Biodiversity Conservation and Sustainable Management of Living Natural Resources PDF

Biodiversity Conservation 6 and Sustainable Management of Living Natural Resources Introduction 2. ESS6 recognizes the importance of maintaining...

Biodiversity Conservation 6 and Sustainable Management of Living Natural Resources Introduction 2. ESS6 recognizes the importance of maintaining core ecological functions of habitats, including for- 1. ESS6 recognizes that protecting and ests, and the biodiversity they support. Habitat is conserving biodiversity and sustainably defined as a terrestrial, freshwater, or marine geo- managing living natural resources are fun- graphical unit or airway that supports assemblages of living organisms and their interactions with the damental to sustainable development. nonliving environment. All habitats support com- Biodiversity is defined as the variability plexities of living organisms and vary in terms of among living organisms from all sources species diversity, abundance and importance. including, inter alia, terrestrial, marine and 3. This ESS also addresses sustainable manage- other aquatic ecosystems and the ecologi- ment of primary production2 and harvesting3 of cal complexes of which they are a part; this living natural resources. includes diversity within species, between species, and of ecosystems. Biodiversity 4. ESS6 recognizes the need to consider the live- often underpins ecosystem services valued lihood of project-affected parties, including Indigenous Peoples, whose access to, or use of, bio- by humans. Impacts on biodiversity can diversity or living natural resources may be affected therefore often adversely affect the deliv- by a project. The potential, positive role of project- ery of ecosystem services.1 affected parties, including Indigenous Peoples, in biodiversity conservation and sustainable manage- ment of living natural resources is also considered. Objectives To protect and conserve biodiversity and habitats. To apply the mitigation hierarchy4 and the pre- cautionary approach in the design and imple- mentation of projects that could have an impact on biodiversity. To promote the sustainable management of liv- ing natural resources. ESS6 To support livelihoods of local communities, including Indigenous Peoples, and inclusive economic development, through the adoption of Primary production of living natural resources is cultivation or 2 rearing of plants or animals, including annual and perennial crop farming, animal husbandry (including livestock), aquaculture, plantation forestry, etc. Harvesting of living natural resources, such as fish and all other 3 types of aquatic and terrestrial organisms and timber, refers to productive activities that include extraction of these resources from natural and modified ecosystems and habitats. Requirements related to ecosystem services are set out in ESS1. 1 As set out in ESS1. 4 67 1707130_Environmental_and_Social_Framework.indd 67 5/25/17 8:35 AM  practices that integrate conservation needs and Assessment of risks and impacts development priorities. 10. Through the environmental and social assess- ment, the Borrower will identify the potential project- related risks to and impacts on habitats and the Scope of application biodiversity that they support. In accordance with 5.  The applicability of this ESS is established during the mitigation hierarchy, the Borrower will make the environmental and social assessment described the initial assessment of project risks and impacts in ESS1. without taking into account the possibility of bio- diversity offsets.6 The assessment undertaken by 6.  Based on the environmental and social assess- the Borrower will include identification of the types ment, the requirements of this ESS are applied to of habitats potentially affected and consideration all projects that potentially affect biodiversity or of potential risks to and impacts on the ecological habitats, either positively or negatively, directly or function of the habitats. The assessment will encom- indirectly, or that depend upon biodiversity for their pass any areas of potential biodiversity importance success. that may be affected by the project, whether or not they are protected under national law. The extent 7.  This ESS also applies to projects that involve pri- of the assessment will be proportionate to the risks mary production and/or harvesting of living natural and impacts, based on their likelihood, significance resources. and severity, and will reflect the concerns of project- affected parties and other interested parties. Requirements 11.  The Borrower’s assessment will include charac- terization of baseline conditions to a degree that is A. General proportional and specific to the anticipated risk and 8.  The environmental and social assessment as set significance of impacts. In planning and undertak- out in ESS1 will consider direct, indirect and cumu- ing environmental and social assessment related to lative project-related impacts on habitats and the the biodiversity baseline, the Borrower will follow biodiversity they support. This assessment will con- relevant GIIP utilizing desktop review, consultation sider threats to biodiversity, for example habitat with experts, and field-based approaches, as appro- loss, degradation and fragmentation, invasive alien priate. Where further investigations are needed to species, overexploitation, hydrological changes, evaluate the significance of potential impacts, the nutrient loading, pollution and incidental take, as Borrower will carry out additional investigation well as projected climate change impacts. It will and/or monitoring before undertaking any project- determine the significance of biodiversity or habi- related activities, and before taking irrevocable tats based on their vulnerability and irreplaceability decisions about project design that could cause at a global, regional or national level and will also significant adverse impacts to potentially affected take into account the differing values attached to habitats and the biodiversity that they support. biodiversity and habitats by project-affected parties 12.  Where the environmental and social assessment and other interested parties. has identified potential risks and impacts on biodi- 9.  The Borrower will avoid adverse impacts on bio- versity or habitats, the Borrower will manage those diversity and habitats. When avoidance of adverse risks and impacts in accordance with the mitiga- impacts is not possible, the Borrower will implement tion hierarchy and GIIP. The Borrower will adopt a measures to minimize adverse impacts and restore precautionary approach and apply adaptive man- biodiversity in accordance with the mitigation hier- agement practices in which the implementation of archy provided in ESS1 and with the requirements of mitigation and management measures are respon- this ESS. The Borrower will ensure that competent sive to changing conditions and the results of proj- biodiversity expertise is utilized to conduct the envi- ect monitoring. ronmental and social assessment and the verifica- tion of the effectiveness and feasibility of mitigation measures. Where significant risks and adverse impacts on biodiversity have been identified, the Borrower will develop and implement a Biodiversity Management Plan.5 Biodiversity offsets are measurable conservation outcomes 6 resulting from actions designed to compensate for significant residual adverse biodiversity impacts arising from project devel- Depending on the nature and the scale of the risks and impacts 5 opment and persisting after appropriate avoidance, minimization of the project, the Biodiversity Management Plan may be a stand- and restoration measures have been taken. Therefore, potential alone document or it may be included as part of the ESCP pre- offsets should not be considered in determining inherent risks 68 pared under ESS1. of the project. 1707130_Environmental_and_Social_Framework.indd 68 5/25/17 8:35 AM  Conservation of biodiversity and habitats “like-for-like or better” principle10 and will be car- 13.  “Habitat” is defined as a terrestrial, freshwater, ried out in alignment with GIIP. or marine geographical unit or airway that supports 17. When a Borrower is considering the develop- assemblages of living organisms and their interac- ment of an offset as part of the mitigation strategy, tions with the nonliving environment. Habitats vary stakeholders and qualified experts with demon- in their significance for conserving globally, region- strated knowledge in offset design and implementa- ally and nationally important biodiversity, their sen- tion will be involved. The Borrower will demonstrate sitivity to impacts, and in the significance different the long-term technical and financial feasibility of stakeholders attribute to them. Because, in most undertaking the offset. When offsets are proposed instances, habitat loss, degradation or fragmenta- for residual adverse impacts on critical habitat, tion represents the greatest threat to biodiversity, the Borrower will engage one or more indepen- much of the focus of biodiversity conservation dent internationally recognized experts to advise actions is on maintaining or restoring suitable as to whether the proposed offset is feasible and habitats. whether, in their professional opinion, it can be rea- 14.  This ESS requires a differentiated risk manage- sonably expected to result in a sustainable net gain ment approach to habitats based on their sensitivity of biodiversity values for which the critical habitat and values. This ESS addresses all habitats, catego- was designated. rized as ‘modified habitat’, ‘natural habitat’, and 18.  Certain residual adverse impacts cannot be off- ‘critical habitat’, along with ‘legally protected and set, particularly if the affected area is unique and internationally and regionally recognized areas of irreplaceable from a biodiversity standpoint. In such biodiversity value’ which may encompass habitat in cases, the Borrower will not undertake the project any or all of these categories. unless it is redesigned to avoid the need for such 15.  For the protection and conservation of habitats offset, and to meet the requirements of this ESS. and the biodiversity they support, the mitigation Modified habitat hierarchy includes biodiversity offsets. Offsets will be considered as a last resort, only if significant 19.  Modified habitats are areas that may contain a residual adverse impacts remain after all technically large proportion of plant and/or animal species of and financially feasible avoidance, minimization, nonnative origin, and/or where human activity has and restoration measures have been considered. substantially modified an area’s primary ecological functions and species composition.11 Modified hab- 16.  A biodiversity offset will be designed and imple- itats may include, for example, areas managed for mented to achieve measurable, additional, and long- agriculture, forest plantations, reclaimed12 coastal term conservation outcomes7 that can reasonably zones, and reclaimed wetlands. be expected to result in no net loss8 and preferably a net gain9 of biodiversity. In the case of an offset 20. This ESS applies to those areas of modified used as mitigation for residual adverse impacts on habitat that include significant biodiversity value, as any area of critical habitat, a net gain is required. determined by the environmental and social assess- The design of a biodiversity offset will adhere to the ment required in ESS1. The Borrower will avoid or minimize impacts on such biodiversity and imple- ment mitigation measures as appropriate. The principle of “like-for-like or better” means that in most 10 Measurable conservation outcomes for biodiversity will be 7 cases biodiversity offsets should be designed to conserve the demonstrated in situ (in natural conditions, not in captivity or same biodiversity values that are being affected by the project ESS6 depository) and on an appropriate geographic scale (e.g., at the (an “ in-kind” offset). In certain situations, however, areas of bio- local, national or regional level). diversity to be affected by the project may be neither a national ‘No net loss’ is defined as the point at which project-related 8 nor a local priority, and there may be other areas of biodiver- biodiversity losses are balanced by gains resulting from mea- sity with like values that are a higher priority for conservation sures taken to avoid and minimize these impacts, to under- and sustainable use and under imminent threat or in need of take on-site restoration and finally to offset significant residual protection or effective management. In these situations, it may impacts, if any, on an appropriate geographic scale. be appropriate to consider an “out-of-kind” offset that involves “trading up” (i.e., where the offset targets biodiversity of higher ‘Net gains’ are additional conservation outcomes that can be 9 priority than that affected by the project). Regardless of type, any achieved for the biodiversity values for which the natural or criti- areas considered as offsets for residual adverse impacts in criti- cal habitat was designated. Net gains may be achieved through cal habitats will also be critical habitats, meeting the criteria of full application of the mitigation hierarchy that may include the paragraph 24 of this ESS. development of a biodiversity offset and/or, in instances where the Borrower could meet the requirements of paragraph 24 of A habitat will not be deemed to be a modified habitat where it 11 this ESS without a biodiversity offset, through the implementa- has been converted in anticipation of the project. tion of additional programs in situ to enhance habitat, and pro- Reclamation as used in this context is the process of creating 12 tect and conserve biodiversity. new land from sea or other aquatic areas for productive use. 69 1707130_Environmental_and_Social_Framework.indd 69 5/25/17 8:35 AM  Natural habitat activities in or adjacent to a critical habitat has been complied with; 21.  Natural habitats are areas composed of viable (c) The potential adverse impacts, or likelihood of assemblages of plant and/or animal species of such, on the habitat will not lead to measur- largely native origin, and/or where human activity able net reduction or negative change in those has not essentially modified an area’s primary eco- biodiversity values for which the critical habitat logical functions and species composition. was designated; 22.  If natural habitats are identified as part of the (d) The project is not anticipated to lead to a net assessment, the Borrower will seek to avoid adverse reduction in the population13 of any Critically impacts on them in accordance with the mitigation Endangered, Endangered, or restricted-range hierarchy. Where natural habitats have the potential species, over a reasonable time period;14 to be adversely affected by the project, the Borrower (e) The project will not involve significant con- will not implement any project-related activities version or significant degradation of critical unless: habitats. In circumstances where the project involves new or renewed forestry or agricul- (a) There are no technically and financially fea- tural plantations, it will not convert or degrade sible alternatives; and any critical habitat; (b) Appropriate mitigation measures are put in (f) The project’s mitigation strategy will be place, in accordance with the mitigation hierar- designed to achieve net gains of those biodi- chy, to achieve no net loss and, where feasible, versity values for which the critical habitat was preferably a net gain of biodiversity over the designated; and long term. When residual impacts remain despite best efforts to avoid, minimize and (g) A robust and appropriately designed, long- mitigate impacts, and where appropriate and term biodiversity monitoring and evaluation supported by relevant stakeholders, mitiga- program aimed at assessing the status of the tion measures may include biodiversity offsets critical habitat is integrated into the Borrower’s adhering to the principle of “like-for-like or management program. better.” 25. Where a Borrower has satisfied the conditions Critical Habitat set out in paragraph 24, the project’s mitigation strategy will be described in a Biodiversity Man- 23.  Critical habitat is defined as areas with high bio- agement Plan and set out in the legal agreement diversity importance or value, including: (including the ESCP). (a) habitat of significant importance to Critically Legally protected and internationally recognized Endangered or Endangered species, as listed areas of high biodiversity value in the IUCN Red List of threatened species or 26.  Where the project occurs within or has the equivalent national approaches; potential to adversely affect an area that is legally (b) habitat of significant importance to endemic or protected,15 designated for protection, or regionally restricted-range species; (c) habitat supporting globally or nationally sig- nificant concentrations of migratory or congre- gatory species; (d) highly threatened or unique ecosystems; Net reduction is a singular or cumulative loss of individu- 13 als that affects the species’ ability to persist at the global (e) ecological functions or characteristics that are and/or regional/national scales for many generations or needed to maintain the viability of the biodi- over a long period of time. The scale (i.e., global and/or versity values described above in (a) to (d). regional/national) of the potential net reduction is determined based on the species’ listing on either the (global) IUCN Red List and/or on regional/national lists. For species listed on both the 24.  In areas of critical habitat, the Borrower will not (global) IUCN Red List and the national/regional lists, the net implement any project activities that have potential reduction will be based on the national/regional population. adverse impacts unless all of the following condi- The timeframe in which Borrowers will demonstrate “no net 14 tions are met: reduction” of Critically Endangered and Endangered, endemic and/or restricted-range species will be determined on a case-by- case basis and, where appropriate, in consultation with qualified (a) No other viable alternatives within the region experts and taking into account the species’ biology. exist for development of the project in habitats This ESS recognizes legally protected areas that meet the fol- 15 of lesser biodiversity value; lowing definition: “A clearly defined geographical space, recog- nized, dedicated and managed, through legal or other effective (b) All due process required under international means, to achieve the long-term conservation of nature with obligations or national law that is a prerequi- associated ecosystem services and cultural values.” For the pur- pose of this ESS, this includes areas proposed by governments 70 site to a country granting approval for project for such designation. 1707130_Environmental_and_Social_Framework.indd 70 5/25/17 8:35 AM  or internationally recognized,16 the Borrower will as soil, ballast, and plant materials) that may harbor ensure that any activities undertaken are consistent alien species. with the area’s legal protection status and manage- ment objectives. The Borrower will also identify and 30. Where alien species are already established assess potential project-related adverse impacts in the country or region of the proposed project, and apply the mitigation hierarchy so as to prevent the Borrower will exercise diligence in not spread- or mitigate adverse impacts from projects that could ing them into areas in which they have not already compromise the integrity, conservation objectives become established. Where feasible, the Borrower or biodiversity importance of such an area. will take measures to eradicate such species from the natural habitats over which the Borrower has 27. The Borrower will meet the requirements of management control. paragraphs 13 through 25 of this ESS, as applicable. In addition, the Borrower will: Sustainable management of living natural resources (a) Demonstrate that the proposed development 31. The Borrower with projects involving pri- in such areas is legally permitted; mary production and harvesting of living natural (b) Act in a manner consistent with any govern- resources will assess the overall sustainability of ment recognized management plans for such these activities, as well as their potential impacts areas; on local, nearby or ecologically linked habitats, bio- (c) Consult and involve protected area sponsors diversity and communities, including Indigenous and managers, project-affected parties includ- Peoples. ing Indigenous Peoples, and other interested 32. The Borrower will manage living natural parties on planning, designing, implementing, resources in a sustainable manner, through the monitoring, and evaluating the proposed proj- application of good management practices and ect, as appropriate; and available technologies. Where such primary pro- (d) Implement additional programs, as appropri- duction practices are codified in standards that are ate, to promote and enhance the conservation globally, regionally, or nationally recognized, par- aims and effective management of the area. ticularly for industrial-scale operations, the Bor- rower and the Bank will agree on the standards to Invasive alien species be applied. In the absence of relevant standards for 28. Intentional or accidental introduction of alien, the particular living natural resources in the country or non-native, species of flora and fauna into areas concerned, the Borrower will apply GIIP. where they are not normally found can be a signifi- cant threat to biodiversity, since some alien spe- 33. For projects involving small-scale producers,17 cies can become invasive, spreading rapidly and the Borrower will require producers to operate in a destroying or out-competing native species. sustainable manner and to gradually improve their practices where such opportunities exist. Where the 29.  The Borrower will not intentionally introduce any project consists of a large number of small produc- new alien species (not currently established in the ers in the same geographical area, the Borrower country or region of the project) unless this is car- will assess the potential for cumulative risks and ried out in accordance with the existing regulatory impacts. framework for such introduction. Notwithstanding the above, the Borrower will not deliberately intro- 34. Where the project includes commercial agri- duce any alien species with a high risk of invasive culture and forestry plantations (particularly proj- behavior regardless of whether such introductions ects involving land clearing or afforestation), the are permitted under the existing regulatory frame- Borrower will locate such projects on land that is work. All introductions of alien species will be sub- already converted or highly degraded (excluding ject to a risk assessment (as part of the Borrower’s any land that has been converted in anticipation ESS6 environmental and social assessment) to determine of the project). In view of the potential for planta- the potential for invasive behavior. The Borrower tion projects to introduce invasive alien species and will implement measures to avoid the potential for threaten biodiversity, such projects will be designed accidental or unintended introductions including to prevent and mitigate these potential threats to the transportation of substrates and vectors (such natural habitats. When the Borrower invests in pro- duction forestry in natural forests, these forests will be managed sustainably. Internationally recognized areas of high biodiversity value 16 include World Heritage Natural Sites, Biosphere Reserves, Ramsar Wetlands of International Importance, Key Biodiversity Small scale can be determined by the national context of a 17 Areas, Important Bird Areas, and Alliance for Zero Extinction Sites, given country and is generally relative to the average size of among others. household landholdings. 71 1707130_Environmental_and_Social_Framework.indd 71 5/25/17 8:35 AM  35.  Where projects involve harvesting of living natu- a minimum and justified by the project’s technical ral resources, the Borrower will require that these requirements, and that relevant national legislation resources are managed in a sustainable manner. In is being followed. particular, forests and aquatic systems are principal providers of these resources, and need to be man- 37.  The Borrower involved in the industrial produc- aged as specified below. tion of crops and animal husbandry will follow GIIP to avoid or minimize adverse risks or impacts. The (a) For projects involving industrial-scale commer- Borrower involved in large-scale commercial farm- cial forest harvesting operations, the Borrower ing, including breeding, rearing, housing, transport, will ensure such operations are certified under and slaughter of animals for meat or other animal an independent forest certification system18 products (such as milk, eggs, wool) will employ or adhere to a time-bound phased action plan GIIP19 in animal husbandry techniques, with due acceptable to the Bank for achieving certifica- consideration for religious and cultural principles. tion to such a system. (b) For projects involving forest harvesting opera- B. Primary suppliers tions conducted by small-scale producers, by 38.  Where a Borrower is purchasing natural resource local communities under community forest commodities, including food, timber and fiber, that management, or by such entities under joint are known to originate from areas where there is a forest management arrangements, where such risk of significant conversion or significant degra- operations are not directly associated with an dation of natural or critical habitats, the Borrower’s industrial-scale operation, the Borrower will environmental and social assessment will include ensure that they: (i) have achieved a standard an evaluation of the systems and verification prac- of sustainable forest management developed tices used by the primary suppliers.20 with the meaningful participation of project- affected parties including Indigenous Peoples, 39.  The Borrower will establish systems and verifi- consistent with the principles and criteria of cation practices which will: sustainable forest management, even if not formally certified; or (ii) adhere to a time- (a) identify where the supply is coming from and bound action plan to achieve such a standard. the habitat type of the source area; The action plan will be developed with the (b) where possible, limit procurement to those meaningful participation of project-affected suppliers that can demonstrate21 that they are parties and be acceptable to the Bank. The not contributing to significant conversion or Borrower will ensure that all such operations degradation of natural or critical habitats; and are monitored with the meaningful participa- (c) where possible and within a reasonable period, tion of ­project-affected parties. shift the Borrower’s primary suppliers to sup- (c) For projects involving industrial-scale harvest- pliers that can demonstrate that they are not ing of fish populations and all other types of significantly adversely impacting these areas. marine and freshwater organisms, the Bor- rower will demonstrate that their activities are 40. The ability of the Borrower to fully address being undertaken in a sustainable manner, these risks will depend upon the Borrower’s level of consistent with the principles and criteria for control or influence over its primary suppliers. sustainable harvesting. 36.  For projects that do not involve primary produc- Such as the IFC Good Practice Note on Improving Animal Wel- 19 tion or harvesting of living natural resources and fare in Livestock Operations. entail salvage logging, for example in areas to be Primary suppliers are those suppliers who, on an ongoing 20 basis, provide directly to the project goods or materials essential inundated, the Borrower will limit cleared areas to for the core functions of the project. Core functions of a project constitute those production and/or service processes essential for a specific project activity without which the project cannot continue. An independent forest certification system will require inde- 18 This may be demonstrated by delivery of certified products or 21 pendent, third-party assessment of forest management per- achieving compliance with one or more credible standards for formance. It will be cost-effective and based on objective and sustainable management of living natural resources in respect of measurable performance standards that are defined at the certain commodities or locations. This will include, where appro- national level and are compatible with internationally accepted priate, compliance with independent certification systems or principles and criteria of sustainable forest management. progress towards achieving compliance. 72 1707130_Environmental_and_Social_Framework.indd 72 5/25/17 8:35 AM