local conditions and human use.

About 15 percent of the food species consumed in the world today are native to Mexico, including: corn, beans, squash, some varieties of chili, avocado, guava, jicama, tomato, tejocote, prickly pear and cocoa. A variety of plants with other uses such as cotton, tobacco, timber and medicinal species are also native to this region. Except for the dog and the turkey, most of the animals native to Mexico have not been domesticated, but are an important food source for local populations, whose diet is complemented by hunting fish, mammals, birds and reptiles, as well as a great variety of insects, such as escamoles, maguey worms, grasshoppers and jumiles, among others (Jiménez et al 2014).

Mexico is also particularly rich in terrestrial, coastal and marine ecosystems. Challenger and Soberón (2008) include seven classes: tropical evergreen forests, tropical deciduous forests, mesophilic mountain forests, temperate coniferous and broadleaf forests, xerophilous scrublands, grasslands and wetlands. Under this classification, xerophilous scrublands are the largest plant communities in Mexico, and mesophilic forests and wetlands are the least common.

With respect to oceanic biodiversity, Mexico has six marine provinces, which include 24 ecoregions. Knowledge of marine biodiversity is quite poor, with the exception of species of commercial interest, although Mexico has the twelfth largest sea surface, a huge ecosystem and a wealth of species. While the biological groups in the Gulf of Mexico, the Caribbean, and the Pacific have been documented and integrated into comprehensive compilations of information, each new study reveals the presence of new species or species not previously registered in Mexican waters.

Nearly half of Mexico is covered by forest – a total of 88 million hectares. Over 60 percent of Mexico’s forests is managed by communities with collective land tenure arrangements, such as ejidos, and the rest is on private and public lands. Every year over 90,000 hectares of forests are lost due to a variety of factors, including agricultural expansion, cattle ranching, illegal logging, and urbanization9.

[1] Global Forest Watch, 2020

2.2 APPLICABLE AND APPROPRIATE PARTNER COUNTRY AND OTHER INTERNATIONAL

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

The SO Activity will follow host country environmental laws and regulations as summarized below in addition to USAID’s environmental requirements as per 22 CFR 216 and ADS 204.

Mexico

The Mexican Constitution, in the Article 133 establishes the supremacy of the national constitution and the federal legal framework, mandating that State/local authorities adapt their laws to ensure coordination with national legislation. Article 27 foresees the utilization of renewable natural resources, and recognizes the preservation, restoration of ecological stability and the conservation of nature. In 2012, the Congress modified Article 4, modifying the term “right to an adequate environment," to the phrase “right to a healthy environment," including adding a phrase permitting the identification of those responsible for environmental deterioration, and the infringement of basic rights.

Mexico’s environmental legislation includes six major laws: Ley General del Equilibrio Ecológico y Protección al Ambiente (1988; reformed January 2021), Ley General de Vida Silvestre (2000; reformed 2015), Ley General de Desarrollo Forestal Sustentable (2018; reformed 2021), Ley Federal de Responsabilidad Ambiental (2013, reformed 2021), Ley General de Pesca y Acuacultura Sustentables (2007, reformed 2018), the Ley de Desarrollo Rural Sustentable (2001, reformed 2021), and the Ley General de Cambio Climatico (2012; reformed 2020). The Decrees: Decreto 12-01-1978: Decree establishing Montes Azules Biosphere Reserve, Decreto 20-01-1986: Decree establishing Sian Kaan Biosphere Reserve, Decreto 26-05-1989: Decree establishing Calakmul Biosphere Reserve. Regarding International Agreements: Convention on Illegal Trade in Endangered Species (CITES): Ratified by Mexico in 1993, Convention on Biological Diversity (CBD): Ratified by Mexico in 2003. and the United Nations Convention against Transnational Organized Crime: ratified by Mexico in 2003.

Mexico’s governance over natural resources is managed by the following entities:

● SEMARNAT - Secretaría de Medio Ambiente y Recursos Naturales

● CONAFOR - Comisión Nacional Forestal

● CONANP - Comisión Nacional de Áreas Naturales Protegidas

● CONABIO - Comisión Nacional para el Conocimiento y Uso de la Biodiversidad

● CONAGUA - Comisión Nacional del Agua

● INECC - Instituto Nacional de Ecología y Cambio Climático

● PROFEPA - Procuraduría Federal de Protección al Ambiente

9 USAID Mexico Tropical Forest and Biodiversity 118/119, 2019.

https://www.gob.mx/conanp/que-hacemos https://www.gob.mx/conanp/que-hacemos https://www.gob.mx/inecc https://www.gob.mx/inecc

2.3 COUNTRY/MINISTRY/MUNICIPALITY ENVIRONMENTAL CAPACITY ANALYSIS

(AS APPROPRIATE)

Mexico

Mexico has a strong institutionality and legal framework to manage natural resources, but operational and enforcement capacities remain weak. Identified potential government units working on environmental issues include: Secretaría de Medio Ambiente y Recursos Naturales (SEMARNAT), Comisión Nacional para el Conocimiento y Uso de la Biodiversidad (CONABIO), Procuraduría Federal de Protección al Ambiente (PROFEPA), Comisión Nacional de Área Naturales Protegidas (CONANP), Federal Police, Procurador General de la República (PGR), Secretaría de la Defensa Nacional (SEDENA), Guardia Nacional o Gendarmería. Other State authorities: Mexican States also have their environmental authorities responsible for the management of natural resources and State-managed protected areas. One example includes the Secretaría de Medio Ambiente, Biodiversidad, y Cambio Climático de Campeche (SEMABICC), responsible for the management of the Protected areas of Balam-Kin and Balam-ku, both adjacent to Calakmul Biosphere Reserve.

3.0 ANALYSIS OF POTENTIAL ENVIRONMENTAL RISK

PROJECT/ACTIVITY 1: SURGES

TABLE 3A. POTENTIAL IMPACTS – Sembrando Oportunidades Activity Component

Action Type Activity Type Potential environmental and social impacts

Component 1:

Incomes increased through sustainable market systems [Assistance and Training]

Action Type 1 Education, technical assistance (including demonstration plots), or training programs may include or lead to activities that include the construction of facilities.

Agricultural techniques may result in ineffective crop production if appropriate methods and crop selection is not carefully selected for the specific location or if not planning/anticipating climate change impacts.

See Section 5.0 for Conditions and Mitigation measures

Inappropriate management of wastewater and leachates from agricultural production and crop management can release pollutants into streams.

Site clearance for construction can cause erosion of soil, minerals, and release of harmful pollutants into nearby streams.

Small-scale construction and/or refurbishment activities may generate several environmental and social effects. Please refer to the Construction Sector Guidelines and Visual Field Guide for Construction for a comprehensive list. (See here for Construction Sector Guidelines in Spanish.)

See Section 5.0 for Conditions and Mitigation measures..

Component 2:

Investment in sustainable productive and natural ecosystems catalyzed[ Technical Assistance and advisory work such as analysis, modeling, strategy development and stakeholder engagement and coordination aimed at improving local private sector integration into sustainable markets]

Action Type 2 Advisory services related to improving the enabling environment for increased agricultural market integration.

Potential environmental and social impacts associated with agricultural projects include land use alterations, habitat fragmentation and loss for wildlife and potential impacts on water availability.

Site clearance for construction can cause erosion of soil, minerals, and release of harmful pollutants into nearby streams.

Component 3:

Improved policy and regulatory environment for sustainable public and private investments in productive and natural ecosystems.

Action Type 3 The development of analyses, studies, surveys, baseline studies, pre-feasibility assessments, assessments, performance or impact evaluations of programs, academic or research workshops and meetings and information transfers

Environmental degradation may be a result associated with policies that expanded agricultural practices which could result in land use alterations, habitat loss for wildlife and potential impacts on water availability.

Potential social impacts include improved livelihoods.

See Section 5.0 for Conditions and Mitigation measures.

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.

https://www.usaid.gov/sites/default/files/documents/1860/SectorEnvironmentalGuidelines_Construction_2017.pdf https://www.usaid.gov/sites/default/files/documents/1860/SectorEnvironmentalGuidelines_Construction_2017.pdf https://www.usaid.gov/sites/default/files/documents/1860/ENCAP_VFG-Construction_Dec2011.pdf https://www.usaid.gov/sites/default/files/documents/1860/ENCAP_VFG-Construction_Dec2011.pdf https://www.usaid.gov/sites/default/files/documents/1860/Spanish_SectorEnvironmentalGuidelines_Construction_2017.pdf

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

TABLE 4: ENVIRONMENTAL DETERMINATIONS

Activity Component Action Type Activity Type

Categorical Exclusion Citation (if applicable)

Negative Determin ation

Positive Determin ation10

Defe rral

Component 1:

Incomes increased through sustainable market systems [Assistance and Training]

Action Type 1 Education, technical assistance (including demonstration plots), or training programs may include or lead to activities that include the construction of facilities.

x ☐ ☐

Component 2:

Investment in sustainable productive and natural ecosystems catalyzed[ Technical Assistance and advisory work such as analysis, modeling, strategy development and stakeholder engagement and coordination aimed at improving local private sector integration into sustainable markets]

Action Type 2 Advisory services related to improving the enabling environment for increased agricultural market integration x ☐ ☐

Component 3:

Improved policy and regulatory environment for sustainable public and private investments in productive and natural

Action Type 3 The development of analyses, studies, surveys, baseline studies, pre-feasibility assessments, assessments, performance or impact evaluations x ☐ ☐

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

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

ecosystems. of programs, academic or research workshops and meetings and information

4.2 CLIMATE RISK MANAGEMENT

This section summarizes the methodology used and findings of the CRM Screening, in accordance with ADS 201mal. The project design team, in consultation with the 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.). See Annex 1 for the complete CRM 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, REA, BEO) will provide a pre-award briefing for potential offerors on environmental compliance expectations/responsibilities at bidders’ conferences.

5.1.1.2 Solicitations: The design team, in coordination with the A/CO, will ensure solicitations include environmental compliance requirements and evaluation criteria. A/CO will 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 A/COR, in coordination with the A/CO, will ensure all awards and sub-awards, include environmental compliance requirements.

5.1.2 During Post-Award:

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

https://www.usaid.gov/ads/policy/200/201mal

5.1.2.3 Work Plans and Budgeting: The A/COR will 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 A/COR, in coordination with the IP, will ensure all awards have staffing capacity to implement environmental compliance requirements.

5.1.2.5 Records Management: The A/COR will 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 A/COR will 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 A/COR will ensure the IP verifies, at least annually or when activities are added or modified, that activities remain with 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 will be required.

5.1.2.14 USAID Monitoring Oversight: The A/COR or designee, with the support of the cognizant environmental officer(s) (e.g., MEO, REA, BEO), will 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: The A/COR will 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 A/COR will 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 A/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 A/COR, place a hold on activities, take corrective action, and report on the effectiveness of corrective actions. The A/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 A/COR will 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 Programmatic IEEs (PIEE): PIEEs stipulate requirements for additional environmental examination of new or country specific projects/activities. The A/COR of any project/activity being implemented under a PIEE will ensure appropriate reviews are conducted, typically through a Supplemental IEE, and approved by the cognizant BEO.

5.2.3 Supplemental IEEs (SIEEs): An SIEE will be prepared for any new project/activity being planned which fall under a PIEE. The SIEE will provide more thorough analysis of the planned activities, additional geographic context and baseline conditions as well as specific mitigation and monitoring requirements.

5.2.4 Other Supplemental Analyses: The A/COR will ensure supplemental environmental analyses that are called for in the IEE are completed and documented.

5.2.5 Resolution of Deferrals: If a deferral of the environmental threshold determination was issued, the A/COR will ensure that the appropriate 22CFR216 environmental analysis and documentation is completed and approved by the BEO before the subject activities are implemented.

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

5.2.7 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.

PROJECT/ACTIVITY 1: SURGES

TABLE 5A. SUMMARY OF MITIGATION MEASURES FOR PROJECT/ACTIVITY 1

Activity Component Action Type Activity Type

Mitigation Measure(s)

Component 1:

Incomes increased through sustainable market systems [Assistance and Training]

Action Type 1 Education, technical assistance (including demonstration plots), or training programs may include or lead to activities that include the construction of facilities ((NOT on/near protected areas or wetlands or areas with complicated factors12, construction should be less than around 1000m^2 and around $250,000 in total value).

Support to Harvest, Post-Harvest, Logistics, Storage, Marketing

Agricultural support won’t be rendered in protected areas and sensitive ecosystems. Land will not be converted from non-degraded sites to agricultural use.

The implementing partner/s will promote good agriculture and sustainable water-use practices per Sectorial Guidelines on dryland agriculture and crop production and integrated pest management.

https://www.usaid.gov/environmental-procedures/sectoral-environmental-social-best-practices/sector-environmental-guidelines-resources particularly:

Page 64-82: Sector Environmental Guideline: Crop Production https://www.usaid.gov/sites/default/files/documents/1 865/CropProduction_SEG_25Mar2019.pdf

Page 31-35: Environmentally Sound Design (ESD) Sector Environmental Guidelines: Small Scale Dryland Agriculture Small Scale Dryland Agriculture

Any Livestock production activities are to be designed and implemented in such a way as to avoid potential harmful impacts as much as possible. The Implementing partner/s will follow best practices guidance outlines in the and Scale Dryland Agriculture particularly:

Pages 20-24: Sector Environmental Guidelines Livestock Page 43-49: Environmentally Sound Design (ESD) Sector Environmental Guidelines: Small Scale Dryland Agriculture Small Scale Dryland Agriculture

Implementing partners should monitor for and report on adverse impacts, particularly land and habitat degradation.

12Complicated Factors: The site is within 30m of a permanent or seasonal stream or water body, or will involve displacement of existing settlement/inhabitants, or has an average slope of less than 5% and is not heavily forested, or is located in an otherwise undisturbed local ecosystem, or in a protected area. Sites violating one or more of these criteria necessitate further review; i.e., Deferral) https://www.usaid.gov/environmental-procedures/sectoral-environmental-social-best-practices/sector-environmental-guidelines-resources https://www.usaid.gov/environmental-procedures/sectoral-environmental-social-best-practices/sector-environmental-guidelines-resources https://www.usaid.gov/environmental-procedures/sectoral-environmental-social-best-practices/sector-environmental-guidelines-resources https://www.usaid.gov/sites/default/files/documents/1865/CropProduction_SEG_25Mar2019.pdf https://www.usaid.gov/sites/default/files/documents/1865/CropProduction_SEG_25Mar2019.pdf https://www.usaid.gov/sites/default/files/documents/1860/SectorEnvironmentalGuidelines_DrylandAgriculture.pdf https://www.usaid.gov/sites/default/files/documents/1860/SectorEnvironmentalGuidelines_Livestock_2015.pdf https://www.usaid.gov/sites/default/files/documents/1860/SectorEnvironmentalGuidelines_Livestock_2015.pdf https://www.usaid.gov/sites/default/files/documents/1860/SectorEnvironmentalGuidelines_DrylandAgriculture.pdf https://www.usaid.gov/sites/default/files/documents/1860/SectorEnvironmentalGuidelines_DrylandAgriculture.pdf

Implementing partners will prepare an EMMP that will consider the mitigation measures that are appropriate to the nature of the small-scale construction/refurbishment. Please refer to the Construction Sector Guidelines and Visual Field Guide for Construction for a comprehensive list of considerations. (See here for Construction Sector Guidelines in Spanish.) Most common examples include, but are not limited to:

a) Covering materials to avoid loss during transport;

fence stockpiles to prevent wind whipping, and ensure all vehicles carrying loose material to or from the site are fully sheeted.

b) Identify waste handling facilities close to the project to accept/treat waste (approved by local government).

c) Undertake preliminary hydrogeological studies, or at least define the natural drainage characteristics of the area and hydrological link to the site.

d) The contract should mandate compliance with relevant host country occupational health and safety requirements for construction. Provide personal protective equipment such as dust masks to workers on site.

e) Include in the landscaping plan the protection of existing trees on site serving as a source of shade, windbreak, or providing other benefits.

f) Avoid the need for displacement by developing an understanding of local land use and property ownership.

g) Collaborate with indigenous peoples in all aspects of project design, and consider design alternatives that minimize adverse impacts.

h) Consult with relevant stakeholders to understand local context and key risk areas.

i) Proper placement, handling and disposition of solid waste, in accordance with municipal collection and waste disposal.

Component 2:

Investment in sustainable productive and natural ecosystems catalyzed[ Technical Assistance and

Action Type 2 Advisory services related to improving the enabling environment for increased agricultural market integration.

Any modeling or technical analysis will include the consideration of the full value of ecosystem services that the particular land, water (surface, subsurface), forest and air provide to the specific and surrounding geography in question. Technical analysis to include environmental and social impact analysis that include the following under review:

● Site clearance for construction can cause https://www.usaid.gov/sites/default/files/documents/1860/SectorEnvironmentalGuidelines_Construction_2017.pdf https://www.usaid.gov/sites/default/files/documents/1860/ENCAP_VFG-Construction_Dec2011.pdf https://www.usaid.gov/sites/default/files/documents/1860/ENCAP_VFG-Construction_Dec2011.pdf https://www.usaid.gov/sites/default/files/documents/1860/Spanish_SectorEnvironmentalGuidelines_Construction_2017.pdf advisory work such as analysis, modeling, strategy development and stakeholder engagement and coordination aimed at improving local private sector integration into sustainable markets] erosion of soil, minerals, and release of harmful pollutants into nearby streams.h) impacts to displaced persons, to marginalized populations.

Only projects with minimum negative impacts on the environment and people to be supported. For projects that may lead to significant environmental and/or social impacts, an IEE amendment will be needed prior to approval.

Component 3:

Improved policy and regulatory environment for sustainable public and private investments in productive and natural ecosystems.

Action Type 3 The development of analyses, studies, surveys, baseline studies, pre-feasibility assessments, assessments, performance or impact evaluations of programs, academic or research workshops and meetings and information

Ensure that legislation and policies are developed that are in accordance with any USAID climate change strategies or guidance that is in place at the time of the award, and that will follow local guidance related to enforce protection of habitat for wildlife and water resources.

6.0 LIMITATIONS OF THIS INITIAL ENVIRONMENTAL EXAMINATION

The determinations recommended in this document apply only to projects/activities and sub-activities described herein. Other projects/activities that may arise must be documented in either a separate IEE, an IEE amendment if the activities are within the same project/activity, or other type of environmental compliance document and shall be subject to an environmental analysis within the appropriate documents listed above.

Other than projects/activities determined to have a Positive Threshold Determination, it is confirmed that the projects/activities described herein do not involve actions normally having a significant effect on the environment, including those described in 22 CFR 216.2(d).

In addition, other than projects/activities determined to have a Positive Threshold Determination and/or a pesticide management plan (PERSUAP), it is confirmed that the projects/activities described herein do not involve any actions listed below. Any of the following actions would require additional environmental analyses and environmental determinations:

● Support project preparation, project feasibility studies, or engineering design for activities listed in §216.2(d)(1);

● Affect endangered and threatened species or their critical habitats per §216.5, FAA 118, FAA 119;

● Provide support to extractive industries (e.g. mining and quarrying) per FAA 117;

● Promote timber harvesting per FAA 117 and 118;

● Lead to new construction, reconstruction, rehabilitation, or renovation work per

§216.2(b)(1);

● Support agro-processing or industrial enterprises per §216.1(b)(4);

● Provide support for regulatory permitting per §216.1(b)(2);

● Lead to privatization of industrial facilities or infrastructure with heavily polluted property per §216.1(b)(4);

● Research, testing, or use of genetically engineered organisms per §216.1(b)(1), ADS

● Assist the procurement (including payment in kind, donations, guarantees of credit) or use (including handling, transport, fuel for transport, storage, mixing, loading, application, clean-up of spray equipment, and disposal) of pesticides or activities involving procurement, transport, use, storage, or disposal of toxic materials. Pesticides cover all insecticides, fungicides, rodenticides, etc. covered under the Federal Insecticide, Fungicide, and Rodenticide Act per §216.2(e) and §216.3(b).

7.0 REVISIONS

Per 22 CFR 216.3(a)(9), when ongoing programs are revised to incorporate a change in scope or nature, a determination will be made as to whether such change may have an environmental impact not previously assessed. If so, this IEE will be amended to cover the changes. Per ADS 204, it is the responsibility of the USAID A/COR to keep the MEO/REA and BEO informed of any new information or changes in the activity that might require revision of this environmental analysis and environmental determination.

ATTACHMENTS:

Annex 1: Climate Risk Management Summary Table.

ANNEX 1. ACTIVITY CLIMATE RISK MANAGEMENT SUMMARY TABLE

Tasks/Defined or Illustrative Interventions

Climate Risks13

Risk Rating 14 How Risks are Addressed15

Further Analysis and Actions for Activity Design/ Implementation

Opportunities to Strengthen Climate Resilience16

Action Type 1:

Component 1:

Incomes increased through sustainable market systems [Assistance and Training]

Extreme climate events of extreme rains and flooding could negatively affect the delivery of capacity building, assessments, technical assistance, trainings, studies and analysis

Extreme climate events can lead to reduced crop productivity, thus impacting sales and beneficiary income.

MODERATE Asking implementing partners to prepare contingency plans for events or technical assistance that can not be provided due to…