The World Bank Brazil: Asl Xingu Project (P504126) Appraisal Environmental and Social Review Summary Appraisal Stage (ESRS Appraisal Stage) Public Disclosure Date Prepared/Updated: 09/02/2024 | Report No: ESRSA03632 Sep 04, 2024 Page 1 of 19 The World Bank Brazil: Asl Xingu Project (P504126) I. BASIC INFORMATION A. Basic Operation Data Operation ID Product Operation Acronym Approval Fiscal Year P504126 Investment Project Financing (IPF) BR ASL Xingu 2025 Operation Name Brazil: ASL Xingu project Country/Region Code Beneficiary country/countries Region Practice Area (Lead) (borrower, recipient) Brazil Brazil LATIN AMERICA AND Environment, Natural CARIBBEAN Resources & the Blue Economy Borrower(s) Implementing Agency(ies) Estimated Appraisal Date Estimated Board Date Fundacao Getulio Minsterio do Meio Ambiente e das 04-Nov-2024 19-Dec-2024 Vargas mudanças do Clima Estimated Decision Total Project Cost Public Disclosure Review Date 8,562,691.00 Proposed Development Objective The Project Development Objective (PDO) is to enhance conservation and sustainable management in selected areas in the Brazilian Amazon. 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 will consider an integrated landscape approach. The Project will intervene at two levels: (a) at an Amazon- wide level through coordination and implementation of policy, incentive, knowledge exchange actions, and (b) at a site- specific level, with concrete activities and investments on the ground, thus contributing to scaling-up and leveraging transformational processes and impacts during and after the project. The project will focus on PAs under various regimes, and areas in their surround areas (including indigenous lands and quilombola territories), as well as sustainable productive chains, providing livelihoods to indigenous peoples, traditional communities (IPTCs), and family farmers – Sep 04, 2024 Page 2 of 19 The World Bank Brazil: Asl Xingu Project (P504126) and ensuring specifically that women and youth are targeted. Project design will build upon the successful results and lessons learned from the previous and current projects such as ARPA I, ARPA II, BR-ASL1 and BR-ASL2 and comprises four components: • Component 1: Strengthening conservation under different protection regimes will focus on the State of Pará and aims to implement integrated landscape management, including: (a) identification and prioritization of new areas to be designated for legal protection; (b) carrying out of the environmental, socioeconomic, and land tenure assessments, including public consultations and workshops, in line with the procedures for establishing PAs determined by the SNUC, at State level in Pará and/or relevant procedures for OMECs; (c) preparation of the necessary decrees and delimitation of the boundaries of the areas in question; (d) strengthening/revitalizing PA councils, Protected Area Mosaics, PAT- Xingu, through evaluating their effectiveness and providing solutions for improvement; (e) define and/or improve PA governance and management systems; and (f) prepare, implement, and monitor PA and OMEC management plans. • Component 2: Enhancing sustainable production aims to expand the area under sustainable management practices, strengthen selected steps of targeted socio-biodiversity production chains, and improve local stakeholders’ capacity to participate in these forest- and water-friendly production chains in the state of Pará. Activities would include inter alia: (a) survey/mapping of data and information on socio-biodiversity products to support strategic action, (b) organization and structuration of production, processing and marketing cooperatives; (c) adaptation and strengthening of technical assistance adapted to the realities of the Amazon; and (d) training of local cooperatives and other organizations to strengthen their skills for collective multiple use, production, processing, marketing, etc., thus facilitating their participation in nature-based value chains. • Component 3: Reinforcing enabling environment will support the implementation of key conservation policies for the Brazilian Amazon - the Action Plan for the Prevention and Control of Deforestation in the Legal Amazon, the National Protected Areas Plan, the National System of Protected Areas, the National Program of Landscape Connectivity, and the National Plan for Native Vegetation Recovery. Activities Public Disclosure would include: (a) evaluating, revitalizing, improving and implementing the various existing Brazilian conservation policies; (b) promoting and strengthening spaces for inter-institutional dialogue between actors from the different spheres (municipal, state, federal) and beneficiaries (representatives of PIPCTs, network of partners(c) promote governance and better coordination with and institutional strengthening of local and traditional communities and organizations; (d) preparation of strategic plans and integrated planning for the governance and management of biodiversity conservation, natural resources management and land use. • Component 4: Promoting capacity building, communications, and collaboration aims to improve Brazilian stakeholders’ capacity to recover and share information, and strengthen mobilization, coordination and cooperation between public entities, NGOs and social movements, supporting efforts to (a) strengthen dialogue spaces and access to information by local populations, community communication and collaboration in local and regional networks; (c) disseminate and raise awareness of successful experiences among ASL partners; and (d) promote regional technical cooperation and knowledge exchange to integrate transboundary conservation efforts. In addition, this component will support overall project coordination and implementation, including monitoring & evaluation activities and coordination with the ASL Program and its regional project. D. Environmental and Social Overview D.1 Overview of Environmental and Social Project Settings The Project supports regional policies for the Brazilian Amazon biome and on-the-ground conservation actions in the Lower Xingu Region (State of Pará – Amazon biome). The Project has selected to work on six Sustainable Use Protected Areas (PAs), one Quilombola Territory, one Indigenous People Land, five Rural Settlements, and their buffer zones and surrounding areas, which totalize more that 4.2 million hectares in the Lower Xingu Region. All these areas host original or traditional populations (more than 30,000 people), whose livelihoods are based on forest/nature resource Sep 04, 2024 Page 3 of 19 The World Bank Brazil: Asl Xingu Project (P504126) sustainable management and economic activities with low environmental impact, based on the suitability of the area (extractives, subsistence agriculture and small-scale animal husbandry). Comprising an area of 6.7 million square kilometers, the Amazon biome hosts the largest contiguous tropical forest area in the world and has significant effects on regional and global climate stability. Brazil contains 60% of its area. The Amazon biome has the world’s highest species density, with more than 10% of the world’s vertebrate and plant species living within only 0.5% of the Earth’s total surface area. It is home to up to 80,000 plant species, of which over 40,000 play a critical role in regulating the global climate and sustaining the local water cycle. Its ecological services are crucial for agriculture and hydropower generation at continental level and for the global climate. The Amazon River network carries 20% of the world’s freshwater and the Amazon represents more than half of the tropical rainforest remaining on the planet and is estimated to contain between 150 and 200 billion tons of carbon (above and below ground). Being the home of 47 million people, the Amazon biome is not only rich ecologically, but also culturally. Over 400 Indigenous Peoples representing 2.2 million people live in or depend on forests. They possess ancestral knowledge about the forests and are often their key defenders when they have security to their lands and associated resources. In Brazil, the region has the largest population of Indigenous Peoples (44.5% of the country’s IP). Other traditional peoples and communities (TPC) include ribeirinhos (river communities), forest-dependent communities, and quilombolas (Afro- descendants). These groups tend to be poorer, to maintain strong cultural ties to the Brazilian Amazon’s natural lands and to keep sustainable livelihoods based on natural resources management. Indeed, about 40% of Amazonians live below the poverty line. Half of all households do not have access to basic sanitation services. Ethnic minorities and women face higher poverty levels, infant mortality, and lower education and literacy rates. Although deforestation has diminished by 22.7% in the Amazon region in 2023, the Amazon Forest is at high risk of reaching a tipping point. Over the past century, average temperatures in the forest have risen by 1-1.5°C, and since Public Disclosure 1970, more than 15% of the Amazon rainforest has been lost. Water and forest degradation are advancing rapidly, driven mainly by deforestation for cattle ranching, agriculture, illegal mining, and logging. Climate change is altering temperature and rainfall patterns in the country, resulting in reduced water availability and extended droughts and scientists have warned that a) deforestation and climate change are driving the biome toward a tipping point of widespread forest die-off and conversion into a degraded savannah, where most of its hydrological and climate services would be lost and b) climate change could push 800,000 to 3 million Brazilians into extreme poverty as soon as 2030. Pará is the second largest Brazilian state and the most populous in the entire Brazilian Amazon biome. The territorial area of the state equals 1,247,955,238 square kilometers and is administratively divided in 144 municipalities. The state population reached 8,120,131 inhabitants in 2022 (32% living in rural areas). The populational density is very low (6.1 inhabitants/km2). Children and youth account for 42.4% of the population. “Pardos” account for 72.2%, “blacks” for 7.5%, whites for 19.0% and Indigenous Peoples for 1.1% of the state population. Social vulnerability is high in the state, which achieved 0.69 (out of 1) in the Municipal Human Development Index (IDHM) – the fourth lowest in Brazil. Food insecurity reaches 78.2% of the households, 90.0% of the lower-income households, and 81.0% of the households with children up to 10 years of age. Poverty and extreme poverty rates equal 44.5% and 15.3%, respectively. Pará is a vast multicultural state holding the fourth largest Quilombola and the third largest indigenous populations in the country. Pará presents the highest deforestation rate in Brazil. In 2022, Pará registered the deforestation of 4,414 km2 and, in the last ten years, the state has been responsible for 47% of the deforestation in the Amazon biome, with an average rate of 18.36 fire outbreaks/1,000 km²/year. Furthermore, from 1988 to 2022, accumulated deforestation in the state exceeded 16.6 million hectares (166,774 km2), due to the expansion of cattle ranching, logging, mining, land-grabbing and, more recently, soybean crops. From 2022 to 2023, Pará lost 327,200 ha (3,272 km2) of vegetation cover, equivalent to a 37%decrease in the rate compared to 2021. Consequently, Pará accounts for almost one fifth of Brazil’s GHG emissions. Sep 04, 2024 Page 4 of 19 The World Bank Brazil: Asl Xingu Project (P504126) However, Pará is showing significant opportunities to promote sustainable development and was recently approved as the host of the Conference of Parties United Nation Framework Convention on Climate Change (UNFCCC COP 30), to take place in its capital city (Belém) in 2025. Since 2019, the State Government of Pará has developed public policies and legal frameworks aimed at ensuring the conservation of its natural resources and inclusive development – such as the Plano Estadual Amazônia Agora (PEAA) launched in 2020 to reduce deforestation and achieve net zero GHG emissions by 2036, the Plano Estadual de Bioeconomia created in 2022 to promote a low-carbon economy by using forest resources in a sustainable way, and other initiatives to promote land regularization (CAR 2.0) and track the production of timber and beef production (e.g., Selo Verde). Furthermore, Pará comprises diverse typologies of environmentally protected areas (PAs) and internationally recognized areas of high biodiversity value. Currently, in Pará, there are 92 Protected Areas , of which 57 are Federal PAs, 26 State PAs and 9 Municipal PAs, totaling an area of approximately 423,360.76 km² (34% of the total state area). There are also 13 Key Biodiversity Areas (KBA) in the state. The Lower Xingu region comprises ten municipalities (half of which are on the list of priority municipalities for reducing deforestation in the Legal Amazon, forming part of the Union with Municipalities for the Reduction of Deforestation and Forest Fires in the Amazon Program) and around 20% of the Pará state territory (40,908,242 hectares). It was selected as the focus area of Project intervention based on multi-criteria analyses and multi-stage processes to maximize environmental and social benefits. It is a conservation priority region, characterized by a rich socio-environmental diversity in a "corridor" of PAs and Indigenous Lands (IL) that hosts eight endemic and critically endangered species (Xingu Area of Endemism), contains the most important fragments for connectivity and is critical for the protection of chelonian species. Despite the recent reductions in deforestation rates, this region encompasses municipalities with the highest deforestation rates in the country and remains particularly vulnerable to climate changes fed back by ongoing land use change. Changes in land use and water flow dynamics are compromising its ecological processes and species. Public Disclosure Studies suggest that continuous deforestation in the Lower Xingu region may exacerbate effects of climate extremes inherent to natural climate variability, such as droughts or atypically longer and more abundant wet periods. It has also faced huge socio-environmental impacts, mostly from the implementation of the Belo Monte hydroelectric power plant. D.2 Overview of Borrower’s Institutional Capacity for Managing Environmental and Social Risks and Impacts The project will be implemented by Ministry of Environment and Climate Change (MMA) and the Government of Pará in partnership with Fundação Getúlio Vargas (FGV). The Chico Mendes Institute for Biodiversity Conservation (ICMBio), the Brazilian Forest Service (SFB), the Pará Secretariat of Environment and Sustainable Development (SEMAS) and the Institute for Forestry Development (IDEFLOR-Bio) will be Project’s implementation partners. The coordination arrangements between these agencies will be formalized through a Coordination Agreement signed between FGV and the MMA, detailing relationships, roles, responsibilities, and coordination procedures. Similarly, Cooperation Agreements will be signed between FGV and ICMBio, SFB and both Pará State agencies, defining each institution's responsibilities and obligations for the project's implementation. MMA will have the overarching policy-level responsibility for carrying out the overall institutional coordination required to implement project activities. ICMBio will be responsible for ensuring the implementation of all aspects of federal PAs, such as managing the consolidation process for existing PAs, preparing their operating and management plans, and ensuring management actions implementation (including surveillance and control). The MMA and Pará State environmental agencies (SEMAS and IDEFLOR-Bio) will be responsible, inter alia, for managing the consolidating process of existing state PAs, proposing for consideration new PAs and Other Effective Areas-based Conservation Measures (OECM), and coordinating and implementing of productive activities in partnership with FGV. FGV will sign a grant agreement with the World Bank to carry out project implementation, will act as grant recipient and will establish a Project Executing Unit (FGV-PEU). The grant agreement will set forth the specific terms and agreements Sep 04, 2024 Page 5 of 19 The World Bank Brazil: Asl Xingu Project (P504126) for grant management and includes the responsibilities for environmental and social risk management of Project activities. FGV is one of the three executing agencies of the Amazon Sustainable Landscapes Project (P158000 - TF B6898), effective June 7, 2022. FGV has been the implementing agency of P158000 Brazil ASL 2, which triggered OP 4.01, OP 4.04, OP 4.36, OP 4.09, OP 4.11, OP 4.10 and OP 4.12. Evidencing the capacity and commitment with environmental and social risk management, FGV and the partner implementing agencies (MMA, ICMBio, SFB, SEMAS and IDEFLOR-Bio) have been demonstrating moderately satisfactory or better performance with these Bank’s safeguard policies through the current implementation of P158000 Brazil ASL 2. Project documents are available at https://www.fgveurope.de/fgv- projects/paisagens-sustentaveis-da-amazonia-brasil-asl-brasil-fase-2/. Although the Additional Financing (ASL Phase 2) was prepared after 2018, this is the first time the project will be fully implemented under the ESF. In addition, during project preparation, the Borrower’s Environmental and Social Framework has been assessed and the main finding of this assessment was that the Project will be developed under a legal or regulatory environment where: a) there is no uncertainty or conflict as to the jurisdiction of the implementing agencies, b) the legislation and regulations adequately address the potential environmental and social risks and impacts of the Project, c) the enforcement of these regulations is strong and, d) citizens, civil society organizations and other stakeholders have multiple channels to express their opinions (freely and without fear of retaliation) and influence the decision-making process on public policies. Nevertheless and considering that on-the-ground Project activities will be conducted in remotely located and often hard to supervise areas as well as among indigenous and traditional peoples and communities, the capacity building needs of the implementing agencies to supervise and provide implementation support to field teams and to deal in a culturally adequate manner with culturally distinct beneficiary groups will be addressed in the ESCP. Among the material Public Disclosure measures included in the ESCP, the number and qualification of Environmental and Social specialists to be assigned to FGV-PEU- will also be defined. II. SUMMARY OF ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) Moderate A.1 Environmental Risk Rating Moderate The environmental risk is Moderate. This project provides continuity to successful previous operations implemented over 25 years to improve biodiversity conservation and environmental management in the Amazon. This operation will adopt a two-level approach: at an Amazon-wide level focusing on policy coordination and implementation (Comp 3), and at state level in Pará with technical assistance and investments on the ground (Components 1 and 2). Component 4 will support communication, knowledge and information management, and Component 5 will focus on project management, capacity-building, institutional collaboration. Components 1, 3 and 4 are designed to enhance PA governance and the implementation of conservation policies. Hence, they are expected to generate positive outcomes, whilst negative impacts can be considered moderate, predictable and localized, and can be prevented or mitigated with the adoption of best practices, adequate monitoring and preventive and mitigatory measures to be described in the project’s ESMF. Activities under Components 1 and 3 will focus on the creation of new PAs s and Other Effective areas-based Measures (OMEC), improved protected area governance and management, sustainable natural resources use, and on reinforcing the enabling environment for the implementation of territorial management policies. Sustainable management practices for nature based production supported under Component 2 Sep 04, 2024 Page 6 of 19 The World Bank Brazil: Asl Xingu Project (P504126) may include management of timber and non-timber forest products, community-based tourism, sport fishing, among others, and the implementation of the State Bioeconomy Plan and the National Sociobioeconomy Plan at state level. While environmental sustainability should be at the core of these practices and activities, there are risks associated with the design and implementation of forestry management and natural resource use plans, which may lead to an increase in the use of natural and biodiversity resources and risks to forest integrity if sustainable forestry and NR management plans are not adequately implemented and monitored. Risks are also associated with the capacity of responsible oversight agencies, which may be insufficient to adequately monitor the implementation of community forestry and natural resources management plans and bioeconomy plans. Risks related to pest management, inadequate soil and water management and increased deforestation may also be associated to the support to agroforestry and family farming. A.2 Social Risk Rating Moderate The social risk is moderate. The project builds on the lessons learnt on how to deal with social risks/impacts from over 25 years of work in biodiversity conservation and creation/consolidation of PAs in the Amazon and reinforces the commitments to strengthen the voices of Indigenous Peoples and traditional people and communities (IP and TPC), women and youth in policy decision-making and to benefit them. The Project’s ESMF will consider potential social risks and concerns related with gender inequality, exclusion of youth and Indigenous Peoples and Traditional Communities, restrictions on land use, SEA/SH and workers safety as activities will be conducted in remotely located/hard to supervise areas. This assessment finds out that: • Concerns related with the risk of enhancing gender/generation gaps in access to project benefits will be reduced through the prioritization of the participation of youth and women in project activities. Furthermore, a robust Gender Action Plan has been developed and will be implemented during the Project’s life cycle. • Concerns with the potential exclusion of IP and TPC from project Public Disclosure benefits can be avoided through a) culturally adequate technical assistance, b) the strengthening of the institutional capacity of their organizations, c) participation in bioeconomy/nature-based production, and d) the focus of activities of knowledge exchange and stakeholder engagement on the conservation and sustainable management agenda in the inclusion of IP and TPCs and civil society organizations. Furthermore, the existing legal procedures to be enforced for establishing PAs rely on social assessments/meaningful consultations, safeguard IPTC’s rights of access to natural resources, and reduce adverse impacts from restriction on land uses. Finally, the Brazilian framework endorses ILO 169 Convention, requires IP's free, prior and informed consent on all matters related to the management of their lands, enforces procedures for avoiding unwanted contact/protect isolated/non-contacted IPs deemed to be among the the most advanced in the world. Hence, it guarantees the achievement of outcomes materially consistent with the objectives of ESS 7. • Concerns with SEA/SH and workers’ safety issues as many on-the-ground project activities will take place in forest communities that are remotely located, hard to supervise and may that lack adequate sanitary wastewater discharge and treatment infrastructure. Although it is expected that the number of project workers entering these communities will be small and the periods of their stays will be short, it is necessary to adopt: a) appropriate standards of behavior to avoid risks related to the occurrence of SEA/SH incidents and/or attitudes of disrespect for the values of local populations (or that may be perceived as such by local populations) and b) appropriate biosafety protocols to avoid or at least minimize the risks of exposing highly sensitive and vulnerable communities to vector-borne and communicable diseases as well as workers’ exposure to water-borne and endemic diseases or accidents with poisonous animals. These risks can also be prevented or mitigated through well-known and routine measures. Overall, the Integrated Landscape Management approach endorsed by the project is expected to contribute to increase IP and TPC’s land tenure security, reducing the existing threats they face due to illegal land Sep 04, 2024 Page 7 of 19 The World Bank Brazil: Asl Xingu Project (P504126) grabbing/exploitation of natural resources. Therefore, the potential benefits of the Project far exceed its moderate risks. 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 project will generate considerable E&S benefits by strengthening the conservation and sustainable management of selected areas important for biodiversit, habitat connectivity and sustainability of community forest-based economies. Key E&S direct/indirect risks/impacts are expected to be moderate, predictable and reversible. Component 1 will update or strengthen the implementation of management plans for selected protected areas (PAs), and territorial management plans for Indigenous Lands (IL) and Quilombola Territories (QT), which will improve biodiversity protection and management. Limited and predictable risks are mainly related to the temporary and localized impact of small infrastructure update or construction that may be necessary to improve the protection and surveillance of these areas. Component 1 will also support consultations for the creation of new PAs and the SEP and ESMF will include the necessary measures to ensure these consultations are meaningful and inclusive, and to adequately address the risks of restrictions on land/natural resource uses, and inequitable access to project information/benefits. Additionaly, Component 1 will support community-based monitoring of river turtles and breeding sites to restore the populations of chelonians, as well as small-scale community-based sustainable forest harvesting management in the Extractive Reserve Verde Para Sempre (RESEX VPS) and Extractive Reserve Renascer Public Disclosure (RESEX Renascer) and studies for forestry management in the Caxiuanã National Forest (FLONA Caxiuanã). Associated risks to be addressed by the ESMF include the inadequate implementation and/or monitoring of sustainable community forestry or natural resources management plans, temporary localized impacts from small construction or remodeling works for processing units and sheds, the minor generation of residues/leftovers by raw materials’ small processing units, water and energy use. Most of these risks will be prevented or mitigated through the provision of technical assistance and support provided to reviewing and updating Community-based Forest Management Plans, and to meet Forest Stewardship Council (FSC) standards that are environmentally appropriate, socially beneficial, and economically viable, even if not formally certified. Component 2 aims to incentivize socio-bioeconomy and enhance local livelihoods by supporting the participation of Indigenous Peoples (IP) and Traditional Peoples and Communities (TPC), small farmers, family farmers, and their enterprises in socio-bioeconomy initiatives linked to production, including the forest restoration value chain. The component will emphasize enhancing women’s skills, engagement, and leadership, and will support four sets of activities: (a) The development of Municipal Plans for Restoration of Native Vegetation; the development of a Vegetation Restoration Plan for the Triunfo do Xingu Environmental Protection Area; support the concession for different models of forest restoration; and strengthening the Xingu Seed Network. Associated risks are mainly related to pest management in restoration processes and the ESMF will include options consistent with ESS3. (b) Designing and supporting the implementation of the “Bio-Hub” for Xingu, which will involve studies of nature-based enterprises, structuring funding, and training of community agents on bioeconomy, and the promotion of selected bioeconomy initiatives to aggregate value to the various products of Amazonian biodiversity and promote the well-being of communities. Associated risks to be addressed by the ESMF are similar to those described for NR management plans and processing under Component 1. (c) Support to the governance and operation of community-based forest management, which will also include the promotion of pilot value-added Sep 04, 2024 Page 8 of 19 The World Bank Brazil: Asl Xingu Project (P504126) initiatives to be selected during project implementation. Associated risks are expected to be covered under those related for forest management under Component 1. (d) Support to the environmental management of productive landscapes and connectivity between PAs, rural settlements, and surrounding landscapes, which will involve studies, development of territorial plans focusing on environmental assets and liabilities, and the promotion of environmental asset management and liability recovery actions within PAs, public and private lands. Associated risks to be addressed in the ESMF may include pest and soil management in restoration, agroforestry or agricultural production activities, water and natural resource use. Component 3 aims to improve the implementation of public policies for territorial governance and management, while strengthening spaces for citizen participation, thus reinforcing the enabling environment for sustainable landscape management. Activities will include: a) supporting institutional strengthening of community-based organizations and associations in the project selected areas; b) Participatory development of an Action Plan for the Lower Xingu region to promote the integration of public policies and coordination between key stakeholders, to achieve consistent implementation and evaluation of these policies, and fundraising; and c) building capacity for and strengthening citizen participation in municipal public policies. The component will support TA and capacity building activities, with negligible risks and impacts. Component 4 will support communication, knowledge and information management for the dissemination of knowledge about the region and conservation and sustainable use practices; and Component 5 will focus on project management, capacity-building, and institutional collaboration. As the precise location of project activities will not be fully defined by Appraisal, the existing ESMF will be reviewed and updated to assess risks/impacts according to the ESSs, define mitigation measures, and screen out activities leading to significant negative impacts on natural/critical habitats, biodiversity, and remote communities no later than 30 days after Effectiveness. ESS10 - Stakeholder Engagement and Information Disclosure Relevant Public Disclosure During the preparation phase, the Recipients have engaged with governmental and civil society stakeholders and beneficiaries at the local, state and federal levels and updated the Stakeholder Engagement Plan (SEP) prepared for BR-ASL 2 considering the purposes of the Project and its geographical area. Hence, key stakeholders from the Lower Xingu River region were mapped and consulted. Two workshops with key stakeholders were held in Brasília (December 2023) and Altamira (May 2024). The project scope, priority areas, implementation arrangements, and potential environmental and social risks, impacts and benefits have been debated. The already in place and well- operating grievance mechanism of the Brazil ASL project (P158000)was re-assessed considering its cultural adequacy, accessibility, and efficiency for addressing needs of stakeholders at both the regional and the landscape levels. The draft SEP comprises four core pillars: • Pillar 1 – Identification of stakeholders: describing the ongoing and evolving stakeholder mapping to ensure all relevant voices are considered according with their level of interest and influence in the project as well as the effects the Project can cause on them. • Pillar 2 – Transparency and information disclosure: aimed at sharing relevant information in a clear and accessible manner in order to keep all stakeholders well-informed about project progress and activities. • Pillar 3 – Engagement with Stakeholders: defining the establishment of accessible channels to support dialogue with stakeholders and the public in general while ensuring active and collaborative participation. This pillar includes aspects related to: critical integration of feedback from stakeholders in the implementation of project activities, attention to vulnerable individuals and groups and consideration of a gender perspective in all project activities and decisions by promoting equity between men and women. • Pillar 4 – Grievance Redress Mechanism (GRM): For the GRM to be accessed during BR ASL: Xingu project, the tools that were developed for BR ASL project (P158000) will be made available to the public - namely: a QR Code inserted in all communication materials; an Online form (https://ee.kobotoolbox.org/x/SZcqlR5f); and two Email Sep 04, 2024 Page 9 of 19 The World Bank Brazil: Asl Xingu Project (P504126) addresses (asl-xingu.comunicacao@fgv.br and asl-xingu.ouvidoria@fgv.br). An email to reach the MMA ombudsman (ouvidoria.asl.br@mma.gov.br) will also be made available for the Brazil: ASL Xingu project. All of these channels are disseminated and available from the dedicated project website - https://asl-brasil.fgv.br/. The draft SEP also describes the institutional responsibilities, procedures to be followed to facilitate grievance resolution, appeal channels; monitoring arrangements and indicators as well as special procedures for submitting and responding to concerns or grievances related to harassment (of a sexual or moral nature) and gender-based violence (GBV) or against children and the elderly (exploitation, abuse, assault, etc.). In line with the requirements of ESS 10, the draft version of the SEP will be publicly released and made available for consultation during the Project preparation phase. The draft SEP will be forwarded to identified stakeholders (including entities representing communities located in the pre-selected areas) and the FGV-PEU email address (asl-xingu.comunicacao@fgv.br) will be made available for the submission of feedback and questions. The consultation will focus on improving the mapping of stakeholders (identification of other relevant actors), the proposed communications and participation strategies and the channels to be provided for requesting information and submitting issues and grievances about the Project. The inputs from this round of public consultation will be reviewed and incorporated – according to their relevance and validity – into the final version of the SEP, which will be released on the Project website and other media deemed necessary – after the World Bank’s no objection – no later than 30 days after the Project’s date of effectiveness. ESS2 - Labor and Working Conditions Relevant The project will engage direct and contracted workers. Some Project-supported activities may also require the engagement of primary supply workers and/or that project beneficiaries provide community labor. During Project preparation, the Borrower’s labor framework has been assessed. The Brazilian labor regulations provide clear Public Disclosure information for workers about their terms and conditions of employment (hours of work, wages, periods of rest and vacation, nondiscrimination, equal opportunity, freedom of organization and collective bargain, etc.). It also sets the minimum age for child employment at the age of 16 years and forbids children under the age of 18 to be employed in works that may be hazardous to their health and development. Furthermore, it also forbids all forms of forced labor and provides for several legal channels through which workers can raise concerns related with working places and conditions. The Brazilian Occupational Health and Safety standards are well aligned with the World Bank Group EHSGs and other GIIP. The Brazilian labor regulations do not fully cover ESS 2 requirements related to community workers. Compliance with labor regulations is overseen by a broad and comprehensive institutional network of agencies of the executive and judicial branches at federal, state and municipal levels, with subsidiary and complementary responsibilities. Some Project-supported activities will be carried out at remotely located and hard to supervise areas that lack access to basic sanitation infrastructure and public health services. Project workers conducting on-the-ground activities in these remotely located and hard to supervise communities may be exposed to water-borne and endemic diseases, accidents with poisonous animals, and SEA/SH incidents. The Project will adopt and cause all contractors and subcontractors hired to perform works related to its core functions and activities (regardless of location) to adopt measures to: a) provide guidance on risks project workers may be exposed to during on-the-ground activities (such as bites of poisonous animals and exposure to communicable and vector borne endemic diseases) and the appropriate biosafety practices and procedures to be followed (such as prophylaxis measures, immunization vaccines and first aid/pharmaceutical kits to be carried on); b) provide the protective equipment and supplies that are appropriate to ensure project workers’ health and safety in face of the kinds of risks they may be exposed to when performing their daily tasks; c) comply with appropriate standards of behavior to avoid the occurrence of SEA/SH and GBV related incidents. Hence, the ESCP sets the Borrower’s commitments to: a) comply Sep 04, 2024 Page 10 of 19 The World Bank Brazil: Asl Xingu Project (P504126) with the Brazilian labor regulations on i) terms and conditions of employment, iii) protection of the work force (banning child and forced labor), iii) occupational health and safety, and iv) grievance mechanisms for raising concerns/grievances related with working places and conditions without reprisal; b) establish procedures to ascertain the terms and conditions on which community labor will be engaged and implemented in accordance with ESS 2 requirements; c) adopt all measures needed to either require that primary suppliers take measures to remedy promptly and appropriately cases whenever child labor or forced labor inadvertently happen or to replace them in line with ESS 2 requirements; d) adopt and cause all contractors and subcontractors to adopt and implement the SEA/SH Prevention Plan (that will be described in the Project Operation Manual and reproduced in all bidding documents), setting standards of behavior and establishing responsibilities and procedures for responding to SEA/SH substantiated allegations; and e) reporting to the Bank on all incidents and accidents that may cause harm to the health and safety of project workers (and beneficiary community members) or expose them to any form of discrimination, harassment and abuse, and taking measures to prevent their recurrence. All requirements related with the proper management of working conditions and worker relationships, the protection of the workforce engaged in project-related activities and its occupational health and safety will be stated in the Project Operation Manual and replicated in all bidding documents for hiring contractors. ESS3 - Resource Efficiency and Pollution Prevention and Management Relevant The project is expected to improve the sustainability of natural resource use and reduce resource depletion. Nevertheless, support to agroforestry, agriculture, forest restoration, and nature based value chains may lead to risks related to contamination or non-target species affection by pest management, erosion from inadequate soil management, the minor generation of residues/leftovers by raw materials’ small processing units, wastewater, water Public Disclosure use and energy use. Impacts from such risks are expected to be small in scale, predictable and reversible through the adoption of best practices and sustainability measures such as the provision of technical assistance, development and implementation of waste management plans, adoption of renewable energy solutions, among others. During project preparation, a draft ESMF will be prepared to guide the adoption of best practices in the efficiency of resource use and prevention of pollution for each type of planned activity. ESS4 - Community Health and Safety Relevant The project is not expected to have adverse impacts on ecosystem services that may result in adverse health and safety risks to and impacts on the health and safety of local communities. On the contrary, it may improve ecosystem services. In addition, it is not expect to expose local communities to traffic and road safety risks and risks from the retainment of workers to provide security to safeguard project personnel and property. Finally, it is not expected to lead to the potential exposure of communities to water-borne diseases or to hazardous materials and substances. Its activities do not rely on new, under construction or existing dams. Nevertheless and although the number of project workers entering these communities is expected to be small and the periods of their stays in these communities is expected to be short, it is necessary to consider risks related to the exposure of the highly sensitive and vulnerable community populations to a) SEA/SH incidents and/or attitudes of disrespect for the values of local populations and b) to vector-borne and communicable diseases. As previously mentioned, the Project Operation Manual and the bidding documents for hiring contractors who will be engaged in core project activities will incorporate appropriate standards of behavior to avoid risks related to the occurrence of SEA/SH (as well other forms of harassment and Gender-based Violence) incidents involving project workers and local people. The Project Operation Manual and the Sep 04, 2024 Page 11 of 19 The World Bank Brazil: Asl Xingu Project (P504126) bidding documents will also incorporate appropriate and well-known biosafety protocols to avoid or at least minimize the risks of exposing local populations (as well as project workers) to vector-borne and communicable diseases. ESS5 - Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Relevant This standard is relevant, because the Project aims to enhance conservation and sustainable management in selected areas in the Brazilian Amazon and eventually, for the achievement of this objective, it may be necessary to restrict land uses and/or access to natural resources by local and traditional communities living within the thirteen selected areas. In addition, the Project will support studies on the creation of new PAs and these Technical Assistance activities must incorporate principles and guidelines to avoid, minimize or mitigate adverse impacts related with restrictions on land use and access to natural resources that cause a community or groups within a community to lose access to resource usage where they have traditional or customary tenure, or recognizable usage rights as well as physical and economic displacement. Thirteen areas have been selected to receive Project support. They include six Protected Areas – comprising two Extractive Reserves (RESEX), one Environmental Protection Area (APA), one Wildlife Refuge (REVIS), one National Forest (FLONA) and one Sustainable Development Reserve (RDS) and seven other area-based sites – one Quilombola Territory, one Indigenous People Land and five Rural Settlements, and surrounding areas. They are: the RESEX Verde para Sempre; the RESEX Renascer; the FLONA de Caxiuanã; the REVIS Tabuleiro do Embaubal; the RDS Vitória de Souzel; the APA Triunfo do Xingu; the Juruna do Km 17 Indigenous Area; the Gurupá Mirim, Jocojo, Fexinha e Carrazedo Quilombola Territory; and the agrarian reform settlements of Chicantã Agroextractive Settlement Project (PAE), Ilha Grande do Laguna PAE, Nossa Senhora do Perpétuo Socorro PAE, Liberdade Sustainable Development Project (PDS), and Horizonte Novo PDS. These areas totalize more than 4.2 million hectares in ten municipalities, which together encompass a territorial area of 40.9 million hectares. In Brazil Public Disclosure and according to the Federal Constitution of 1988, Indigenous Lands are defined as territories of traditional occupation, that belong to the “Union”, with the permanent possession and exclusive enjoyment of the riches of the soil, rivers and lakes found there being recognized for the Indigenous Peoples. They are demarcated by the Indigenous Peoples National Foundation (FUNAI). Quilombola Territories are settlements founded by people of African origin who escaped from slave plantations that existed in Brazil until the Abolition of Slavery, in 1888. Quilombola communities are officially certified by the federal Palmares Cultural Foundation based on anthropological reports, and these traditional territories are, then, demarcated, regularized, and titled as a collective land by the National Institute of Colonization and Agrarian Reform (INCRA). Both Indigenous Lands and Quilombola Territories are inalienable lands. Both Indigenous Peoples and Quilombola communities shall be free, prior, and informed consulted for any interventions to be carried out within their territories. The PAE and the PDS are two types of agrarian reform settlements, which are sets of agricultural units, installed by INCRA (and/or state land institutes) on a rural property. Each of these units is intended for a family of farmer or rural worker without the economic means to acquire a rural property and the beneficiary family must reside and productively explore the units. The number of family units in a settlement is defined based on a study of the property's income-generating capacity. These settlements also have areas for community use, the construction of collective structures, and environmental preservation areas. PDS settlements are established for the development of environmentally differentiated activities and aimed at traditional populations (riverside communities, extractive communities, etc.), whereas PAE settlements have extractive communities as their beneficiaries and are established in areas already inhabited by the families that lived there to develop different environmental activities. The categories of PAs supported by the project are defined by the Brazilian National System of Conservation Units (SNUC) – established by Federal Law 9,985/2000 – and classified as Sustainable Use Units, which objective is to make nature conservation compatible with the sustainable Sep 04, 2024 Page 12 of 19 The World Bank Brazil: Asl Xingu Project (P504126) use of part of its natural resources. It is worth mentioning that this law considers aspects related with the expropriation of these areas and the uses of natural resources that are allowed under different categories of conservation units and their basic objectives. The SNUC also regulates Full Protection Units that aim to preserve nature and only allow indirect use of their natural resources. National legislation requires that the creation of a conservation unit be preceded by technical studies and public consultation that make it possible to identify the most appropriate location, size and limits for the unit and that, in the consultation process, the Public Authorities provide information appropriate and intelligible to local populations and other interested parties. It also determines that: a) the possession and use of areas occupied by traditional populations in Extractive Reserves and Sustainable Development Reserves are regulated by contract; b) these traditional populations are obliged to participate in the preservation, recovery, defense and maintenance of conservation units; c) comply, in their use of natural resources, with prohibitions i) on the use of locally threatened species and practices that damage their habitats and ii) on practices or activities that impede the natural regeneration of ecosystems. This legislation also establishes the broad participation of resident populations in the preparation, updating and implementation of the Management Plan for Extractive Reserves, Sustainable Development Reserves, Environmental Protection Areas, National Forests and Areas of Relevant Ecological Interest and that until Management Plans are drawn up, all activities and works carried out in full protection conservation units must be limited to those aimed at guaranteeing the integrity of the resources that the unit aims to protect, ensuring traditional populations who may reside in the area the conditions and the means necessary to satisfy their material, social and cultural needs. According to Law 9,985/2000, traditional populations residing in conservation units in which their stay is not permitted must be compensated or compensated for existing improvements and duly relocated by the Public Power, to a location and conditions agreed between the parties and which, until it is possible to resettle these traditional populations, specific norms and actions will be established Public Disclosure designed to make their presence compatible with the unit's objectives, without compromising the ways of life, sources of subsistence and places of residence of these populations, ensuring their participation in the development of said standards and actions. Finally, it defines that tree species declared immune from cutting by the Public Power, expectations of gains and loss of profit, the result of calculation carried out through the interest operation, and compounds and areas that do not have proof of unequivocal dominance prior to the creation of the unit are excluded from compensation arising or not from expropriation processes for the creation of conservation units. To mitigate the potential adverse effects of restriction on land use and access to natural resources that Project activities may impose on the traditional communities that inhabited the selected areas, the Process Framework prepared for the previous phases of the ASL Program has been revised, updated, and will be publicly disclosed for consultation through the Project’s dedicated website before Appraisal. The updated Process Framework will: a) establish a process by which members of potentially affected communities participate in design of project components, determination of measures necessary to achieve the objectives of this ESS, and implementation and monitoring of relevant project activities; b) describe the participatory process through which Project-supported activities will be developed and implemented, the criteria for eligibility of affected people and the measures to assist affected persons in their efforts to improve their livelihoods or restore them, in real terms, to pre-displacement levels while maintaining the sustainability of the park or PA will be identified, and potential conflicts or grievances within or between affected communities will be resolved; c) describe administrative and legal procedures to review agreements reached regarding the process approach with relevant administrative jurisdictions and line ministries as well as monitoring arrangements; and d) consider the ability to achieve outcomes materially consistent with ESS 5 through the use of the provisions of the Borrower’s Framework and the gaps that it may have with these ESS 5 requirements. Sep 04, 2024 Page 13 of 19 The World Bank Brazil: Asl Xingu Project (P504126) ESS6 - Biodiversity Conservation and Sustainable Management of Living Natural Relevant Resources The project will have a positive impact on the conservation and connectivity of forests and biodiversity in protected areas and private lands through the improvement of protected areas’ management, promotion of sustainable nature- based production and landscape management practices. While activities under components 1, 2 and 3 should reduce drivers of biodiversity loss and increase protection of natural and critical habitats, as well as endangered species, there are moderate risks associated with the management and use of natural resources in small-scale community- based sustainable forestry (timber), implementation of non-timber and aquatic resources management plans, and support to socio-bioeconomy under Components 1 and 2. Risks include increased biodiversity resource use or impacts on forest integrity due to the inadequate implementation and/or monitoring of sustainable community forestry or nature resource management plans; temporary localized impacts of residue, pollution or disturbance from small construction or remodelling works; residues and waste/wastewater from processing units that might result in limited contamination of soil and water; impacts on non-target species by inadequate pest management methods or products. These risks are predictable, moderate or small in scale and localized, and can be prevented or mitigated by the adoption of best practices, adequate monitoring, provision of technical assistance and other measures to be described in the project’s ESMF, which will provide the tools to screen out any activity that may negatively affect critical habitats and/or endangered species. To prevent and mitigate risks from timber management, Component 1 already includes the provision of technical assistance and support to reviewing and updating Community-based Forest Management Plans, and to meet Forest Stewardship Council (FSC) standards that are environmentally appropriate, socially beneficial, and economically viable. Additional measures may be identified in the ESMF. Public Disclosure ESS7 - Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Relevant Local Communities This standard is relevant because Indigenous Peoples – considering the four characteristics set in ESS 7 – are present both at the regional and at the landscape levels. At the regional level, the Amazon hosts 60% of Brazil's Indigenous Peoples. In the State of Pará, there are 39 distinct Indigenous Peoples, accounting for 1.1% of the state population. They live in 77 Indigenous Lands, which are spread over 56 out of the 144 Paraense municipalities and cover an area of 30.66 million hectares. These Indigenous Lands are mostly concentrated in the regions of Baixo Amazonas, Xingu, Araguaia and Tapajós. In the state mesorregion of Altamira, the indigenous population is composed by the Kayapó Kararaô, Kayapó, Xikrin Kayapó (Bacajá), Xikrin Kayapó, Arara, Yudjá, Parakanã, Asurini do Xingu, Araweté, Kuruaya, Xipaya people, whose mother languages come from diversified roots: the Tupi, the Tupi Guarani, the Jê and the Karib language families. Indigenous lands located in this mesoregion face pressures from mining, scrap mining and hydroelectric power plants. Most of them are located within the Xingu River region and neighboring the Transamazonica highway. At the Lower Xingu River region, the Arara, Araweté, Asurini do Xingu, Kararaô, Kayapó, Kuruaya, Yudjá, Parakanã, Xipaya and Xikrin are present. Their total population equals 6,710 people and the Indigenous Peoples National Foundation (Funai) has already demarcated a total area of 97,500 square quilometers as indigenous lands. Isolated peoples are found in the Menkragnoti and Ituna/Itatá lands and Funai enforces robust procedures for avoiding unwanted contact/protecting isolated or non-contacted Indigenous Peoples. Among these Indigenous Peoples and Lands, the Project has selected to work with the Yudjá of the Juruna Km 17 Indigenous Area (AI). This Indigenous Land has an area of 2,352 hectares and hosts a population estimated between 87 and 105 people. This small land is located on the side of the Ernesto Acciolly state road (PA-415), in the municipality of Vitória do Xingu and in the area of direct influence of the Belo Monte Hidroelectric Power Plant. The paving of this state road Sep 04, 2024 Page 14 of 19 The World Bank Brazil: Asl Xingu Project (P504126) brought some benefits to the Yudjá as the access to the cities of Altamira (17 km away) and Vitória do Xingu (35 Km away) was improved. But it also increased the number of traffic and road accidents and the exposure of the community to the entrance of outsiders. The demographics of the indigenous land are complex as there is an intense migratory dynamic to the city of Altamira, generally motivated by opportunities for work and study. The population is basically made up of young people and adults under 40 years of age. The Yudjá people are also designated by Juruna – a name that means “black mouth” (yuru = mouth, una = black) and refers to a facial tatoo, in black collor, that the Yudjá traditionally used. The self groupal designation of Yudjá means “owners of the river”, in reference to their image as very skilled canoeists and fishermen, using a wide variety of fishing techniques and having in-depth knowledge of the river's ecology. The Yudjá have been first mentioned in the historiography in 1625, living nearby the mouth of the Xingu River. The core element of the Yudjá’s social, political, and economic organization is the extended family. Their kinship system is Dravidian and cross-cousin marriages are considered ideal. However, in the second half of the 19th Century, they were almost decimated due to the invasion of the Xingu region by rubber farmers. Their special relationship with the Xingu River is due to the facts that they traditionally live mainly from fishing, and they depended on the river to move around and participate in a wide network of kinship and friendships that includes Altamira and the entire Volta Grande do Xingu (VGX) region. Hence, by compromising fishing and navigation in the Xingu River, the dam of the Belo Monte plant put their traditional way of life directly at risk. The settlement of the Yudjá in the Juruna do Km 17 Indigenous Area (AI) was the outcome of a long process of displacement, divided into three phases, dating back to the 17th century, according to records from chroniclers and historians, all related to attacks on productive fronts in the national and international economy, such as rubber. Thus, since the late 19th Century, the VGX region where the Yudjá live has been known as an area of extratives exploitation (ruber, nuts, wood, precious metals, fishing) that has increasingly become the stage of violent conflicts between the indigenous Public Disclosure peoples and the expanding national frontier. In the context of this 1st Rubber Cycle, intense transformations began in the region, resulting from the exploitation of rubber trees, registering the entry of a large number of non-indigenous people throughout the middle Xingu region, causing epidemics and fights that drastically impacted indigenous communities, whose territories had been invaded. As a consequence of these events, the Yudjá were subjected to rubber labor or were incorporated into caboclo villages – with many marriages between Yudjá women and rubber tappers. Faced with this unsustainable situation, a group of 45 Yudjá people went up to the upper Xingu and a smaller group decided to stay on the islands of VGX, protected by the region's dangerous waterfalls. The twelve people who remained there gave rise to the VGX Yudjá communities, where, in 2018, there were a total of 328 individuals, residents of Paquiçamba Indigenous Land and the Juruna do Km 17 Indigenous Area (AI). The AI was formed at the end of the 2nd Rubber Cycle, following the acquisition of land by Dona Francisca Juruna, whose descendants have been requesting land regularization from FUNAI since the year 2000 – a process that has not been completed yet. In 2015, in the context of the constraints of the licensing of the Belo Monte Hydroelectric Power Plant, the Yudjá of the AI obtained an area with 2,200 ha that also still needs to be properly regularized. External pressures – large infrastructure projects, pending land regularization, invasions and irregular occupations, intense exploitation of natural resources and deforestation – add to internal challenges – the use of natural resources, the management of areas destined for agriculture and solid waste management – that put at risk the Yudjá way of life and relationship with the territory. Their main sources of income and food are wage labor and family farming. Products such as flour, corn, and small vegetable gardens and orchards guarantee the food subsistence of families, and the surplus is sold in the cities of Altamira and Vitória do Xingu. With the recent acquisition of the new area on the banks of the Guará igarapé (a tributary of the Xingu River) where the village Boa Vista Nova is located, the Yudjá of the AI became able to intensify practices of fishing, hunting and extractives. In the turn of the 21st Century, the Yudjá organized themselves around the Juruna do Xingu Km 30 Indigenous Peoples Association (APIJUX Km 30). The Yudjá of the Juruna do Km 17 Sep 04, 2024 Page 15 of 19 The World Bank Brazil: Asl Xingu Project (P504126) Indigenous Area also participate at the Council of the Paquiçamba, Arara da VGX Indigenous Land and Juruna do Km 17 Indigenous Area (CIJA – created in 2017) and the Federation of Indigenous Peoples of Pará (an indigenous organization created in 2016) and they are represented at the Pará State Council of Indigenist Policy. In 2018, with support of the Belo Monte Basic Environmental Program – Indigenous Component, the Yudjá led the development of the Volta Grande of Xingu Territorial and Environmental Management Plan. [Sources: Stolze Lima, T., Enciclopédia dos Povos Indígenas no Brasil – Verbete: Yudjá/Juruna (Instituto Socioambiental, http://pib.socioambiental.org/pt/Povo:Yudjá/Juruna); Kahwage, C. and Marinho, H. (org.), Situação Socioambiental das Terras Indígenas do Pará: Desafios para Elaboração de Políticas de Gestão Territorial e Ambiental (BELÉM: SEMA/DIAP/CEC, 2011); Guedes de Oliveira, M.E. (Coord), EIA/RIMA AHE Belo Monte – Estudo Socioambiental – Componente Indígena – Grupo Juruna do Km 17 (Brasília, 2009); Ferreira, I, Nascimento, H and Molina, L., Plano de Gestão Territorial e Ambiental Volta Grande do Xingu: Terras indígenas Paquiçamba, Arara da Volta Grande do Xingu e Área Indígena Juruna do Km 17, Programa Básico Ambiental – Componente Indígena, UHE Belo Monte, 2018.] During the previous project (P158000, phase 1 and 2 of the Brazil ASL), the Recipients have developed an Indigenous Peoples Policy Framework (IPPF) in consultation with Indigenous Peoples and Indigenous Peoples organizations. This IPPF sets the processes and procedures to be followed to consult with Indigenous Peoples, prepare Indigenous Peoples Plans, address the concerns and grievances raised by Indigenous Peoples, and evidence their broad support to project activities aimed at benefiting them. This IPPF has been updated and will be publicly re-disclosed prior to Appraisal in the project’s dedicated website. During project implementation, an Indigenous Peoples Plan (IPP) will be developed in consultation with the Yudjá people living in the Juruna do Km 17 Indigenous Area and taking into consideration the document of the Plano de Gestão Territorial e Ambiental Volta Grande do Xingu. The final IPP will be in place before the commencement of any project-supported activities that would require its implementation. Public Disclosure ESS8 - Cultural Heritage Relevant This standard is relevant because to achieve the objective of enhancing conservation and sustainable management in selected areas in the Brazilian Amazon, the hypothesis that the Project may eventually support activities that can restrict access to natural features with cultural significance cannot be cast off. In these situations, ESS 8 is relevant and states that the Borrower must: • Identify, through research and consultation with project-affected parties (including individuals and communities), natural features with cultural heritage significance that may be affected by the project, the people that value such features, and the individuals or groups with authority to represent and negotiate regarding the location, protection, and use of the heritage places. • Conduct the transfer of the cultural heritage – if it is not possible to preserve the natural features in their existing location – in consultation with project- affected parties and in accordance with GIIP. • Reach an agreement regarding this transfer in a manner that respects and enables continuation of the traditional practices associated with the cultural heritage that has been transferred. In line with these guidelines, the Brazilian regulatory framework (National Historic and Artistic Heritage Institute - IPHAN Normative Instruction 01/2015) considers natural characteristics with cultural significance and requires the preparation of an Impact Assessment Report on Listed, Valued and Registered Cultural Assets, which must contain the location and georeferenced delimitation of the material cultural goods; the characterization and assessment of the situation of existing material heritage; the georeferenced location of the communities associated with them; the assessment of threats or impacts on the protected material heritage and the proposal of measures to preserve and safeguard the protected material heritage as well as to control and mitigate the impacts caused by the project. As also required under ESS 7, the Borrower’s Framework also provides for safeguarding the rights of Indigenous Peoples with regards to continued access to natural features they culturally value and the commercial use of their cultural Sep 04, 2024 Page 16 of 19 The World Bank Brazil: Asl Xingu Project (P504126) heritage. The Project’s ESMF will set adquate guidelines and procedures to identify natural features with cultural significance that are present the Project’s selected areas, assess if Project-supported activites may restrict access to them, consult people that value such features in culturally appropriated manner and only transfer the natural features from their existing location in consultation with the people that value them and in a way that enables continuation of the traditional practices associated with. Meanwhile, the Project is not expected to have other potentially negative impacts on cultural heritage. Its activities neither involve excavations, demolition, movement of earth, flooding or other changes in the physical environment, nor support commercial use of cultural heritage. ESS9 - Financial Intermediaries Not Currently Relevant The Project will not rely on Financial Intermediaries. B.2 Legal Operational Policies that Apply 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 In Part Keeping the commitment to achieve outcomes materially consistent with the objectives of the ESSs, the Project will Public Disclosure partially rely at least on: • the requirements of the Brazilian labor legislation on terms and conditions of employment, protection of the work force (banning child and forced labor), occupational health and safety, and judicial mechanisms for raising concerns and grievances related with working places and conditions; • the procedures set by the SNUC for the creation of Protected Areas that safeguard the rights of IP and TPCs with regards to access to natural resources and lands that are critical for their traditional livelihoods, customs and culture; • IPHAN’s procedures and provisions for protecting cultural heritage. Use of Common Approach No There are no financing partners engaged in this operation. 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? Prior to Appraisal, MMA and FGV will conduct at least a second consultation round with key stakeholders to discuss key aspects of the project and the management of environmental and social risks. MMA, FGV and the partner implementing agencies will: • Disclose for public consultation the Stakeholder Engagement Plan (SEP) prepared for the Project. Consultations will start prior to Appraisal. The feedback received will be assessed and incorporated – as appropriate – in the post- Sep 04, 2024 Page 17 of 19 The World Bank Brazil: Asl Xingu Project (P504126) consultation version of the SEP, which shall obtain the no-objection of the World Bank and be publicly disclosed within 30 days after the Project’s date of Effectiveness. • Disclose a Portuguese version of the Project’s Environmental and Social Commitment Plan (ESCP) agreed with the World Bank in the Project’s dedicated webpages prior to Appraisal. • Review and update the environmental and social risk management instruments – namely: the Environmental and Social Management Framework (ESMF), the Indigenous Peoples Policy Framework (IPPF) and the Process Framework (PF) prepared and implemented for the previous phases of the Brazil ASL project, and publicly disclose the revised versions for consultation prior to Appraisal. The existing instruments are publicly available at the following dedicated web pages: a) ESMF - https://www.fgveurope.de/wp-content/uploads/2024/03/gestao- socioambiental_esmf_asl2_final_fgv_v18nov2020.pdf; b) IPPF - https://www.fgveurope.de/wp- content/uploads/2024/03/povos-indigenas_ippf_asl2_final_fgv_v18nov2020.pdf; and c) PF - https://www.fgveurope.de/wp-content/uploads/2024/03/process_framework_asl2_final_fgv_v18nov2020.pdf. • Publicly disclose the final versions of the updated ESMF, IPPF and PF no later than 30 days after Project’s date of Effectiveness. • Develop a SEA/SH Incidents Prevention Plan, as part of the Project Operation Manual and incorporate its requirements in all bidding documents. • Implement and cause all contractors and subcontractors to implement Project activities in compliance with the requirements set by the Project’s environmental and social risk management instruments (the ESMF, the SEP, the IPPF, the PF) and the material measures and actions incorporated in the Project’s ESCP. • Provide biannual reports on the management of environmental and social risks to the World Bank throughout Project implementation. Public Disclosure The World Bank task team will enroll one environmental and one social development specialist, which are expected to carry out biannual implementation support missions. III. CONTACT POINT World Bank Task Team Leader: Maria Bernadete Ribas Lange Title: Senior Environmental Specialist Email: blange@worldbank.org IV. FOR MORE INFORMATION CONTACT Sep 04, 2024 Page 18 of 19 The World Bank Brazil: Asl Xingu Project (P504126) 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): Maria Bernadete Ribas Lange ADM Environmental Specialist: Agnes Velloso ADM Social Specialist: Alberto Coelho Gomes Costa Public Disclosure Sep 04, 2024 Page 19 of 19