Attachment_J.5.pdf

LAC-IEE-12-59

ENVIRONMENTAL THRESHOLD DECISION

Activity Location: Guatemala

Activity Title: Development Objective Three: Improved

Management of Natural Resources to

Mitigate Impacts of Global Climate Change

(GCC)

Activity Number: TBD

Life-of-Activity-Funding: $41.6 million

Life-of-Activity: FY 2012 – FY 2016

IEE Prepared by: Liliana Gil Boiton, USAID/Guatemala

Reference Environmental Threshold

Decisions (ETD): LAC-IEE-11-69

Recommended Threshold Decision: Categorical Exclusion

Negative Determination with Conditions

Positive Determination

Bureau Threshold Decision: Categorical Exclusion

Negative Determination with Conditions

Positive Determination

Comments:

A Categorical Exclusion is issued to DO3, Improved Management of Natural Resources to Mitigate Impacts of Global Climate Change (GCC) activities, involving technical assistance, training, analyses, studies, workshops, document transfers, and others that will not have an impact on the environment. Applicable sections of to 22 CFR 216.2(c)(2)(i) include:

(i) Education, technical assistance, or training programs except to the extent

ATTACHMENT J.5 INITIAL

ENVIRONMENTAL

EXAMINATIONS

SOL-520-17-000003

such programs include activities directly affecting the environment (such as construction of facilities, etc.)

(xiv) Studies, projects or programs intended to develop the capability of recipient countries to engage in development planning, except to the extent designed to result in activities directly affecting the environment (such as construction of facilities, etc.).

A Negative Determination with Conditions is issued to DO3, Improved Management of

Natural Resources to Mitigate Impacts of Global Climate Change (GCC) Sub-IR 3.2.1:

Improved technologies to mitigate the effects of climate change adopted activities for the building, installation, or refurbishing of various forms of small-scale infrastructure.

Conditions include:

The Recipient shall follow USAID's "Environmental Guidelines for Development of

Activities in Latin America and the Caribbean", especially Chapter 2 regarding small-scale infrastructure, to identify mitigation measures. These documents are available at the following website:

o http://transition.usaid.gov/locations/latin_america_caribbean/environment/ docs/epiq/epiq.html

Upon identification of site-specific actions, the recipient shall develop an

Environmental Mitigation Plan (EMP) to be submitted to the Agreement Officer

Representative (AOR) for approval by the Mission Environmental Officer (MEO) and

Regional Environmental Advisor (REA) prior to implementation (See the following links for guidance on EMP development and implementation) o http://transition.usaid.gov/gt/docs/emp_format.pdf (English version) o http://transition.usaid.gov/gt/espanol/docs/emp_format_spanish.pdf

(Spanish version).

A Positive Determination is issued to DO3, IR 3.1, Market-driven Conservation and

Management Strategies Implemented, for the following proposed activities: develop market-driven conservation strategies at the community level in focus areas and at the national level as appropriate. This includes all forestry, reforestation and restoration activities, including those in the Western Highlands, which have the potential for significant adverse effects on the environment. Accordingly, the recipient of the

Cooperative Agreement(s) under RFA for the Climate, Nature and Communities in

Guatemala (CNCG) program is required to prepare and submit a Scoping Statement and Environmental Assessment (EA), pursuant to 216.3 (a) (4)-(6) and 216.6, addressing the significant environmental issues associated with the proposed activities.

No activity identified under this Positive Determination can proceed until a Scoping

Statement as described in 216.3(a) (4) and an EA as described in 216.6 are completed and approved by USAID. Both the Scoping Statement and EA require the approval of the LAC Bureau Environmental Officer (BEO).

The Scoping Statement and the EA should include references to the following documents:

o Environmental Guidelines for Development of Activities in Latin America and the Caribbean, Ch 8 Agriculture and Watershed Management, and Ch.

9 Forestry, o The Programmatic Environmental Assessment for Natural Forest

Management Concessions for the Maya Biosphere Reserve, Petén, Guatemala (December 1994), o The Programmatic Environmental Assessment for Rainforest Alliance’s

Forestry Projects in Guatemala, Honduras, Nicaragua & Panamá (May

2007), o Existing guidelines from the Forest Stewardship Council, the Rainforest

Alliance, the Government of Guatemala, and other organizations involved in the sector, o Existing EMPRs and guidelines from Mission-supported for non-timber forest products, such as xate palm, Conditions also include:

Responsibilities

Each activity manager or Contracting (or Agreement) Officer Representative

(COR/AOR) is responsible for making sure environmental conditions are met (ADS

204.3.4). In addition, COR/AORs are responsible for ensuring that appropriate environmental guidelines are followed, mitigation measures in the IEE are funded and implemented, and that adequate monitoring and evaluation protocols are in place to ensure implementation of mitigation measures.

It is the responsibility of the Development Objective (SO) Team to ensure that environmental compliance language from the ETD is added to procurement and obligating documents, such as activity-related Development Objective Grant

Agreements (DOAGs), program descriptions, and statements of work.

The Mission Environmental Officer will conduct spot checks to ensure that conditions in the IEE and this ETD are met. These evaluations will review whether guidelines are properly used to implement activities under this ETD in an environmentally sound and sustainable manner according to USAID and applicable

U.S. Government policies and regulations.

The implementing contractor or partner will ensure that all activities conducted under this instrument comply with this ETD. Also, through its regular reporting requirements, a section on environmental compliance (e.g. mitigation monitoring results) will be included.

Amendments

Amendments to Initial Environmental Examinations (IEE) shall be submitted for

LAC Bureau Environmental Officer (BEO) approval for any activities not specifically covered in the IEE, which include:

o Funding level increase beyond ETD amount, o Time period extension beyond ETD dates (even for no cost extension), or o A change in the scope of work, such as the use of pesticides or activities subject to Foreign Assistance Act sections 118 and 119 (e.g.

procurement of logging equipment), among others.

________________________ Date_______

Victor H. Bullen

Bureau Environmental Officer

Bureau for Latin America and the Caribbean

Copy to: Kevin Kelly, Mission Director, USAID/Guatemala

Nancy Hoffman, DD

Kerry Monaghan-Hogler, DGO, Jeffrey Lehrer, PPS

Lucia Salazar, PPS

Teresa Robles, MEO

Copy to: Paul Schmidtke, Regional Environmental

Advisor, USAID/El Salvador

Copy to: Nancy Eslick, Julie Ciccarone

LAC/CAM

Tracy Quilter, Bruce Bayle, Christine

Pendzich, LAC/RSD

Copy to: IEE File

Attachment: Initial Environmental Examination

File: LAC.RSD.PUB\RSDPUB\ENV\Reg216\IEE\IEE12\ LAC-IEE-12-59 ETD (GU -

DO3 Improved Mgmnt Natural Res to Mitigate Impacts of GCC).doc

INITIAL ENVIRONMENTAL EXAMINATION

Activity Location: Guatemala

Activity Title: Development Objective Three: Improved

Management of Natural Resources to

Mitigate Impacts of Global Climate Change

(GCC)

Life-of-Activity Funding: $41.6 million

Life-of-Activity: FY 2012-2016

Reference Threshold Decisions: LAC-IEE-11-69

Funding Source: DA

IEE Prepared by: Liliana Gil Boiton, USAID/Guatemala

Date Prepared: August 29, 2012

Recommended Threshold Decision: -Categorical Exclusion

-Negative Determination with Conditions

-Positive Determination

1. Background and Project Description

1.1 Purpose and Scope

This IEE covers all activities to be implemented under Development Objective 3:

Improved Management of Natural Resources to Mitigate Impacts of Global Climate

Change (GCC) of USAID/Guatemala Country Development Cooperation Strategy

(CDCS).

1.2 Background

USAID/Guatemala Country Development Cooperation Strategy (CDCS) (2012-2016) approved by the Assistant Administrator for the Bureau of Latin America and the

Caribbean on March 16, 2012 includes three Development Objectives (DO): DO1:

Greater Security and Justice for Citizens, DO2: Improved Levels of Economic

Growth and Social Development in the Western Highlands, and DO3 Improved

Management of Natural Resources to Mitigate Impacts of Global Climate Change. The three Intermediate Results (IR) under DO3 are IR 3.1: Market-driven Conservation and Management Strategies Implemented, IR 3.2 Vulnerability to the Effects of

Global Climate Change Reduced and IR 3.3 IR 3.3 Environmental Governance

Strengthened:

In accordance with the new Project Design Guidance, a project will generally focus on the IR level or the Development Objective level if it is associated with relatively small levels of resources and/or incorporates highly integrated IRs. Therefore, USAID/Guatemala has defined its projects as follows:

Citizen Security Project: DO1: Greater Security and Justice for Citizens

Agriculture Project: DO2, IR1: Broad Based Economic Growth and Food

Security Improved

Health Project: DO2, IR2: Access to and Use of Sustainable Quality Health

Care and Nutrition Services Expanded

Education Project: DO2, IR3: Education Quality and Access Improved

Environment Project: DO3: Improved Management of Natural Resources to

Mitigate Impacts of Global Climate Change.

This IEE is for the Environment Project.

Many of the activities to be implemented under this Project will be follow-on to the projects and activities implemented under the Central America and México (CAM)

Strategy under SO2: Economic Freedom: Open, Diversified, Expanding Economies, Intermediate Result 2: More Competitive, Market-Oriented, Private Enterprises.

Activities under this IEE that were initially funded with FY2011 funds were approved on previous LAC-IEE-11-69 under activity No. 4 “New Environment.” The recommendations included under LAC-IEE-11-69 are still valid. These recommendations and its conditions as well as the requirement to perform an

Environmental Assessment for market-driven conservation strategies at the community level in focus areas and at the national level as appropriate, were included in the RFA-

520-12-000007 to international and local bidders for the Climate, Nature and

Communities in Guatemala (CNCG) program published in http://www07.grants.gov/search/search.do?oppId=172913&mode=VIEW

The CNCG is the major environmental implementing mechanism ($25-30 million) for

DO 3. Other planned implementing mechanisms include a PAPA with the U.S. Forest

Service to work with the GOG to develop a LEDS work program and implementation of the work program activities, and a separate contract (implementing partner to be selected) to support the LEDS process.

Guatemala’s biodiversity and cultural heritage hold great promise for the country’s development through implementation of sustainable forestry practices, carbon sequestration credit programs, ecotourism activities, environmental service payments and other initiatives. However, the rapid population growth rate and increasing demand for agricultural and forest products put tremendous pressure on Guatemala’s natural resources, especially as the largest sources of carbon emissions in Guatemala are deforestation, land degradation and conversion of land to agriculture.

Lack of sustainable management and conservation of natural resources contributes to global climate change, which in turn disproportionately affects the livelihoods of impoverished Guatemalans and exacerbates the effects of poor land management practices. Conversely, by supporting sustainable management and conservation practices at the institutional level, and working with local communities to adopt practices that reduce vulnerability to natural disasters and increase their incomes, the impacts of global climate change on Guatemala’s people and environment can be greatly mitigated.

DO 3 contribute directly to the goals set out in the GCC Initiative. Through this DO, USAID will support improved natural resource management, mitigation of the impacts of natural disasters, strengthening of institutions to enhance environmental governance and collaboration with the GOG in the design of its Low Emission Development Strategy

(LEDS).

According to the May 2010 USAID Guatemala Biodiversity and Tropical Forest

Assessment, despite the strong conservation agenda articulated by the GOG, weak governance precludes successful conservation efforts. For instance, the Guatemala

Protected Area System has significant ecological gaps in terrestrial, freshwater and marine ecosystems, and budgets are insufficient to carry out official mandates. Other constraints to effective natural resource management include incomplete data to support planning and decision-making, insufficient and poorly trained personnel, insufficient equipment and infrastructure to carry out research activities, and support stakeholder collaboration. Furthermore, the lack of legitimate land titles results in uncontrolled land use and the inability of the GOG to cohesively manage Guatemala’s natural resources.

Compounding weak governance with respect to natural resource management is the shortage of legitimate economic opportunities faced by rural Guatemalans, which results

According to the Ministry of Environment and Natural Resources (MARN) on the inventory of the effects of greenhouse gases, prepared in 2008, more than 50% of emissions in Guatemala – and Latin America on average – are a result of these land-use changes.

In fact, this trend has increased in recent years, and is especially evident in the increased gross rate of deforestation from 93,000 hectares per year during 1991-2001 to 101,000 hectares per year during 2001-2006 (Mapa de Dinámica de Cobertura Forestal de

Guatemala 2001-2006, UVG, INAB, CONAP, URL 2011).

http://www.usaid.gov/locations/latin_america_caribbean/environment/docs/section_118/Guate_FY2010.pdf in environmentally unsustainable human activities that present continuous threats to sound natural resource management. These practices include:

Habitat loss, degradation and fragmentation as a result of unmanaged fires, land conversion for agriculture and cattle, land conversion for mineral and petroleum development, the introduction of exotic or opportunistic species, and drug trafficking;

Over-exploitation of natural resources, specifically due to poorly managed forest product harvests, unregulated hunting and collection of wildlife for illicit national and international markets, and poorly regulated harvests of marine life;

Environmental contamination from poorly-managed liquid, solid, and atmospheric wastes, agricultural runoff, and ineffective regulation of mineral and petroleum development.

In 2010, USAID Guatemala supported the Ministry of Environment’s development of two key documents: Evaluation of Impacts of Climate Change on Biodiversity and Tropical

Forests and Recommendations for Mitigation and Adaptation for Guatemala. A number of recommendations pertaining to climate change adaptation and mitigation policies, as well as territorial planning instruments were developed and elaborated upon in these documents. The main recommendations highlight the developing of new and improved protected areas and redesigning of the proposed National Ecological Corridors; halting deforestation; developing financial mechanisms for biodiversity management and adaptation to climate change; increasing investment in traditional knowledge and technological development; reengineering of the GOG institutional environment sector;

and increasing information dissemination and awareness activities.

According to the Economic Commission for Latin America and the Caribbean

(ECLAC),

Central America is one of the regions that is most vulnerable to climate change, even though it produces a very minimal share of greenhouse gas (GHG) global emissions. It is estimated that Guatemala produces less than 0.04% of the planet’s carbon; however, it is among the ten most vulnerable countries to climate change according to the 2009 Global Assessment Report on Disaster Risk Reduction, published by the United Nations International Strategy for Disaster Reduction Secretariat

(UNISDR).

USAID Guatemala involvement in improved sustainability of natural resources and biodiversity concentrates on support to national policy and government institutions and to local level programs for income and employment generation through sustainable use and management of natural resources. The involvement of local communities in healthy and functioning ecosystems, through sustainable management of natural resources and biodiversity conservation interventions, are vital to long term development. This is so because healthy, functional ecosystems reduce vulnerability to tropical storms; provide a steady supply of water for industry, energy, consumption and irrigation; and offer sustainable livelihoods for the rural poor through agriculture, forestry, tourism and fishing. In turn, sustainable livelihoods contribute to increased citizen security and public

3MARN, CONAP, National Forest Institute (INAB).

The Economics of Climate Change in Central America: Summary 2010. ECLAC, United Nations. November 2010.

5http://www.preventionweb.net/english/hyogo/gar/report/index.php?id=9413 participation; reduce threats to biodiversity conservation and the influence of narco-traffickers in rural communities.

To date, approximately 20% of the temporary and permanent jobs generated by community forestry concessions and certified environmental businesses with USAID assistance are held by women. Non-timber forest products such as xate palms and ramón nuts are harvested and sold in its majority by women. USAID Guatemala assistance in the

Petén region has had a consistent gender focus over 15 years and notable shifts in the generalized male dominance have occurred. These changes are seen in the fact that women now serve as board members in the forestry community concessions and have positions as accountants and managers. Changes due to the gender focus are also notable at the community level in that a portion of the benefits of sustainable forest management and the income from the sale of forest products is invested in community infrastructure that is used primarily by women and children, such as schools and health care facilities.

USAID Guatemala will continue assistance that generates jobs and incomes for women and that supports their participation in entities dedicated to the production and commercialization of timber and non-timber forest products.

DO 3 hypothesizes that community-based economic incentives for conservation and protection of biodiversity coupled with enforcement of existing environmental regulations and improved national policies will safeguard the resource base necessary for sustainable rural development. Concurrent reduction of vulnerability to natural disasters will help mitigate loss of life and livelihoods.

USAID Guatemala will also continue to help prepare Guatemala to participate in the global carbon market through Reduction in Emissions from Deforestation and

Degradation Plus (REDD+) projects, especially in key forested areas in Northern

Guatemala where deforestation risks are highest. Sustaining forested areas will reduce

Guatemala’s carbon emissions, facilitate the implementation of a LEDS and provide opportunities to market and sell carbon sequestration credits. Sustainable forest management activities will also help Guatemala adapt to the effects of global climate change, such as flooding, forest fires and desertification.

DO 3 will contribute directly to the goals set out in the GCC Initiative and biodiversity conservation by creating incentives for sustainable natural resource management, reducing vulnerability to climate change and natural disasters, strengthening the role of local environmental management, mitigating risks of natural disasters and collaborating with the GOG on new natural resource strategies and policies.

The Intermediate Results detailed below will contribute to the attainment of DO 3. The sub-IRs associated with each IR contribute to the long term success of development activities by creating market-driven conservation models, which will contribute to biodiversity conservation, reducing climate change related vulnerability and improving environmental governance.

The environment projects under DO 3 are inherently connected to both DO 1 and DO 2 of the CDCS. While IR 3.2 Vulnerability to the Effects of Global Climate Change

Reduced focuses specifically on reducing communities’ vulnerability to the impacts of climate change, the connections between natural disasters and agriculture cannot be ignored. IR 3.2 and DO2 Sub-IR 2.1.3: Resiliency of Vulnerable Communities and

Households Increased will complement each other by increasing agricultural communities’ resiliency to economic events while also enabling communities to weather environmental changes that impact their livelihoods. IR 3.3 Environmental Governance

Strengthened supports the strengthening of environmental governance, which incorporates support to key policies. In addition, improving GOG management of natural resources will reduce environmental crimes and the smuggling of endangered flora and fauna that provides income for criminal organizations. Coordination with the USAID

Democracy and Governance Office for the prosecution of environmental crimes will be important for results.

1.3 Description of Activities:

IR 3.1: Market-driven Conservation and Management Strategies Implemented

Guatemala has the largest forested area in Mesoamerica, and combined with forests in

Southern Mexico, Guatemala’s forests form part of the second largest contiguous forest in the Americas after the Amazon, and as such, have a high level of diverse and endemic flora and fauna.

One decade ago, a Guatemalan National GHG Inventory developed as part of the First

National Communication to the United Nations Framework Convention on Climate

Change (UNFCCC) showed that its carbon sinks (forests, soils) absorb almost three times more GHGs (about 38,000 metric tons of CO2e/yr ) than its agricultural, energy, and industrial sectors emit (14,000 mtCO2e/yr), leaving the country with “negative” emissions

(-24,000 mtCO2e/yr). Assuming no major change in the intervening period, Guatemala is a major carbon reservoir in Central America, and thus conserving its large forested areas, which serve as carbon sinks, through sustainable land management is critical to environmental conservation and economic development for the country and for the region.

Guatemala is rich in tropical tree species; however, these species are under threat due to illegal logging, deforestation, narco-trafficking and environmental impacts resulting from global climate change. For more than 15 years, USAID has supported sustainable forestry and biodiversity conservation activities in Guatemala located in key protected areas that are part of the Guatemalan Protected Areas System (SIGAP). In particular, USAID supports community forestry concession activities in the Maya Biosphere Reserve (MBR)

Ministry of Environment and Natural Resources (MARN). Sept. 2001. First National Communication to the United Nations

Framework Convention on Climate Change. Government of Guatemala.

http://www.marn.gob.gt/sub/portal_cambio_climatico/index.html. In 2008, the GOG initiated the formulation of the Second National

Communication, but to date it has not been submitted to the UNFCCC.

Metric tons of carbon dioxide equivalent emissions per year protected area located in Petén, Northern Guatemala, which represents 67% of the SIGAP and is one of the largest protected areas in Central America. Through USAID support in the MBR, 500,000 hectares have been maintained under the Forest Stewardship Council

(FSC) certification for tropical timber sustainable management. In addition, approximately 180,000 hectares of forest land in the MBR that are managed for non-timber products, such as foliage, also received FSC certification - one of the first instances of certification for non-timber forest products in tropical ecosystems worldwide.

USAID developed an evaluation of the Forestry Concessions in the MBR, which found that the community forestry concessions bring tangible economic benefits and are increasingly being recognized at the local and international levels as appropriate models for stewardship and sustainable management of forests. Furthermore, due to the surveillance and control performed by the community concessionaires, the forestry concessions model limits the encroachment of non-sustainable agriculture and forest fires control. Standing forests also conserve carbon while supporting the livelihoods of a large number of rural and indigenous peoples and forest-dependent communities, as well providing essential ecosystem services, such as habitat for endemic species and provision of clean water supplies.

The CDCS will continue to promote sustainable forest management and biodiversity conservation activities and increased incomes at the community level in focus areas, including but not limited to the MBR, the Western Highlands, the Verapaces, the Sierra de las Minas Biosphere Reserve, and at the national level, as appropriate. Ongoing and future activities in this IR include, but are not limited to, support to community forestry concessions, collaboration with the GOG on a LEDS, and support to regional sustainable landscape activities.

Sub-IR 3.1.1: Market for community-based sustainable forest products promoted

The U.S. market for hardwood lumber constitutes 20% of the total U.S. wood market, of which 20% consists of tropical hardwoods. Tropical hardwood products compete for the same niche market as temperate hardwoods. The U.S. imports approximately 1.7 million cubic meters of tropical hardwoods and is the largest importer of secondary tropical hardwood products in the world.

In 2009, according to a Green Team report, the market for “green products” in the U.S.

had increased to $5 billion, and more than 504 companies in the agricultural, forestry and tourism sectors had developed standards to guarantee product sustainability. Companies such as North American Wood Products, Gibson Guitars, Kraft, Lipton (buyers of “green products” in Guatemala) along with hundreds of others are working toward increased corporate environmental responsibility. The environmental commitment of the companies

8Forest Concessions in the Maya Biosphere Reserve Evaluation Report. USAID/Date completed: September 2008, Translated in

English: October 2010.

9"Green Teams,” a formal or informal group of people in a company who are passionate about environmental issues, are gathering in offices across the U.S. to brainstorm solutions and promote ways in which their company's practices can become more environmentally sustainable.

and the growing market demand for “green products” combine for profitability for both producers and retailers. Despite the economic crisis, corporate social responsibility programs are seen as a competitive advantage in demanding forest products markets and are poised to have greater impact with the publication of ISO 26000 on social responsibility.

USAID will develop rural, community-based enterprises in sustainable forestry activities and other environmental services activities (i.e. ecotourism, carbon credit trade) in part by highlighting the financial incentives to be gained through natural resource conservation as a result of growing international demand for certified environmentally friendly products and services. Rural Guatemalans – both men and women, and especially members of indigenous communities – will receive training in the managerial and business skills needed to promote the licit and sustainable use of natural resources.

Potential illustrative activities include:

Promote community-based sustainable, legal harvest of timber and non-timber forest products

Identify markets for sustainably grown forest products and train organizations on establishing those market linkages

Facilitate technical assistance to generate other revenue from public and private protected area management

Promote and facilitate certification maintenance or expansion to access markets and keep the certification process sustainable.

Improve women’s leadership skills to increase their participation in market-driven conservation activities

Facilitate broad-based community and small business participation in providing sustainable tourism services within protected areas

Encourage and facilitate environmental and sustainable tourism good management practices in rural communities in or near protected areas

Sub-IR 3.1.2: National and/or sub-national forest and land use strategies adopted

USAID and the Inter-American Development Bank have been supporting the GOG, selected communities and NGOs to design sub-national initiatives to produce forest-based carbon emission reduction projects. USAID is supporting the development of a sub-national baseline for deforestation emissions, covering Petén and the northern area of Alta

Verapaz (40,000 km

USAID will continue its support to the GOG for the development of national emission baselines and land use strategies, participate actively as a partner in a host country-led

REDD+ strategy, and promote the creation of a national forest inventory and monitoring system. USAID will also help the Government of Guatemala to develop a LEDS.

10 Quote from UNECE/FAO Forest Products Annual Market Review, 2009-2010 vii.

The CDCS will support the development of national and sub-national forest and land-use strategies. These strategies will be developed with extensive stakeholder participation to ensure that private as well as community-owned and managed resources are accommodated. These strategies will be market-driven in order to generate income and other financial benefits for local communities from activities such as the sustainable harvest of timber and non-timber forest products; payments for environmental services;

sale of carbon credits, and other revenues from public and private protected area management; and reforestation and natural forest regeneration.

Identify and implement Payments for Environmental Services mechanisms

Promote reforestation and natural forest regeneration utilizing in part, existing government sponsored mechanisms, such as the Programa de Incentivos

Forestales (PINFOR) and the Programa de Incentivos para Pequeños Poseedores de Tierras de Vocación Forestal o Agroforestal (PINPEP)

Strengthen the operational capacity in forest protection actions (i.e. fire prevention) to reduce threats to high priority sites, including coordination with other stakeholders

Promote and facilitate local and institutional capabilities on public use planning and sustainable tourism management in protected areas

Facilitate the strengthening and continuance of a long term system for monitoring and evaluation of ecological integrity in key priority sites, such as in the MBR

IR 3.2: Vulnerability to the Effects of Global Climate Change Reduced

The evidence that Guatemala is highly vulnerable to climate change and natural disasters is extensive.

There are serious socio-economic impacts from climate change and natural disaster-related losses from which it takes years to recover, both on a national scale and at the local community level.

USAID designed and will implement an assessment for climate vulnerability and adaptation in 2012. This analysis will identify and recommend activities to address global climate change with respect to improving the institutional framework and related policies.

This assessment will also guide the design and implementation of activities to assist communities adapting to environmental changes resulting from global climate change.

This IR therefore has a link to sub-IR 2.1.3, in support of the Feed the Future Initiative in the Western Highlands, through helping agriculture producers to mitigate the effects of climate change.

Sub-IR 3.2.1: Improved technologies to mitigate the effects of climate change adopted

Measures will be taken to strengthen institutional capacity and infrastructure, and develop sustainable agricultural practices necessary to mitigate vulnerability and improve

The United Nations Global Assessment Report on Disaster Risk Reduction (2009) and the vulnerability indicators for the agricultural sector compiled by the World Bank show that Guatemala exceeds the Latin American averages (Guatemala – Country

Note on Climate Change Aspects in Agriculture. World Bank: Dec 2009.).

adaptation to the impacts of global climate change. Linkages will be established with sub-

IR 2.1.3 (Resiliency of vulnerable communities and households increased) to reduce vulnerability of communities in the Western Highlands. Ongoing and future efforts include FTF and GCC Initiative adaptation activities, such as training and capacity development on agricultural adaptation techniques to encourage better practices and build resilience to anticipated climate impact, particularly relating to reduced precipitation, increased aridity and storm events including flooding and landslides. Other technical and material assistance, including irrigation, appropriate terracing and other landscape interventions, intercropping and mulching, will be provided to help small-scale producer groups respond to current hazards and develop resilience to the effects of climate change.

High risk communities in Guatemala’s Western Highlands are identified.

Building and strengthening the capacity of local organization and community efforts to mitigate risks.

Efforts will include on-the-ground activities such as reforestation and improvements to municipal public works, related to natural resources and agriculture.

Provide institutional strengthening related to potential climate change impacts to

Guatemalan organizations that will be implementing the USAID agriculture rural value chain activities.

Provide training and capacity development on agricultural adaptation techniques to encourage better practices and build resilience to anticipated climate impacts, particularly those relating to storm events, including flooding and landslides, reduced precipitation and increased aridity to key Guatemalan organizations or government agencies.

Sub-IR 3.2.2: Local institutions provided with access to risk identification and mitigation tools

USAID will help strengthen the response and communications capacities of local government institutions and communities with respect to natural disasters, including strengthening of early warning systems. Measures will include strengthening of local organizations and community efforts to mitigate risks associated with floods, droughts, forest fires, landslides and volcanic eruptions. Efforts will include on-the-ground disaster mitigation activities such as reforestation and improvements to municipal public works, as well as the strengthening of local early warning systems and increased local use of forecast information, decision making systems [i.e. Regional Visualization and

Monitoring System (SERVIR)] and national institutions [i.e. Monitoring and Evaluation

Center (CEMEC) of the National Council of Protected Areas (CONAP) and National

Coordination for Disaster Reduction of Guatemala (CONRED)].

Strengthen the development of land use plans to mainstream climate change and variability considerations.

Facilitate local and traditional knowledge incorporation into adaptation planning that will help communities deal with climate stressors.

Assist the development of community level disaster prevention planning.

Help develop and disseminate socially and culturally appropriate adaptation measures

Provide technical assistance to establish decentralized information systems and information dissemination strategies with the goal to rapidly reach remote communities.

Facilitate development/strengthening of early warning systems implementation in the Western Highlands and increase local use of forecast information

IR 3.3: Environmental Governance Strengthened

Projects under this IR will focus on improving local and community-based management of natural resources and the integration of local and national level monitoring and environmental management to improve governance in target regions. Improved local governance of natural resources increases sustainable conservation, lays the groundwork necessary for sustainable market development (IR 3.1), and improves security in isolated areas by increasing government and civil society presence. Ongoing and future activities include the partnership with the U.S. Department of the Interior to work in Petén to strengthen governance and security in the MBR by improving the performance of public institutions and civil society. Also, coordination with USAID regional programs will be promoted.

Sub-IR 3.3.1: Local institutions strengthened to improve environmental management, protection and enforcement of regulations

Most of the areas supported by USAID are managed by communities and local institutions that provide the critical link between income generation and project ownership that support strong incentives for resource stewardship. Good and efficient governance of forest resources and the transparent distribution of benefits will be central to the success of REDD+ policies and measures. If the allocation of forest or carbon rights is opaque and uncertain, if the distribution of benefits is unpredictable, untimely or captured by a few, if lack of enforcement allows free riders to exploit the system, or if corruption is perceived as high, stakeholders will not take the risk of forgoing the income they derive from their current uses of forest resources.

USAID assistance will focus on promoting and strengthening local institutions and community organizations to implement natural resources best practices and compliance with environmental regulations. In addition, USAID will provide policy and regulatory reform support to strengthen environmental management and enforcement of environmental laws.

Provide technical assistance to conduct a thorough analysis of the drivers of deforestation from both within and outside the forest sector

Facilitate the strengthening of the policy, economic, institutional and regulatory framework to address the main drivers of deforestation and forest degradation

Improve and facilitate access to information on the scientific and technical aspects of REDD+, the benefits and potential negative effects of REDD+ mechanisms

Building and strengthening the capacity of GOG officials and civil society actors to participate in the design and implementation of REDD+ initiatives, as well as in national and local policy and decision-making processes

Help to define a clear role of indigenous peoples and local communities in

REDD+

Strengthen civil society networks and multi-stakeholder platforms for REDD+

Guatemalan NGO’s receive training and technical assistance to become national leaders in technical and policy aspects of climate change, adaptation, REDD+, and low carbon development, carbon markets, carbon finance, and international

REDD+ negotiations, forest and biodiversity

1.4 Locations Affected:

Activities oriented to develop market-driven conservation strategies at the community level have the potential for significant adverse effects on the environment. Accordingly, the recipient of the Cooperative Agreement(s) under RFA for the Climate, Nature and

Communities in Guatemala (CNCG) program will perform an Environmental

Assessment. In addition to the national level, DO3 will focus site-specific activities in the MBR, Sierra de Las Minas Biosphere Reserve, Alta Verapaz, and Baja Verapaz departments, and may also include the following five departments of the Western

Highlands: San Marcos, Huehuetenango, Quiché, Quetzaltenango, and Totonicapán.

Adaptation activities will focus on the Western Highlands region, supporting the FTF and

Global Health Initiative target regions, and due to their nature and scale their environmental effects will be limited and overall foreseeable as positive.

1.5 Applicable Environmental Policies, Procedures or Regulations

The Foreign Assistance Act of 1961, as amended, Section 117 requires that the impact of USAID’s activities on the environment be considered and that USAID include environmental sustainability as a central consideration in designing and carrying out its development programs. This mandate is codified in Federal Regulations (22 CFR 216) and in USAID’s Automated Directives System (ADS) Parts 201.3.11(b) and 204

(http://www.usaid.gov/policy/ads/200/), which, in part, requires that the potential environmental impacts of USAID-financed activities are identified prior to a final decision to proceed and that appropriate environmental safeguards are adopted for all activities. Under DO3 implementing partners for the different implementing mechanisms such as the CNCG, PAPA with the U.S. Forest Service and a new contract to implement

LEDS will acquire these environmental compliance obligations.

In addition, the implementing partners must comply with host country environmental regulations unless otherwise directed in writing by USAID, including

Guatemalan Congress Decrees Nos. 68-86 (Environment Protection and Improvement

Law), 4-89 (Protected Areas Law and regulations of biodiversity and natural resources sustainable management in protected areas); 5-90 (Mayan Biosphere Reserve Declaration

Law); 49-90 (Sierra de Las Minas Biosphere Reserve Declaration Law); 101-96 (Forestry law, responsibilities on sustainable forests and natural resources management outside protected areas); 40-97 (Visis-Caba Biosphere Reserve Declaration Law); 114-97

(Ministry of Agriculture responsibilities on agricultural norms and environmental protection); 90-2000 (Ministry of Environment and Natural Resources responsibilities on sustainability of natural resources management, environmental pollution controls and climate change related governance and regulations) and 55-2003 (Yaxha-Nakum-Naranjo protected areas declaration law). In case of conflict between host country and USAID regulations, the latter shall govern.

2. Evaluation of environmental impact potential

Due to the nature of the sustainable forest management activities in the MBR, the

Western Highlands, the Verapaces and Sierra de las Minas, and the Forestry Stewardship

Council certification process in the MBR, there are limited but foreseeable environmental impacts of the activities to be implemented under DO3, IR 3.1: Market-driven

Conservation and Management Strategies Implemented. These activities include logging trees using chainsaws and managing concessionaires’ sawmills and carpentries, forestall nurseries management and reforestation and natural forest regeneration activities; which take place both in the community forestry concessions in MBR as well as in other areas that do not fall under the protected area category and the development and updating of management plans for sustainable timber and non-timber forest products.

These potential environmental impacts require an environmental assessment (EA) before

CNCG activities initiate. The implementing partner will perform such EA with a geographical focus that will be determined once the CNCG is awarded.

Activities related to small scale tourism infrastructure have the foreseeable and manageable environmental impacts of generating waste water as well as solid waste management, which will require appropriate treatment. Small-scale infrastructure development and touristic tracks development have the possibility of generating solid waste, creating minor soil erosion and exposing workers to hazards. Reforestation activities such as tree nurseries and tree planting, and small-scale agricultural practices, need to deal also with environmental impacts such as appropriate selection of small plots for tree nurseries, drip irrigation systems and organic farming practices like mulching and other soil conservation techniques. Upon identification of site-specific actions, the recipient shall develop an Environmental Mitigation Plan (EMP) as described in the following section.

3. Recommended Threshold Decisions and mitigation actions

A Categorical Exclusion is recommended to those activities involving technical assistance, training, analyses, studies, workshops, document transfers, and others that will not have an impact on the environment. Applicable sections of to 22 CFR 216.2(c)(2)(i) include:

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

(xiv) Studies, projects or programs intended to develop the capability of recipient countries to engage in development planning, except to the extent designed to result in activities directly affecting the environment (such as construction of facilities, etc.).

A Negative Determination with Conditions is recommended for the building, installation, or refurbishing of various forms of small-scale infrastructure and to all forestry management related activities, including reforestation and restoration activities.

The Recipient shall follow USAID's "Environmental Guidelines for Development of

Activities in Latin America and the Caribbean", especially Chapter 2 regarding small-scale infrastructure and Chapter 9 regarding forestry activities, to identify mitigation measures. These documents are available at the following website:

o http://transition.usaid.gov/locations/latin_america_caribbean/environment/ docs/epiq/epiq.html

Upon identification of site-specific actions, the recipient shall develop an Environmental

Mitigation Plan (EMP) to be submitted to the Agreement Officer Representative (AOR) for approval by the Mission Environmental Officer (MEO) and Regional Environmental

Advisor (REA) prior to implementation (See the following links for guidance on EMP development and implementation) o http://transition.usaid.gov/gt/docs/emp_format.pdf (English version) o http://transition.usaid.gov/gt/espanol/docs/emp_format_spanish.pdf

(Spanish version).

A Positive Determination is recommended for the following proposed activities:

develop market-driven conservation strategies at the community level in focus areas and at the national level as appropriate. This indicates that these activities have the potential for significant adverse effects on the environment. Accordingly, the recipient of the

Cooperative Agreement(s) under RFA for the Climate, Nature and Communities in

Guatemala (CNCG) program is required to prepare and submit an Environmental

Assessment (EA) addressing the environmental concerns raised by these activities. No activity identified under this Positive Determination can proceed until a Scoping

Statement as described in 216.3(a)(4) and an EA as described in 216.6 are completed and approved by USAID. Both the Scoping Statement and EA require the approval of the

LAC Bureau Environmental Officer (BEO).

USAID/Guatemala hereby recommends that the LAC Bureau Environmental Officer concurs with the recommendations included in this IEE.

Concurrence: Kevin Kelly

Mission Director

Date: __________________________

Development Objective Three: Improved Management of Natural

Resources to Mitigate Impacts of Global Climate Change (GCC)

Drafted by: LGil, PPS ____________

Cleared by: MVisocky, EGO ____________

TRobles, MEO ____________

Paul Schmidtke, REA ____________

Jeff Lehrer, PPS ____________

Nancy Hoffman, DD ____________

LAC-IEE-17-05

ENVIRONMENTAL THRESHOLD DECISION

AMENDMENT #1 to

INITIAL ENVIRONMENTAL EXAMINATION LAC-IEE-12-59

Activity Location: Guatemala

Activity Title: Development Objective Three: Improved Management of Natural Resources to Mitigate Impacts of Global Climate Change (GCC)

Life of Activity Funding: $71.1 Million

Life of Activity: FY2012-FY2018

Referenced Threshold Decision: LAC-IEE-11-69, LAC-IEE-12-59, LAC-EA-14-03

IEE Prepared by: Regina Soto, MEO

Date Prepared: October 12, 2016

Recommended Threshold Decision: Categorical Exclusion Negative Determination with Conditions Deferral

Bureau Threshold Decision: Concur

1. Purpose and Scope of IEE

The attached Initial Environmental Examination (IEE) amendment was prepared to address several changes to the current IEE for “Improved Management of Natural Resources to Mitigate Impacts of Global Climate Change (GCC).” The current IEE (LAC-IEE-12-59 was approved in September 2012 for the period FY12-16. The changes in this amendment are as follows:

• Increase the total amount to be obligated from $41.6 million to $71.1 million

• Extend the period of implementation by two years, through FY18, as provided by the new country strategy (CDCS)

• Add a new activity under Sub-Purpose 1: Market-driven conservation and management strategies implemented and Sub-Purpose 3: Environmental governance strengthened, and

Attachment J.5

SOL-520-17-000002

add three new geographic regions: the Pacific and Atlantic Coasts and surrounding areas, and southern Petén (beyond the boundaries of the Maya Biosphere Reserve)

The new mechanism Protecting Endangered Flora and Fauna in Guatemala will improve environmental governance and management throughout Guatemala's Protected Area System, through a combination of targeted national-level interventions and pilot activities in three protected areas.

The additional funding will also allow the Mission to continue with their activities under the following implementing mechanisms: CNCG (Climate, Nature and Communities in Guatemala), LEDS (Low Emissions Development Strategy) and the Participating Agency Program Agreement (PAPA) with the U.S. Forest Service and a PAPA with the U.S. Department of Interior's International Technical Assistance Program (DOI-ITAP).

Pursuant to section 216.2(a) of USAID environmental procedures, environmental analysis/evaluation is required for new projects, programs, or activities authorized by…