ZERO DEFORESTATION SOME COMMENTS AND OBSERVATIONS

Transcription

1 ZERO DEFORESTATION SOME COMMENTS AND OBSERVATIONS WRI-Chatham House Transatlantic Dialogue October 23-24, 2014 Tuukka Castrén/World Bank

2 World Bank Safeguard Policies The World Bank Group Framework and IFC Strategy for Engagement in the Palm Oil Sector (2011) Issues

3 World Bank Strategy Eradication of extreme poverty Promoting shared prosperity Sustainability 2

4 OP 4.36: Forests 5. The Bank does not finance projects that, in its opinion, would involve significant conversion or degradation of critical forest areas or related critical natural habitats 7. The Bank does not finance plantations that involve any conversion or degradation of critical natural habitats, including adjacent or downstream critical natural habitats 3

5 8. The Bank may finance commercial harvesting operations only when the Bank has determined [ ] that the areas affected by the harvesting are not critical forests [ ] 9. To be eligible for Bank financing, industrial-scale commercial harvesting operations must also a) be certified under an independent forest certification system [ ] 4

6 OP Natural Habitats 4. The Bank does not support projects that, in the Bank's opinion, involve the significant conversion or degradation of critical natural habitats. 5. Wherever feasible, Bank-financed projects are sited on lands already converted [ ]. The Bank does not support projects involving the significant conversion of natural habitats unless there are no feasible alternatives for the project and its siting, and [ ] overall benefits from the project substantially outweigh the environmental costs. [ ] If the environmental assessment indicates that a project would significantly convert or degrade natural habitats, the project includes mitigation measures acceptable to the Bank. [ ] 5

7 Environmental and Social Standard 6. Biodiversity Conservation and Sustainable Management of Living Natural Resources (draft for consultations) 10.The Borrower will not use any Bank funds to finance or support: (a) plantations that involve any conversion or degradation of critical habitats,* including adjacent or downstream critical habitats; or (b) projects that, in the Bank s opinion, would involve significant conversion or degradation of critical habitats, including forest areas * Plantations should be sited on unforested sites or land already converted (excluding any land that has been converted in anticipation of the project). [ ] 6

8 Environmental and Social Standard 6. Biodiversity Conservation and Sustainable Management of Living Natural Resources (draft for consultations) 32. Where a Borrower is purchasing primary production [ ] that is known to take place in regions where there is a risk of significant conversion of natural and/or critical habitats, systems and verification practices will be assessed as part of the Borrower s environmental and social assessment to evaluate its primary suppliers. The systems and verification practices will: [ ] (c) limit procurement to those suppliers that can demonstrate that they are not contributing to significant conversion of natural and/or critical habitats [ ] 7

9 Case: WBG and Oil Palm

10 Case: Palm oil process Oil palm was recognized important and controversial development issue; Concerns on the supply chain 2020 global demand 28 mill. tonnes Oil palm: 6.3 mill. ha or Soybean: 42 mill. ha Deforestation Social conditions Employment: 6 mill. workers More jobs/ha than any other products Profitable smallholder crop Grows on land less suitable for annual crops 9

11 Case: Palm oil process pause in new investments 2010 Survey on global significance (incl. employment, income, export earnings and poverty reduction; environmental impacts, deforestation and contributor to GHG emissions, and potential for rural poor and smallholders); Consultations reached over 2,500 stakeholders from 30 countries, e-consultations in 51 countries World Bank Group s Framework and IFC Strategy for Engagement in the Palm Oil Sector. 10

12 Four Pillars of Re-Engagement 1. Policy and regulatory environment 11 land policies and tenure, forest governance; capacity to implement; labor WBG technical assistance, capacity building, global best practice 2. Sustainable private sector investment investment will mainly come from private sector WBG supporting investment with financing and advisory servoces 3. Benefit sharing with smallholders and communities livelihood improvement; diversification of supply chains WBG supports smallholders, technical and access to markets 4. Codes of sustainable practice effective way of improving the footprint of the sector WBG can support development of codes and standards

13 Project Country Development objective Achievement Smallholder Agriculture Development Papua New increase the level of involvement Guinea in local development through measures aimed at increasing oil palm revenue and local participation access roads have been upgraded; loans for infill planting; smallholder farmers have been trained in sustainable production practices Smallholder Liberia Tree Crop Revitalization Support increase farmers income by farmers/households to be trained; roads rehabilitating tree crop farms, and built/upgraded; increase in farmer revenues by supporting preparation activities toward the development of the tree crop sector and smallholder participation Commercial Agriculture Development Nigeria to increase (i) commodity growth rates; (ii) value added processing and commercialization of commodities; and (iii) farm and non-farm incomes smallholder groups trained; partnerships with research, state and NGO institutions; Commodity Interest Groups trained; risk management instruments (Environmental and Social Management Plans) supported; rural roads under rehabilitation; informal information on increased production 12

14 Issues Tree crops can contribute to diversification of rural livelihoods and production systems Global and local market/value chains do matter Who carries the heaviest burden: corporations or smallholders perennial issue with private standards Case WBG Palm oil good planning and analytical work leads to balanced and sustainable outcomes Potential in zero deforestation commitments changing market structures and signals benchmarking other firms and governments 13

15 Revisiting OP 4.36 Forests 12. The Bank may finance harvesting operations conducted by small-scale landholders, by local communities under community forest management, [ ] (a) have achieved a standard of forest management developed with [ ] communities, consistent with the principles and criteria of responsible forest management [ ]; or (b) adhere to a time-bound phased action plan to achieve such a standard. [ ] 14

16 Thank you Tuukka Castrén World Bank 15