PRE-CONCEPT FOR A REGIONAL PROJECT/PROGRAMME PART I: PROJECT/PROGRAMME INFORMATION Title of Project/Programme: Enhancing the climate resilience of local livelihoods through nature-based tourism in the Caribbean communities of Limon, Costa Rica, and Bocas del Toro, Panama Countries: Costa Rica and Panama Thematic Focal Area1: Disaster risk reduction and early warning systems Type of Implementing Entity: International Implementing Entity: United Nations Environment Programme (UNEP) Executing Entities: Fundecooperación para el Desarrollo Sostenible (Costa Rica) and Fundación Natura (Panama) Amount of Financing Requested: 10.693 million (in U.S Dollars Equivalent) Project / Programme Background and Context: Limon and Bocas del Toro are bordering provinces in the Caribbean coast of Costa Rica and Panama. Communities in northern part of Limon province are based on tourism and port activity, while the predominant activity in the centre and southern part is agriculture. For Bocas del Toro province, the main source of job generation is the services sector, centered mainly in retail and tourism, followed by the primary sector including agriculture, livestock and, with a more residual participation, fisheries. Agriculture in both provinces is mostly based on banana production for export -with main investments belonging to large companies- and in a lower extent, oil palm. Since agribusiness is the predominant model for the agriculture sector and practices are not generally climate-resilient, the availability and quality of natural resources, especially water, is affected. The area is also homeland of the Naso Tjër-Di, Gnabe Bugle, Chorotegas, Cabécar and Bri Bri indigenous peoples, and it includes transboundary natural sites such as La Amistad Natural World Heritage Site and La Amistad Biosphere Reserve and other key areas for tourism, such as beaches, coastal and reef areas and islands, considered biodiversity hotspots encompassing high value natural ecosystems. These ecosystems sustain well-known touristic destinations in the targeted areas, which provides tourism with the potential to work with local production and services, and local communities, empowering them. However, current tourism investments do not integrate nor benefit local communities or small producers to the extent it should. Climate change is affecting communities and ecosystems in the region. More recurrent floods by heavy rainfall and other extreme weather, including consequent sea surges, are impacting the communities, their crops and other livelihoods, such as familiar tourism facilities. For example, last November 2020, the collateral effects of hurricane Eta (Cat 4) and two weeks later hurricane Iota (Cat 5), mainly floods and landslides, killed 19 people in Panama and isolated thousands in the Bocas del Toro region. Temperatures are projected to increase between 2-3 Celsius degrees by 2050, which would affect the crop and livestock production, as well as human well-being and health, by reducing comfort and causing the spread of mosquito borne diseases. The sea level rise aggravates the recurrent sea surges and puts at risk the coastal settlements and facilities. Moreover, provincial development as well the tourism and the primary sectors in the area, are characterized by limited enforcement of land-use planning, lack of climate and event data mainstreamed into policies and plans, lack of climate change effects knowledge and awareness among the local people, and socioeconomic inequalities among indigenous, Afro-Antillean and other local communities. Hence, it is necessary to reduce 1 Thematic areas are: Food security; Disaster risk reduction and early warning systems; Transboundary water management; Innovation in adaptation finance. 1 the vulnerability in the region through integrated development plans informed by climate risk scenarios that incorporate sea level rise effect, territorial planning sensitive to climate change and risk of disasters, and a set of adaptation measures to increase the resilience of the communities. Tourism shall ally with climate-resilient supplies, climate-resilient services, and plan their facility areas considering risk, climate and human well-being and security, integrating small producers who must consider the climate and relative production scenarios, and select the most suitable areas, and techniques. For that Nature based Solutions are among the most effective, accessible and affordable adaptation option for the small-scale holders and families. In a post-COVID climate change context where family economies have been seriously affected, especially those reliant on tourism, there is a big opportunity for livelihoods in the region to be strengthened and diversified through nature-based tourism, whether directly working in the tourism sector, or indirectly by providing it with goods (from agriculture, fishing, handicraft), or services (assets being inserted into touristic itineraries, such as ecological farms or protected areas). Unlike the current scheme that threatens natural values, a climate-resilient nature-based sustainable tourism would benefit communities, strengthen their livelihoods and boost the natural capital on the targeted areas, allowing Costa Rica and Panama to start building back tourism better and more sustainably. Project / Programme Objectives: The project aims to reduce the vulnerability of communities along Limon and Bocas del Toro Caribbean provinces to flooding and risk caused by extreme events, and sea level rise by unlocking the potential for diversification of local livelihoods through a nature-based tourism, and by mainstreaming climate data and adaptation measures into policy and planning. Project / Programme Components and Financing: Project/ Expected Amount Programme Expected Outputs Countries Outcomes (US$) Components 1. Integration of 1.1 Reduced 1.1.1 Shared binational technology and information Costa Rica US$2.5m risk exposure and system (data sharing) on climate change and management sensitivity to impacts and climate forecasts, including sea Panama for community- climate change level rise, operating and providing information based activities and increased to the local level, emphasizing tourism adaptive dependent local communities. capacity of the 1.1.2 Assessed sea level rise and its effects for the targeted areas. targeted areas, including high tech systems such as tide gauges, development scenarios and coastal risk models. 1.1.3 A DRR management plan and early warning system developed and implemented in the targeted areas, including vulnerability assessments and climate risk maps, with emphasis in tourism related activities. 2. Local 2.1 Increased 2.1.1 Implemented ecosystem-based adaptation Costa Rica US$4.5 livelihoods resilience of measures, identified by national and sub- and strengthening ecosystems national governments, including measures Panama and and their for protected areas. diversification services 2.1.2 Implemented solutions for integrated through pilots through the management of water resources with and implementation community participation and leadership. implementation of NbS of adaptation measures in measures response to 2.2.1 Climate-resilient agricultural and fishing climate change. practices implemented, based on good practices and on local, indigenous, and traditional knowledge. 2 2.2 Diversified and 2.2.2 Pilots implemented for diversification of strengthened tourism activities, like tourism facilities and local livelihoods itineraries, and activities that contribute to the and sources of local tourism value chain such as agriculture, income for the fishing and handicraft, towards a more communities in resilient range of livelihoods and economic the nature- structure with integration of local goods and based tourism services into tourism. sector. 2.2.3 Pilots implemented for enhancement and accreditation of sustainability and water and carbon footprint of tourism related goods and services. 2.2.4 Vulnerable groups, such as indigenous and Afro-Antillean people, women, and youth, supported on access to finance for promoting resilience in tourism and related sectors. 2.2.5 Comprehensive climate-resilient nature- based tourism training programme developed, targeted to government staff and local communities affected by climate change, to envision the possibilities for livelihood diversification and tourism sustainability. 3. Enabling 3.1 Improved 3.1.1 Climate change adaptation mainstreamed Costa Rica US$1m conditions for policies and across local planning, management tools and and community regulations to decision-making processes (e.g. land zoning Panama engagement promote plans such as “planes reguladores” and and ownership resilient “planes de ordenamiento territorial”, local livelihoods and development plans at municipal and cantonal tourism. levels, and tourism development instruments). 3.1.2 Adaptation and resilience guidelines and measures for integrated coastal marine management, as well as mechanisms to improve compliance with the legislation in the Maritime-Terrestrial Zone, implemented to reduce the vulnerability of coastal communities. 3.1.3 Protected areas (PAs) management plans enhanced by comprising climate change data and actions, and by incorporating NbS, to promote community engagement and the integration of PAs into community-based tourism circuits. 3.1.4 Tourism sustainability standards adjusted to include climate change, disaster risk and carbon and water footprints. 4. Stakeholder 4.1 Experiences 4.1.1 An experience-exchange programme, Costa Rica