. PROJECT INFORMATION DOCUMENT (PID) CONCEPT STAGE Report No.: PIDC151749 . Project Name Colombia FCPF REDD Readiness (P120899) Region LATIN AMERICA AND CARIBBEAN Country Colombia Project ID P120899 Borrower(s) Fondo Acción Implementing Agency Ministry of Environment and Sustainable Development (MADS) Environmental Category B Date PID Prepared/Updated 12-Mar-2018 Date PID Approved/Disclosed Estimated Date of Approval 8-April-2018 . I. Introduction and Context Country Context 1. Given its recent economic improvement, Colombia’s progress in reducing poverty has been remarkable. Over the 2002-2017 period, extreme poverty almost halved from 17.7 percent to 7.4 percent, while moderate poverty fell from 49.7 percent to 26.9 percent. This reduction was driven by rural areas where poverty incidence fell by 2.6pp from 38.6 percent to 36.0 percent between 2016 and 2017. Colombia has achieved a significant decrease in its official Multidimensional Poverty Index (MPI) — down from 49 percent in 2003 to 17.8 percent in 2016. Poverty reduction is expected to accelerate in line with higher growth anticipated over the 2018-20 period. Until recently, an important element that affected poverty was the long-running armed conflict. In 2016, the Government signed a peace agreement with the Fuerzas Armadas Revolucionarias de Colombia (FARC). This agreement has as one key objective a Comprehensive Rural Reform (Reforma Rural Integral - RRI), which is part of chapter one of the agreement. The RRI seeks to lay down the foundation for the transformation of rural Colombia through creating the conditions for productive integration and competitiveness in rural areas while ensuring a stabilization of the agricultural frontier. Given that 58 percent of the municipalities where deforestation is highest are also affected by the internal armed conflict, the activities promoted under the RRI are fully aligned with activities promoting forest and land-use smart investments. Sectoral and Institutional Context 1. Colombia has 59.5 million ha of forest, covering 52.2 percent of its territory. Around 67percent of the total remaining natural forests are located in the Amazonian region of Colombia, 9.4 percent in the Pacific and 17.1 percent in the Andean region. Forests are a key source of livelihoods for indigenous peoples, Afro-Colombian and campesino (farmer) communities, some of which live within protected areas and make use of the forest resources. Indigenous community territories (resguardos indígenas) contain 45 percent of the total natural forests in the country, while 7.2percent are in Afro-Colombian collective territories. Colombia´s deforestation rates are still alarming, despite of a decrease between 2010-15. In 2016, Colombia’s Forest and Carbon Monitoring System (SMByC) registered an increase in deforestation by 44 percent from 124,035 ha to 178,597 ha compared to 2015. 2. 3. The Agriculture, Forestry and Other Land-Uses (AFOLU) sector represents 58 percent of Colombia’s GHG emissions. Within the AFOLU categories, Forest and land converted pastures are responsible for 36 percent of the emissions in 2012, Forest land converted to crops land contributed with 11 percent, soil and manure management with 20 percent, and livestock enteric fermentation with 28 percent. For this reason, the National Development Plan (2014-2018) establishes green growth commitments and a low carbon development strategy, and the development and implementation of a National Strategy to Reduce Greenhouse Gases Emissions from Deforestation and Forest Degradation – ENREDD+, with actions of cross-sectorial articulation, regulation, public policy, capacity building, monitoring and verification, among others to reach the zero-net deforestation goal by 2030. 3. Colombia is one of the most biodiverse countries in the world, second in number of plant species and first in number of bird species. In addition, Colombian forests represent a major carbon sink but are also important for the conservation of water and soil resources. Seven forests reserves (Zonas de Reserva Forestal) covering a total of approximately 65 million ha, were created in 1959 in order to support the development of the forest sector, protect water, soil and wildlife. In 2015 this area had been reduced to 48 million ha. Recent biodiversity data show 2,697 species registered in the deforestation hotspots identified by IDEAM. In addition, Colombia has established a total of 59 National Parks, covering a total area of 18percent of the total of natural forest across the country. Forests are also a key source of livelihoods for indigenous peoples, Afro-Colombian and campesino (rural farmer) communities, some of which live within the protected areas and make use of the forest resources. 48,65percent of forests are in collective territories, indigenous community territories (resguardos indígenas) contain 43.15percent of the total natural forests in the country, while 5.5percent are in Afro-Colombian territories. Relationship to CPF 4. Relationship to CPF and Bank sectoral strategies. The modified and scaled-up activities to be supported by the additional funding are aligned with Colombia’s FY16-21 Country Partnership Framework (CPF). The CPF supports the Government’s medium-term agenda towards a more integrated territorial development, one of the fundamental pillars of the Government’s peace building agenda. The CPF aims at balanced territorial development and the need for enhanced capacity for natural resource management in target regions. By piloting important forest and land use programs in the Amazon and Orinoquia regions and by supporting the Government’s Plan “Todos Somos PAZifico� (Pacific region), the World Bank contributes to more balanced territorial development in three regions that still lack development opportunities. 5. The World Bank’s land-use program in Colombia promotes the adoption of the programmatic approach to forests and land use as outlined in the World Bank Forest Action Plan 2016. As such, the ongoing cross-sectoral land-use program in Colombia includes a large portfolio of operations using various World Bank instruments. Many of these operations, such as the Heart of the Amazon project, the Sustainable Cattle Ranching operation, the Magdalena Bajo Seco Reforestation project, have piloted important private-public partnerships for sustainable land use change, as well as conservation and climate smart agriculture approaches. They serve as best practices for reducing deforestation, land degradation and promoting economic development in rural Colombia and have enormous potential for scaling up. . II. Proposed Development Objective(s) Proposed Development Objective(s) Strengthening the Enabling conditions for REDD+ Strategy (EICDGB) Implementation Key Results 1. The institutional capacity of the MADS is strengthened to conduct a participatory and inclusive process for the implementation of the national REDD+ strategy – EICDGB. 2. An accessible Feedback and Grievance Redress Mechanism (FGRM) for REDD+ is designed and ready to be implemented. 3. Stakeholder participatory platforms at the regional and national level are established to support a process of a free, prior and informed consultation for the implementation of the national REDD+ strategy 4. An action and financing plan, including a baseline for territorial conflicts, on consolidation of collective land rights is developed 5. Environmental Module for the cadaster developed 6. The Strategic Environmental and Social Assessment (SESA) completed country-wide and a National Environmental and Social Management Framework (ESMF) prepared 7. Estrategia Integral de Control de Deforestación y Gestión de Bosques (EICDGB) proposed interventions models for deforestation hotspots/ agricultural frontier areas are defined 8. Community Forest Monitoring System Protocol developed and piloted in three deforestation hotspots 9. Incorporation of the REDD+ Safeguard Information System within the National Environmental Information System (Sistema de Información Ambiental de Colombia - SIAC) . III. Preliminary Description Concept Description 6. The US$4.93 million of additional funding will support expanding and scaling-up support for Component 1 (Organization and Consultation), to strengthen the capacity of indigenous and afro- Colombian groups, as well as of farmers and the civil society. Important results have been obtained so far especially in Amazonian and some Pacific territories, however, additional funds are required to deepen the process and to extend the process to other regions of the country like the Caribbean, Andes and additional areas in the Pacific, focusing on main deforestation hotspot areas. For Component 2 (Implementation of REDD+ Strategy), it is proposed to create two new subcomponents (in line with the Strategy EICDGB), Sub-Component 2.a REDD+ Implementation Framework, and Sub Component 2.c. Strategy Options to reflect the main objective of this Additional Financing, which is to support development of enabling measures for implementation of the EICDGB. These measures include support to institutional strengthening, capacity building and policy framework for REDD+ measures on the one hand, and the development of technical and financial approaches for implementation of effective REDD+ measures. Finally, a new Component 3 (National Forest Monitoring) is proposed to provide support for a community monitoring system as a complement to the National Forest Carbon Monitoring System (SMByC). COMPONENT 1. Organization, Consultation and Participation (US$2,214,997) 8. The objective of this component is to ensure broader participation of key stakeholders in the REDD+ process by expanding and consolidation a multi-stakeholder dialogue on REDD+. Component 1 will finance consultancy services, goods, non-consultancy services, training, workshops and operational costs incurred by Fondo Acción to implement the AF activities in coordination with MADS, and other agencies including MADR, IDEAM, DNP, MHCP, and others. 9. Sub-component 1.a National Readiness Management Arrangements (US$1,625,540). This sub- component will continue supporting a team of multi-disciplinary experts to coordinate and support the implementation of the EICDGB in Colombia. It will also continue ensuring participation of Government representatives in international negotiations and fora to advance the REDD+ agenda. Finally, this subcomponent will also support improvements to the accessibility and cultural relevance of the REDD+ Grievance and Redress Mechanism (MAC). 10. Sub-component 1.b Consultation and Participation Process (US$589,457). During REDD+ Strategy consultations, the need to increase the knowledge on REDD+ of various stakeholder groups was identified, with a special emphasis on increasing participatory processes in the Pacific, Andean, and Caribbean regions. These include forest communities, ethnic communities, farmers, women, and youth on the one hand, and institutional stakeholders (regional environmental authorities, regional governments, municipalities) on the other hand. The objective is that these groups can participate more fully in implementation of the EICDGB. Specific participation and capacity development plans will be developed under this component. With regards to ethnic communities, this subcomponent will continue supporting indigenous groups and their national representation such as the National Indigenous Organization of Colombia (Organización Nacional Indígena de Colombia - ONIC), the National Organization of Indigenous Peoples of the Colombian Amazon (Organización Nacional de los Pueblos Indígenas - OPIAC), the Territorial Indigenous Councils (Consejo Territorial de Cabildos Indígenas - CTC), the Permanent Roundtable for Indigenous Concertation (Mesa Permanente de Concertación Indígena -MPCI), among others. It will also continue strengthening representation of Afro-Colombian communities (such as the Afro-Colombian Environmental Rights Roundtable for the Pacific, and the Afro-Colombian Women Roundtable) in implementing the EICDGB. Particularly, this subcomponent will support participatory processes that improve governance of ethnic-territories given the proportion of forest areas under collective ownership of ethnic communities (48.65 percent). This includes processes to ensure that land use planning, including Municipal Land-Use Plans (Planes de Ordenamiento Territorial - POTs), Development Programs with a Territorial-Based Approach (Planes de Desarrollo con Enfoque Territorial - PDETs), and other land-use planning and zoning efforts will be based on and aligned with territorial planning instruments prepared by indigenous and Afro-Colombian communities. This sub-component will also support capacity building for regional and local institutions, environmental authorities (Corporacion Autónoma Regional - CAR), departmental Governments, producer associations, cooperatives, municipalities. Finally, under this sub-component communication, education, knowledge management, outreach and artistic work will be supported that will help generate a shared vision of forests in Colombia. COMPONENT 2. REDD+ Strategy Implementation (US$ 2,369,455) 11. The objective of this to support enabling conditions for implementation of the EICDGB by supporting an enabling institutional and policy framework, the finalization of the ESMF with additional SESA activities in the Andean, Orinoquia, and Caribbean regions. Component 2 will finance consultancy services, goods, non-consultancy services, training, workshops and operational costs incurred by Fondo Acción in coordination with MADS, and other agencies including MADR, IDEAM, DNP, ART, MHCP, and others. 12. Sub-component 2.a REDD Implementation Framework (US$ 456,140). This subcomponent will support an enabling institutional and policy framework for REDD+ Implementation. This includes, at the national and regional level, ensuring that the EICDGB will be adopted and implemented by various sectors with impact on deforestation by supporting the functioning and operationalization of an interinstitutional coordination mechanism, the Inter-Sectorial Commission on Deforestation Control (CICOD) and its regional and/or departmental representation of multi-sectoral coordination, and their articulation with CICOD and Regional Climate Change Platforms (Nodos Regionales de Cambio Climático – NRCC) created by decree at regional levels as part of SISCLIMA. 13. On the policy side, this component will also support consolidation of land access and management rights in collective territories of ethnic communities. Most of forest areas falls into these territories. While the agrarian census of 2016 shows that land use in collective territories is mostly conservation and only 6.9percent is under agriculture use, deforestation in these areas is high. This in turn is mostly due to: i) forced abandonment of the collective territories or forced confinement of the communities within its territory; ii) misuse of natural resources by third parties against the traditional uses and customs of the ethnic communities and their traditional authorities; iii) and lack of land tenure clarity (informal land tenure and lack or outdated cadaster and property registry data) in these areas. The project will support the development of an action plan to consolidate collective rights in these areas, including accelerated issuance of collective land titles and development of mechanisms for Alternative Dispute Resolutions - ADR of land related conflicts. The project will also contribute to the stabilization of the agricultural frontier and will support the formulation and implementation of instruments to stabilize this frontier, such as: i) the development of an environmental cadaster and a plan for its accelerated implementation in these areas; ii) land tenure regularization protocols that incorporate environmental considerations to avoid deforestation or other natural ecosystem transformation, as a requisite to prove land tenure rights; and iii) non land titling policies and verification protocols in the areas that have been deforested since 2010. The agricultural frontier will also be the common denominator for national and regional public-private zero deforestation supply chain agreements supported under this subcomponent. 14. Subcomponent 2.b Assessment of Environmental and Social Impact (US$ 229,102). This sub- component will support finalization of the SESA process in the Andean, Orinoquia and Caribbean region, the finalization of an ESMF, as well as the preparation of a Process Framework, and an Indigenous Peoples Planning framework, all in accordance with the World Bank’s safeguards policies. 15. Sub-component 2.c REDD Intervention Models (US$1,684,213). This new sub-component will support the consolidation of region specific REDD+ intervention models, to ensure the EICDGB leads to concrete deforestation halting measures on the ground. The subcomponent will support measures to promote a viable forest economy in Colombia, including sustainable community forest management and commercial forestry. This will include support to switch to promotion of changes to agro-environmental production models in agricultural frontier areas, including agro-forestry, silvopastoril systems, and forest plantations through voluntary conservation agreements, community ecotourism, the development of pilots for Payments for Environment Services (PES), and community ecological restoration, among other interventions. This subcomponent will also support workshops on financial incentive mechanisms in coordination with UNDPs BioFIN initiative, and development of a productive alliance models with sustainability criteria con MADR. COMPONENT 3. National Monitoring Systems for Forests and Safeguards (US$ 302,820) 16. The objective of this component is to strengthen the National Monitoring, Reporting and Verification System (MRV) with i) refined drivers of deforestation analyses, and ii) a community forest monitoring system that inform the design of future Forest Reference Emission Levels (FREL). It will also help to finalize the Information System for Multiple Benefits and Safeguards. Component 3 will finance consultancy services, goods, non-consultancy services, training, workshops and operational costs incurred by Fondo Acción in coordination with MADS, and other agencies including IDEAM. 17. Sub-component 3.a National Forest Monitoring System (MRV) (US$ 229,136). The Additional Funding will provide technical assistance to establish a Community Forest Monitoring System and support the analysis of drivers of deforestation. As REDD+ requires ground-based monitoring to complement remote sensing and analysis of satellite images of forest condition and to increase accuracy of nationally aggregated data, locally based monitoring can fulfil this role while reducing costs and creating employment. Under this sub component Community Guards in Indigenous territories will be trained as part of the Monitoring System. 18. Sub-Component 3.b Information System for Multiple Benefits, Other Impacts, Governance, and Safeguards (US$ 73,684). With regards to the National Safeguards Information System (NSIS), the UNFCCC requires countries to report on how REDD+ stakeholders and institutions are respecting safeguards. The AF will help to i) interpret safeguards and their application for various sectors with impact on forests, and ii) to institutionalize the NSIS within MADS, as well as to articulate it with the National Environmental Information System (SIAC). COMPONENT 4: Program Monitoring and Evaluation Framework (US$ 42,727) 19. This component aims at monitoring progress with respect to each of the Grant component, for example, the schedule of activities to be undertaken, the outputs and the outcome using the Results Framework (Annex 1) and external financial audits of the program implementation. Component 4 will finance consultancy services, goods, and operational costs incurred by Fondo Acción and MADS to implement the AF activities. 20. Subcomponent 4a Audit (US$ 42,727). This subcomponent will finance third party independent audits, as required by World Bank procedures. . . IV. Safeguard Policies that Might Apply Safeguard Policies Triggered by the Project Yes No TBD Environmental Assessment OP/BP 4.01 X Natural Habitats OP/BP 4.04 X Forests OP/BP 4.36 X Pest Management OP 4.09 X Physical Cultural Resources OP/BP 4.11 X Indigenous Peoples OP/BP 4.10 X Involuntary Resettlement OP/BP 4.12 X Safety of Dams OP/BP 4.37 X Projects on International Waterways OP/BP 7.50 X Projects in Disputed Areas OP/BP 7.60 X . . V. Financing (in USD Million) Total Project Cost: 04.93 Total Bank Financing: 0.00 Financing Gap: 0.00 Financing Source Amount Borrower 0.00 Readiness Fund of the Forest Carbon Partnership Facility 4.93 Total 4.93 . . VI. Contact point . . World Bank Contact: Franka Braun Title: Sr Natural Resources Mgmt. Spec. Tel: 5756+8231 / Email: fbraun@worldbank.org . . Borrower/Client/Recipient Name: Fondo Acción Contact: Jose Luis Gomez Title: Executive Director Tel: 5712853862 . Email: joselgomez@fondoaccion.org . . Implementing Agencies Name: Ministry of Environment and Sustainable Development (MADS) Contact: Cesar Augusto Rey Title: Director Forest Department Tel: 573125230007 . Email: CRey@minambiente.gov.co . VII. For more information contact: . The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects