INTEGRATED SAFEGUARDS DATA SHEET MEXICO REDD+ READINESS PREPARATION SUPPORT PROJECT (P120417) . APPRAISAL STAGE Report No.: Date ISDS Prepared/Updated: 24 July 2017 I. BASIC INFORMATION A. Basic Project Data Country: Mexico Project ID: P120417 Project Name: Mexico REDD+ READINESS PREPARATION SUPPORT PROJECT Task Team Leader(s): Angela Armstrong Estimated Board Date: Not Applicable Managing Unit: Environment & Natural Resources (GEN04) Sector(s): Forestry Theme(s): Climate Change Is this project processed under OP 8.50 (Emergency Recovery) or OP 8.00 No (Rapid Response to Crises and Emergencies)? Financing (in USD Million) Total Project Cost: 5.00 Total Bank Financing: 5.00 Financing Gap: 0.00 Financing Source Amount Borrower 0.00 Readiness Fund of the Forest Carbon Partnership Facility 5.00 Total 5.00 Environmental Category B Is this a Repeater project? No Is this a Transferred No project? . B. Project Objectives 1. The current PDO aims “to support a participatory and inclusive process for the finalization of Mexico’s National REDD+ strategy (ENAREDD+).� However, since this REDD+ Readiness preparation goal is soon to be achieved and to more fully define the objectives of ongoing REDD+ activities as well as those activities to be supported with additional funding, it is proposed that the PDO be modified with the aim of “strengthening the REDD+ Readiness process in Mexico.� . C. Project Description 2. In early 2010, Mexico submitted a Readiness Preparation Proposal (R-PP) to the FCPF, providing a detailed assessment of the drivers of deforestation and forest degradation as well as a plan of action for its REDD+ readiness. The total budget envelope for carrying out these activities was estimated at more than US$23 million. The FCPF Participants Committee approved Mexico’s R-PP on March 2010 and granted the Government of Mexico a US$3.8 million readiness preparation grant. The FCPF preparation process, however, was delayed and the US$3.8 million grant was signed only on March 19, 2014 and became effective on July 7, 2014. 3. On May 17, 2015, Mexico presented a Mid-Term Report (MTR) on progress made in carrying out REDD+ Readiness Activities during the 19th Meeting of the FCPF Participant Committee (PC). The PC allocated an additional funding of US$5 million, acknowledging that there was still a financial gap to fully implement its REDD+ Readiness phase based on: (i) the PC’s consideration of Mexico’s MTR, recognizing the significant progress achieved; (ii) Mexico’s commitment of at least 50% of the original Readiness Preparation Grant at the time of the funding; (iii) the consistency of the additional funding activities with the endorsed R-PP and current country needs; and (iv) the availability of resources in the Readiness Fund. 4. The proposed additional grant would finance the costs associated with scaling-up and expanding activities under the original project, aimed at: (i) strengthening congoing REDD+ participatory processes; and (ii) strengthening the capacity of CONAFOR’s newly created Sustainable Forest Management Technical Unit and newly created Measurement, Reporting and Verification Technical Unit. Funding would be provided, as follows: Component 1. Organization, Consultation and Participation (US$2.6 million TF010261; US$1.0 million AF). Additional Funding activities will focus on strengthening ongoing participatory processes, by building the capacity of ejidos, communities, community and ejido associations, and forestry sector organizations (OSSF), including women and youth, to increase their engagement in REDD+ processes. Component 2. Development of REDD+ Strategy (US$1.2 million TF010261; US$1.5 million AF). Additional Funding activities will focus on (i) providing technical assistance to a Specialized Technical Unit on Sustainable Forest Management (UTE-MFS) that will help build capacity within CONAFOR’s Department on Promotion of Sustainable Forest Production; and (ii) enhancing the alignment of the ENAREDD+ with CONAFOR’s Sustainable Forest Management agenda, by providing technical assistance on integrated landscape management technologies and on fostering competitiveness of the forest sector. Component 3. National Forest Monitoring System (US$2.5 million AF). Additional Funding activities will focus on providing technical assistance to establish a Specialized Technical Unit on MRV (UTE-MRV) that will strengthen the new department overseeing the National Forest Monitoring System; and (ii) to support data collection through the National Forest and Soils Inventory (INFyS). Original Cost Additional Cost Component Name (US$M) (US$M) 1. Organization, Consultation and Participation 2,558,000.00 1,000,000.00 2. Development of REDD+ Strategy 1,242,000.00 1,500,000.00 3. National Forest Monitoring System 2,500,000.00 Total 3,800,000.00 5,000,000.00 5. In this context, the Additional Funding will reinforce ongoing processes initiated under the original grant, contributing to the consolidation of the National REDD+ Readiness process beyond the R-Package presentation and therefore ensuring a solid foundation for the implementation of the REDD+ Strategy and the Emission Reductions Program under the Carbon Fund. . D. Project location and salient physical characteristics relevant to the safeguard analysis (if known) 6. The project does not finance the implementation of activities on the ground. E. Borrowers Institutional Capacity for Safeguard Policies 7. The executing agency will be the Mexican National Forestry Commission (CONAFOR) responsible for overseeing the country’s forestry activities. Notably, CONAFOR has a dedicated technical team with experience and systematic engagement with a broad range of stakeholders, including indigenous peoples, communities, ejidos, etc. Social and environmental dimensions of the REDD+ Readiness are being managed in a satisfactory manner under the original grant. As part of the ongoing REDD+ readiness preparation grant, CONAFOR has undertaken a systematic Strategic Environmental and Social Assessment (SESA) to integrate key environmental and social considerations into the REDD+ Strategy. The REDD+ Strategy, which began preparation approximately two years ago, has been widely consulted, reaching 26,089 people via 461 workshops. National consultations of the Strategy were conducted from July 2015 – February 2016 with wide ranging participation by civil society and other stakeholder audiences. More than 240,000 comments were received during this process. CONAFOR is now integrating this feedback into the final version of the REDD+ Strategy. 8. The main result of the SESA is an Environmental and Social Management Framework (ESMF), which provides a framework for guiding implementation of the REDD+ Strategy in Mexico. Its scope is national since it is applicable to any implementation activities of the Emissions Reduction Program or REDD+ Strategy. The draft ESMF establishes the procedures for addressing potential environmental and social impacts from the implementation of REDD+ activities, including associated mitigation measures. In addition, the extensive consultation process that has been conducted among a wide group of diverse stakeholders during the preparation of the REDD+ Strategy is considered best practice (in particular, in terms of the representativeness of people consulted). . F. Environmental and Social Safeguards Specialists on the Team Arelia Jacive Lopez (Social Specialist, GSU04) Dora Patricia Andrade (Environmental Specialist, GENDR) . II. SAFEGUARD POLICIES THAT MIGHT APPLY 9. The Environmental Assessment (EA) Category remains B as the Additional Funding will only finance technical assistance and small equipment purchases (e.g., computers). Two new safeguard policies are triggered: Pest Management (OP 4.09); and Physical Cultural Resources (OP/BP 4.11) based on a better definition of the scope of activities to be supported by the REDD+ Strategy. The Safeguard Policies triggered in the ISDS of the Project (P120417) are sufficient to cover the activities proposed under the Additional Funding grant, given the significant advances made in the preparation of appropriate safeguards instruments under the original grant, such as a highly participatory and analytic SESA and the ESMF, which is currently in an advanced draft form. The SESA was completed in December 2016 and the ESMF is being finalized (completion expected in CY2017) with funding from the original project. Safeguard Policies Triggered ? Explanation (Optional) Environmental Assessment OP/BP YES The Environmental Assessment (EA) Category 4.01 remains B as the Grant will only finance Technical Assistance type of activities with the objective of strengthening CONAFOR’s capacity to transition from REDD+ readiness to REDD+ implementation, and strengthen sustainable forest management more generally. A participatory Strategic Environmental and Social Assessment (SESA) was carried out in compliance with OP/BP 4.01, in order to identify, avoid, and mitigate the potential negative environmental and social impacts associated with future activities to be supported by the REDD+ Strategy. The SESA has provided key guidance and elements for the preparation of the draft Environmental and Social Management Framework (ESMF), and has directly influenced the final version of the REDD+ Strategy by ensuring that social and environmental risks are factored in the design of activities to be implemented on the ground. The completion of the ESMF is anticipated in CY2017, and is being financed under the original FCPF REDD+ Readiness Preparation Support Project. Natural Habitats OP/BP 4.04 YES This policy seeks to ensure that all options proposed in the REDD+ Strategy take into account the conservation of biodiversity, as well as the numerous environmental services and products that natural habitats provide to society. Overall, the REDD+ activities are expected to have significant positive impacts on natural habitats, as the country puts in place an effective strategy to reduce the degradation of forests. The SESA addresses issues related to natural habitats and potential impacts of the REDD+ Strategy, which are being incorporated in the ESMF. Forests OP/BP 4.36 YES Overall, the activities proposed in the REDD+ Strategy are expected to have significant positive impacts on the country’s forests, in that its main goal is to reduce deforestation and forest degradation, while contributing to the well-being of forest-dependent communities. Potential impacts of the REDD+ Strategy on natural forests have been assessed through the SESA and are being incorporated in the ESMF, which will reflect the requirements of the Bank’s Operational Policy regarding forest management, in particular as these relate to the establishment of plantations. Pest Management OP 4.09 YES This policy is triggered in a precautionary way in cases where specific activities in the REDD+ Strategy promoting agricultural intensification and reforestation, for instance, require the management of pests based on the methods employed. The critical provisions of the Bank Policy on Pest Management are being incorporated in the ESMF. Physical Cultural Resources OP/BP YES This policy is triggered in a precautionary way 4.11 to address cases where the REDD+ Strategy could promote activities in areas containing sites deemed as physical cultural resources (PCR). Though it is not anticipated that the REDD+ Strategy will have any negative impacts on such sites, the existence of any such sites in areas affected by the REDD+ Strategy will trigger provisions included in the ESMF on how to address preservation of known PCR sites. Indigenous Peoples OP/BP 4.10 YES Mexico is a country characterized by a rich culture and a diverse population. According to the results of the 2015 census, Encuesta Intercensal del INEGI de 2015, there are 7.2 million indigenous people in Mexico; the World Bank’s Operational Policy for Indigenous People applies. The SESA process began early in the Readiness phase in a highly participatory manner and with a special focus on indigenous peoples’ participation, with the aim of identifying key issues and providing recommendations for the design of the REDD+ Strategy. As part of the Readiness phase, this has been achieved through extensive participatory processes and indigenous peoples participated in most of the 16 Regional and National Workshops conducted as part of the SESA process, which included a total of more than 12,245 people in the Indigenous Peoples consultation process by CDI. Through the SESA, Indigenous Peoples assessed the risks and benefits of the proposed REDD+ strategic options from their own perspective and contextual realities, providing also suggestions for potential mitigation measures. The draft ESMF includes a (draft) Indigenous Peoples Planning Framework (IPPF) that is being prepared in a culturally appropriate way in compliance with the Indigenous Peoples policy (OP 4.10) for addressing issues arising from specific investments during the implementation of the REDD+ Strategy. The IPPF will serve as guide for preparing site-specific State Safeguard Plans, which include the Indigenous Peoples Plans (IPPs) during the implementation of the Strategy under the principle of free, prior and informed consultation. Involuntary Resettlement OP/BP 4.12 YES During the Readiness phase, the SESA was used to assess the risk of potential restriction of access to natural resources as part of the design phase of the REDD+ Strategy, providing adequate recommendations from the perspective of stakeholders. Based on this, a Process Framework (PF) is being prepared as part of the draft ESMF. Additionally, a Resettlement Policy Framework (RPF) is being prepared to provide procedures in order to manage impacts in the event of potential relocation and/or land acquisition as a result of the implementation of the REDD+ Strategy on the ground, including indigenous peoples. The draft RPF and PF are being prepared as a specific chapter of the ESMF. Safety of Dams OP/BP 4.37 NO This policy is not triggered as the Grant will not support the construction nor the rehabilitation of dams, nor will it support other investments which rely on the performance of existing dams. Projects on International Waterways NO This policy is not triggered as the Grant will OP/BP 7.50 not finance activities involving the use or potential pollution of international waterways. Projects in Disputed Areas OP/BP 7.60 NO This policy is not triggered as the Grant will not finance activities in disputed areas as defined in the policy. . III. SAFEGUARD PREPARATION PLAN . A. Tentative target date for preparing the PAD Stage ISDS: Not Applicable B. Time frame for launching and completing the safeguard-related studies that may be needed. The specific studies and their timing should be specified in the PAD-stage ISDS. 10. A SESA has been conducted to identify and address the environmental and social benefits and risks of the REDD+ Strategy, based on a highly participatory and consultative approach and integrating the World Bank’s environmental and social operational policies. As a result of the SESA process, an ESMF is being prepared to manage and mitigate any potential risks stemming from future investments and/or activities on the ground as part of the REDD+ Strategy. A draft of the ESMF is already in place and is expected to be finalized in CY2017, with funding from the original project, and will include a final consultation process report. The ESMF will be structured to contain subject-specific frameworks addressing the relevant requirements of the applicable environmental and social safeguard policies including, but not necessarily limited to, a Resettlement Policy Framework (RPF); Process Framework (PF); and Indigenous Peoples Planning Framework (IPPF). It is expected that the ESMF and the procedures therein will accompany the implementation of the REDD+ Strategy in parallel with the execution to the proposed Additional Funding Grant. 11. The IPPF establishes the following principles: (i) Access to benefits and information in a culturally appropriate manner; (ii) Avoiding and mitigating possible adverse impacts on indigenous populations; (iii) Recognizing and respecting the customs and practices of indigenous peoples and communities; and (iv) Broad community support. The IPPF will provide guidance for people involved in implementing the ENAREDD + and Emissions Reduction Program on how to identify and avoid negative impacts and maximize the potential benefits of working with indigenous peoples in the activities to be undertaken as part of this project and for which IPPs will be established in the states of Investment Programs. The IPP will describe the measures that will be taken to ensure that IP communities are equal beneficiaries of the program and that negative impacts do not fall disproportionately on them. . IV. APPROVALS Task Team Leader(s): Name: Angela Armstrong Approved By: Safeguards Advisor: Name: Noreen Beg Date: July 27, 2017 Acting Practice Name: Klas Sander Date: July 28, 2017 Manager/Manager: 1 Reminder: The Bank's Disclosure Policy requires that safeguard-related documents be disclosed before appraisal (i) at the InfoShop and (ii) in country, at publicly accessible locations and in a form and language that are accessible to potentially affected persons.