The World Bank Critical Ecosystem Partnership Fund – Caribbean Hotspot Project (P173464) Additional Financing Appraisal Environmental and Social Review Summary Appraisal Stage (AF ESRS Appraisal Stage) Public Disclosure Date Prepared/Updated: 02/03/2025 | Report No: ESRSAFA908 Mar 24, 2025 Page 1 of 12 The World Bank Critical Ecosystem Partnership Fund – Caribbean Hotspot Project (P173464) I. BASIC INFORMATION A. Basic Operation Data Operation ID Product Operation Acronym Approval Fiscal Year P173464 Investment Project Financing (IPF) CEPF - Caribbean Hotspot 2021 Project Operation Name Critical Ecosystem Partnership Fund – Caribbean Hotspot Project Country/Region Code Beneficiary country/countries Region Practice Area (Lead) (borrower, recipient) Caribbean Antigua and Barbuda, Bahamas, The, LATIN AMERICA AND Environment, Natural Dominican Republic, Haiti, Jamaica, St. CARIBBEAN Resources & the Blue Lucia, St. Vincent and the Grenadines Economy Borrower(s) Implementing Agency(ies) Estimated Appraisal Date Estimated Board Date Conservation Conservation International Foundation 24-Jan-2025 31-Mar-2025 International Foundation Public Disclosure Estimated Decision Total Project Cost Review Date 12-Mar-2025 15,950,000.00 Proposed Development Objective The project development objective (PDO) is to improve the capacity of civil society organizations to reduce threats to globally important biodiversity in the Caribbean Islands Biodiversity Hotspot. B. Is the operation being prepared in a Situation of Urgent Need of Assistance or Capacity Constraints, as per Bank IPF Policy, para. 12? No C. Summary Description of Proposed Project Activities The project addresses the issue that globally important biodiversity of the Caribbean Islands Hotspot is threatened by over exploitation, habitat loss, and invasive alien species and that CSO capacity will need to be built to help achieve this. To achieve this, it seeks to overcome two key constraints: first that CSOs’ capacity to implement conservation actions is constrained by administrative, financial and technical limitations; and second that CSOs’ ability to deliver conservation Mar 24, 2025 Page 2 of 12 The World Bank Critical Ecosystem Partnership Fund – Caribbean Hotspot Project (P173464) impact at scale is hindered by isolation, lack of coordination and weak dissemination of good practice.To this end, the project will have five components, with Components 1-4 reflecting the short-term outcomes in the Theory of Change and Component 5 providing the administrative, management and monitoring and evaluation functions necessary for the effective implementation of the other components. The five components are: a) Component 1: Increased Share of Land and Sea in and around Priority KBAs under Improved Management Component 1 will support a grant mechanism that focuses on building capacity of CSOs to reduce threats by increasing organizational capacity, networks and partnerships to improve collaboration to improve the management of protected areas to globally important biodiversity in seven Caribbean Island countries: Antigua and Barbuda; The Bahamas; Dominican Republic; Haiti; Jamaica; Saint Lucia; and Saint Vincent and the Grenadines. At the site scale, grant-making will support conservation actions in and around 32 priority KBAs, covering a combined area of 1,171,033 hectares b) Component 2: Increased Capacity of CSOs in Conservation: This component will further strengthen the capacity of local, national and regional civil society in the conservation and sustainable use of biodiversity through targeted capacity development activities such as classroom- based trainings in proposal design, project cycle management, gender mainstream, and managing environmental and social risks, hands-on mentoring, development of online training materials, and dedicated knowledge exchanges. c) Component 3: Increased Capacity of Regional Implementation Team(RIT) in Leadership and Coordination of CSO Conservation Actions: This component will strengthen the role and widen the responsibilities of the RIT in the active hotspots vis-à-vis the CEPF Secretariat. d) Component 4: Strengthened CSO Partnerships for Conservation: In the context of the project, this means CSOs working with one another and in close coordination with local and national governments, private landowners, local communities to co-create analyses of and solutions to conservation challenges in non-confrontational ways. This approach is termed collaborative social accountability and will be adopted by the project to facilitate partnerships of CSOs and other stakeholders to design and implement conservation actions in and Public Disclosure around priority KBAs.In Dominican Republic, Antigua and Barbuda, Jamaica and Saint Lucia, this component will be led by INTEC, with co-financing support and oversight from the World Bank’s Global Partnership for Social Accountability. In The Bahamas, Haiti and Saint Vincent and the Grenadines, this component will be led by the RIT, learning from the experience of INTEC. e) Component 5: Project Management, including M&E: Components 1-4 offer potential for collaboration between island states in the hotspot and with countries in other hotspots where CEPF is active, particularly ones containing Small Island Developing States. The Project is consistent with the Country Partnership Strategy (CPS) for FY15-18 for the Dominican Republic, Country Partnership Framework (CPF) for FY15-19 for Haiti, CPS for FY 14-18 for Jamaica and the World Bank Group FY15-19 Partnership Strategy for the OECS countries (Antigua and Barbuda, Grenada, and Nevis, St. Vincent and the Grenadines, St. Lucia, Dominica). D. Environmental and Social Overview D.1 Overview of Environmental and Social Project Settings The Additional Financing will add 11 more key biodiversity areas (KBAs) and Dominica to the existing 32 KBAs and 7 countries planned to be supported under the project. These countries are Antigua and Barbuda, the Bahamas, Dominican Republic, Haiti. Jamaica, Saint Lucia, and St. Vincent and the Grenadines. The Caribbean Islands Hotspot supports a wealth of biodiversity within its diverse ecosystems, with a high proportion of endemicity, making the region biologically unique. 62 percent of the Caribbean Islands Hotspot’s plant and animal species are found nowhere else in the world and due to the archipelagic nature of the hotspot, many of the endemic species are restricted to a single island. Mar 24, 2025 Page 3 of 12 The World Bank Critical Ecosystem Partnership Fund – Caribbean Hotspot Project (P173464) The Caribbean coastal zone contains many productive and biologically complex ecosystems, including beaches, coral reefs, seagrass beds, mangroves, coastal lagoons and mud bottom communities. The health of these ecosystems has declined over the years, due mainly to habitat conversion, overexploitation, and pollution. The hotspot’s biodiversity is at serious risk of species extinctions with amphibians and reptiles among the most threatened. It has about 992 globally threatened species, making the Caribbean one of the most severely threatened hotspots in the world. All threats are intensified by the effects of climate change and climate variability. To buffer the KBAs from threats, maintain ecological connectivity and facilitate gene flow essential to ensure that species populations retain long-term viability, complementary conservation actions in the surrounding landscapes will also be funded. During implementation, sub-projects will focus on reducing the threats on the globally threatened species by improving the management of the KBAs and the surrounding areas. Threats to the KBAs such as spread of invasive plants and animals, and unsustainable agriculture and forestry practices in the surrounding areas will be addressed, contributing to the protection and sustainable management of biodiversity. Preparation and implementation of conservation actions plans for priority Critically Endangered and Endangered species by the Project will also contribute to the conservation of species and ecosystems that are critical for the well-being of the people. To better protect such species from the effects of climate change, the project will also finance work to identify the impacts of climate change on these species through formulation of adaption measures and integrating them into site management plans. This AF will support replication and scaling-up of good practice models implemented under the existing project and first Public Disclosure CEPF investment phase (between 2010 and 2016). D.2 Overview of Borrower’s Institutional Capacity for Managing Environmental and Social Risks and Impacts The Project Implementation Unit (PIU) will continue to be the CEPF Secretariat established within Conservation Internation (CI), working in collaboration with the Regional Implementation Team (RIT) hosted at the Caribbean Natural Resources Institute (CANARI). The sub-grants are awarded by the CEPF Secretariat and the RIT, while the sub-grants are to be implemented by the CSOs identified during project implementation. The Project has a Satisfactory E&S performance rating. Both CI and CANARI have been implementing the E&S requirements and undertaking the due deligence as agreed per the Environmental and Social Commitment Plan (ESCP). The implementing agencies (IAs) have the technical capacity to support the Project in the Caribbean region. As part of Project preparation and implementation, both the staff of the CEPF Secretariat and CANARI directly involved in the Project received E&S training including on the World Bank Environmental and Social Framework (ESF). The CSOs are provided trainings and hand-on-support on the E&S instruments to be developed by the IAs. The Project also partners with the World Bank’s Global Partnership for Social Accountability (GPSA) project through an experienced institution in the region - the Instituto Tecnológico de Santo Domingo (INTEC) to apply social accountability methodologies and tools to facilitate partnerships for conservation. The INTEC team has received training on the ESF and the E&S Performance of the GPSA project is also satisfactory. II. SUMMARY OF ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS Mar 24, 2025 Page 4 of 12 The World Bank Critical Ecosystem Partnership Fund – Caribbean Hotspot Project (P173464) A. Environmental and Social Risk Classification (ESRC) Substantial A.1 Environmental Risk Rating Moderate The environmental risk rating of the project is Moderate under the World Bank Environmental and Social Framework based on the location, type, sensitivity, and scale of project intervention, nature and magnitude of potential E&S risks and impacts, and client capacity and ownership. Though the Project covers a large geographical area rich in biodiversity, the ongoing and proposed activities are not likely to have significant or irreversible environmental impacts. The Project targets to improve environmental outcomes by conserving biodiversity and strengthening the protection of identified priority conservation sites. By eliminating and controlling the spread of invasive species, the threats to globally threatened species populations are reduced. Moving towards sustainable practices in agriculture, fisheries, and forestry in the landscapes around KBAs, will help maintain the integrity of the landscape (such as through maintaining soil quality, reducing soil degradation, and conserving water) thereby enhancing landscape-scale connectivity and ecosystem resilience contributing to biodiversity conservation. No major civil works are anticipated. Fieldwork is expected to fill critical gaps in knowledge and information. Environmental impacts if any, are expected to be minor and reversible such as disturbance to wildlife during surveys or data collection and harm to non-target species during eradication of invasive species. Agricultural activities may involve the use of pesticides and the Project will promote integrated pest management. The Project will continue to support replication and scaling-up of good practice models and incorporates lessons learned from the ongoing and previous CEPF Project to ensure enhanced implementation and continuity of action. Overall, the Project is expected to have positive environmental benefits. The environmental impacts are not significant in nature and can be easily mitigated through mitigation measures outlined Public Disclosure in the Project Environmental and Social Management Framework (ESMF). Substantial A.2 Social Risk Rating The social risk rating of the project is substantial. Although the project does not involve any civil works, it has a fairly large scope as it covers a large geographical area (1,174,380 ha) of high-value biodiversity areas in multiple locations throughout the Caribbean region. Some of the areas that will be included for protected area status and conservation could be located on land that is currently used for agriculture and/or forestry by local populations and specifically vulnerable groups. Consequently, restrictions of use could result in loss of access to these lands and potentially some livelihood insecurity for the populations, albeit on a local scale. There is also some concern about the capacity of the sub-grantees to manage social risks in terms of exacerbation of existing patterns of social exclusion, participation, and elite capture. Capacity concerns also include that for some sub-grantees there is limited experience with the development and implementation of environmental and social risk management plans as well as grievance management and environmental and social reporting. With respect to labor, the main risks will be related to the labor practices of the RIT sub-grantee CSOs. The disclosed A-ESRS mentions is the possibility of project impacts on vulnerable groups such as the Maroons, in Jamaica. However, to this date, this risk has not materialized. The CSO TREA is successfully including the Maroons in subprojects activities. The concern of the A-ESRS was that there have been some conflicts as it relates to the Maroons. One distinct representation of these conflicts has been the government sanctioning police and army raids claiming illegal cultivation of plants within the communities, which according to the Maroons, their treaties allow them to have legally. The A-ESRS assessed that this conflict, therefore could potentially lead to Maroons facing disproportionate project impacts or being negatively affected by the project, especially if access to lands over which they feel they possess autonomy is restricted without proper consultation. The Mar 24, 2025 Page 5 of 12 The World Bank Critical Ecosystem Partnership Fund – Caribbean Hotspot Project (P173464) project is carrying out a participatory approach and is planning to gradually improve the social communication processes, citizen engagement, gender approach, and beneficiary feedback mechanisms, to ensure inclusion and active participation of beneficiaries from disadvantaged and vulnerable groups (the poorest, people living in slums, single-parent female-headed household, disabled, LGBT, youth at risks among others) and to avoid any kind of discrimination and exclusion that might be present in the current system in participant countries, as well as at the regional level. The Project will continue to implement the Stakeholder Engagement Plan (SEP) with its project-level Grievance Mechanism (GM), the Labor Management Procedure (LMP) with its Grievance Mechanism for workers, the Process Framework (PF), and the Environmental and Social Management Framework (ESMF), have been developed. The Bank will review the Environmental and Social Risk Classification (ESRC) on a regular basis throughout the project life cycle to ensure it continues to accurately reflect the level of risk the project presents. B. Environment and Social Standards (ESS) that Apply to the Activities Being Considered B.1 Relevance of Environmental and Social Standards ESS1 - Assessment and Management of Environmental and Social Risks and Impacts Relevant The standard is relevant. The Project is intended to reduce threats to globally important biodiversity in the Caribbean Islands Biodiversity Hotspot and will result in positive environmental outcomes. However, some of the project activities may have some temporary environmental impacts if any will be minor and could include disturbance to wildlife from increased noise and activities during surveys or data collection, promotion of nature-based tourism leading to increased waste, harm to non-target species during eradication of invasive species and trespassing into Public Disclosure sensitive areas. Sustainable agriculture practices may utilize pesticides. This is further discussed under ESS3. So far under the ongoing project, activities under Component 1 have not included any civil works. Minor works, if undertaken, could include construction of nurseries or greenhouses. Component 1 also finances the preparation and implementation of a number of conservation actions plans for priority critically endangered and endangered species and activities that mainstream biodiversity conservation and ecosystem service values into development policies, projects, and plans by governments and the private sector such as those focusing on water resources management and reforestation. From an environmental perspective, the project impacts, if any, are likely to be site-specific and not significant. In the wider landscape around priority KBAs, the lands are mostly used for agriculture, forestry or other economic activities and promoting sustainable practices will reduce the pressure on the natural environment. Agriculture activities may involve the use of pesticides which could lead to pollution of the surrounding environment and affect human health and if not managed adequately. The project's activities such as increased monitoring of areas which are legally protected, but protection is either not enforced or under-enforced to ensure that these areas are not exploited or used, could represent social risks in terms of restrictions of use of natural resources and to ecosystem services, economic displacement, and could potentially affect livelihoods of vulnerable peoples. These risks, as well as risks in terms of inclusive participation, are addressed under ESS5 and 10. Component 2, 3 and 4 involve capacity building and are not anticipated to have negative environmental impacts. Capacity building for CSOs and the RIT will strengthen their capacity to develop and implement conservation initiatives. The main social risks associated to these activities are related to the potential inefficiency of the outreach strategy of the project, that could further exacerbate existing patterns of social exclusion, participation, and elite capture. Therefore, the project could have some negative impacts on vulnerable groups including, but not limited to, households that depend on agriculture within the project area, women, children, LGBT, youth at risk, ethnic minorities and the Windward and Mar 24, 2025 Page 6 of 12 The World Bank Critical Ecosystem Partnership Fund – Caribbean Hotspot Project (P173464) Leeward Maroons; who because of their circumstances could be excluded from stakeholder and Citizen Engagement Processes. The latter is present in two of the priority sites in Jamaica- The Blue and John Crow Mountains and the Cockpit Country. These impacts may include the exacerbation of the existing patterns of exclusion of these groups from decision-making processes as well as the benefits of projects. An Environmental and Social Management Framework has been prepared and is under implementation for the Project to assess and manage the environmental and social risks and impacts. All sub-project applications will continue to be screened against an eligibility criteria and the negative list given in the ESMF. Those sub-projects that advance to the proposal stage will undergo a risk assessment. Based on the risk level, the due diligence required such as developing environmental and social impact assessments (ESIAs) and ESMPs will be identified. High risk sub-projects and activities on the negative list will not be financed. Mitigation measures and actions to be implemented will be developed inline with the mitigation hierarchy as described in the ESMF. The ESMF describes pest management procedures including key elements of an IPMP. Activities such as those under Component 3 may fall under Type 1 and Type 3 Technical Assistance (TA). The requirements set out in ESS1 will be applied to TA activities as relevant and appropriate to the nature of the risks and impacts. The terms of reference for the capacity building activities and other documents defining the scope and outputs of TA activities will be reviewed so that the advice and other support provided are consistent with ESS 1–10. Sub projects’ activities will also seek to identify all vulnerable groups within the sub-project locations and implement methods that reduce the barriers to them participating in and receiving project benefits and in line with the SEP with its GM developed by the project will ensure the inclusion of all project stakeholders during implementation. LMP with the related GM for workers and a Process Framework for restrictions of access to resources have also been developed. All instruments (ESMF, SEP, PF and LMP) have been disclosed by the Client and the Bank. The Bank will redisclose the updated SEP prior to appraisal. The ESCP covers all measures and actions needed to ensure compliance Public Disclosure with the ESF and the Project’s environmental and social instruments as well as implementation details, monitoring and reporting activities. ESS10 - Stakeholder Engagement and Information Disclosure Relevant The standard is relevant. The project stakeholders are: i) government ministries and agencies, particularly those involved in the process of declaring protected area status for biodiversity hotspots. These may include Ministries of Agriculture and/ or Environment or any national-level agencies responsible for environmental protection; ii) Civil society organizations involved in biodiversity protection and conservation such as the Nature Conservancy, the Jamaica Environment Trust, the Saint Vincent and the Grenadines Conservation Fund and the Bahamian Environment Protection Foundation, among others; iii) along with any communities that are located in or within close proximity to the identified priority area are also stakeholders. Vulnerable groups may include low-income, farming, agro-forestry or female-headed households, ethnic minorities and the Jamaica Maroons who may depend on parts of the newly protected areas for their livelihoods and whose access to these areas may be restricted by the project. In consultation with the the Bank, the client has developed and is implementing a SEP proportional to the nature and scale of the project along with its associated risks and impacts. The SEP was updated to account for the expansion of the KBAs to included Dominica as part of the AF and was disclosed by the client on January 30, 2025 at the following link: https://www.cepf.net/sites/default/files/stakeholder-engagement-plan-caribbean-islands-2025.pdf . The specific objectives of the stakeholder engagement plan are as follows: (i) To build and maintain a constructive relationship with stakeholders; (ii) To assess the level of stakeholder interest and support for the Project and to enable stakeholders’ views to be taken into account throughout the project cycle; (iii) To promote and provide means for effective and inclusive engagement with stakeholders throughout the project life cycle on issues that could Mar 24, 2025 Page 7 of 12 The World Bank Critical Ecosystem Partnership Fund – Caribbean Hotspot Project (P173464) potentially affect them; and (iv) To ensure that appropriate project information on environmental and social risks and impacts is disclosed to stakeholders in a timely, understandable, accessible and appropriate manner and format. The project level SEP contains guidance for the development of the sub-grantee level SEP. The SEP outlines a) who the key stakeholders are; b) how the subproject are to be engaged; c) how often the engagement will occur throughout the project; d) how feedback will be solicited, recorded and monitored over the project; e) who will be charged/responsible with this engagement; f) timeline for this engagement, budget, and so on. Additionally, the SEP describes measures that will be used to remove obstacles to stakeholder participation and how stakeholder views will be captured. The SEP identifies vulnerable groups and outline the methods that will be used to eliminate barriers to their participation in project consultation in participant countries and contains a checklist of activities that will guide communication and consultation processes of the implementing agency and sub-grantees, and to ensure: citizen engagement, non-discrimination, a gendered approach, and beneficiary feedback mechanisms. The SEP includes a Grievance Mechanism, that receives and facilitates the resolution of any project-related concerns and/or complaints. To date, the grievance mechanism has received 2 complaints, which have been resolved. The client will continue to solicit stakeholder feedback on the SEP and ensure that any consultation activities are inclusive and accessible to all project stakeholders. The stakeholder engagement process has been ongoing and will continue throughout the AF. A detailed table on stakeholder consultation is included as an Annex in the client's bi-annual reporting. The SEP is a living document and will be updated periodically as needed. At the sub-grantee level, a more extensive list of stakeholders will continue to be identified during sub-project preparation and will be part of their respective SEPs and proportionate to the scope and risks of the respective sub-projects. For this, the project level SEP contains guidance for the development of the sub-grantee level SEP which is in line with the content of the project level SEP. ESS2 - Labor and Working Conditions Relevant Public Disclosure The standard is relevant. The project has hired and expected to continue to hire several independent consultants (direct and or contracted workers) for sub-project implementation as well as carry out training sessions for capacity building, among other things. At the sub-grantee level, project activities will be mainly implemented by staff of the CSOss. Staff of the CSOs who are expected to work in connection with the project, whether full-time or part-time, but not hired by the project, will remain subject to the terms and conditions of their existing employment agreement or arrangement unless there has been an effective legal transfer of their employment or engagement to the project. For these employees, only the provisions of Protecting the WorkForce Occupational Health and Safety of ESS2 will apply. The project will not utilize primary supply workers. The project has prepared Labor Management Procedures with its accompanied Grievance Mechanism for workers. This LMP will continue to guide the AF's project activities. The project level LMP addresses an overview of labor use on the project; Assessment of key potential labor risks with its mitigation measures; Brief overview of labor legislation; Terms and conditions for employment; Brief overview of labor legislation on occupational health and safety ; responsible staff; policies and procedures; age of employment; grievance mechanism with measures to address Gender Based Violence (GBV); contractor management, measures for when engaging with community workers (if any), and a code of conduct. The project will continue to ensure that sub- grantees follow the procedures outlined in the LMP. For this, the project level LMP, contains guidance for the development of the sub-grantee level LMP. The LMP is a living document and will be regularly reviewed and updated during all stages of the project’s life cycle. If community workers will be engaged, the project will: (i) Ascertain whether such labor is or will be provided on a voluntary basis as an outcome of individual or community agreement. These measures and how to ascertain them will be documented in the LMP- This will include a) clearly identifying the terms and conditions on which community labor will be engaged (if applicable, the amount and method of payment), Mar 24, 2025 Page 8 of 12 The World Bank Critical Ecosystem Partnership Fund – Caribbean Hotspot Project (P173464) (ii) set out the times of work, and (iii) specify the way in which community workers can raise grievances in relation to the project.; (ii) Assess working conditions and Occupational Health and Safety in relation to community labor. This assessment will be applied, proportionate to: a) the nature and scope of the project; (b) the specific project activities in which the community workers are engaged; and (c) the nature of the potential risks and impacts. If indicated as necessary by the assessment, at a minimum, apply the relevant requirements of the WBG general and specific EHS Guidelines as detailed in the ESMF. (iii) Assess whether there is a risk of child labor or forced labor. If cases of child labor or forced labor are identified, CI will take appropriate steps to remedy them -child labor will not be allowed under the project. The sub-grantees level LMP will set out roles and responsibilities for monitoring community workers; and (iv) Provide adequate training to community workers tailored to their needs and the potential risks and impacts of the project. ESS3 - Resource Efficiency and Pollution Prevention and Management Relevant Sustainable agriculture under Component 1 may utilize pesticides. The ESMF describes the procedures for integrated pest management and the key elements of an IPMP. IPMPs will be prepared for relevant sub-projects during sub- project implementation, promoting ecologically based pest control practices that seek to reduce reliance on synthetic chemical pesticide. ESS4 - Community Health and Safety Relevant The standard is relevant, as the Project will fund activities in production landscapes where communities may reside. The ESMF makes provision to review the community health and safety in sub-projects planning and implementation. Public Disclosure The use of security personnel by the IA or by sub-grantees is not expected. Currently, no activities have been funded in Haiti due to the political instability. However, in future if activities are funded, considering the level of violence and political uncertainty along with the issues related to border control between Haiti and the Dominican Republic, the use of security personnel may become necessary. The ESMF reflects that the sub-grantees will assess the risks posed by the security arrangements and this will be included in the site-specific ESMPs. As outlined in the ESMF, the client and sub-grantees will assess risks posed by security arrangements to those within and outside the project site. The client and sub-grantees will not sanction any use of force by direct or contracted workers in providing security except when used for preventive and defensive purposes in proportion to the nature and extent of the threat. In the case of needing external contracting services, and to implement any service related to the project, the client, sub-grantees and or contractor will: (i) make reasonable inquiries to verify that the direct or contracted workers to provide security are not implicated in past abuses; (ii) train them adequately (or determine that they are properly trained) in the use of force (and where applicable, firearms), and appropriate conduct toward workers and affected communities; and (iii) require them to act within the applicable law and any requirements set out in the ESCP. The client and sub- grantees will review all allegations of unlawful or abusive acts of security personnel, act (or urge appropriate parties to act) to prevent recurrence and, where necessary, report unlawful and abusive acts to the relevant authorities. Code of conduct has been incorporated into the ESMF and to be adopted and implemented in site specific Environmental and Social Management Plans, as relevant. ESS5 - Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Relevant The standard is relevant. Component 1.1 will finance technical and legal processes to strengthen legal protection for priority sites that are currently unprotected or under-protected. This could include the increased “policing” or Mar 24, 2025 Page 9 of 12 The World Bank Critical Ecosystem Partnership Fund – Caribbean Hotspot Project (P173464) monitoring of these unprotected or under-protected areas to ensure persons are not exploiting the resources. Component 1.2 will finance activities that contribute to the protection and sustainable management of biodiversity in the wider landscape around priority KBAs. Some of these KBAs are located within landscapes used for agriculture or forestry. These legal protection strengthening activities could result in some restrictions on access to land traditionally utilized by populations in the priority areas for agriculture and forestry. To mitigate this, the client has prepared a Process Framework (PF), that will be used to design project activities, determine eligibility criteria, reach agreement on access restrictions, identify measures to assist affected persons in improving or restoring their livelihoods, manage conflicts and grievances, and arrange for participatory implementation and monitoring. The PF has been disclosed by the client and on the bank’s website. To date five sub-projects have required the development of measures included as part of the project’s PF. . ESS6 - Biodiversity Conservation and Sustainable Management of Living Natural Relevant Resources This standard is relevant. The sub-activities will take place in biodiversity hotspots. Most of the sites are irreplaceable for Critically Endangered and Endangered species, and qualify as Alliance for Zero Extinction (AZE) sites. The Project will fund sub-projects to strengthen the protection of selected sites and build local capacity. Under sub-component 1.3 conservation actions plans for some priority Critically Endangered and Endangered species will be prepared and implemented. As specific sub-projects to be funded are unknown, an ESMF has been developed. All potential sub- projects will be screened against an eligibility criteria and the negative list. High risk sub-projects and those on the negative list will not be funded. If needed site-specific ESIA/ESMPs will be prepared to identify and manage the impacts inline with the mitigation hierarchy. Public Disclosure ESS7 - Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Not Currently Relevant Local Communities This standard is currently not relevant. There are no persons who meet the definition of indigenous people present in the project’s area of influence. ESS8 - Cultural Heritage Relevant This standard is relevant since the project activities will be implemented in areas that may be valued for their cultural heritage, both tangible and intangible. Sub-project screening as described in the ESMF will determine the existence of tangible or intangible cultural heritage. The ESMF includes chance find procedures taking into account the national legislation and the requirements under ESS8. Additionally, the ESMF includes guidelines to prepare a Cultural Heritage Management Plan (if needed), to ensure all potential impacts on traditional conservation practices, and/or natural features with cultural significance to local communities are properly managed. To date, one sub-project has required the development of a Cultural Heritage Management Plan. ESS9 - Financial Intermediaries Not Currently Relevant The standard is not relevant, as there are no FIs involved in the project. B.2 Legal Operational Policies that Apply Mar 24, 2025 Page 10 of 12 The World Bank Critical Ecosystem Partnership Fund – Caribbean Hotspot Project (P173464) OP 7.50 Operations on International Waterways No OP 7.60 Operations in Disputed Areas No B.3 Other Salient Features Use of Borrower Framework No None Use of Common Approach No None C. Overview of Required Environmental and Social Risk Management Activities C.1 What Borrower environmental and social analyses, instruments, plans and/or frameworks are planned or required by implementation? The borrower will continue to implement the ESMF, PF and LMP which were developed for the parent project and also the SEP which was prepared for the parent project and updated for this AF. Sub-grantees will develop any relevant E&S document required, which is dependent on the assessed environmental and social risks of the sub-projects. Sub-grant E&S documents will be guided by the the requirements established in the main project's E&S documents. As agreed with the client, the World Bank will continue review the first two of each type of sub-grantee documents prepared for the sub-projects to ensure that they are materially compliant with the ESSs. The updates on the implementation of all Public Disclosure E&S documentation will continue to be included in the client's biannual ESHS reports. III. CONTACT POINT World Bank Task Team Leader: Natalia Magradze Title: Senior Environmental Specialist Email: nmagradze@worldbank.org IV. FOR MORE INFORMATION CONTACT Mar 24, 2025 Page 11 of 12 The World Bank Critical Ecosystem Partnership Fund – Caribbean Hotspot Project (P173464) The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects V. APPROVAL Task Team Leader(s): Natalia Magradze ADM Environmental Specialist: Aradhna Mathur ADM Social Specialist: Chanelle La Verne Fingal Public Disclosure Mar 24, 2025 Page 12 of 12