The World Bank Implementation Status & Results Report FIP: Environmental regularization of rural lands in the Cerrado of Brazil (P143334) FIP: Environmental regularization of rural lands in the Cerrado of Brazil (P143334) LATIN AMERICA AND CARIBBEAN | Brazil | Environment, Natural Resources & the Blue Economy Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2016 | Seq No: 14 | ARCHIVED on 22-Jun-2022 | ISR51503 | Implementing Agencies: Federative Republic of Brazil, Ministry of Agriculture, Livestock and Food Supply Key Dates Key Project Dates Bank Approval Date: 21-Jul-2015 Effectiveness Date: 18-Aug-2017 Planned Mid Term Review Date: 29-Jan-2021 Actual Mid-Term Review Date: 09-Apr-2021 Original Closing Date: 28-Feb-2020 Revised Closing Date: 31-Dec-2022 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective is to enhance the capacity of the Borrower’s MMA and nine SEAs to receive, analyze and approve rural environmental cadaster entries and link them to SICAR; and support, in selected municipalities, landholding registration in the CAR. Has the Project Development Objective been changed since Board Approval of the Project Objective? Yes Board Approved Revised Project Development Objective (If project is formally restructured) The Project Development Objective is to enhance the capacity of the Federative Republic of Brazil's Ministry of Agriculture, livestock and Food Supply, through Brazilian Forest Service, and nine SEAs to receive, analyze and approve rural environmental cadaster entries and link them to SICAR; and support, in selected municipalities, landholding registration in the CAR. Components Table Name Strengthening State Environmental Agencies’ Capacity to Implement the CAR.:(Cost $2.60 M) Registration of Landholdings in Selected Municipalities.:(Cost $5.18 M) Project Management, Monitoring and Evaluation.:(Cost $0.50 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The Brazil Investment Plan (BIP), endorsed by the Forest Investment Program Subcommittee in May 2012, seeks to promote sustainable land use and forest management improvement in the Cerrado, contributing to reducing pressure on the remaining forests, reducing GHG emissions and increasing CO2 sequestration. The BIP coordinates efforts by the Ministries of Environment (MMA); Science, Technology and Innovation (MCIT); 6/22/2022 Page 1 of 7 The World Bank Implementation Status & Results Report FIP: Environmental regularization of rural lands in the Cerrado of Brazil (P143334) and Agriculture, Livestock and Food Supply (MAPA), with the aim to maximize impact of sectoral policies to reduce deforestation in the Cerrado biome by improving environmental management in anthropized areas and producing and disseminating environmental information. The FIP: Environmental regulation of rural lands in Cerrado of Brazil (FIP CAR Project) acts in synergy with the other BIP projects and contributes to the achievement of objectives of the BIP. The Project supports the implementation of the Brazilian Forest Code (Law 12.651 of 2012), which requires private rural landholders to maintain a percentage of native vegetation as Legal Reserves (Reservas Legais, RLs), as well as keep Areas of Permanent Preservation (Áreas de Preservação Permanente, APPs), such as riparian forests along watercourses, steep slopes and mountain tops. The Forest Code also obliges landholders to be registered in the Rural Environmental Cadaster (Cadastro Ambiental Rural, CAR), an electronic register maintained by environmental agencies that monitors private rural land use and compliance with reforestation requirements. The FIP CAR Project includes three components: Component 1: Strengthening the environmental agencies’ capacity to implement the CAR system. This component aims to: (i) empower the State Agencies to receive, analyze and approve rural environmental cadastre entries and link them to the national electronic system (SICAR); and (ii) establish the necessary conditions to implement or connect to the SICAR, in terms of staff training, maps, imagery and thematic bases, and operational infrastructure, including equipment and technical tools. The SICAR relies on digital tools that provide georeferenced spatial representations of environmental data from rural properties through high- resolution satellite images and the integration of the environmental data generated, which supports environmental landscape assessments and public policy making in Brazil. All state systems are effectively linked to the federal SICAR system, and landholders from all states are able to register their holdings, either through the federal system made available in their state, or through state systems, with appropriate cartographic support. To date, SICAR is equipped to report in any detail on registration of holdings in all states and the country as a whole, and enables the states to monitor registries of holdings, and, in principle, to analyze and validate these entries. SICAR is composed of several modules and sub- modules: one for the user/landholder to prepare his cadaster entry, a reception module (that receives the registry file and emits a receipt), a central platform for the landholder to accompany the process and receive communications from the state agency, a module to issue reports, a module for the general public to access CAR information, and an analysis module. Component 2: Registration of Landholdings in the Selected Municipalities. This component aims to obtain up-to-date environmental cadastral data that contains information about smallholders, their landholdings, and their enrollment in the CAR system of the State Agencies, focused on selected municipalities. The project managed to have 190,072 small landholdings registered in CAR as “direct beneficiaries”. This number is based on the registration of smallholders in CAR in eleven states and 163 municipalities between 2017 and December 2020, as recorded in SICAR. Ongoing contracts funded under the loan in three states were expected to produce additional registrations. Component 3: Project Management, Monitoring and Evaluation. This component is supporting the management and administration of the project, including financial management, procurement, by the SFB. The project is studying up on ways to supervise activities in the field during social distancing times. The management team at SFB has competent personnel for financial and technical management. The monitoring and evaluations systems are adequate and in line with Bank norms. Gender Aspects There are two aspects of gender that are of interest in the project: the participation of female staff of the state agencies responsible for CAR in training imparted by the project. SFB reports 210 women among the 451 staff trained, or 47%, whereas the target is . The other aspect is the participation of women owners/landholders registering their holdings in CAR. Unfortunately, this data is not available from the SICAR system. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Moderate Moderate Macroeconomic -- Substantial Substantial Sector Strategies and Policies -- Low Low Technical Design of Project or Program -- Low Low Institutional Capacity for Implementation and -- Moderate Moderate Sustainability Fiduciary -- Moderate Moderate 6/22/2022 Page 2 of 7 The World Bank Implementation Status & Results Report FIP: Environmental regularization of rural lands in the Cerrado of Brazil (P143334) Environment and Social -- Low Low Stakeholders -- Low Low Other -- -- -- Overall -- Substantial Substantial Results PDO Indicators by Objectives / Outcomes Enhance the capacity of the Federative Republic of Brazil’s Ministry of Environment (Ministério do M IN01143407 ►Govt institutions provided w/ capacity buildg to improve mgt of forest resources (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 12.00 12.00 9.00 Date 22-May-2015 30-Nov-2021 09-Jun-2022 31-Dec-2022 The Following Sates are being supported with training activities and technical assistance: Federal District (DF), Goiás (GO), Maranhão (MA), Mato Grosso (MT), Mato Grosso do Sul (MS), Minas Gerais (MG), Tocantins (TO), São Paulo (SP), Parana (R); Bahia (BA); Piaui (PI). In addition, the Brazilian Forest Service (SFB) is being strengthening. The project addresses explicitly the strengthening of institutions so as to enable them to implement a specific public policy, the Forest Code with its land use provisions and a specific instrument, CAR. Comments: This count excludes the SFB itself, which was strengthened substantially by the improvements to SICAR. Thus, the MTR considers there are overall 12 government institutions that are being proved with capacity building. The improved capacity is mostly due to the enhanced and expanded functions of the SICAR provided by the SFB. Support, in selected municipalities, landholding registration in the Rural Environmental Cadastre (C IN01143408 ►Land area where sustainable land mgt. practices were adopted as a result of proj (Hectare(Ha), Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 309,100,000.00 362,300,000.00 30,000,000.00 Date 22-May-2015 30-Nov-2021 09-Jun-2022 31-Dec-2022 The land area of smaller and family holdings in target municipalities is 362.3 million hectares. Comments: IN01143409 ►Direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 190,072.00 3,789,154.00 160,600.00 6/22/2022 Page 3 of 7 The World Bank Implementation Status & Results Report FIP: Environmental regularization of rural lands in the Cerrado of Brazil (P143334) Date 22-May-2015 30-Nov-2021 09-Jun-2022 31-Dec-2022 Two strategies were adopted to enroll landholdings in the SICAR. A communications campaign and mobilization to inform, raise awareness, mobilize and engage local governments, stakeholder and landholder representatives in the selected municipalities about CAR, its purpose, what it involves, how it will be carried out, and its advantages for landholders and local governments. This campaign helped to create stronger engagement of landholdings in the selected municipalities. In addition, registrations were achieved through eight contracts of the SFB with firms specializing in contacting small and family farms, preparing their CAR entries and submitting them to CAR in three states, Piauí, Maranhão and Minas Gerais. Ongoing contracts funded by the project produce 43,000 registries of families in traditional community territories, such as “quilombos”. Comments: The total direct and indirect beneficiaries is 3,789,154 that corresponds to the sum of the number of small rural properties, traditional families of PCTs and families from Agrarian Reform Settlements with tax module less than or equal to 4 in the 11 States, enrolled in the CAR. An innovative aspect of the CAR registries is the inclusion of rural territories of traditional peoples and communities in Cerrado States. These communities, historically marginalized by federal government programs, include quilombos (rural Afro-descendant communities) and babassu coconut gatherers and processors, whose territories are collectively managed and recognized by Brazilian law. IN01143410 ►Medium and large landholdings registered in the CAR system (Number) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 305,205.00 322,374.00 20,000.00 Date 22-May-2015 30-Nov-2021 09-Jun-2022 31-Dec-2022 The number reported corresponds to the sum of rural properties as well as the Agrarian Reform Comments: Settlements greater than 4 fiscal modules in the 11 States, enrolled in the CAR. Overall Comments PDO The project shows impressive results, both in terms of registration of rural land holdings and in terms of and improved SICAR system. The results were achieved largely through use of domestic funds (national counterpart) and through support from other projects with bilateral or multilateral funding that also aimed at implementing CAR and strengthening SICAR in the Cerrado. Intermediate Results Indicators by Components Strengthening State Environmental Agencies’ Capacity to Implement the CAR. IN01143471 ►SICAR implemented and integrated to the SEA's systems (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 11.00 11.00 9.00 Date 22-May-2015 30-Nov-2021 09-Jun-2022 31-Dec-2022 The Following Sates are being supported with training activities and technical assistance: Federal District (DF), Goiás (GO), Maranhão (MA), Mato Grosso (MT), Mato Grosso do Sul (MS), Minas Gerais (MG), Comments: Tocantins (TO), São Paulo (SP), Parana (R); Bahia (BA); Piaui (PI). The States of Piaui and Bahia are additional and they were not part project target. 6/22/2022 Page 4 of 7 The World Bank Implementation Status & Results Report FIP: Environmental regularization of rural lands in the Cerrado of Brazil (P143334) Assessment and monitoring of governance are essential tools for promoting reforms to achieve better forest governance. SFB and GIZ are developing a framework for assessing and monitoring the OEMAs’ capacity to implement the CAR. A consultant was hired to assess the CAR implementation pace in the selected States. IN01143474 ►Staff in targeted SEAs trained to use SICAR and to analyze and validate data (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 451.00 451.00 451.00 Date 22-May-2015 30-Nov-2021 09-Jun-2022 31-Dec-2022 Training activities are being supported including: workshops, technical meeting, technical assistance and platform on the internet where the SEAs officer have access to the knowledge produced by SBF on CAR process. Comments: SFB reports integration of SICAR into state systems to have occurred in all eleven SEAs and 451 staff in agencies having been trained, more than double the target of 200. Almost half of these were women. IN01143476 Female staff targeted SEAS trained to use SICAR and to analyze and validate (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 210.00 210.00 210.00 Date 22-May-2015 30-Nov-2021 09-Jun-2022 31-Dec-2022 IN01143477 ►Deployment of the electronic module of rural cadaster analysis to the 11 Cerrado biome states (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 30-Oct-2021 30-Nov-2021 09-Jun-2022 31-Dec-2022 Registration of Landholdings in Selected Municipalities. IN01143472 ►Small landholdings' applications to enroll in the CAR system (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3,127,994.00 3,442,644.00 160,600.00 Date 22-May-2015 30-Nov-2021 09-Jun-2022 31-Dec-2022 CAR registration field activities are successfully being implemented. Firms were contracted to works directly with landholders to undertaken 72,000 new cadasters in selected municipalities. The field activities are being closely monitored by SFB team and State Agencies. The CAR system, SICAR, does not allow for the landowner to identify him/herself, which will prevent SFB Comments: from reporting on this supplemental indicator. These reported registries of small landholdings in the target municipalities during the period mid-2017 to end 2020. This indicator does not cover the stages of analysis and approval of CAR entries. Work on these stages has barely begun, due to scarcity of staff and lack of an effective SICAR module to automate the analysis. 6/22/2022 Page 5 of 7 The World Bank Implementation Status & Results Report FIP: Environmental regularization of rural lands in the Cerrado of Brazil (P143334) IN01143475 ►Small landholdings with liabilities provided with support to prepare plans to rehabilitate degraded areas (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 500.00 Date 22-May-2015 30-Nov-2021 09-Jun-2022 31-Dec-2022 These activities have not yet started. Comments: Project Management, Monitoring and Evaluation IN01143473 ►Share of landholders satisfied with services provided by the project. (Percentage) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 60.00 Date 22-May-2015 30-Nov-2021 09-Jun-2022 31-Dec-2022 SFB has not been able to measure this indicator yet. Comments: Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P143334 TF-19211 Effective USD 32.48 8.28 24.20 6.20 2.08 75% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P143334 TF-19211 Effective 21-Jul-2015 22-May-2017 18-Aug-2017 28-Feb-2020 31-Dec-2022 Cumulative Disbursements 6/22/2022 Page 6 of 7 The World Bank Implementation Status & Results Report FIP: Environmental regularization of rural lands in the Cerrado of Brazil (P143334) Restructuring History Level 2 Approved on 14-Sep-2019 ,Level 2 Approved on 30-Dec-2019 ,Level 2 Approved on 23-Dec-2021 Related Project(s) There are no related projects. 6/22/2022 Page 7 of 7