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INITIAL ENVIRONMENTAL EXAMINATIONPROJECT/ACTIVITY DATA

Project/Activity Name: Partnership to the Conservation of Amazon Biodiversity (PCAB)

Geographic Location(s) (Country/Region):

Brazil – Legal Amazon

Amendment (Yes/No), if Yes indicate # (1, 2...):

Yes, Amendment 3

Implementation Start/End Dates (FY or M/D/Y): If Amended, specify New End Date:

30 September, 2024

Solicitation/Contract/Award Number:Implementing Partner(s): Brazilian Ministry of Environment (MMA), Brazilian

Agency for International Cooperation (ABC), National Indian Foundation (FUNAI) and Chico Mendes Institute for Biodiversity Conservation (ICMBio)

Bureau Tracking ID: LAC-IEE-19-44Tracking ID of Related RCE/IEE (if any): LAC IEE-14-42; LAC-IEE-16-48; LAC-IEE-19-01Tracking ID of Other, Related Analyses:

ORGANIZATIONAL/ADMINISTRATIVE DATAImplementing Operating Unit(s): (e.g. Mission or Bureau or Office)

Brazil Mission

Other Affected Operating Unit(s): Lead BEO Bureau: LACFunding Operating Unit(s): (e.g. Mission or Bureau or Office)

Brazil Mission

Funding Account(s) (if available):Original Funding Amount: USD 103.000.000 If Amended, specify funding amount: If Amended, specify new funding total:Prepared by: Patrícia Benthien (MEO)Date Prepared: 08/22/2019

ENVIRONMENTAL COMPLIANCE REVIEW DATA

USAID/BRAZIL/PARTNERSHIP TO THE CONSERVATION OF AMAZON BIODIVERSITYUSAID 216 IEE TEMPLATE VERSION 1, DECEMBER 2017

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Analysis Type: X Environmental Examination

Deferral

Environmental Determination(s): X Categorical Exclusion(s)X Negative

✓Positive✓Deferred (per 22CFR216.3(a)

(7)(iv)IEE Expiration Date (if different from implementation end date):

September 30, 2024

Additional Analyses/Reporting Required:Climate Risks Identified (#): Low 7 Moderate 3 High 0Climate Risks Addressed (#): Low 7 Moderate 3 High 0

THRESHOLD DETERMINATION AND SUMMARY OF FINDINGS

PROJECT/ACTIVITY SUMMARY

The Partnership for Conservation of Amazon Biodiversity (PCAB) is a multi-year (2016-2024), $83 million bilateral agreement with the Government of Brazil (DOAG) with the Ministry of Environment (MMA), Chico Mendes Institute for Biodiversity Conservation (ICMBio), and National Indigenous Foundation (FUNAI) to strengthen priority protected areas, which includes federal conservation units of different types, as well as indigenous territories. It is likely to get amended to a ceiling of $103 million before 2024. The purpose of this project is to ensure the integrity and conservation of the Brazilian Amazon ecosystem over the next 20 years, with an associated high-level development objective to improve the well-being and socioeconomic status of rural communities based on sustainable economic activities in the Amazon. For the past four years, USAID’s value chains-supported activities have been focused on community-level sustainable production of native Amazonian products, such as Brazil nuts, acai, pirarucu fish, timber/rare woods, essential oils and ecotourism, as well as strengthening the market linkages between communities and commercial actors. The majority of USAID’s implementing partners are Brazilian NGOs and the USFS.

Two years ago, USAID/Brazil started focusing on increased engagement with the private sector, as a key actor necessary for ensuring sustainable development and biodiversity conservation of Brazil’s Amazon region. A more recent analysis of new threats demonstrated this need, as deforestation rates, which had been steady and mostly decreasing over the last decade, began increasing again. To address these threats, PCAB incorporated a new private sector engagement strategy, and has successfully established three agreements with private sector companies working along value chains, and has also convened a new partnership forum – the Partnership Platform for the Amazon (PPA) – led by private sector companies that source product from or operate in the Amazon, to jointly identify and invest in projects that will advance sustainable production in the region while conserving biodiversity.

USAID/Brazil/Partnership to the Conservation of Amazon Biodiversity 2 USAID 216 IEE TEMPLATE VERSION 1, DECEMBER 2017

This IEE amendment is to clarify several activities, provide additional sub-activity detail, and to update the implementation requirements. This amendment doesn’t propose new activities:

1) Additional detail is provided for IR-3 sub-activities as well as a list of current private sector engagement activities.

2) The linkage between IR-3 to IR-2 is clarified.3) IR-3 is clarified to directly reference the DCA guarantee for the proposed Impact

Investment Fund.4) The analysis of potential environmental risks and impacts are updated to more

clearly delineate the recommended environmental determinations.

This amended IEE incorporates and replaces all previous IEEs and amendments, in order to have all activities covered under this new amended IEE.


ENVIRONMENTAL DETERMINATIONS Upon approval of this document, the determinations become affirmed, per Agency regulations (22CFR216).

TABLE 1: ENVIRONMENTAL DETERMINATIONS

Projects/ActivitiesCategorical Exclusion Citation (if applicable) Negative Determination

Project/Activity IR-1: Protected areas (PAs) are fully consolidated, meeting their management, implementation, monitoring and conservation roles

Sub-activity 1.1: Increased number of PAs with participatory management plans in place

All activities according to categories 22 CFR 216.2 (c)2i, iii, v, xiv, as stated below:

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

Research activities which may have an effect on the physical and natural environment but will not have a significant effect as a result of limited scope, carefully controlled nature and effective monitoring.

Analyses, studies, academic or research workshops and meetings;

Document and information transfers; 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.)

Sub-activity 1.2 - Improved quality of PA management and its implementation

All activities according to categories 22 CFR 216.2 (c)2i, , iii, v, xiv, as stated below, except those listed in adjacent cell under Negative Determination.


Research activities which may have an effect on the physical and natural environment but will not have a significant

Acquisition and installation of small hand-carried fuel power generators and fuel

Small-scale construction of infrastructure for sustainable economic activities including tourism, timber, non-timber forest products value chains, including but not limited to drying facilities for Brazil nuts and açaí berry processing, pirarucu drying racks and storage facilities for a variety of products, community-based tourism public use small installations.


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effect as a result of limited scope, carefully controlled nature and effective monitoring.




Training of local community members in basic wild-land fire management practices

Sub-activity 1.3 - Improved participatory monitoring of PAs, including biodiversity

All activities according to categories 22 CFR 216.2 (c)2i, iii, v, xiv, as stated below, except those listed in adjacent cell under Negative Determination.






Small scale constructing for Wi-Fi towers, solar power Wi-Fi installations

Sub-activity 1.4 - Communities actively engaged in or take leadership in PA management, planning, monitoring and related local benefits.

All activities according to categories 22 CFR 216.2 (c)2i, iii, v, xiv, as stated below, except those listed in adjacent cell under Negative Determination.



Analyses, studies, academic or research



workshops and meetings; Document and information transfers; Studies, projects or programs intended to


Project/Activity IR-2 — Sustainable forest - and biodiversity-based and biodiversity-friendly value chains and businesses is expandedSub-activity 2.1 - Increased commercialization/value of Amazon-based, sustainable, forest biodiversity-friendly economic activities

All activities according to categories 22 CFR 216.2 (c)2i, iii, v, xiv), as stated below, except those listed in adjacent cell under Negative Determination.







Sub-activity 2.2 - Increased fairness, equity, and transparency of Amazon-based, sustainable, forest and biodiversity-friendly economic activities.

All activities according to categories 22 CFR 216.2 (c)2i, iii, v, xiv), as stated below:







Sub-activity 2.3 - Legal, profitable and sustainable livelihood options are increased in rural Amazon communities







Sub-activity 2.4 - Rural community members receive greater portion of profits and benefits from sustainable value chains






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.)

Project/Activity IR-3 - Private sector engagement that actively fosters a sustainable-based economy in the Amazon is strengthened

Sub-Activity 3.1 - Viable evidence-based models for triple-win conservation and development approaches and tested with and by the private sector, including integrated territorial management approaches, community-managed fund and financing mechanisms using private sector sources, and strengthening municipalities, impact businesses, entrepreneurism and sustainable value chains (link to IR2) and Sub IR 3.2. Triple-win development models replicated, adopted and/or scaled by other actors, including Sharing best-practices and models that could be replicated or scaled by other actors, including integrated territorial management approaches, community-managed fund and financing mechanisms using private sector sources, and strengthening municipalities, impact businesses, entrepreneurism and sustainable value chains (link to IR2). All activities according to categories 22 CFR

216.2 (c)2i, iii, v, xiv), except those listed in adjacent cell under Negative Determination.

Commercialization of natural resource-based products

Use and/or acquisition of pesticides.

Acquisition and installation of small hand-carried fuel power generators and fuel.


Sub IR 3.3. Private sector actors become more effective champions in shared development solutions for the Amazon

All activities according to categories 22 CFR 216.2 (c)2i, iii, v, xiv, as stated below:


Research activities which may have an effect on the physical and natural environment but will not have a significant


effect as a result of limited scope, carefully controlled nature and effective monitoring.


Document and information transfers;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.)

Sub IB 3.4 - Increased private sector support, actions and investments (human, technology, financial) in shared conservation goals, investments in shared sustainable development and conservation priorities, including startups, impact businesses and the establishment of an impact investing fund, including the use of a DCA guarantee (link to IR2)

All activities according to categories 22 CFR 216.2 (c)2i, iii, v, xiv), except those listed in adjacent cell under Negative Determination.

Commercialization of natural resource-based products




CLIMATE RISK MANAGEMENT Nearly 60% of the Amazon, the largest humid equatorial rainforest and river basin in the world, is in Brazil, contributing to the country’s rich biodiversity, various climates, and extraordinary wealth of ecosystems. The Amazon is so vast that it is responsible for generating as much as 50% of its own rainfall, and covers nearly half of Brazil, which is nearly the size of Australia. Within the Amazon Basin, the average temperature is 27.9˚C during the dry season and 25.8˚C during the rainy season. The Amazon region surrounding the mouth of the Amazon River in the state of Pará experiences an excess of 3,000 millimeters (mm) of rainfall annually. Ecosystems and ecosystem services are essential for Brazil, though under serious threat from climate variability and change. Temperatures are projected to increase by 1˚C to 2.2˚C across the country by 2060, and some models predict an increase of as much as 2˚C to 3˚C by 2050 in the Amazon1.USAID Brazil Mission is working with the Government of Brazil (GOB), traditional and local communities, the private sector, civil society and academia to create sustainable solutions for maintaining forest landscapes and biodiversity conservation in the Brazilian Amazon. Activities include creating public-private partnerships that help smallholders preserve carbon-rich forest landscapes, and support to the development of sustainable markets and value-chains.1 https://www.climatelinks.org/sites/default/files/asset/document/2018-April-30_USAID_CadmusCISF_Climate-Risk-Profile-Brazil.pdf USAID/Brazil/Partnership to the Conservation of Amazon Biodiversity 9

USAID 216 IEE TEMPLATE VERSION 1, DECEMBER 2017

https://www.climatelinks.org/sites/default/files/asset/document/2018-April-30_USAID_CadmusCISF_Climate-Risk-Profile-Brazil.pdf

BEO SPECIFIED CONDITIONS OF APPROVALNone

IMPLEMENTATIONIn accordance with 22CFR216 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.


USAID APPROVAL OF INITIAL ENVIRONMENTAL EXAMINATIONPROJECT/ACTIVITY NAME: Partnership for the Conservation of Amazon Biodiversity (PCAB)

Bureau Tracking ID: LAC-IEE-19-44

Approval: ___________________________________________________Ted Gehr, Mission Director

______________Date

Clearance: ___________________________________________________Anna Toness, Environment Office Director

______________Date

Clearance: ___________________________________________________Patrícia Benthien, Mission Environmental Officer

______________Date

Clearance:

Concurrence:

________________________________________________________Betzy Colon, Regional Environmental Advisor

___________________________________________________Diana Shannon, Bureau Environmental Officer

______________Date

______________Date


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INITIAL ENVIRONMENTAL EXAMINATIONPROJECT/ACTIVITY NAME: Partnership for the Conservation of Amazon Biodiversity (PCAB)

Bureau Tracking ID: LAC-IEE-19-44

Contents1.0 PROJECT/ACTIVITY DESCRIPTION........................................................................112.0 BASELINE ENVIRONMENTAL INFORMATION........................................................15

2.1 Locations Affected and Environmental Context (Environment, Physical, Climate, Social)..................................................................................................152.2 Applicable and Appropriate Partner Country and Other International Standards (e.g. WHO), Environmental and Social Laws, Policies, and Regulations........................................................................................................................... 222.3 Country/Ministry/Municipality Environmental Capacity Analysis..................25

3.0 ANALYSIS OF POTENTIAL ENVIRONMENTAL RISK................................................264.0 Environmental Determinations...........................................................................29

4.1 Recommended Environmental Determinations........................................294.2 Climate Risk Management...........................................................................33

5.0 CONDITIONS AND MITIGATION MEASURES.........................................................425.1 Conditions....................................................................................................425.2 Agency Conditions.......................................................................................435.3 Mitigation Measures.....................................................................................43

6.0 LIMITATIONS OF THIS INITIAL ENVIRONMENTAL EXAMINATION.......................447.0 REVISIONS.......................................................................................................45Attachments:............................................................................................................45

USAID/Brazil/Partnership to the Conservation of Amazon Biodiversity12


1.0 PROJECT/ACTIVITY DESCRIPTION1.1 PURPOSE AND SCOPE OF IEE The purpose of this document, in accordance with Title 22, Code of Federal Regulations, Part 216 (22CFR216), 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, per 22CFR216 and specified conditions become mandatory obligations of implementation. This IEE also documents the results of the project/activity level 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 activity design and implementation. Potential environmental impacts should be addressed through formal environmental mitigation and monitoring plans (EMMPs) and/or Environmental Assessments (EAs), if needed.

This IEE amendment is to clarify several activities, provide additional sub-activity detail, and to update the implementation requirements. This amendment doesn’t propose new activities:

1) Additional detail is provided for IR-3 sub-activities as well as a list of current private sector engagement activities.

2) The linkage between IR-3 to IR-2 is clarified.3) IR-3 is clarified to directly reference the DCA guarantee for the proposed

Impact Investment Fund.4) The analysis of potential environmental risks and impacts are updated to

more clearly delineate the recommended environmental determinations.

This amended IEE incorporates and replaces all previous IEEs and amendments, in order to have all activities covered under this new amended IEE.

1.2 PROJECT/ACTIVITY OVERVIEW Biodiversity conservation has become a political priority for Brazil, evidenced by the 81 percent decline in deforestation from its peak in 2004 to 2012. However, deforestation surged in 2013, 2015 and 2016, and then fell again in 2017. The change in the reduced deforestation pattern was largely caused by the expansion of farming areas and the development of infrastructure projects, making evident that the reduction in the Amazon deforestation rate is not yet consolidated, but rather still subject to substantial pressures and drivers of deforestation.

The creation and management of protected areas have been effective strategies to safeguard integrity of extraordinary ecosystems, promote conservation of biodiversity and avoid deforestation. Brazil protects over 2.5 million sq. km of public and indigenous lands (or about 48 percent of the Legal Amazon and 25 percent of


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Brazilian Territory) within its National System of Conservation Units (SNUC), making it the fourth-largest system of preserved areas in the world.

Since 2000, over 240,000 sq. km of new conservation units have been established and 320,000 sq. km consolidated under the Amazon Region Protected Areas Program (ARPA)2, considered the largest program for conservation of tropical forest in the world. Through a partnership with USAID and other USG entities such as the US Forest Service, Brazil also hopes to facilitate the exchange of scientific knowledge and agency expertise in managing its protected areas and implementing priority environmental policies. In the context of a shared interest in Amazon biodiversity conservation and as a direct result from the consultations abovementioned, USAID and the GOB agreed to jointly collaborate to: (a) strengthen conservation efforts and consolidation of priority protected areas; (b) strengthen and expand biodiversity-based value-chains and businesses; and (c) promote private sector engagement in sustainable-based economic activities and innovations. The successful implementation of biodiversity conservation will generate models and best practices that can be replicated in other areas. USAID and partners will work toward the overarching goals by focusing on the following Intermediate Results:

IR 1 - Protected areas (PAs) are fully consolidated, meeting their management, implementation, monitoring and conservation roles

IR 2 - Sustainable forest - and biodiversity-based and biodiversity-friendly value chains and businesses is expanded

IR 3 - Private sector engagement that actively fosters a sustainable-based economy in the Amazon is strengthened.

The geographic focus for the program is targeted protected areas management in the Amazon is jointly decided by the GOB and USAID, and the new private sector engagement strategy will incorporate joint priorities with companies for selecting pilot geographies related to IR3. Each group of areas will be chosen based upon its inclusion of key ingredients for success, including integrated protected area and indigenous land management, existing or potential for sustainable use of forest products, active stakeholder organizations, and opportunities for application of science and technology and private sector engagement. Selection criteria include the ability of the GOB to support program staff in these locations, need for USG assistance, likelihood of achieving results given planned program interventions, and accessibility. Further, Mission is undergoing an extensive geospatial analysis corresponding to project/activity locations, and their typology, in order to better define future strategic targeted areas for new activities. This was to be completed

2 Launched in 2002 the Amazon Protected Areas Program (ARPA), an initiative of MMA managed by the Brazilian Biodiversity Fund (FUNBIO) with donations and financial support of a number of international institutions (GEF, World Bank, WWF, Moore Foundation, USAID, KFW. ARPA consists in the world’s largest conservation program for tropical forests, with an ambitious goal of promoting protection and sustainable use of nearly 90 million hectares in the Amazon by 2039. Today, ARPA supports 117 CUs, totaling nearly 61 million hectares, an area equivalent to 15% of the Brazilian Amazon. USAID/Brazil/Partnership to the Conservation of Amazon Biodiversity

14 USAID 216 IEE TEMPLATE VERSION 1, DECEMBER 2017

by December 2018 and potentially lead to broad “zones of influence” or targeted areas.

USAID is currently developing processes with partners for measuring and reporting on the Intermediate Results that reflect our shared goals and values. It is imperative that the results reporting also meet the requirements of the biodiversity earmark listed above (i.e., IRs contain an explicit biodiversity objective focused on reducing threats to biodiversity; impacts measured by biodiversity indicators; directly attributable to funding source).

Since threats to Amazonian biodiversity are constantly changing, the PCAB activities should help communities anticipate and prepare for current threats (for example climate change), as well as those foreseeable in the upcoming ten to twenty years.

1.3 PROJECT/ACTIVITY DESCRIPTIONThe Partnership for the Conservation of Amazon Biodiversity (PCAB) is being implemented under a Development Objective Agreement (DOAG) signed by USAID and the GOB Agency for International Cooperation (ABC) in August 2014. The GOB is here represented by the Ministry of Environment (MMA) and the National Indigenous Foundation (FUNAI). For each of the Intermediate Results and Sub-Intermediate Results the following illustrative activities are envisaged:

IR 1. Protected areas (PAs) are fully consolidated, meeting their management, implementation, monitoring and conservation roles

Sub IR 1.1. Increased number of PAs with participatory management plans in place

✓ Technical assistance and capacity building to Protected Areas managers and community leaders to develop natural resource management plans;

✓ Technical assistance and capacity building to Mosaic committees members, including Indigenous leaders;

✓ Technical assistance and capacity building for designing and implementing territorial and environmental management plans for indigenous territories

Sub IR 1.2. Improved quality of PA management and its implementation

✓ Technical assistance and capacity building to GOB agencies involved in protected area strengthening and management;

✓ Technical assistance and Technical Exchange with USG institutions on human resources, policies and strategies for environmental managers;

✓ Technical assistance and articulation of private sector, communities, and local governments to scale-up those already mature; Technical exchanges and pilot demonstration projects to disseminate best practices and models



developed and adopted in similar situations in the U.S., including local successful interventions;

✓ Acquisition and installation of small hand-carried fuel power generators and fuel;

✓ Small-scale construction of infrastructure for sustainable economic activities including tourism, timber, non-timber forest products value chains, including but not limited to drying facilities for Brazil nuts and açaí berry processing, pirarucu drying racks and storage facilities for a variety of products, community-based tourism public use small installations;

✓ Training of local community members in basic wild-land fire management practices

Sub IR 1.3. Improved participatory monitoring of PAs, including biodiversity

✓ Technical assistance for creating coordination, communication and outreach mechanisms within protected area communities for developing local solutions to reduce environmental threats and creating sustainable economic development practices;

✓ Technical exchange for disseminating best practices and models developed and adopted in similar situations in the US;

✓ Small scale constructing for Wi-Fi towers, solar power Wi-Fi installations

Sub IR 1.4 - Communities actively engaged in or take leadership in PA management, planning, monitoring and related local benefits.

✓ Technical assistance and capacity building for institutional strengthening in selected Indigenous communities;

✓ Acquisition and installation of small hand-carried fuel power generators and fuel

IR 2. Sustainable forest - and biodiversity-based and biodiversity-friendly value chains and businesses is expanded

Sub IR 2.1. Increased commercialization/value of Amazon-based, sustainable, forest biodiversity-friendly economic activities;

✓ Technical assistance, capacity building and grant program for creating and managing community centers with computer access for distance learning activities;



✓ Technical assistance, capacity building and grant program for community monitoring projects involving local universities and aimed at integrating remotely sensed systems and data gathered by communities;

✓ Small-scale construction of infrastructure for sustainable economic activities including tourism, timber, non-timber forest products value chains, including but not limited to drying facilities for Brazil nuts and açaí berry processing, pirarucu drying racks and storage facilities for a variety of products, community-based tourism public use small installations;

✓ Technical assistance and articulation of private sector, communities, and local governments to scale-up those already mature;

✓ Technical exchange for disseminating best practices and models developed and adopted in similar situations in the US, including local successful interventions;

✓ Technical assistance and capacity building on land management and organization skills for Indigenous leaders and groups

Sub IR 2.2. Increased fairness, equity, and transparency of Amazon-based, sustainable, forest and biodiversity-friendly economic activities.

✓ Technical exchange for disseminating best practices and models developed and adopted in similar situations in the US;

✓ Technical assistance for small-scale business development;✓ Facilitating the negotiation of fair contracts;✓ Technical exchange for disseminating best practices and models developed

and adopted in similar situations in the US, including local successful interventions;

✓ Technical assistance and capacity building on land management and organization skills for Indigenous leaders and groups

Sub IR 2.3. Legal, profitable and sustainable livelihood options are increased in rural Amazon communities

✓ Strengthening relationship and trust among different actors across value chains and sustainable economic activities

Sub IR 2.4. Rural community members receive greater portion of profits and benefits from sustainable value chains

✓ Technical assistance and articulation of private sector, communities, and local governments to scale-up those already mature;



✓ Technical assistance, capacity building and grants program to local communities to identify sustainable practices with potential to become economic/business opportunities

IR 3. Private sector engagement that actively fosters a sustainable-based economy in the Amazon is strengthened

Sub IR 3.1. Viable evidence-based models for triple-win conservation and development approaches tested with and by the private sector, including integrated territorial management approaches, community-managed fund and financing mechanisms using private sector sources, and strengthening municipalities, impact businesses, entrepreneurism and sustainable value chains (link to IR2).

Establishing collective actions and partnership platforms; Strengthening relationships between the private sector and other actors; Providing advice and promoting that private sector seek investing voluntarily

and improve best-practices and models for conservation and development; Sharing best-practices and models that could be replicated or scaled by other

actors, including integrated territorial management approaches, community-managed fund and financing mechanisms using private sector sources, and strengthening municipalities, impact businesses, entrepreneurism and sustainable value chains (link to IR2).

Sub IR 3.2. Triple-win development models replicated, adopted and/or scaled by other actors including integrated territorial management approaches, community-managed fund and financing mechanisms using private sector sources, and strengthening municipalities, impact businesses, entrepreneurism and sustainable value chains (link to IR2).

✓ Sharing best-practices and models that could be replicated or scaled by other actors, including integrated territorial management approaches, community-managed fund and financing mechanisms using private sector sources, and strengthening municipalities, impact businesses, entrepreneurism and sustainable value chains (link to IR2).

Sub IR 3.3. Private sector actors become more effective champions in shared development solutions for the Amazon

Facilitate dialogue between private sector actors and others including government, civil society and local communities.

Sub IR 3.4. Increased private sector support, actions and investments (human, technology, financial) in shared conservation goals, investments in shared sustainable development and conservation priorities, including startups, impact businesses and the establishment of an impact investing fund, including the use of a DCA guarantee (link to IR2)



✓ Catalyzing private sector investments in shared sustainable development and conservation priorities, including startups, impact businesses and the establishment of an impact investing fund, including the use of a DCA guarantee.

2.0 BASELINE ENVIRONMENTAL INFORMATION

2.1 LOCATIONS AFFECTED AND ENVIRONMENTAL CONTEXT (ENVIRONMENT, PHYSICAL, CLIMATE, SOCIAL)

OverviewIt can be easy to forget the sheer size and scale of the Amazon rainforest and the associated challenges of conserving an area that large. Spanning 6.7 million km², 80% of which is rainforest, the Amazon is virtually unrivalled in scale, complexity and opportunity. It is approximately the size of the continental United States, it is twice the size of India, and includes parts of eight countries. If the Amazon were a country, it would be the ninth largest in the world.

The Amazon Rainforest produces 20% of the world’s oxygen It holds 10% of the carbon in ecosystems on Earth, and contributes to regional

hydrological cycles through the evapotranspiration of about 400 billion trees (divided into about 16 thousand species, in the lowlands alone)3

It is the single largest remaining tropical rainforest in world The largest and most biodiverse area in the world One in ten known species in the world lives in the Amazon rainforest. This

constitutes the largest collection of living plants and animal species in the world. One in five of all the bird species in the world live in the rainforests of the Amazon, and one in five of the fish species live in Amazonian rivers and streams. Scientists have described between 96.660 and 128.843 invertebrate species in Brazil alone.

One-sixth (16%) of the world's fresh water is in the Amazon Basin and the Amazon River is the most voluminous on Earth.

The Amazon River has eleven times the volume of the Mississippi The basin is drained by the Amazon River, the world's largest river in terms of

discharge, and the second longest river in the world after the Nile For reference, the Amazon's daily freshwater discharge into the Atlantic is

enough to supply New York City's freshwater needs for nine years Almost 70% of South America’s GDP estimated as dependent on the rainfall and

river watershed that stem from the Amazon More than 30 million people live in the Amazon, with estimates of 310.000

indigenous people, and 385 indigenous groups depend directly on the forest4.

3 Hyper dominance in the Amazonian Tree Flora, Hans ter Steege et al. (96 authors), Science 342, 1243092 (2013). DOI: 10.1126/science.12430924 2010 IBGE Census at https://indigenas.ibge.gov.br/ USAID/Brazil/Partnership to the Conservation of Amazon Biodiversity


https://indigenas.ibge.gov.br/

https://en.wikipedia.org/wiki/Invertebrate

Despite a seemingly endless forest, the Amazon has lost 20% of its forest cover in the last 50 years—more than in all the previous 450 years since European colonization began. Scientists predict, based on evidence and modeling, that if an additional 20 percent of the trees will be lost over the next two decades, the forest's ecology will begin unravel, with long-term consequences. Conserved, the Amazon produces half its own rainfall through the moisture it releases into the atmosphere. Eliminate enough of that rain through clearing, and the remaining trees dry out and die.

Brazil is the fifth largest country on earth, in both land area and population, with an approximately 210.000 individuals (2017). With 60% of the Amazon basin and biome located in Brazil, it also has the largest portion of the global responsibility for its conservation. The Brazilian Amazon is inhabited by about 14% of Brazil’s population or roughly 25 million people, including a significant portion of Brazil’s indigenous peoples (IP). In additional to IP, there is significant presence of other traditional populations, such as riverine, quilombolas, fisherman and extractive communities, which are also considered forest-dependent communities as they are socially and economically dependent on natural resources.

The total indigenous population in Brazil according to the last IBGE Census5 is 896.917 individuals, which corresponds to approximately 0,47% of the country’s total population; Of these, an estimated 310.000 live in traditional communities in the Amazon. While parts of the Amazon are remote and scarcely populated, and lack of access (communication, transportation) characterizes vast areas, there is increasing urbanization.

DeforestationOver the past two decades, the GOB established or consolidated several policies for the Amazon that promote human development, biodiversity conservation as well as avoided increasing in deforestation rates. Positive results in terms of reduced deforestation have been achieved through expanding the Protected Areas (PAs) system, improving management of PAs, creating and implementing the National Policy of Territorial and Environmental Management of Indigenous Lands (PNGATI), promoting land tenure regularization, strengthening local community context, promoting market access to socio-biodiversity products, fostering political participation and engaging with state governments. Regionally and internationally, the country has emerged as an environmental leader, with a prominent role in international negotiations.

Despite these achievements, the region’s integrity continues to be threatened by deforestation, biodiversity loss, low development indicators and forest degradation, and in recent years, Brazil has seen an upswing again in deforestation rates and pressures. After successful efforts led by the GOB, deforestation rate in the Amazon started decreasing in 2005, achieving in 2012 its lowest levels since monitoring systems were put into service. However, deforestation surged in 2013, 2015 and 2016, then fell again in 2017 (chart 1).

5 2010 IBGE Census at https://indigenas.ibge.gov.br/ USAID/Brazil/Partnership to the Conservation of Amazon Biodiversity


https://indigenas.ibge.gov.br/

Chart 1 – Deforestation rates in Amazon Biome (2000-2017)

According to data from the Project for Monitoring Deforestation in the Legal Amazon by Satellite (PRODES), coordinated by the Brazilian National Institute of Space Research (INPE), the rate of deforestation in the Legal Amazon, by shallow cut, for the period from August 2016 to July 2017 was 6.947 km2/year. Comparing to rates of the previous period (2015-2016), when 7.893 km2 of deforestation was measured, in 2017 there was a relative reduction of 12% in the rate of annual deforestation in the Amazon. PRODES' historical records indicate an average annual rate of deforestation in the Amazon of around 6.307 km2 and was significantly reduced from the 27.772 km2 recorded in 2004. Although official figures from INPE regarding forest year 2018 are still lacking, preliminary figures from IMAZON6 suggest the deforestation reduction trend has reversed, with the deforestation increasing 22% between August 2017 and May 2018, compared to the same period the prior year.

Socioeconomic aspectsAccording to IBGE, 50 million Brazilians (approximately 25% of the population) live in or below poverty line, with a family income of or below USD 5.5 per day. The Amazonian states, as well as some of the northeast, stand out the highest poverty levels, as observed in 2017 in the States of Maranhão (52.4%) and Amazonas (49,2%). In all north and northeast states, poverty incidence is significantly higher in rural areas. However, the majority of the Brazilian poor people currently live in urban centers. Along with Brazil’s persistent social inequality and large extension of income concentration, which is among the highest in world, the country just went through its most significant recession (2014-2017), marking the deepest economic falloff since records began. Unemployment rates increased significantly since 2015 and hit records high in June 2017 with 14 million people out of formal labor market. Before economic crisis, it was half that (6.5%).

Development indicators and recession

6 http://imazon.org.br/wp/wp-content/uploads/2018/06/SAD_maio_2018.jpg USAID/Brazil/Partnership to the Conservation of Amazon Biodiversity


http://imazon.org.br/wp/wp-content/uploads/2018/06/SAD_maio_2018.jpg

Brazil’s social and economic progress was remarkable from 2003 to 2014 and resulted on international appreciation over the past decades. The country became recognized for its success in reducing poverty and by its ability to create jobs in a believed pulsing economy. Innovative policies to decrease poverty and ensure inclusiveness of excluded and marginalized groups lifted millions of people out of poverty. However, this trend reversed in 2014 due to the economic recession and recurring cuts to government budget and subsidy programs, such as Bolsa Familia Program, which was referred by ILO7 as the most important effort for poverty reduction in Brazil.

Social programs as Luz para Todos, which provides access to electricity for rural communities, Food Purchase Program (PAA), which secure the purchasing of smallholder production by the GOB and Minha Casa Minha Vida, which supports house purchasing for low income workers, are practically disappearing along with budget constraints. Disbursements of Minha Casa Minha Vida Program, which reached approximately USD 5 billion in 2015, were reduced to USD 2 billion in 2016 and USD 441 million in 20178. From 2016 to 2017, the number of families benefited by PAA was reduced by 51%. Due to successive increases in compulsory expenses, led specially by the unsustainable national pension fund, less room has been allocated in GOB’s budget for these social programs. Budget cuts and the weakening of social programs have a direct impact in the social and economic progress of the Amazon, still quite dependent on government subsidies and few legal and economic viable sustainable opportunities.

Decreasing institutional budgets Since 1995, Brazil has had an expansion in the number of Conservation Units (CUs), particularly until 2010. However, it highly decelerated in the current decade and was only retaken in 2017 with the extension and creation of new CUs. On the other hand, availability of resources for financing the management of CUs has not followed that expansion. According to Young and Medeiros (2018)9, since 2015 the GOB has faced a drastic reduction on discretionary resources for environment, as noted by the Ministry of Environment (MMA) budget decrease (chart 2).

That context is similar to other key environment institutions, such as the National Indian Foundation (FUNAI), The Brazilian Institute of Environment and Renewable Natural Resources (IBAMA) and Chico Mendes Institute for Biodiversity Conservation (ICMBio), that have seen reduced power and currently operate with major budget cuts (from 40 to 70%) since 2015.

7 http://reporterbrasil.org.br/documentos/relatoriocompletoWOW13.pdf 8 https://www.valor.com.br/brasil/5149370/programas-sociais-tem-corte-de-ate-96-em-quatro-anos 9 Quanto vale o verde: a importância econômica das unidades de conservação brasileiras. Carlos Eduardo Frickmann Young & Rodrigo Medeiros (Organizadores). – Rio de Janeiro: Conservação Internacional, 2018. 180p. USAID/Brazil/Partnership to the Conservation of Amazon Biodiversity


https://www.valor.com.br/brasil/5149370/programas-sociais-tem-corte-de-ate-96-em-quatro-anos

http://reporterbrasil.org.br/documentos/relatoriocompletoWOW13.pdf

Chart 2 – Discretionary Budget of the Ministry of Environment (MMA) 2003-

2017 Source: O Eco, 2017

The severity of budget cuts have comparatively impacted more on environment than in other sectors of the Brazilian government, despite the growing importance of the environment in national and international agendas, as well as the expansion of PAs. In fact, cutbacks are currently limiting the development of the country’s environmental management capacity.

Infrastructure, economic expansion and Illegal activities (mining and timber)PAs are of vital importance for the conservation of Amazon’s biodiversity. However, they are constantly in risk of downgrading in legal status due to economic pressures on natural resources, such as operation and construction of hydroelectric dams, large mining operations and illegal activities (illegal mining and timber).

Mining has increased significantly in the Amazon since 1980’s. It is one of the most urgent environmental threats to its environment and biodiversity, due to the presence of high value and rare minerals. The Amazon is largely dominated by Brazilian ‘garimpos,’ or ‘wildcat mines,’ are operated by small crews of men, often working with rudimentary pans, shovels and sluice boxes that have been used for centuries. More sophisticated operations use water cannons and boats sucking mud from the bottoms of rivers. Regardless of the method, searching for gold and other minerals like cassiterite and niobium is dangerous, often illegal, and frequently uses mercury, causing serious damage to the ecosystem in some cases. There are 2.113 licensed garimpo sites in Brazil, according to ministry data, but key informants say that there are far more small-scale mines that skip the licensing and ignore regulations altogether. While, the total area worked by garimpeiros in Brazil is thought to be small, chemicals like mercury, which miners use to separate gold from grit, leave a large footprint of contamination.

The significant presence of illegal mining, as well as illegal logging, reveals the lack of economic opportunities in remote areas, where they become vital sources of income or, in some cases, the only opportunities of survival for isolated



communities, due to few existing legal and economically viable opportunities in the rural Amazon.

Large infrastructure projects, in particular the construction of highways, have also been great drivers of deforestation and biodiversity loss. Brazil is characterized by an unbalanced transportation matrix, with road transportation representing more than 60% of the cargo displacement. In the Amazon, railways, and especially highways and roads have played a massive role in logging, deforestation and agriculture expansion since the 60’s. Local coverage unofficial roads that do not appear in official maps have affected more than 180 CUs in the Amazon. Today, nearly 60% of the CUs has official or unofficial roads within or close to their boundaries, usually result of illegal activities.

Large scale agriculture and cattle ranching Despite a decade of intensifying efforts and the notable decrease over the last decade, deforestation rate is still considered worrying, due to the high accumulated degree of forest suppression and exponential expansion of agriculture and pasture lands through Brazilian Savanah and Amazon biomes. Agriculture in the Amazon is extremely diverse. While small-scale agriculture can have significant cumulative impact in some ecosystems, it is the large scale agro-industry, with trends of rapid expansion in the Amazon, which is of most concern. Over the last five decades, there has been a significant expansion of large-scale agriculture and cattle ranching in the Amazon biome, responsible for more than 15% of the 2017 deforestation.

Human rights threats and escalating violence Brazil is the world leader in violence against human right defenders and has presented alarming numbers regarding rural violence. According to a survey by the Brazilian Catholic Church’s Pastoral Land Commission (CPT)10, which mapped murders and trials related to violence towards landless rural workers, settlers, indigenous and other traditional populations in Brazil from 1985 to 2017, the Amazon accounts for nearly 45% of violence cases and draws attention to a disturbing impunity rate in the region: only 5% of registered violence cases resulting in trials.

According to the Amazon Conflict Atlas 201711, there has been an escalation of violence over land disputes, natural resources and labor against landless rural workers, settlers, indigenous and other traditional populations in the Amazon. It reached in 2017 the highest level recorded since 2003. The State of Pará, followed by Rondônia, stands as the most violent.

A Report about violence against Indigenous Peoples (IP) published in 2016 by the Indigenous Missionary Council (CIMI)12 informs that at least 118 indigenous were killed in 2016. While violence has risen against indigenous and traditional peoples, several measures have been discussed in Congress to weaken their acquired rights, led by the powerful ruralist caucus13.

10 https://www.cptnacional.org.br/component/jdownloads/download/60-dados-2017/14075-assassinatos-e-julgamentos-1985-2017-cpt-assessoria-de-comunicacao 11 https://www.cimi.org.br/wp-content/uploads/2018/01/AtlasConflitosAmazoniaCPT.pdf 12 https://www.cimi.org.br/pub/Relatorio2016/relatorio2016.pdf USAID/Brazil/Partnership to the Conservation of Amazon Biodiversity


https://www.cimi.org.br/pub/Relatorio2016/relatorio2016.pdf

https://www.cimi.org.br/wp-content/uploads/2018/01/AtlasConflitosAmazoniaCPT.pdf

https://www.cptnacional.org.br/component/jdownloads/download/60-dados-2017/14075-assassinatos-e-julgamentos-1985-2017-cpt-assessoria-de-comunicacao

https://www.cptnacional.org.br/component/jdownloads/download/60-dados-2017/14075-assassinatos-e-julgamentos-1985-2017-cpt-assessoria-de-comunicacao

Sustainable Productive ActivitiesSustainable extractive activities and fisheries are very important for Brazil’s economy with large potential of expansion, especially in the Amazon. Great part of these activities, such as legal logging in Conservation Units (CUs), açai, Brazilian nut and fisheries take place within Protected Areas (PAs). According to Young and Medeiros (2018)14, extractive activities represent a great unexplored economic potential in the Amazon, especially within PAs. Legal timber extraction in national or state forests (FLONAS or FLOTAS) has great potential to generate annually USD 165 million. This is one example of the important role played and with potential to be played by PAs in Brazil, since an expressive share of the national timber production currently originates from PAs. When it comes to most important commercial species in the Amazon (acai and Brazilian nut), both have the potential to be produced and promote income generation to nearly 200.000 families living in 145 CUs. When it comes to fisheries, USD 41 million annually could be generated.

In addition to the extractive activities, Young and Medeiros (2018) identified potential to further explore and develop tourism within CUs as an instrument to raise public awareness and local income. In 2016, 17 million visitors were registered, but the CUs could receive a much higher number of visitors if investments in infrastructure, technology and capacity building are made: visit increase in 20% would result in a significant economic impact (from USD 125 million to 300 million annually) and 42 thousand new jobs. Even though widely consumed and of high importance for traditional communities, systematized data on extractives activities in PAs are scarce.

Management of Protected Areas (PAs)

The challenges to maintaining and managing PAs are as great as their territorial dimension and cultural, social and environmental diversity. Adds to that the fact that there are still few innovative instruments, limited resources, lack of researches and evidence-based conservation approaches to promote a broad and consistent management of PAs in the Amazon. Despite these challenges, Brazil has advanced in creating and implementing important environment conservation policies, such as the National Policy for Environment and Territorial Management of Indigenous Lands (PNGATI) and the National System of Conservation Units (SNUC).

Created in 2012, PNGATI is considered one of Brazil’s greatest advances towards empowering indigenous peoples to sustainably manage their traditionally occupied territories. In areas where indigenous peoples are able to manage their territories, forest standing is much larger than surroundings areas, which are often highly devastated, especially near the “arc of deforestation”15. When it comes to CUs,

13 The ruralist caucus, also known as the Frente Parlamentar da Agropecuária (FPA), has currently 200 Deputies and 20 Senators, making up 23, 4% of the Chamber of Deputies and 16% of the Senate. Source: https://www.terra.com.br/noticias/maior-lobby-no-congresso-ruralistas-controlam-14-da-camara,4668a418851ca310VgnCLD200000bbcceb0aRCRD.html14 Quanto vale o verde: a importância econômica das unidades de conservação brasileiras. Carlos Eduardo Frickmann Young & Rodrigo Medeiros (Organizadores). – Rio de Janeiro: Conservação Internacional, 2018. 180p.15 Kalifi Ferretti-Gallon and Jonah Busch, What Drives Deforestation and What Stops It? A Meta-Analysis of Spatially Explicit Econometric Studies, CGD Working Paper 361 USAID/Brazil/Partnership to the Conservation of Amazon Biodiversity


https://www.terra.com.br/noticias/maior-lobby-no-congresso-ruralistas-controlam-14-da-camara,4668a418851ca310VgnCLD200000bbcceb0aRCRD.html

https://www.terra.com.br/noticias/maior-lobby-no-congresso-ruralistas-controlam-14-da-camara,4668a418851ca310VgnCLD200000bbcceb0aRCRD.html

since the launching of SNUC in 2000, important changes to their creation and management processes took place in Brazil. Among those, the need for development of technical studies and public consultations to identify the most appropriate location, size and limits, with the aim of protecting wildlife and promoting participation and empowerment of indigenous and traditional communities.

2.2 APPLICABLE AND APPROPRIATE PARTNER COUNTRY AND OTHER INTERNATIONAL STANDARDS (E.G. WHO), ENVIRONMENTAL AND SOCIAL LAWS, POLICIES, AND REGULATIONS

The Brazilian forest and environmental legislation stands out in the regional and international contexts, especially due to the relevance if its efforts to ensure biodiversity conservation, conservation of protected areas, food security, mitigation of climate impacts and reduced deforestation. Over the past two decades, the Brazilian Government (GOB) established and consolidated several policies for the Amazon that promote human development, biodiversity conservation as well as avoided increasing deforestation. The country’s laws, rules and regulations cover extensively all relevant international social and environment standards as well as mitigation measures.

Environment Legislation, rules and

regulationsLegislation, rules and regulations on biodiversity protection and

conservation in BrazilNational Environmental Policy

National Environmental Policy (Law n. 6.938/1981)Brazil’s most important environmental legislation. It defines that polluters are required to pay for environmental damages. The Public Prosecutor’s Office may file civil liability motion for environmental damages, imposing on polluters the obligation to recover and/or pay a financial compensation for environmental damages caused. This law also establishes mandatory environmental impact assessments and reports (EIA/RIMA, acronyms in Portuguese), regulated by Resolution 001/86 of the National Environmental Council (CONAMA). These assessments and reports have to be completed prior to the implementation of any economic activity and/or infrastructure that could significantly impact the environment, such as roads, plants, landfills, detailing the potential and associated impacts (both positive and negative) as well as their mitigation measures. http://www2.camara.leg.br/legin/fed/lei/1980-1987/lei-6938-31-agosto-1981-366135-normaatualizada-pl.pdf

Climate Change

National Policy on Climate Change (Law nº 12.187/2009)Seeks to reduce greenhouse gas emissions mainly through mitigation and adaptation efforts, promotion of renewable energy, reducing deforestation, land degradation and promoting R&D.http://www.planalto.gov.br/ccivil_03/_ato2007-2010/2009/lei/l12187.htm

Protected Areas: (Conservation Units)

National System of Conservation Units (SNUC – Law nº 9.985/2000)Rules the conservation of a variety of biological species and genetic resources, preservation and recovery of natural ecosystems and

(Washington: Center for Global Development, 2014). USAID/Brazil/Partnership to the Conservation of Amazon Biodiversity


http://www.planalto.gov.br/ccivil_03/_ato2007-2010/2009/lei/l12187.htm

http://www2.camara.leg.br/legin/fed/lei/1980-1987/lei-6938-31-agosto-1981-366135-normaatualizada-pl.pdf


promotion of sustainable development through the sustainable use of biodiversity. The implementation of Conservation Units requires a major investment from the government, both for the land regularization, and for maintenance and implementation of the management instruments. The total protected areas system (SNUC plus indigenous land) currently represents 48% of the Amazon.ICMBio is responsible for 320 conservation units in Brazil) encompassing about 1.5 million km² or approximately 17% of Brazil’s territory. There are 12 different types of protected areas in Brazil, each with different regulations, ranging from strict protection National Parks to multiple use Extractive Reserves and including private reserves.http://www.planalto.gov.br/ccivil_03/Leis/L9985.htm

Protected Areas: (Indigenous Lands)

National Policy for Territorial and Environmental Management of Indigenous Land (PNGATI) – (Decree nº 7.747/2012)Aims at providing support for integrated management of indigenous land and the respective natural resources through the development of Environment and Territorial Management Plans (PGTAs). The PNGATI recognizes that indigenous people and their territories are key to tackling deforestation. Indigenous Territories, compared to other protected areas, have proven very effective as in staving off the advancing deforestation and forest degradation.http://www.planalto.gov.br/ccivil_03/_ato2011-2014/2012/decreto/d7747.htm

Sustainable Forestry Management

Sustainable Forest Management Program (Decree nº 1.282/1994)Establishes the conservation of forest ecosystem and its functions as well as conservation of biodiversity and socioeconomic development of the Amazon region.http://www2.camara.leg.br/legin/fed/decret/1994/decreto-1282-19-outubro-1994-449519-republicacao-29866-pe.html

Management of Public Forests

Law on Management of Public Forests (Law nº 11.284/2006)Creates the Brazilian Forest Service and the National Forest Development Fund. This law made it possible to assign forestry concessions on public lands, allowing sustainable forest management without the effective ownership of land, which is the context of most of the communities managing timber in the Amazon.http://www2.camara.leg.br/legin/fed/lei/2006/lei-11284-2-marco-2006-541235-norma-pl.html

Sustainable Forestry Management Plan for Conservation Units

Sustainable Forest Management Plans (ICMBio – Normative Instruction nº 16/2011)Establishes the guidelines and administrative procedures for the approval of theSustainable Forestry Management Plans for timber exploitation within Extractive Reserves (RESEX), Sustainable Development Reserves and National Forests.IN16 restricts ICMBio to supporting, overseeing and approving timber production only by communities that have a tradition of forest management and were engaged in such activity prior to the establishment of the conservation unit. ICMBio’s goal is to protect an existing economic activity and regulate it so that it is sustainable, low in impact, and its economic benefits accrue to the communities rather than to intermediaries.http://www.icmbio.gov.br/portal/images/stories/o-que-somos/in162011.pdf



http://www.icmbio.gov.br/portal/images/stories/o-que-somos/in162011.pdf

http://www.icmbio.gov.br/portal/images/stories/o-que-somos/in162011.pdf

http://www2.camara.leg.br/legin/fed/lei/2006/lei-11284-2-marco-2006-541235-norma-pl.html

http://www2.camara.leg.br/legin/fed/lei/2006/lei-11284-2-marco-2006-541235-norma-pl.html

http://www2.camara.leg.br/legin/fed/decret/1994/decreto-1282-19-outubro-1994-449519-republicacao-29866-pe.html

http://www2.camara.leg.br/legin/fed/decret/1994/decreto-1282-19-outubro-1994-449519-republicacao-29866-pe.html

http://www.planalto.gov.br/ccivil_03/_ato2011-2014/2012/decreto/d7747.htm

http://www.planalto.gov.br/ccivil_03/_ato2011-2014/2012/decreto/d7747.htm

http://www.planalto.gov.br/ccivil_03/Leis/L9985.htm

National System for Origin Control of Forest Products (SINAFLOR)

National System for Origin Control of Forest Products (SINAFLOR) - (IBAMA – Normative Instruction nº 21/2014)SINAFLOR is the new tracking system in place as well as an important safeguard recently established by the GOB to integrate the control of the origin of timber, coal and other forest products or by-products, under the coordination, supervision and regulation of IBAMA.http://www.iap.pr.gov.br/arquivos/File/formularios/IN_21_DE_2014.pdf

Environment Information

Environment Information Law (Law nº 10.650/2003)Rules the access to public documents on environment quality, programs impact and results from environment monitoring. Public authorities may require private entities to provide information on potential environment impacts of their activitieshttp://www.planalto.gov.br/ccivil_03/_ato2007-2010/2009/lei/l12187.htm

Wildlife Trafficking

Wildlife Law (Law nº 5.197/1967) Defines as crime: the use, hunting or capture of wild animals, as well as professional hunting, trade in wildlife specimens and products derived from their hunting. In addition, it prohibits the introduction of exotic (imported) species and amateur hunting without IBAMA’s authorization. This law also considers crime the export of amphibians and reptiles skins (such as alligator’s).http://www.rbma.org.br/anuario/pdf/legislacao_13.pdf

Implementation of CITES (Decree nº 3.607/2000)Regulates commercial breeding of wildlifehttp://www2.camara.leg.br/legin/fed/decret/2000/decreto-3607-21-setembro-2000-373641-norma-pe.html

Environmental Crimes

Law on Environmental Crimes (Law nº 9.605/1998) Rules the infractions and punishments regarding environmental crimes. It states, for example, that a legal entity/company, author or co-author of the environmental infraction, can be penalized, and even be liquidated, if it was created or used to facilitate or to hide an environmental crime. According to the law it is considered crime the acts of scraping urban buildings, making or releasing balloons (because of the risk of causing fires), mistreating ornamentation, hampering access to beaches, or carrying out deforestation without prior authorization. The penalties vary from R$50 to R$50 million.http://www2.camara.leg.br/legin/fed/lei/1980-1987/lei-6938-31-agosto-1981-366135-normaatualizada-pl.pdf

Land use Brazilian Forest Code - (Law nº 12.651/2012) Introduces new instruments that allow for better monitoring of land use which will be crucial in the combat against deforestation and in ensuring environmental compliance, as well as in attaining Brazil’s goals with respect to the reduction of greenhouse gas emissions.http://www2.camara.leg.br/legin/fed/lei/2012/lei-12651-25-maio-2012-613076-normaatualizada-pl.pdf

Solid waste Management

National Policy on Solid Waste (Law nº 12.305/2010)Various types of waste are regulated by specific statutes and delegated legislation. Examples include: radioactive waste (Law No. 10,308/2001); hazardous civil construction waste (CONAMA Resolution No. 307/2002); hazardous healthcare waste (CONAMA Resolution No. 358/2005); hazardous waste in general (CONAMA Resolution No. 452/2012); batteries (CONAMA Resolution No. 401/2008); tires (CONAMA Resolution No. 416/2009); pesticides (CONAMA Resolution No. 465/2014); and lubricating oil (CONAMA Resolution No. 450/2012).



http://www2.camara.leg.br/legin/fed/lei/2012/lei-12651-25-maio-2012-613076-normaatualizada-pl.pdf

http://www2.camara.leg.br/legin/fed/lei/2012/lei-12651-25-maio-2012-613076-normaatualizada-pl.pdf



http://www2.camara.leg.br/legin/fed/decret/2000/decreto-3607-21-setembro-2000-373641-norma-pe.html

http://www2.camara.leg.br/legin/fed/decret/2000/decreto-3607-21-setembro-2000-373641-norma-pe.html

http://www.rbma.org.br/anuario/pdf/legislacao_13.pdf


http://www.iap.pr.gov.br/arquivos/File/formularios/IN_21_DE_2014.pdf

http://www.planalto.gov.br/ccivil_03/_ato2007-2010/2010/lei/l12305.htmEnvironment Education

Law nº 9.795/1999 and Decree nº 4.281/2002Establish and regulate the National Environmental Education Policy and provides other measures.http://www2.camara.leg.br/legin/fed/lei/1999/lei-9795-27-abril-1999-373224-norma-pl.htmlhttp://www.planalto.gov.br/ccivil_03/decreto/2002/d4281.htm

Fisheries and Aquaculture

National Policy for the Sustainable Development and Aquaculture and Fisheries (Law nº 11.959/2009)Regulates fishing activities.http://www.planalto.gov.br/ccivil_03/_Ato2007-2010/2009/Lei/L11959.htm

Pesticides Law nº 7.802/1989Regulates the research experimentation, production, packing and labeling, transport, storage, marketing, commercial advertising, use, importation, exportation, final destination of waste and packaging, registration, classification, control, inspection and supervision of pesticides and their components.http://www.planalto.gov.br/ccivil_03/leis/l7802.htm

Environment

Legislation, rules and regulations

Specific and/or local (state level) legislation, rules and regulations for conservation and development of value chains in Brazil

Management of Pirarucu

Decree nº34.100/2013 – State of AmazonasRules the comercial productionof Pirarucu in fish farming in the State of Amazonas.https://www.legisweb.com.br/legislacao/?id=261187

Law nº 10.203/2014 – State of Mato GrossoRules the comercial productionof Pirarucu in fish farming in the State of Mato Grossohttps://www.al.mt.gov.br/storage/webdisco/leis/lei_12540.pdf

Management of wild Pirarucu

IBAMA Normative Instruction nº 34/2004Rules the management of wild Pirarucu in the Amazonas basin.http://www.icmbio.gov.br/cepsul/images/stories/legislacao/Instrucao_normativa/2004/in_ibama_34_2004_normasgeraisparaoexerciciodapescadopirarucunaregiao_n.pdfThe State of Amazonas was the pioneer with the community-based management system of pirarucu. The PCAB through the partnership with USFS resulted on an updated Amazonas’ decree nº 36083/2005, signed a month after USFS held the first pirarucu seminar in Manaus/Amazonas. http://www.normasbrasil.com.br/norma/decreto-36083-2015-am_287404.html

Agroforestry systems

Law nº 12.854/2013Encourages actions that promote forest recovery and the implementation of agroforestry systems in expropriated rural areas and degraded areas.http://www2.camara.leg.br/legin/fed/lei/2013/lei-12854-26-agosto-2013-776880-publicacaooriginal-140908-pl.html



http://www2.camara.leg.br/legin/fed/lei/2013/lei-12854-26-agosto-2013-776880-publicacaooriginal-140908-pl.html

http://www2.camara.leg.br/legin/fed/lei/2013/lei-12854-26-agosto-2013-776880-publicacaooriginal-140908-pl.html

http://www.normasbrasil.com.br/norma/decreto-36083-2015-am_287404.html

http://www.normasbrasil.com.br/norma/decreto-36083-2015-am_287404.html

http://www.icmbio.gov.br/cepsul/images/stories/legislacao/Instrucao_normativa/2004/in_ibama_34_2004_normasgeraisparaoexerciciodapescadopirarucunaregiao_n.pdf



https://www.al.mt.gov.br/storage/webdisco/leis/lei_12540.pdf

https://www.legisweb.com.br/legislacao/?id=261187

http://www.planalto.gov.br/ccivil_03/leis/l7802.htm

http://www.planalto.gov.br/ccivil_03/_Ato2007-2010/2009/Lei/L11959.htm

http://www.planalto.gov.br/ccivil_03/_Ato2007-2010/2009/Lei/L11959.htm

http://www.planalto.gov.br/ccivil_03/decreto/2002/d4281.htm

http://www2.camara.leg.br/legin/fed/lei/1999/lei-9795-27-abril-1999-373224-norma-pl.html

http://www2.camara.leg.br/legin/fed/lei/1999/lei-9795-27-abril-1999-373224-norma-pl.html


2.3 COUNTRY/MINISTRY/MUNICIPALITY ENVIRONMENTAL CAPACITY ANALYSIS (AS APPROPRIATE)

Although no Government-to-Government agreements are envisioned, ICMBIO and FUNAI are primary cooperators in this activity and have not only the capacity but the responsibility to ensure appropriate monitoring and adherence to Brazilian laws, regulations and policy. Previous activities have demonstrated the GOB’s capacity to effectively fulfil this role.



3.0 ANALYSIS OF POTENTIAL ENVIRONMENTAL RISK16

The majority of the Activities envisioned in this project involve training, technical assistance, assessments, and studies or support to financial mechanisms. These activities do not present significant adverse impact to the environment.

However, commercialization of natural resource-based products as envisioned in IR 3, has the potential to lead to overharvesting, which could be detrimental to targeted species or their habitat. As such, commercialization of timber and non-timber forest products will be conducted exclusively under the auspices of a harvest management plan approved and monitored by GOB authorities such as ICMBio and FUNAI in accordance with the Protected Area Management plans and/or indigenous territorial life plans, Environment and Territorial Plans of Indigenous Lands (PGTAs) or other state and federal rules and regulations, as well as government licenses, such as those operated under the Brazil Institute of Environment and Renewable Natural Resources(IBAMA), the equivalent of a combined US EPA and USFWS that oversees all environmental licensing processes in country as well as environmental crimes (see section 2.2 above).

In addition, to ensure successful outcomes of USAID’s interventions, several IRs are expected to implement targeted activities that may have direct, focalized, short-term impacts on the environment that can be mitigated by applying well recognized standard operating procedures, best management practices and other industry and/or agency standards. For example, small scale construction of processing facilities or storage barns has the potential to generate solid waste and put construction workers and the general public at safety risk during the construction phase. During the operation of such facilities, solid waste generation, potable and wastewater treatment and type of energy source can have impacts on the surrounding natural and human environment.

Finally, because these buildings are likely to be located in protected areas, care should be taken to ensure they do not detract from the natural environment by using appropriate building materials, or being located in areas of particularly high value such as nesting habitats or wetlands. Finally, climate change risk to the facility and opportunities to reduce carbon footprint of the facility should also be taken into account in building design.

PROJECT/ACTIVITY IR-1: PROTECTED AREAS (PAS) ARE FULLY CONSOLIDATED, MEETING THEIR MANAGEMENT, IMPLEMENTATION, MONITORING AND CONSERVATION ROLES

TABLE 3A. POTENTIAL IMPACTS – PROJECT/ACTIVITY IR-1

16 Includes analysis of environmental and social USAID/Brazil/Partnership to the Conservation of Amazon Biodiversity


Project/Activity Potential environmental and social impactsProject/Activity IR-1:Sub-activity 1.2 - Acquisition and installation of small hand-carried fuel power generators and fuel

The use of generators can create noise pollution that may impact certain species within Protected Areas

Improper fuel use and storage could lead to ground water contamination or intoxication

Sub-activity 1.2 - Small-scale construction of infrastructure for sustainable economic activities including tourism, timber, non-timber forest products value chains, including but not limited to drying facilities for Brazil nuts and açaí berry processing, pirarucu drying racks and storage facilities for a variety of products, community-based tourism public use small installations.

Small scale construction has the potential to generate solid waste and put construction workers and the general public at safety risk during the construction phase

During the operation of such facilities, solid waste generation, potable and wastewater treatment and type of energy source can have impacts on the surrounding natural and human environment.

Improper placement of buildings or use of building materials inconsistence with Protected Areas may detract from the natural environment or harm particularly high value such as nesting habitats or wetlands.

IR 1.2 - Training of local community members in basic wild-land fire management practices

Injury of firefighters due to work related hazards such as burns, smoke inhalation, improper tool use, etc.

Sub-activity 1.3 - Small scale constructing for Wi-Fi towers, solar power Wi-Fi installations

Installation of Wi-Fi towers may generate solid waste during construction

Improper disposition of solar batteries may cause ground water contamination

Sub-activity 1.4 - Acquisition and installation of small hand-carried fuel power generators and fuel

✓ The use of generators can create noise pollution that may impact certain species within protected areas

✓ Improper fuel use and storage could lead to ground water contamination or intoxication

PROJECT/ACTIVITY IR-2: SUSTAINABLE FOREST - AND BIODIVERSITY-BASED AND BIODIVERSITY-FRIENDLY VALUE CHAINS AND BUSINESSES IS EXPANDED TABLE 3B. POTENTIAL IMPACTS – PROJECT/ACTIVITY IR-2 AND IR-3Project/Activity Potential environmental and social impactsProject/Activity IR-2:Sub-activity 2.1 - Small-scale construction of infrastructure for sustainable economic activities including tourism, timber, non-timber forest products value chains, including but not limited to drying facilities for Brazil nuts and açaí berry processing, pirarucu drying racks and

Small scale construction has the potential to generate solid waste and put construction workers and the general public at safety risk during the construction phase.




storage facilities for a variety of products, community-based tourism public use small installations.Sub-activity 2.3 – Strengthening relationship and trust among different actors across value chains and sustainable economic activities

Commercialization of natural resource-based products has the potential to lead to overharvesting, which could be detrimental to targeted species or their habitat

Sub-Activity 2.4 - Technical assistance and articulation of private sector, communities and local governments to scale-up those already mature

Community members decide to use their profits in ways that lead to overharvesting or generate additional waste or pollution (indirect side effect of increased incomes).

PROJECT/ACTIVITY IR-3: PRIVATE SECTOR ENGAGEMENT THAT ACTIVELY FOSTERS A SUSTAINABLE-BASED ECONOMY IN THE AMAZON IS STRENGTHENED.TABLE 3C. POTENTIAL IMPACTS – PROJECT/ACTIVITY IR-3Project/Activity Potential environmental and social impactsProject/Activity IR-3: Private sector engagement that actively fosters a sustainable-based economy in the Amazon is strengthenedSub activity 3.1 – Shared best-practices and models that could be replicated or scaled by others, including integrated territorial management approaches, community-managed fund and financing mechanisms using private sector sources, and strengthening municipalities, impact businesses, entrepreneurism and sustainable value chains (link to IR2).

Use of pesticides could result in health diseases and environment contamination



Commercialization of natural resource-based products has the potential to lead to overharvesting, which could be detrimental to targeted species or their habitat.

Sub activity - 3.2. Triple-win development models replicated, adopted and/or scaled by other actors, including Sharing best-practices and models that could be replicated or scaled by other actors, including



During the operation of such facilities, solid waste generation, potable and wastewater treatment and



integrated territorial management approaches, community-managed fund and financing mechanisms using private sector sources, and strengthening municipalities, impact businesses, entrepreneurism and sustainable value chains (link to IR2).

type of energy source can have impacts on the surrounding natural and human environment.



Sub activity 3.4. Increased private sector support, actions and investments (human, technology, financial) in shared conservation goals, including catalyzing private sector investments in shared sustainable development and conservation priorities, including startups, impact businesses and the establishment of an impact investing fund, including the use of a DCA guarantee (link to IR2)






Increased investments in new sectors have an indirect impact of increasing outside financing and lead to unexpected negative consequences.



4.0 ENVIRONMENTAL DETERMINATIONS 4.1 RECOMMENDED ENVIRONMENTAL DETERMINATIONSSeveral IRs are expected to implement targeted activities that may have direct, focalized, short-term impacts on the environment that can be mitigated by applying well-recognized standard operating procedures, best management practices and other industry and/or agency standards. The following table summarizes the recommended determinations based on the environmental analysis conducted. Upon approval, these determinations become affirmed, per 22CFR216. Specified conditions, detailed in Section 5, become mandatory obligations of implementation, per ADS 204.

TABLE 4: ENVIRONMENTAL DETERMINATIONS

Projects/ActivitiesCategorical Exclusion Citation (if applicable) Negative Determination

Project/Activity IR-1: Protected areas (PAs) are fully consolidated, meeting their management, implementation, monitoring and conservation rolesSub-activity 1.1 - Increased number of PAs with participatory management plans in place All activities

Sub-activity 1.2 - Improved quality of PA management and its implementation

All activities, except those listed in adjacent cell under Negative Determination.



Training of local community members in basic wild-land fire management practices

Sub-activity 1.3 - Improved participatory monitoring of PAs, including biodiversity

All activities, except those listed in adjacent cell under

Small scale constructing for Wi-Fi towers, solar power Wi-Fi installations


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Negative Determination.Sub-activity 1.4 - Communities actively engaged in or take leadership in PA management, planning, monitoring and related local benefits.



Project/Activity IR-2 — Sustainable forest - and biodiversity-based and biodiversity-friendly value chains and businesses is expandedSub-activity 2.1 - Increased commercialization/value of Amazon-based, sustainable, forest biodiversity-friendly economic activities



Sub-activity 2.2 - Increased fairness, equity, and transparency of Amazon-based, sustainable, forest and biodiversity-friendly economic activities. All activitiesSub-activity 2.3 - Legal, profitable and sustainable livelihood options are increased in rural Amazon communities All activitiesSub-activity 2.4 - Rural community members receive greater portion of profits and benefits from sustainable value chains All activitiesProject/Activity IR-3 - Private sector engagement that actively fosters a sustainable-based economy in the Amazon is strengthenedSub-activity 3.1 - Viable evidence-based models for triple-win conservation and development approaches tested with and by the private sector including integrated territorial management approaches, community-managed fund and financing mechanisms using private sector sources, and strengthening municipalities, impact



Use and/or acquisition of pesticides


businesses, entrepreneurism and sustainable value chains (link to IR2), and Sub-activity 3.2 - Triple-win development models replicated, adopted and/or scaled by other actors, including integrated territorial management approaches, community-managed fund and financing mechanisms using private sector sources, and strengthening municipalities, impact businesses, entrepreneurism and sustainable value chains (link to IR2).



Sub activity 3.3 - Private sector actors become more effective champions in shared development solutions for the Amazon All ActivitiesSub activity 3.4 - Increased private sector support, actions and investments (human, technology, financial) in shared conservation goals investments in shared sustainable development and conservation priorities, including startups, impact businesses and the establishment of an impact investing fund, including the use of a DCA guarantee (link to IR2)







4.2 CLIMATE RISK MANAGEMENTOn September 25 to 27th USAID/Brazil mission held an internal workshop to discuss and design the risk management strategy for the Partnership to the Conservation of Amazon Biodiversity (PCAB) based on ADS 201 and using the table from the Climate Risk screening and management tool. Results of the climate screening are attached (Attachment 1), which provides information at project (IRs and sub IRs) and activity levels (illustrative interventions) on climate risks, risk rating, risk addressing activities/mechanisms, as well as analysis and actions for activity design and implementation and opportunities to strengthen climate resilience within the project context.

5.0 CONDITIONS AND MITIGATION MEASURES5.1 CONDITIONSThe 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.

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.

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.


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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 will continue to be required for ongoing activities. For the activities going forward an EMMP will not be required given that the environmental impacts of the targeted interventions listed in table 4 will be mitigated through application and enforcement of Brazilian environmental legislation and regulations as outlined in section 2.2. The A/COR in conjunction with GOB agencies such as ICMBio and FUNAI will ensure the IP is compliant with all applicable Brazilian laws, regulations and policies.

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; and completes and submits a Record of Compliance (RoC) describing their implementation of adherence to Brazilian laws, regulations and policies. 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.

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 CONDITIONS5.2.1 Sub-contract Screening: The A/COR will ensure the IP uses an

Environmental Screening Tool to screen any sub-grant applications.

5.2.2 Ongoing activities that involve pesticides are required to meet USAID procedural requirements including development of a Pesticide Evaluation Report and Safer Use Action Plan (PERSUAP). Activities going forward will be subject to government of Brazil requirements, provided they are determined to be as protective as USAID procedures.

5.3 MITIGATION MEASURESThe 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.

Ongoing activities will continue to be implemented following USAID’s procedures, including the requirement to develop EMMPs, implement and monitor, and reporting. Activities going forward will be subject to the environmental compliance requirements already delineated in the Cooperative Agreement between USAID and the Instituto International de Educacao do Brazil (IIEB) , subsequent amendments, and other similar implementing agreements. As noted below, it is appropriate to defer to the government of Brazil environmental procedures and processes, in lieu of imposing USAID requirements pursuant to 22 CFR 216. Should such agreements not effectively ensure environmental and social safeguarding, USAID/Brazil may impose additional requirements.

USAID policy requires that the agency "must comply with host country environmental regulations unless otherwise directed in writing by USAID. In case of conflict between host country and USAID regulations, the latter shall govern"(ADS 204). Section 2.2 of this IEE outlines a wide range of host country environmental laws, polices, and regulations which are designed, in large part, to avoid or mitigate negative environmental impacts from the types of development activities propose in the PCAB and outlined in this IEE. These include but are not limited to annual harvest management plans for timber harvest in protected areas, worker health and safety polices for all commercial enterprises, requiring local building construction permits, and required approvals for solid waste disposal, to name a few.

For the proposed Impact Investment Fund, an Impacts and Environmental, Social and Governance (ESG) Policy will be developed and adhered to, the fund manager will ensure that each investment meets this policy and each investment will also include an ESG Action Plan, which will be externally audited in order to ensure environmental compliance. The DCA agreement will also incorporate the ESG mitigation aspects, including a list of categories not eligible for investments. USAID/Brazil/Partnership to the Conservation of Amazon Biodiversity


Specifically regarding the use or acquisition of of pesticides, both the ESG Annex and the DCA Agreement state that no pesticides that are Class 1a, 1b or 11 by the World Health Organization will be allowed; if others, the Fund Manager will confirm that the pesticides proposed are permitted under Brazilian law and supply the names of the proposed pesticides to USAID for approval.

Monitoring of USAID-funded activities is currently being implemented under the auspices of LAC-IEE-16-48 and has shown that these activities have complied with both 22 CFR 216 as well as with local host country laws, polices and regulations and furthermore, has shown that in some cases, Brazil's legal framework is often more stringent than USAID policy; particularly with regard to Protected Areas (Conservation Units and Indigenous Lands). As such, it is expected that the USAID activities described herein which fall under a negative determination will have their environmental effects sufficiently mitigated through the proper application of the Brazilian legal environmental framework.

AORs and CORs who administer implementing mechanisms authorized under the IEE will conduct sufficient monitoring to ensure compliance with Brazilian law in conjunction with relevant host country officials and implementing partners. EMMPs will continue to be required for ongoing activities. However, no separate Environmental Mitigation and Monitoring Plans (EMMP) will be developed for the activities going forward unless monitoring indicates that local law is insufficient to address acute negative environmental impacts and/or that the GOB has failed to enforce its own laws.

As previously mentioned, monitoring to date has shown that the laws are in place, and that the GOB has the capacity to enforce its laws, policies and regulations in a manner that will eliminate or reduce to insignificance the potential environmental impacts of USAID-funded activities being contemplated in the IEE. Brazil is considered a "post-transition" country within the Agency's country pathway to "self-reliance" and as such, possesses the internal, country-led commitment (legal frameworks as stringent as US environmental laws) as well as capacities (the human and financial resources to conduct the monitoring and enforcement of its environmental laws) to mitigate sufficiently the negative determination outlined in this IEE. By working collaboratively with the GOB on monitoring, USAID/Brazil advances and supports long-term sustainability and reliance on country systems, aligning fully with Agency priorities.

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.

In addition, other than projects/activities determined to have a Positive Threshold Determination and/or a pesticide management plan (PERSUAP), it is confirmed that USAID/Brazil/Partnership to the Conservation of Amazon Biodiversity


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); Procure or use genetically engineered organisms per §216.1(b)(1).

7.0 REVISIONSPer 22CFR216.3(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: 1) Project and Climate Risk Management Summary Spreadsheet – Climate Risks,

opportunities and Actions – USAID/Brazil



https://docs.google.com/spreadsheets/d/1lq-7XdRqYf_dvgQ82QsOMJeCFD-8AIgj7NwqrYUFiI8/edit?usp=sharing

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