PROJECT INFORMATION DOCUMENT (PID) APPRAISAL STAGE Report No.: AB6865 Mexico Forests and Climate Change Project Project Name Region LATIN AMERICA AND CARIBBEAN Country UNITED MEXICAN STATES Sector Forestry (60%), General Agriculture, Fishing and Forestry (40%) Lending Instrument SIL Project ID P123760 (IBRD) and P124988 (FIP) {If Add. Fin.} Parent Project ID Borrower(s) Government of Mexico Implementing Agency Comisión Nacional Forestal (CONAFOR) Periférico Poniente No. 5360 Esq. Carretera a Nogales, Edificio B, Jalisco Mexico 45019 Tel: (52-33) 3777-7000 directorgeneral@conafor.gob.mx Environmental Screening { }A {X}B { }C { }FI Category Date PID Prepared October 20, 2011 Estimated Date of Appraisal November 11, 2011 Completion Estimated Date of Board January 31, 2012 Approval Decision Project authorized to proceed to Appraisal. I. Country Context 1. With a population of 111 million, Mexico is the second most populated country in Latin America. It has the 13th largest gross domestic product worldwide. Key economic sectors and sources of income include manufacturing, industry, oil, tourism, agriculture, and remittances. Although Mexico’s overall economic and human indicators have improved steadily over the past decade, poverty is still widespread especially among rural and forest- dependent communities. 2. The proposed operation is consistent with the Bank’s new business model in Mexico. The proposed SIL is part of a broader, strategic engagement in support of the Government’s agenda on forest and climate change. Using a diverse range of instruments, 1 the Bank would provide policy advice, convening services, investments, as well as the piloting of innovative financial services. Instruments being mobilized in support of this agenda include: the proposed Social Resilience and Climate Change Development Policy Loan (DPL); the Forest Carbon Partnership Facility (FCPF); the Global Environment Facility (GEF); the Program on Forests (PROFOR), and a potential Forest Bond with the World Bank Treasury, in addition to the proposed IBRD loan and Forest Investment Program (FIP) credit and grant, for which Mexico has been selected as one of eight pilot countries worldwide. Partnerships are underway with the French Development Agency in the context of the Social Resilience to Climate Change DPL, with the Inter-American Development Bank in the context of the FIP, and with the Norwegian-funded Monitoring, Reporting and Verification (MRV) project in the context of Component 1 of the proposed operation, among others. 3. The proposed operation is central to the Bank’s engagement with Mexico on climate change. The climate change collaboration between the Bank and Mexico has progressed in recent years, with subsequent stages building upon the achievements of previous efforts. This collaboration can be summarized in four stages: Foundations, Early Support, Strengthening, and Consolidation. This collaboration now encompasses the full range of Bank instruments, including knowledge, financial, convening and coordination services. 4. The proposed operation builds upon a long-standing, successful collaboration on forests and climate change. Since 1997, two Community Forestry Projects assisted indigenous and other rural communities to raise their standards of living through improved forest management (closed in 2009). The Bank also supported the Mexico Environmental Services Project aimed at enhancing the provision of environmental services of national and global significance and to secure their long-term sustainability (closed in 2011) and the Community Conservation Project for Biodiversity. The proposed operation would also build upon the policies supported by four recent Climate Change Development Policy Loans (2008-2010) that included forest-related prior actions. 5. The proposed project is consistent with the Mexico Country Partnership Strategy. One pillar of the 2008-2013 CPS (Report No 42846-MX) discussed by the Board of Directors on April 8, 2008 is to help Mexico assure environmental sustainability by reducing greenhouse gas emissions and deforestation. The CPS outcomes include the conservation of the forestry natural capital. The proposed project is also consistent with Mexico’s National Development Program which aims to turn environmental sustainability into a cross-cutting theme of public policies. The CPS progress report (2010, 52776-MX) mentions Bank projects in environmental services and community forestry as one of the Key Themes and Progress. II. Sectoral and Institutional Context 2 6. Mexico has 64 million hectares of forests. About 70 percent of these forests belong to rural communities under a legally-established collective ownership system––a tenure situation unique in the world.1 Other forests belong mostly to small, individual owners. The net deforestation rate seems to be moderate, while forest degradation is relatively high.2 The direct drivers of deforestation and degradation vary by region, and include conversion to pasture and agriculture, unsustainable logging, overgrazing, fuel wood collection, fires, and pests and diseases. Some of the underlying causes include insufficient alignment among policies, institutions and programs across-sectors, deficient incentive framework for sustainable forest use, and insufficient capacity and access to markets by communities. 7. In the nineties, the Government started helping communities to manage their forest resources through a series of community-based incentives and advisory programs. At present, an estimated 2,380 communities use forest management plans, and about 60 are independently certified. In many cases, these public investments, combined with the low profitability of agriculture in remaining forestland and to some extent with rural out- migration, contribute to a decline in forest loss.3 They also seem to succeed in building social capital, creating jobs and incomes, and promoting forest sustainability. However, one cannot assume those trends will continue; the financial viability of the model is still uneven; over-regulation of community forestry remains an obstacle; and forest degradation is still high and has not been reversed. Although much remains to be done, Mexico’s community forestry approach is increasingly recognized as a reference worldwide. This community forestry approach is seen by the Government as a central piece of its social development and poverty alleviation strategies in forested regions. It will also likely serve as a foundation of Mexico’s strategy for Reducing Emissions from Deforestation and Degradation (REDD+).4 8. Over the past decade forests have become a national priority for Mexico. The National Forestry Commission (CONAFOR) was established in 2001 to assist communities and small private owners in developing management plans, restoring degraded areas, planting trees, using non-timber products, and protecting environmental services. CONAFOR 1 In Mexico, “Comunidades� (or “agrarian communities�) are longstanding rural population centers that have been given formal ownership of their traditional or customary lands. Theoretically “agrarian communities� are entirely composed of indigenous peoples–although that is not entirely true in practice. “Ejido� refers to a portion of land that has been titled to a rural population nucleus that was formed more recently or relocated from another are–most of them are non-indigenous campesinos. Both types of community property are governed by a similar structure, with an “Asamblea� of all ejidatarios or comuneros, a “Comisariado Ejidal� or Comisariado de Bienes Comunales� and a “Consejo de Vigilancia�. It is estimated that 9,000 communities and ejidos have a forest area equal or greater than 300 hectares of which about 3,000 are engaged in forestry as their main activity, and about 50 are certified under the FSC scheme (717,424 hectares). 2 Government estimates for annual deforestation rate and forest degradation rate are 0.25% and 0.45% respectively (based on the Readiness Preparation Proposal- CONAFOR, 2011, and relative to other tropical countries). 3 Rural out-migration has had complex effects on forest condition. On one hand, people abandon marginal cropping areas and it may grow back into forest. On the other hand, out-migration tends to weaken local institutions and creates shortages of workers for community forestry enterprises, which weakens some of the factors that have helped to protect the forests. 4 The full meaning of REDD+, as approved in the Cancun COP in December 2010, is “Reducing Emissions from Deforestation and Forest Degradation, as well as Sustainable Management of Forests, and Conservation and Enhancement of Forest Carbon Stocks�. 3 operates a range of thematic, community-based incentive programs, collectively known as Pro-Arbol. The scope of these programs increased rapidly since 2001. CONAFOR’s budget increased from US$27 million in 2001 to US$510 million in 2010 and its portfolio has reached a total of about 12,000 transactions annually. 9. Mexico has also become a leader in international negotiations on climate. Mexico successfully hosted the 16th Conference of the Parties, and brokered the Cancun Agreement–a cornerstone towards a future global architecture on climate, especially as it relates to REDD+. In Cancun, Mexico unveiled its 2010 REDD+ Vision which lays out Mexico’s proposal for piloting REDD+ and represents an intermediate step towards developing a full national REDD+ Strategy. The REDD+ Vision emphasizes the importance of a cross-sector approach linking forests with agriculture and other public policies. It also emphasizes forests’ contribution to social resilience by reducing the vulnerability of poor communities to natural disasters and economic downturns. The REDD+ agenda is essential for Mexico as forestry and land-use change are the country’s third highest source of emissions, and rank second in their potential to reduce emissions.5 In sum, the Government sees the proposed program as a core element of its adaptation and mitigation agenda. III. Project Development Objectives 10. The proposed project is part of the package of Bank engagement in support of Mexico's ambitious, cutting-edge Forest and Climate Change program, within the overall framework of Mexico’s National Development Program and Mexico’s REDD+ Vision. The project contributes to the higher-level objective of ensuring the sustainable management, restoration, and expansion of Mexico's forest resources, while promoting local socio- economic development among poor rural communities including indigenous peoples, strengthening local communities’ resilience to climate change, and spearheading the global effort on REDD+. 11. Within the overall framework spelled out in paragraph 9 above, the specific Project Development Objective is: to support rural communities in Mexico to sustainably manage their forests, build social organization, and generate additional income from forest products and services including the Reduction of Emissions from Deforestation and Degradation (REDD+). 12. The project would help consolidate and improve CONAFOR’s incentive programs for community forestry and environmental services, and utilize them as key elements of the national REDD+ strategy. It would also help strengthen CONAFOR as a world-class forest 5 The leading sources of greenhouse gas emissions are: energy (24%), transport (18%), and forests and land-use change (14%). It is estimated that forestry actions might have the potential to contribute 28% of Mexico’s total emission reductions (Instituto Nacional de Ecología. Third National Communication. Secretaría de Medio Ambiente y Recursos Naturales. Mexico. 2006) 4 agency, promote the alignment of rural development policies and programs, and pilot innovative REDD+ approaches in two Early Action areas6.. 13. Project Beneficiaries. The key beneficiaries of the 5-year project are an estimated 4,000- 5,000 Ejidos and Communities that would participate in demand-driven incentive and advisory programs supported by the project at the national level and in REDD+ Early Action areas. About a quarter of the total beneficiaries would be indigenous peoples. 14. The international community would also benefit from the project to the extent that it would help reduce carbon emissions in Mexico and it would help develop replicable, scalable approaches for REDD+ considering Mexico’s potential role as a model for other countries given its leadership role in the global forest carbon discussions. 15. PDO Level Results Indicators. The PDO level Result Indicators would be as follows: a) Increase in forest area under improved management and reduced carbon emissions practices (number of hectares, or percentage increase) b) Increase in number of communities building social organization and generating income from sustainable production of forest goods and services (number of communities, or percentage increase) including REDD+ c) Reduction of net deforestation and forest degradation rates in selected landscapes within REDD+ Early Action areas (equivalent CO2 emissions). 16. The Project’s Intermediate Result Indicators reflect the project’s focus on: promoting innovation for the REDD+ agenda, modernizing CONAFOR’s monitoring and evaluation systems, harmonizing public policies across sectors, building social organization within communities, and piloting new local governance and landscape management models, as key intermediate steps towards reaching the PDO. IV. Project Description 17. Component 1. Policy Design and Institutional Strengthening. (IBRD US$30m, and FIP US$11.66m grant). This component would aim to strengthen CONAFOR as a leading forest agency worldwide, foster cross-sector collaboration among public agencies, and improve the quality of private technical assistance available to communities. 18. Subcomponent 1.1. Monitoring and Evaluation. (IBRD US$5m, and FIP US$2m grant). First, this subcomponent would strengthen CONAFOR´s monitoring and evaluation systems to bring them in line with the institution’s rapidly growing portfolio. It would help revamp existing databases, strengthen CONAFOR’s remote sensing and geographic information capacities, and enhance capacities to better measure the outcomes of CONAFOR’s investments in the field. The system would be transparent, foster 6 The initial Early Action areas considered for project are located in the State of Jalisco and the Yucatan Peninsula, and were selected for their REDD+, learning, implementation, and replication potential. The project will support piloting of new approaches for REDD+ in these areas. 5 accountability, and be subject to independent external reviews. Second, this subcomponent would help CONAFOR design and pilot a comprehensive REDD+ MRV system. It would help develop tools to monitor the environmental and social impacts of REDD+ pilot projects in the Early Action areas, and explore community-based monitoring techniques. It would also support a partnership with CONEVAL7 for designing an impact evaluation strategy focused on Component 3. Third, it will support monitoring results and strategic assessment of the Forest Investment Plan. This subcomponent would complement the Norwegian-funded MRV project. See also Annex 1 on Monitoring and Evaluation. 19. Subcomponent 1.2. Policy Design, Participatory Processes, and Knowledge Sharing. (IBRD US$12.5m and FIP US$5m grant). This subcomponent will support analytical works and participatory processes aimed at improving public policies and programs. First, it will support the studies and workshops needed to draw lessons from the ongoing environmental services and community forestry programs, and propose adjustments to the CONAFOR operating rules for subsequent implementation under Component 2. It would aim to achieve greater integration amongst these programs, so they mutually reinforce each other. It would also support studies related to policies and programs related to forestry, agriculture, livestock, and other economic activities in rural landscapes. Second, this subcomponent will also support the studies and workshops needed to design innovative REDD+ approaches that will be piloted in Early Action areas under Component 3. Third, it will support all participatory processes, communication and outreach efforts needed for the successful implementation of the project including on social and environmental safeguards. It will support a collaborative program with CDI8 to disseminate information and receive feedback from indigenous communities. It will support participatory processes for indigenous, local communities and other stakeholders in the management of forest landscapes in Early Action areas supported under Component 3. Fourth, it will support knowledge management and learning activities in-country and internationally, including South-South initiatives and the dissemination and exchange of lessons and experiences on REDD+ and on the implementation of the FIP Investment Plan. This subcomponent would be coordinated with the REDD+ Readiness process supported by the FCPF. 20. Subcomponent 1.3. Strengthening of CONAFOR and Cross-Sector Coordination. (IBRD US$12.5m and FIP US$1.66m grant). First, this subcomponent will support the provision of training and acquisition of equipment for CONAFOR´s staff and offices at central and State level to modernize CONAFOR’s administration and advisory capacities and promote the sharing of good practices and new technologies. It would also support overall project management including coordination, reporting, fiduciary and safeguards functions. Second, this subcomponent would foster cross-sector coordination between CONAFOR and other federal agencies involved in rural development (SEMARNAT, SAGARPA,9 CONANP,10 and PROFEPA11). Specifically, it would support the implementation of two policy measures included in recent Climate Change DPLs: (i) the creation of joint databases with 7 Consejo Nacional de Evaluación de la Política de Desarrollo 8 Comisión Nacional para el Desarrollo de los Pueblos Indígenas 9 Secretaría de Agricultura, Ganadería, Desarrollo Rural, Pesca y Alimentación 10 Comisión Nacional de �reas Naturales Protegidas 11 Procuraduría Federal de Protección al Ambiente 6 SAGARPA and SEMARNAT, and (ii) the streamlining of the administrative framework for community-based forest management. 21. Subcomponent 1.4. Improvement of Private Advisory Services to Communities. (FIP US$3m grant). This subcomponent will provide training to a roster of private technical service providers (estimated 1,174 nationwide) who advise communities in preparing and implementing sub-projects for CONAFOR funding. The training modules would cover technical, business, marketing, and social issues among others. This subcomponent will also support the design and implementation of a service provider quality accreditation and certification scheme. 22. Component 2. Consolidation of Priority Community-Based Programs at National Level. (IBRD US$270m). This component will continue and scale up previous successful Bank engagement in community forestry and payments for environmental services with Mexico. It will support demand-driven community-based sub-projects related to social organization, capacity-building and land-use planning, as well as the protection, sustainable management, harvesting, processing and marketing of forest goods and services. Support to selected communities would be provided in the form of grants following the existing CONAFOR procedures (reglas operativas) which are reviewed and updated annually. This Component would support five programs which CONAFOR has identified as a priority package for the achievement of its overall mandate: (i) payment for environmental services (PES), (ii) community forestry development (PROCYMAF), (iii) forestry development (PRODEFOR), (iv) development of forest productive chains (Cadenas Productivas), and (iv) special programs (Programas Especiales). 23. Taken together, in 2011, these five programs represent an annual disbursement of approximately $98 million, i.e. 20 percent of CONAFOR´s total budget. This means, with an average US$54 million annually, the IBRD contribution would represent about 55 percent of the annual cost of the five programs. It is estimated that, taken together over five years, these five programs would support about 4,000-5,000 community initiatives. The average amount of a proposal is about $11,000.00 dollars per community/ejido, though there may be a wide variability–ranging from about $5,500.00 dollars (PROCYMAF) up to $22,905.00 dollars (PES, distributed in 5 years). 24. Annex 2 summarizes the selection process and eligibility criteria that apply to the five programs supported under this Component. It also provides an overview of all CONAFOR programs with a focus on eligible activities and beneficiaries for the five programs supported under the project. Although these five programs are also accessible to small private landowners, Bank resources would only support community initiatives. 25. Overall, this Component–and the five CONAFOR programs it supports–aims to help local communities to combine sustainable forest management with socio-economic development, and to enhance the contribution of forests to climate change mitigation and adaptation. It aims to provide additional income opportunities to communities, making sustainable management more economically attractive. The PROCYMAF, PRODEFOR, Cadena programs support a palette of activities ranging from capacity-building, participatory 7 assessments, planning, and in the most advanced cases, harvesting, processing and marketing of forest products, and certification. In doing so, they help communities advance through a sequence of development phases towards sustainable self-management of their forests. The PES program provides financial transfers to interested communities as an incentive for protecting ecosystem services. It currently operates in priority areas selected for their environmental, hydrological and biodiversity value. The Programas Especiales provides financial transfers in 9 selected regions12 to support projects related to hydrological conservation and soil erosion prevention. These areas have been selected for their social and environmental vulnerability and/or climate change mitigation and adaptation potential. 26. Component 3. Innovation for REDD+ in Early Action Areas. (FIP US$14m grant and FIP 16.34m loan). This component will promote the design and piloting of new approaches for REDD+ in two Early Action areas located in the State of Jalisco and in the Yucatan Peninsula, and selected for their learning and replication potential. It will contribute to the alignment of forest, agriculture and livestock policies and programs for integrated multi- sectoral management in priority forest landscapes and will promote the role of landscape management agents. 27. Subcomponent 3.1. Policy Innovation and Cross-Sector Harmonization (For information, costs covered under Component 1.2). This subcomponent would support the analytical work and participatory processes needed to design innovative REDD+ approaches that will be piloted under subcomponents 3.2 and 3.3. In this context, CONAFOR would pursue three lines of innovation. First, CONAFOR would work closely with SAGARPA to ensure greater alignment and remove discrepancies with the agriculture and livestock policies and incentive programs (PROCAMPO, PROGAN) and improve the overall carbon balance in rural landscapes. Second, CONAFOR would tailor its own programs and adjust the eligibility criteria to promote low-carbon approaches at community-level (e.g. testing PES payments for sustainably managed forests). Third, CONAFOR would design and implement the management models for sustainable productive landscapes and support the emergence of new local governance structures allowing for a broader spatial integration at municipal, watershed or landscape level, instead of just responding to individual community demands. 28. Subcomponent 3.2. Building Capacities for Landscape-Based Management in REDD+ Early Action Areas. (FIP US$7m grant). This subcomponent would provide training, equipment, and technical assistance to a series of Local Development Agents (ADLs) and Local Technical Agents (ATL) that include REDD+ in their dialogue and work-programs with communities, local authorities, and other partners.13 Working through LDAs and LTAs would help mainstream REDD+ into regional development initiatives and in more spatially-integrated landscape management models. LDAs and LTAs would work with 12 Cofre de Perote, Lerma Chapala, Nevado de Toluca, Pico de Orizaba, Izta-Popo, Chichinautzin, Cutzamala, Cuencas Costeras and Pátzcuaro Zirahuen. Additional areas for Programas Especiales could be added in the future. 13 LDAs are non-government agencies that support and help implement one or several CONAFOR programs in specific regions. LTAs are local public agencies with a mandate in integrated rural development (e.g. inter- municipal associations and decentralized public organizations). 8 communities and help establish local territorial development plans. This subcomponent would help strengthen or create six inter-municipal associations (LDAs) and an estimated twenty non-government organizations (LTAs), in addition to the CONABIO Corredor Biologico. It will include: (i) Identification, promotion and strengthening the ADLs and ATLs in Early Action REDD+ Areas, considering existing local entities; and (ii) Create capacity within different levels of public agencies for integrated multi-sectoral policy and program implementation in productive rural landscapes 29. Subcomponent 3.3. Community Investments in REDD+ Early Action areas. (FIP US$7m grant and US$16.34m loan). This subcomponent would support the piloting of new REDD+ management approaches at community-level, using the CONAFOR lineamientos especiales created under component 3.1, and using the capacities of LDAs and LTAs supported under Component 3.2. Selected investments should aim to reduce emissions, increase communities’ resilience to the effects of climate change, and contribute to economic, social and environmental sustainability. This subcomponent would use new lineamentos especiales and integrated packages of CONAFOR and SAGARPA incentives to support innovative rural landscape management initiatives. All rural landscape management initiatives would be based on local territorial development plans agreed upon with all participating communities and would be implemented through community grants with the assistance of the ATLs and ADLs. Grants would be channeled either: (i) directly from CONAFOR to participating communities (US$16.34 million); (ii) through inter- municipal associations and non-government organizations supported under component 3.2 (US$5 million, direct payments made by CONAFOR to participating communities); or (iii) through a local public entity with demonstrated fiduciary capacity–potentially the CONABIO Corredor Biologico (US$2 million). Overall, this sub-component would support REDD+ initiatives proposed and implemented by an estimated 422 forest communities and ejidos located in the Early Action areas of Jalisco and Peninsula de Yucatan. Consistent with the landscape approach promoted under the project, a “REDD+ initiative� would involve a combination of multiple CONAFOR/community transactions, with an average value of about US$17.000 per community transaction). All subprojects would be demand-driven and implemented by communities. V. Financing Source: ($m.) Borrower/Recipient: 287 IBRD 300 IDA 0 Forest Investment Program 42 Total: 629 9 VI. Implementation 30. The implementing agency for this project will be CONAFOR. CONAFOR has a robust implementation capacity and long-standing experience with Bank-financed operations. To the extent possible, the project will be implemented through existing CONAFOR structures, and it will strengthen existing channels and venues of civil society participation and cross-sector coordination. A Steering Committee and an Operational Committee will be created within CONAFOR. Higher-level Government coordination will take place in the context of the existing Intersecretarial Commision for Sustainable Rural Development and the Intersecretarial Commission on Climate Change. At local level, day-to-day implementation and monitoring of Components 2 and 3 will be undertaken by the CONAFOR field offices in collaboration with State Governments in line with their regular mandate. The participation of civil society will be sought through various mechanisms including the national CTC-REDD and the local CTCs in the Early Action areas. 31. The following collaborations agreements will be established with partner agencies for specific project activities: (i) with CONEVAL for the design of an impact evaluation strategy under Subcomponent 1.1; (ii) with CDI for the dissemination of information and consultations with indigenous peoples under Subcomponent 1.2; (iii) with SAGARPA, SEMARNAT and PROFEPA for the establishment of joint databases and the streamlining of administrative procedures under Subcomponent 1.3; and (iv) with CONABIO and local entities (e.g. inter-municipal associations and non-government organizations, often referred as ATLs and ADLs) under Component 3 to finance community-based REDD+ activities in Early Action areas (direct payments from CONAFOR to community beneficiaries). The agreement with CONABIO and a template agreement with local entities will be included in the Operational Manual. 32. The proposed project would build upon the successful experience of the previous Community Forestry and Payments for Environmental Services projects. It supports a second generation of interventions to assist forest-dependent communities in building social organization, take full ownership of forest management, and optimize local and global benefits from forests. Component 1 logically focuses on improving CONAFOR’s capacity to monitor and evaluate the impacts of its growing programs, on promoting cross- sector coordination, on improving the quality of technical assistance services available to communities. Component 2 moves towards the consolidation of a priority subset of CONAFOR’s community-based programs, ensuring the continuity of these programs overtime, and allowing for iterative improvements and greater harmonization amongst them. The PES program underwent a continuous process of improvement, for example through the introduction of a point system to prioritize the applications with the highest potential value. This process of gradual improvement would continue with the support of component 1.2, and its results would be integrated into component 2 for implementation at scale. 33. The proposed operation would help advance the REDD+ agenda in Mexico and globally with a strong focus on community-based management and on the alignment of cross-sector policies, in the context of a comprehensive package of assistance that combines policy, 10 advisory and investment instruments. The project design is consistent with the FIP investment criteria: (a) climate change mitigation potential; (b) demonstration potential at scale; (c) cost-effectiveness; (d) implementation potential; (e) integrating sustainable development (co-benefits); and (f) application of environmental and social safeguards. First, consistent with the Mexico REDD+ Vision, the goals of the experimentation and piloting efforts to be conducted under Component 3 will be to mitigate climate change by reducing deforestation and degradation (criteria a) and improve livelihoods and protect environmental values (criteria e). Second, in order to allow demonstration at scale (criteria b), the project will use a sub-national approach focusing the initial REDD+ innovation efforts on Early Action areas and attempting to gradually scale up successful approaches at the national level through the regular CONAFOR programs. Third, by building upon successful programs and relying on existing institutions, rather than creating completely new ones, the proposed project increases cost-effectiveness (criteria c) and has a strong implementation potential (criteria d). VII. Safeguard Policies (including public consultation) {Same as in last approved ISDS} Safeguard Policies Triggered by the Project Yes No Piloting the Use of Borrower Systems to Address Environmental and Social Issues in Bank-Supported X Projects (OP/BP 4.00) Environmental Assessment (OP/BP 4.01) X Natural Habitats (OP/BP 4.04) X Pest Management (OP 4.09) X Physical Cultural Resources (OP/BP 4.11) X Involuntary Resettlement (OP/BP 4.12) X Indigenous Peoples (OP/BP 4.10) X Forests (OP/BP 4.36) X Safety of Dams (OP/BP 4.37) X Projects in Disputed Areas (OP/BP 7.60)* not eligible for piloting under OP 4.00 Projects on International Waterways (OP/BP 7.50) not eligible for piloting under OP 4.00 VIII. Contact point at World Bank and Borrower World Bank Contact: Laurent Debroux Title: Sr. Natural Resources Specialist Tel: (202) 473-3581 Email: ldebroux@worldbank.org * By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the disputed areas 11 Borrower/Client/Recipient Contact: Ricardo Ochoa Title: Chief of the International Relations Unit, Secretaría de Hacienda y Crédito Público (Ministry of Finance) Tel: [52] (55) 3688-1154 Email: ricardo_ochoa@hacienda.gob.mx Implementing Agency Contact: Juan Manuel Torres Rojo Title: Director, CONAFOR Tel: [52] (33) 3777 7000 Email: directorgeneral@conafor.gob.mx For more information contact: The InfoShop The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 458-4500 Fax: (202) 522-1500 Web: http://www.worldbank.org/infoshop 12