EXECUTIVE SUMMARY OF EPM S REDD+ PROJECT

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1 EXECUTIVE SUMMARY OF EPM S REDD+ PROJECT Prepared by MGM Innova Address: Cra 43ª # San Fernando Plaza Torre 4 Oficina 315 Phone: Web Site: Date: Wednesday, 06 de November de 2013

2 Table of Contents INTRODUCTION... 3 G3.Project Design and Goals... 5 G3.1. Main Climate, Community and Biodiversity Objectives of the Project G3.2.Main Project Activities G3.3. Limits and Location of Project Activities... 10

3 INTRODUCTION Over the years, Empresas Públicas de Medellín (EPM) has carried out a number of actions aimed at managing environmental impacts and promoting better environmental practices and community development in the regions in which it operates. These activities are currently performed under the framework of the company s Environmental Policy, approved by EPM s Board on July 7 th, 2008 (Board Minutes #1489). The policy of EPM has always been to exceed regulatory requirements with regards to protection and conservation of natural resources. Thus, for example, the company currently owns tracts of land with forest cover the size of which significantly exceeds that required under Colombian law - in which a project aimed at Reducing Emissions from Deforestation and Forest Degradation (REDD+) under the framework of EPM s Environmental Policy, which focuses strongly on climate change mitigation, is being developed. It should be noted that the border areas in which the EPM REDD+ project is located are currently threatened by land use change, with a shift towards agricultural crops and pasture, which provide local smallholders with an interesting opportunity to improve their income. An additional threat in the border areas adjacent to the Porce III Reservoir is the change in land use of forested areas to illicit crops, specifically in the Municipality of Anori, which has one of the highest rates of illicit plantations in the province of Antioquia. The areas in which the EPM REDD+ project is being developed were selected in line with an internal analysis conducted by EPM, based on the following criteria: the area should i) not be subject to any legal commitment, ii) not include plantations, iii) only include areas with clear and recent mapping, iv) be demonstrably threatened by deforestation or degradation; v) not be included in a buffer area of 100 m around the four reservoirs. It is understood that in addition to the areas included in the REDD+ project there are other wooded areas (both within the project area and elsewhere) that belong to EPM and are also under threat of deforestation and degradation, notwithstanding which they also play an important role in carbon storage and conservation of biodiversity. EPM s REDD+ project aims to ensure the protection of natural forests surrounding the Miraflores, Riogrande I Porce II and Porce III hydroelectric projects (5, hectares), through the strengthening of the following activities: monitoring and surveillance, planting of trees, promotion of reforestation for timber and firewood, silvihorticulture, sustainable agroforestry or silvopasture, efficient stove program, environmental education program and proposed biological corridor. This Project Design Document (PDD) has been developed following the rules and guidelines set forth in the Climate, Community and Biodiversity Alliance s Standard (CCBS). The CCBA is a unique partnership of leading international NGOs that was founded in 2003 and promotes forest protection and restoration and agroforestry projects through land-based carbon projects such as REDD+. The PDD is structured in five sections: General (with 5 subsections), Climate (with 3 subsections), Community (with 3 subsections), Biodiversity (with 3 subsections) and an optional Gold Level section, which emphasizes exceptional benefits in terms of climate change adaptation, biodiversity and

4 community. The document is accompanied by five annexes that include supporting documentation on the reporting process and on the structuring of the socio-environmental management plan under the framework of the methodology, the location of the permanent plots in the various project areas, EPM Group s Declaration on Climate Change and the executive summary of the inventory of flora and fauna of the natural forest cover located in the surroundings of the Riogrande and Miraflores reservoirs.

5 G3.PROJECT DESIGN AND GOALS G3.1. MAIN CLIMATE, COMMUNITY AND BIODIVERSITY OBJECTIVES OF THE PROJECT. Due to the geographical and climatic characteristics of each of the project areas, the woodland areas surrounding Empresas Públicas de Medellín (EPM) s reservoirs are some of the most biodiverse areas in the North and Northeastern regions of the Department of Antioquia. Over the years, however, the forest cover has diminished as a consequence of the peasants crop and cattle raising activities, as well as intensive collection of firewood and timber harvesting. The reduction of forest cover not only affects the water cycle a key issue given the type of services EPM provides but also leads to the loss of habitats for both animal and plants species. The overall aim of the project is to contribute towards emission mitigation as well as with the national climate change strategy, through prevention of degradation and deforestation of the forests included in the project, in line with EPM s corporate social responsibility policy, and, in particular, its climate change strategy. EPM s specific aims and goals with regards to the development of the REDD+ project, resulting from the logframe matrix developed on the basis of workshops carried out with the communities located at the project zone, are listed below. In some cases the goals have been defined for the first five years of implementation of the project, at which point they shall be redefined for the remaining project period on the basis of success to date and other specific conditions. Climate Global climate mitigation: by avoiding greenhouse gas (GHG) emissions due to forest degradation and deforestation. The project shall lead to an estimated reduction in GHG emissions of 109, tco 2 e over a 20 year period. Contribute towards the regulation of the water cycle, through conservation of the forest cover. Community Create awareness in the community with regards to the rational use of natural resources. Contribute in a sustainable way to human welfare. Contribute to poverty reduction in the communities located in the REDD+ project zone. The components/specific goals developed in the logframe matrix workshops carried out with the community during project design should enable the above mentioned aims to be achieved. -Component 1- Implementation of sustainable productive systems: greater diversification of the farming systems of families in the neighborhood of EPM s forest in the REDD+ project over the

6 first `five years of project development (see Tab le 1) will generate economic benefits for 137 families 1 on their own land. These benefits can represent an increase in monthly family income of around COP through gum tree production or COP 800,000 through cacao production. This should also serve to diminish the pressure on forests and prevent further deforestation or degradation through the expansion of the farming frontier and removal of firewood. The quantitative goals that have been set in order to achieve this aim are: Over the first five years of the Project, sustainable productive systems will be established in the project zone in the municipalities of Amalfi, Guadalupe and Anorí. These systems will include at least 175 ha of gum tree and 50 ha of cocoa plantations, as follows: Table 1. Establishment of sustainable productive systems Gum tree (Hevea brasiliensis) Municipality Total Ha Ha Ha Ha Ha Ha Amalfi Guadalupe Anorí TOTAL Cacao (Theobroma cacao) Municipality Total Ha Ha Ha Ha Ha Ha Anorí families with gum tree production at a rate of 2 ha per family and 50 families with cacao production at a rate of 1 ha per family

7 Component 4: Provision of efficient firewood stoves: Over the first five years of the project, at least 354 efficient firewood stoves will be installed in municipalities within the project s zone, as follows: Table 2. Efficient firewood stoves to be installed in municipalities in project zone Municipality Total Amalfi Anorí Carolina Guadalupe TOTAL The use of efficient firewood stoves leads to health benefits for those families that traditionally cook with firewood (due to less exposure to smoke inhalation). As mentioned in Ecosystem Marketplace of Forest Trends, the distribution of efficient firewood stoves grew significantly in countries such as Peru, Haiti and Guatemala, with the double benefit of reducing both GHG emissions and household smoke. Furthermore, efficient stoves require less firewood, and participant families will have access to silvihorticulture plantations. Component 5: Strengthening of control and surveillance of forests: This component involves hiring members of the communities within the project zone to work as forest wardens. As from the second year of the Project, illegal extraction of forest products in project forests is expected to stop growing in terms of number of events and critical sites. Component 6: Communities with environmental education: Over the first five years of the Project, every year at least two radio programs will be emitted on a quarterly basis, as well as radio slots focused on environmental education, broadcast through radio stations with coverage in the municipalities of Anorí, Amalfi, Guadalupe and Carolina del Príncipe. Biodiversity Reduce deforestation and degradation in EPM forests with natural cover involved in the REDD+ project in the surroundings of the energy-generating reservoirs: As from the second year of the Project, illegal extraction of forest products in Project forests is expected to stop growing in terms of number of events and critical sites. Protect forest species threatened by selective logging, expansion of the farming frontier and illegal alluvial mining. Protect forests and conserve habitats of endemic fauna and flora in areas threatened by selective logging, expansion of the farming frontier and illegal alluvial mining.

8 Increase and maintain landscape connectivity in order to reduce/revert habitat loss and degradation, and avoid species movement constraints (e.g. for foraging, breeding, migration and dispersal). The specific goals developed in the logframe matrix workshops carried out with the community during project design should enable the above mentioned aims to be achieved. - Component 2: Establishment of forest cover for use of wood-based products: Over the first five years of the Project, at least 110 ha of forest will be planted in order to provide families in the project area with wood-based products, as follows: Table 3. Forest covers for wood-based products. Municipality Ha Ha Ha Ha Ha Total Ha Amalfi Anorí Guadalupe Carolina del Príncipe TOTAL Component 3: Establishment of silvihorticulture: Concomitant with the supply of efficient firewood stoves, sivihorticulture plantations will be established for each beneficiary family, in order to ensure an adequate supply of firewood while at the same time avoiding exerting pressure on the natural forests. This will have a positive impact on the well-being of the families, will no longer have to invest significant time and effort in collecting firewood. In terms of quantitative goals, over the first five years of the Project, at least 354 silvihorticulture plantations, each consisting of 150 trees, will be established in the municipalities within the Project s area of influence, as follows: Table 4. Silvihorticulture plantations to be established Municipality Total Amalfi Anorí Carolina Guadalupe Total G3.2.MAIN PROJECT ACTIVITIES. With the aim of protecting and increasing the forest cover included in the REDD+ project, in addition to strengthening the currently ongoing socio-environmental management activities, EPM shall focus its efforts on those regions found to have greater risk of deforestation and forest degradation. The activities to be developed by EPM were identified by the communities located in the project zone in the

9 logframe matrix developed as from the results of the workshops on deforestation and forest degradation. It is important to note that these activities will be carried out on the basis of EPM s experience in the areas of influence of its energy-generating projects. The activities to be carried out under the components established within the framework of EPM s REDD+ Project are described below. Component 1: Implementation of sustainable productive systems. The aim of this activity is to consolidate new productive options - cacao and gum tree crops - that have a positive economic impact (estimated at around COP per month) on the household incomes of the families involved. This should also have a positive impact on biodiversity, reflected in a diminished pressure on the forest, since the activity will reduce the economic incentive of other alternatives, such as expansion of the farming frontier and/or the extraction of non-timber and timber forestry products (e.g., rod tutors and timber). Component 2: Establishment of forest cover for use of wood-based products. Component 3: Establishment of silvihorticulture: These activities have a positive impact on the communities in terms of facilitating access to firewood and wood for domestic use, reducing the time and effort required for these endeavors and, eventually, allowing for a surplus of marketable wood. At the same time, pressure on the natural forest caused by demand for these products will lessen, leading to further positive impacts with regards to biodiversity and climate. Currently, the forests that supply the community with firewood are located between 1 and 2 km from the houses; this distance is expected to significantly diminish with the establishment of silvihorticulture. The operational strategy to achieve these goals will focus on the establishment of inter-administrative agreements with the municipalities and participatory processes with the communities to select the beneficiaries, co-financing and execution of the activities. The main activities are the production of plant material in EPM s nursery and its distribution to the beneficiaries, both of which shall be in charge o EPM. Transport of the plant material to the actual planting site, supplies and tools, site preparation (plating, hole digging), planting and transplanting, maintenance (cleaning), fertilization, pruning, pest and disease control, and fence maintenance will be in charge of the beneficiaries. Training and technical assistance and follow up will be provided by EPM. Component 4: Provision of the efficient firewood stoves The use of efficient firewood stoves (with low firewood consumption and minimum or no smoke emission) will have direct benefits for the users health, due to less/no exposure to smoke inhalation. Biodiversity will benefit through less firewood consumption and the establishment of silvihorticulture, leading to less pressure on the forest. In addition, GHG emissions will be lowered, with the consequent positive impact on climate change.

10 The activities required to achieve this goal will be developed through inter-administrative agreements with the municipalities. The municipalities will be in charge of selecting the beneficiaries and, together with EPM, will provide resources to finance the efficient firewood stoves as well as the materials needed for their installation, transport to final location and appropriate training in their use. Component 5: Strengthening of control and surveillance of forests. Ninety formal permanent jobs will be created (Porce II: 34, Porce III: 24, Miraflores: 14, Riogrande: 18). The basic monthly income of forest wardens will be COP 600,000 plus social benefits and entitlements as defined under the law. Additional income may be derived by the community through the rental of horses, which is required with certain frequency. The hiring of forest wardens shall be channeled through a local hiring program; this shall entail benefits to the community both in terms of jobs and income. The actual contracting will be carried out by community organizations selected on a rotating basis, to ensure fairness and equity in the distribution of this benefit. Although the community organizations themselves will be in charge of personnel selection, this selection must meet the requisites set by EPM. Community organizations will be trained in the areas of contract management, accountability systems and reporting. Forest wardens shall receive training in first aid, fire control, industrial safety, environmental awareness, knowledge of flora and fauna, environmental regulations, registration and reporting of crimes and offenses against natural resources, amongst others. The positive impact on biodiversity will be reflected in reduced extraction of forest products and improved forest conservation, both of which improve the project forests capacity to retain GHGs. Component 6: Environmental education Environmental education will be a key activity to articulate the communities of the Project area with the REDD+ project. Different strategies and means will be used to this end, including radio slots, radio programs on specific issues, dissemination of the REDD+ project, newsletters, pamphlets, etc. EPM s Environmental Division s Communications Team will be involved in content design and the production of informational material (written and programs for local radio stations). The communities will therefore strengthen their capacity to relate to the natural environment, which in turn ultimately serves to buttress the environmental sustainability of the territory. G3.3. LIMITS AND LOCATION OF PROJECT ACTIVITIES Project activities will be implemented in the project zone, which includes villages adjacent to EPM s plots that have a strong influence on the deforestation and degradation of EPM s forests (see Table 7, Figure 1). These areas plus others that could entail environmental issues for the forests surrounding EPM s dams, will be gradually adjusted, in line with resource availability, commitments and quid pro quos from municipal administrations, community receptivity and priorities, among other. The above mentioned project activities will generate the following benefits for the communities surrounding the project areas:

11 Economic benefits: The project will improve household income levels of the communities through the implementation of activities aimed at more efficient use of natural resources such as those mentioned. There will be an economic incentive represented in the delivery of an efficient stove for cooking, technical assistance, and some inputs to improve agroforestry. productivity Positive changes in land use practices: The project expects to help reduce illegal logging, firewood collection and the destructive extraction of natural forests, improve the protection of endangered species habitats, and improve soil and water management in order to achieve sustainable productive systems. Promotion of reforestation and the establishment of silvihorticulture is expected to mitigate the problems associated with the communities needs for forest timber as well as with land use changes. Furthermore, the above mentioned activities will also serve as barriers to reduce pressure on natural forests in the project area, and will contribute with the establishment of a biological corridor to restore connectivity between different patches of forest, thereby contributing to the conservation of wildlife species in the project zone.

12 Figure 1. Location of the project area of EPM s REDD+ Project

13 Table 5. Project areas of EPM s REDD+ Project by reservoir and by municipality Reservoir Municipality Forest Total Area cover area (ha) Miraflores Carolina , Porce II Amalfi , Gómez Plata Guadalupe Yolombó Porce III Amalfi , Anorí Gómez Plata Riogrande I Guadalupe Donmatías Santa Rosa de Osos TOTAL 5, Table 6. UTM Points for the project areas Reservoir Point X - Coordinate Y - Coordinate 1 894,945 1,268,100 Porce III 2 875,492 1,248, ,942 1,248, ,852 1,269, ,733 1,239,440 Miraflores 6 855,802 1,240, ,090 1,243, ,403 1,235,760 Riogrande I 9 857,359 1,214, ,158 1,214,830

14 Reservoir Point X - Coordinate Y - Coordinate ,849 1,215, ,801 1,215, ,514 1,250,830 Porce II ,250 1,239, ,632 1,235, ,495 1,235,150 According to CCB 2008, the project zone is defined as the project area and the land within the boundaries of the adjacent communities potentially affected by the project. The project zone of EPM s REDD+ Project was defined according to the sub-districts of the various municipalities (Carolina del Príncipe, Amalfi, Gómez Plata, Yolombó, Anorí, Donmatías and Santa Rosa de Osos) (see Table 7), which are located in the North and Northeastern regions of the Department of Antioquia. Furthermore, the project area is defined as the land within the carbon project boundary and under the control of the Project proponent; based on this definition, the project area of EPM s REDD+ project is the forest cover found in the areas of influence of the reservoirs owned by EPM. Table 6 shows the UTM grid points corresponding to the project areas. Table 7. Sub-districts with a direct influence on EPM s REDD+ Project Reservoir Municipality Sub-districts Porce III Anorí El Retiro, Roble Arriba, Medias Faldas, El limón, Pajonal, El Zafiro, El Roble. Porce II Yolombó La Cancana Porce II Gómez Plata Vega Botero, Quebradona, Juntas, El Brasil, Puente Porce, El Oso. Porce II y III Guadalupe Morrón, Guanteros, Guadalupe IV, San Julián, Malabrigo, Bramadora (Plan de Pérez) y el Guadual Porce II y III Amalfi La Manguita, El Guayabito, La Esperanza, María Teresa, Tinitacita, Los Mangos, El Encanto, La Guayana, El Retiro, El Guaico. Miraflores Carolina del Príncipe La Herradura, Tenche y La Granja Riogrande I Don Matías Mocorongo, Rio Grande, Miraflores Riogrande I Santa Rosa de Osos Rio Grande, Las Animas

15 Offsite impacts are not expected to be mitigated and therefore they are not considered leakage areas. Nevertheless, EPM will monitor the wildlife around the project areas of Porce II and Porce III (at the requite under of environmental licenses), in order to analyze the dynamics of the area which may affect other forests different to the REDD project s forests and take corrective measures.

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