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World Bank approves First Amazon Fiscal and Environmental Sustainability Program

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The World Bank Board of Directors approved today the US$200 million First Amazonas Fiscal and Environmental Sustainability Programmatic DPF.

The project will support fiscal reforms aimed at promoting fiscal sustainability while integrating forest conservation and development, as part of the state’s post-COVID-19 economic recovery plan. The project will also promote social inclusion by increasing the number of vulnerable families covered by the Bolsa Forest Program from 9,600 to 12,000.

Since the first case of the novel coronavirus was registered in Brazil this past February, the state of Amazonas has been severely affected by the pandemic, recording more than 4,500 deaths. It is currently the state with the fourth highest rate of deaths due to the disease. The economic shock was also large, with the World Bank estimating a drop of 5.6 percent in state gross domestic product (GDP) in 2020, with widespread implications for employment, poverty, and inequality.

“We adopted fiscal adjustment measures to restore and safeguard fiscal sustainability in the short and medium term. The COVID-19 economic shock has put an extra weight on the state’s economy. But we are very positive that this program will allow us to move forward with the necessary reforms to create fiscal space to leverage transfers to municipalities and improve environmental service delivery,” said Wilson Miranda Lima, Governor of the Amazonas State.

Brazil’s largest state, Amazonas, hosts one quarter of the entire Amazon basin and about one third of its Brazilian part. With 1.5 million km2 (an area larger than France, Germany, Spain, and Portugal combined) and over 96 percent of its original forest cover preserved, the state has the largest forest carbon stock of any subnational jurisdiction in the world.  Despite being natural-resource-rich, the state has one of the highest levels of poverty in the country, with nearly 40 percent of its population living under US$5,50/day. In addition, annual deforestation in the Amazonas state has increased in recent years. It rose by 146 percent, from 583 km2 in 2014 to 1434 km2 in 2019.

Protecting its forest is of critical local, national, and global relevance to maintain ecosystem that support rainfall vital for agriculture, hydropower, as well as rural and urban populations across South America, including in the Brazilian central and southeastern states. The project will strengthen monitoring and early warning plans, and combat deforestation and forest fires. By reducing deforestation, the state will also be able to decrease greenhouse gas emissions equivalent to about 11% of Brazil’s Paris Agreement goal. Furthermore, it will improve the systems for environmental and land regularization, increasing the validation of rural environmental registrations to 2,100 in two years.

A Forest Concessions Program is also supported by the project. With 60,000 hectares of concessions approved by 2022, expected to create 500 green jobs, it will help the state to integrate sustainable use and protection of the Amazon, with a positive impact on the economy.

The forest has a key role in the Amazonas life and economy. This pioneering project will support policy and institutional reforms that will enable the state to integrate forest conservation and development, achieving a climate-friendly and fiscally prudent recovery from the COVID-19 pandemic. It will also reward families from rural communities that protect forests. In the post-pandemic world, principles like sustainability and inclusion must be the basis of development,” said Paloma Anós Casero, director for the World Bank in Brazil.

The state is also struggling with the pension deficit, which totaled R$1.3 billion in 2018 (9.5 percent of the state’s revenues). The project will support the increase of pension contributions to generate fiscal savings of about R$200 million, amounting to 11 percent reduction in the pension deficit projected for 2022. Over the span of the next decade the reforms supported by this project are estimated to generate cumulative fiscal savings of R$1.9 billion.

Outcomes supported by the program include:

  • Fiscal sustainability and transparency through a set of reforms, including to pensions, and the introduction of a medium-term fiscal responsibility law;
  • Adoption of an institutional reform to ensure a more efficient public investment program that will also serve as a basis for climate-informed public policy decisions and investment planning;
  • Implementation of legal and institutional reforms to prevent, suppress and control illegal deforestation and forest fires;
  • Strengthening enforcement of the Federal Forest Code and supporting landholders to comply with conservation requirements on their lands;
  • Consolidate payments for environmental services mechanisms that share the benefits of improved conservation and sustainable forest management with local communities, rewarding vulnerable households for maximizing environmental services from the forest;
  • Promotion of gender equity.

This US$200 million loan from the International Bank for Reconstruction and Development (IBRD) to the State of Amazonas is guaranteed by the Federative Republic of Brazil and has a grace period of 3 years and 13 years of maturity.

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Western Indian Ocean region has declared 550,000 square kilometers as protected

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The Western Indian Ocean region has declared 143* marine and coastal areas as protected – an area covering 553,163 square kilometers, representing 7 percent of the total Exclusive Economic Zone (EEZ) for the region – according to a new publication by the UN Environment Programme (UNEP)-Nairobi Convention and the Western Indian Ocean Marine Science Association.

The Marine Protected Areas Outlook, released today, indicates that almost half of the total area – an estimated 63 percent of the overall square kilometers – was brought under protection in the seven years since the 2015 adoption of Sustainable Development Goal 14.5, which committed countries to conserving at least 10 percent of their marine and coastal areas by 2020.

This Outlook examines the current and future status of Marine Protected Areas (MPAs) in Comoros, Kenya, France (in its Western Indian Ocean territories), Madagascar, Mauritius, Mozambique, Seychelles, South Africa, and Tanzania, emphasizing the increased commitment of countries to strengthen marine protection. In 2019 alone, Seychelles brought 30 percent of its Exclusive Economic Zone under protection, safeguarding the habitats of 2,600 species, while South Africa declared 20 new MPAs – enabling both countries to exceed the 10 percent target. Comoros has developed new MPA-specific legislation, while over three hundred Locally Managed Marine Areas – i.e., areas in which coastal communities shoulder the mantle of conservation – have been declared across the region.

The publication further documents the dozens of proposed MPAs currently under consideration by countries, which would cover an additional 50,000 square kilometers or more. Nevertheless, with only 7 percent of the region’s total EEZ under protection, greater momentum and investments will be required by countries to reach the more ambitious target of 30 percent protection by 2030, as proposed under the Global Biodiversity Framework.  

Although the ocean provides us with resources essential for survival, including food, employment, and even oxygen, the world is damaging and depleting it faster than ever. Soon, the region may no longer be able to count on the many jobs, health, and economic benefits – valued at 20.8 billion USD – that the Western Indian Ocean provides. Marine protected areas offer one of the best options to reverse these trends. 

“A well-managed MPA can bring significant economic, social, and environmental benefits to a country,” said Yamkela Mngxe, Acting Director of Integrated Projects and International Coordination in South Africa’s Department of Forestry, Fisheries and the Environment. “They can increase food security by preventing the overexploitation of fish stocks; create and protect jobs in the tourism and fisheries sectors; build resilience to climate change; and protect species and habitats.”

Though countries in the region have made significant strides in protecting its marine and coastal areas, the Outlook outlines best practices, challenges, and several opportunities to build on thisprogressto ensure the entire region meets future Global Biodiversity Framework targets on marine protected areas. The Outlook’s assessment of the management effectiveness of MPAs indicates that MPA frameworks and institutions do not always function effectively. Nor is relevant legislation consistently implemented, due to financial or personnel capacity gaps; weak enforcement on MPA boundaries; and management decisions that are not guided by science.

Key recommendations from the Outlook therefore include:

  1. The need for dedicated budgets for MPA management;
  2. Adopting proactive law enforcement and compliance strategies to ensure MPA regulations and guidelines are being respected which could be informed by the best practices in fishery reserves like Mauritius, which have helped to restore fish stocks and protect biodiversity;
  3. Incorporating research and monitoring programmes on biodiversity and ecosystems into decision-making in MPAs;
  4. Strengthening community engagement in marine protection by implementing lessons learned by the MIHARI Network, which brings together more than 200 Locally Managed Marine Areas in Madagascar.

“The MPA Outlook comes at a time when the region has embarked on large-scale socio-economic developments that are equally exerting pressure on MPAs,” said Hon. Flavien Joubert,Minister of Agriculture, Climate Change, and Environment of the Seychelles. “The Outlook thus provides some answers and innovative approaches to minimize the scale of negative impacts on MPAs.”

The MPA Outlook concludes that by seizing the opportunities it presents, countries in the region can capitalize on this progress to safeguard the Western Indian Ocean’s immense natural beauty and resources for generations to come – and sustain momentum towards achievement of the post 2020 biodiversity framework targets.

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Deadly flooding, heatwaves in Europe, highlight urgency of climate action

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Floods have affected cities across Europe, including Zurich in Switzerland. Unsplash/Claudio Schwarz

Heavy rainfall that has triggered deadly and catastrophic flooding in several western European countries, is just the latest indicator that all nations need to do more to hold back climate change-induced disasters, the World Meteorological Organization (WMO) said on Friday.

The agency said that countries including Belgium, Germany, Luxembourg and the Netherlands had received up to two months’ rain in two days from 14 to 15 July, on ground that was “already near saturation”.

Photos taken at the scene of some of the worst water surges and landslides show huge, gaping holes where earth and buildings had stood until mid-week, after media reports pointed to well over 100 confirmed fatalities in Germany and Belgium on Friday morning, with an unknown number still missing across vast areas.

“We’ve seen images of houses being…swept away, it’s really, really devastating”, said WMO spokesperson Clare Nullis adding that that the disaster had overwhelmed some of the prevention measures put in place by the affected developed countries.

In a statement issued by his Spokesperson, the UN Secretary-General António Guterres, said he was saddened by the loss of life and destruction of property. “He extends his condolences and solidarity to the families of the victims and to the Governments and people of the affected countries.”

The UN chief said the UN stood ready to contribute to ongoing rescue and assistance efforts, if necessary.

“Europe on the whole is prepared, but you know, when you get extreme events, such as what we’ve seen – two months’ worth of rainfall in two days – it’s very, very difficult to cope,” added Ms. Nullis, before describing scenes of “utter devastation” in Germany’s southwestern Rhineland-Palatinate state, which is bordered by France, Belgium and Luxembourg.

Highlighting typical preparedness measures, the WMO official noted In Switzerland’s national meteorological service, MeteoSwiss, had a smartphone application which regularly issued alerts about critical high-water levels.

The highest flood warning is in place at popular tourist and camping locations including lakes Biel, Thun and the Vierwaldstattersee, with alerts also in place for Lake Brienz, the Rhine near Basel, and Lake Zurich.

Dry and hot up north

In contrast to the wet conditions, parts of Scandinavia continue to endure scorching temperatures, while smoke plumes from Siberia have affected air quality across the international dateline in Alaska. Unprecedented heat in western north America has also triggered devastating wildfires in recent weeks.

Among the Scandinavian countries enduring a lasting heatwave, the southern Finnish town of Kouvola Anjala, has seen 27 consecutive days with temperatures above 25C. “This is Finland, you know, it’s not Spain, it’s not north Africa,”, Ms. Nullis emphasised to journalists in Geneva.

“Certainly, when you see the images we’ve seen in Germany, Belgium and the Netherlands this week it’s shocking, but under climate change scenarios, we are going to see more extreme events in particular extreme heat,” the WMO official added.

Troubled waters

Concerns persist about rising sea temperatures in high northern latitudes, too, Ms. Nullis said, describing the Gulf of Finland in the Baltic Sea at a “record” high, “up to 26.6C on 14 July”, making it the warmest recorded water temperature since records began some 20 years ago.

Echoing a call by UN Secretary-General António Guterres to all countries to do more to avoid a climate catastrophe linked to rising emissions and temperatures, Ms. Nullis urged action, ahead of this year’s UN climate conference, known as COP26, in Glasgow, in November.

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South Africa Invests in Biodiversity to Promote Rural Development and Conservation

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South Africa is stepping up investment for its wildlife and biodiversity sectors thanks to a grant of $8.9 million from the Global Environment Facility (GEF). The Catalyzing Financing and Capacity for the Biodiversity Economy Around Protected Areas Project aims to enhance South Africa’s stewardship of its rich biodiversity and expand the benefits of protected areas for local communities. It will also help address high unemployment and limited livelihoods options in and around protected areas as well as inequality in rural economies.

The project supports South Africa’s efforts to foster the unrealized potential of its wildlife and biodiversity sectors as drivers for economic growth, including through expanding conservation areas and mitigating threats to protected areas and conservation objectives.

It puts into action South Africa’s biodiversity economy node concept, which identifies certain areas within the country as containing both high-value biodiversity and opportunities for economic development. The project will target activities in three biodiversity economy nodes: (i) the Greater Addo to Amathole node in the Eastern Cape Province, (ii) the Greater Kruger-Limpopo node in Limpopo Province, and (iii) the Greater-iSimangaliso node in KwaZulu-Natal Province.

“The biodiversity economy is central to South Africa’s tourism industry and building the resilience of communities to climate change. Empowering communities to invest in the biodiversity economy will create jobs, promote biodiversity stewardship and stimulate rural development in a climate-smart way,” said Marie Françoise Marie Nelly, World Bank Country Director for South Africa, Botswana, Eswatini, Lesotho, and Namibia.

Project activities include providing training, mentorship, and capital to micro, small, and medium enterprises (MSMEs); expanding the area of land under protected status through South Africa’s land stewardship  program; and facilitating knowledge exchange to support expansion of the biodiversity economy across the country based on lessons learned from the three nodes.

The project is aligned with South Africa’s National Development Plan 2030 and its National Biodiversity Strategy and Action Plan 2015-2025, both of which identify the wildlife economy as an important sector for job creation and economic growth. It also supports South Africa’s climate change objectives and Nationally Determined Contribution to the Paris Climate Agreement. The project’s focus on inclusive job creation and economic growth through the development of MSMEs, integrated value chains, and entrepreneurship is also fully aligned with a draft World Bank Group Country Partnership Framework for South Africa.

About the Global Environment Facility

The Global Environment Facility (GEF) was established 30 years ago on the eve of the Rio Earth Summit to tackle our planet’s most pressing environmental problems. Since then, it has provided more than $21.5 billion in grants and mobilized an additional $117 billion in co-financing for more than 5,000 projects and programs. The GEF is the largest multilateral trust fund focused on enabling developing countries to invest in nature and supports the implementation of major international environmental conventions including on biodiversity, climate change, chemicals, and desertification. It brings together 184 member governments in addition to civil society, international organization, and private sector partners. Through its Small Grants Programme, the GEF has provided support to more than 25,000 civil society and community initiatives in 135 countries.

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