Final Report: Strategic Environmental and Social Assessment of Redd+ Activities in Vanuatu

FINAL REPORT: STRATEGIC ENVIRONMENTAL AND SOCIAL ASSESSMENT OF REDD+ ACTIVITIES IN VANUATU

November 2020

1 Table of Contents Executive Summary ...... 6 Overview of REDD+ in Vanuatu ...... 6 Main Risks Identified...... 7 Strategic Option 1: Enabling interventions ...... 7 Strategic Option 2: Agroforestry (direct intervention) ...... 8 Strategic Option 3: Community Conservation Areas (direct intervention) ...... 9 I. Introduction ...... 13 1.1. REDD+ under the UNFCCC ...... 13 1.2. REDD+ in Vanuatu ...... 14 REDD+ Readiness ...... 15 Ongoing development of National REDD Strategy ...... 16 1.3. Objective and Structure of this Report ...... 19 1.4. Methodology ...... 20 II. Situation Analysis of Social and Environmental Issues ...... 23 2.1. Overview of population and household context ...... 23 2.2. Land Tenure ...... 24 a) Land, culture and kastom ...... 25 b) Customary land tenure ...... 26 c) Land Leases ...... 27 d) Informal Land Tenure ...... 28 e) Land tenure issues ...... 28 f) Gender Perspectives ...... 30 2.3. Economic Context ...... 31 2.4. Gender Equity Context ...... 37 2.5. Biophysical Context...... 39 a) Overview of Terrestrial Biodiversity ...... 39 b) Threats to Terrestrial Biodiversity ...... 61 c) Overview of Inland Water Biodiversity ...... 63 d) Threats to Inland Water Biodiversity ...... 64 e) Overview of Marine and Coastal Biodiversity ...... 64 f) Threats to Marine and Coastal Biodiversity ...... 66 2.6. Life Supporting Ecosystem Services ...... 66 2.7. Institutional and Legal Framework ...... 68 REDD+ Unit and Forestry...... 69 Environment and Biodiversity ...... 71 Climate Change ...... 73 Disaster Management ...... 74 Land Use and Management ...... 74 Women’s Affairs ...... 75 Social Welfare ...... 77 III. Drivers of Deforestation and Forest Degradation ...... 81 3.1. Direct Drivers of Deforestation and Forest Degradation ...... 82

2 a) Agriculture ...... 82 b) Forestry ...... 84 c) Invasive Species ...... 85 d) Natural Disasters ...... 87 e) Infrastructure Development ...... 87 3.2. Indirect Drivers of Deforestation and Forest Degradation ...... 88 a) Population growth and limited land availability ...... 88 b) Economic ...... 90 c) Technological ...... 90 d) Governance: Competing management mandates & coordination of governance...... 91 e) Market Influences ...... 92 IV. Social and Environmental Risks ...... 94 Strategic Option 1: Enabling interventions ...... 98 Strategic Option 2: Agroforestry (direct intervention) ...... 103 Strategic Option 3: Community Conservation Areas (direct intervention) ...... 107 V. Applicable Safeguards ...... 110 5.1. World Bank Safeguard Policies ...... 110 5.2. National Legislative and Institutional Framework ...... 113 Annex I. Participatory Process Implemented for SESA ...... 188 Key thematic environmental and social issues for REDD+ in Vanuatu ...... 200 A Environmental and social issues arising from climate change ...... 200 B Environmental and social issues arising from the drivers of deforestation ...... 201 C Environmental and social issues identified from mitigation of the drivers of deforestation .. 201 D Considerations regarding institutional issues for REDD+ implementation ...... 202

3 Table of Figures and Tables

Figures Figure 1: Dominant exports from Vanuatu, 2003 – 2018 in millions of VUV. Data taken from the annual summaries of the Overseas Trade statistics reports...... 34 Figure 2: Table showing classification of forest and other types of woody vegetation (Department of Forestry, 2020) ...... Error! Bookmark not defined. Figure 3 Map of Malekula Island (Department of Forestry (Vanuatu), 2020) ...... 43 Figure 4 Vegetation and Land Cover Map of Malekula (Department of Forests, 2011) ...... 44 Figure 5: Map of Santo island (Department of Forestry (Vanuatu), 2020) ...... 45 Figure 6 Vegetation and Land Map of Santo (Department of Forests, 2011) ...... 46 Figure 7: Efate island (Department of Forestry (Vanuatu), 2020) ...... 47 Figure 8 Vegetation and Land Cover Map of Efate (Department of Forests, 2011)...... 48 Figure 9 Map of Erromango island (Department of Forestry (Vanuatu), 2020) ...... 49 Figure 10 Vegetation and Land Cover Map of Erromango (Department of Forests, 2011) ...... 50 Figure 11 Map of Tanna island (Department of Forestry (Vanuatu), 2020) ...... 51 Figure 12 Vegetation and Land Cover Map of Tanna (Department of Forests, 2011) ...... 52 Figure 13 Map of Key Biodiversity areas in Vanuatu (Critical Ecosystem Partnership Fund, University of the South Pacific in collaboration with Conservation International University of Papua New Guinea, Ecosystem Profile: East Melanesian Islands Biodiversity Hotspots (2012) ...... 54 Figure 14 Places and habitats of conservation significance (Adrien Mourgues, State of Environment Report-Vanuatu (2005) at p 59) ...... 56 Figure 15 Annual Log Productions (Department of Forestry, 2020) ...... 62 Figure 16: Malekula Island, Crab bay is located on the central eastern coastline of the island. (Department of Forestry, 2020) ...... Error! Bookmark not defined. Figure 17: Eratap mangrove is found at Eratap, Efate island.( http://manples-tours.weebly.com/) ...... Error! Bookmark not defined. Figure 18 Merremiapeltata, known as big lif, growing over a stand of secondary forest on Espiritu Santo 86 Figure 19 Summary of answers from activity 1, question 1 relating to the experienced impacts of climate change for all workshop islands, Vanuatu, 2019 ...... 200 Figure 20 Summary of answers from activity 1, question 2 relating to the drivers of deforestation for all workshop islands, Vanuatu, 2019 ...... 201 Figure 21 Summary of answers from activity 1, question 1 relating to the mitigation measures for deforestation for all workshop islands, Vanuatu, 2019 ...... 202 Figure 22 Summary of who should be involved in the grievance redress mechanisms for REDD+ strategies from all islands ...... 202

Tables Table 1 Community representation for all consultation by community, island, and total for project. 21 Table 2:Household engagement in resource production sectors from the 2016 Republic of Vanuatu Census. All values are taken from the 2016 Post Cyclone Pam Mini Census Report...... 24 Table 3:Overview of household income for urban, rural, and all households in Vanuatu. The income categories are not mutually exclusive, with some income productions reported for more than one category (e.g., “Own business” & “Wages/salary”)...... 32 Table 4: Food crop production by number of urban, rural and total households. Data from the 2016 Post Cyclone Pam Mini Census Report...... 33 Table 5: Cash crop production by number of urban, rural, and total households. Data from the 2016 Post Cyclone Pam Mini Census Report...... 33

4 Table 6:Production of timber by urban, rural, and total households in Vanuatu. All data are taken from the 2016 Post Cyclone Pam Mini Census Report...... 35 Table 7: Ownership of livestock for urban, rural, and all households in Vanuatu. All data are taken from the 2016 Post Cyclone Pam Mini Census Report...... 35 Table 8:Production of value-added products and services for urban, rural, and all households in Vanuatu. All data are taken from the 2016 Post Cyclone Pam Mini Census Report...... 35 Table 9:Main source of drinking water for urban, rural and all households in Vanuatu. All data are taken from the 2016 Post Cyclone Pam Mini Census Report...... 36 Table 10: Household fuelwood use in Vanuatu (2016) ...... 36 Table 11 Estimated deforestation from 2000–2018 for each of the five focal islands...... 41 Table 12 Table showing codes used in figure 15 to name the islands of Vanuatu ...... 55 Table 13 Plants and Animal species in Torba Province as identified in the State of the Environment Report for Vanuatu in 2005 ...... 57 Table 14: Plants and Animal species in Sanma Province as identified in the State of the Environment Report for Vanuatu in 2005 ...... 57 Table 15: Plants and Animal species in Penama Province as identified in the State of the Environment Report for Vanuatu in 2005 ...... 57 Table 16: Plants and Animal species in Malampa Province as identified in the State of the Environment Report for Vanuatu in 2005 ...... 58 Table 17:Plants and Animal species in Shefa Province as identified in the State of the Environment Report for Vanuatu in 2005 ...... 58 Table 18 Plants and Animal species in Torba Province as identified in the State of the Environment Report for Vanuatu in 2005 ...... 58 Table 19 The ten most important direct drivers of deforestation on the five REDD+ islands and their underlying causes as compiled from Carodenuto et al. 2017. Drivers are organized by sectors. 81 Table 20:Population and population density in 2016 by area council on the five REDD+ islands...... 88 Table 21 Population change 2009-2016 and population density on the five REDD+ islands...... 89 Table 22: Overview of Strategic Options in the NS from Analytical Studies ...... 95 Table 23: Risk Categorization ...... 96 Table 24: Potential negative risks and impacts...... 98 Table 25: Potential negative risks and impacts ...... 103 Table 26: Potential negative risks and impacts...... 107 Table 27: Applicable World Bank Safeguard Operational Policies...... 110 Table 28 Community representation for all consultation by community, island, and total for project...... 189 Table 29 Risks identified at all consultations for the four REDD+ strategies ...... 190

5 Executive Summary

Overview of REDD+ in Vanuatu

Drivers and agents of forest loss and degradation in Vanuatu vary significantly from island to island, being economic development the underlying driver that puts pressure on forest landscapes as a source of resources and income for rural landowners, including from logging or the conversion of forest land to other uses. While acknowledging data limitations, particularly regarding spatial analysis that can provide more accurate information for Vanuatu’s forests, the 2017 Analytical Studies1 identified as main direct drivers of deforestation the following: i) agriculture, distinguishing between subsistence agriculture, (semi)commercial agriculture, and commercial agriculture; ii) forestry, including formal and informal logging, fuelwood and charcoal production; iii) invasive species; iv) natural disasters, and; v) infrastructure development, particularly for tourism and settlements. Furthermore, the Analytical studies examined a series of underlying drivers of forest loss and degradation, including demographic, economic, technological (particularly regarding agricultural productivity), policy and institutional, social and cultural (associated with agricultural traditional practices), environmental (related to extreme weather events), governance (from a weak implementation and enforcement perspective), and other issues related to land tenure and leasing. The country-wide National Forest Inventory being undertaken will provide relevant more recent data on forest cover change, and thus will represent a significant update to the 2017 Analytical Studies in terms of assessing Vanuatu’s drivers of deforestation and degradation.

The country has recently started the preparation of Vanuatu’s National Strategy (NS). Vanuatu’s REDD+ strategy will allow the country to pursue a mix of enabling interventions and priority strategic options for implementing interventions, that can best affect behaviour at the most appropriate scale and can effectively reduce the pressure on forests.

1. Land use planning, with a focus on spatial planning to overcome conflicting policies across sectors and identify synergies.

2. Legislating a % tree cover on farms and lease holdings. This enabling intervention seeks to establish a minimum percentage for tree canopy cover over a number of years, and which will be supported by technical advice and support, seedlings, and farmer-to-farmer support networks to contribute to planting and maintenance efforts.

3. Policy coherence across the land use sector, including through the enactment of an umbrella piece of legislation, is regarding as essential for REDD+ success -including to achieve broader sustainable rural development as under Vanuatu’s Vision 2030, when considering the fact that Vanuatu’s environmental laws are in some cases inconsistent and/or conflicting.

1 Carodenuto, S., B. Schwartz, G. Andre, J.Kampai, A. Nelson, S. McDonnell, S. Weaver, 2017. Analytical Studies for Reducing Emissions from Deforestation and Forest Degradation (REDD+) in Vanuatu. UNIQUE forestry and land use. 2 Salvini et al., 2014. How countries link REDD+ interventions to driver in their readiness plans: implications for monitoring systems

6 4. Innovative financing for stewardship aims to activate an array of sources of funding that are not donor dependent, including blended financing that encompasses tourism revenues and other investments.

1. Agroforestry is seen as an alternative that can reduce pressure in existing forest cover and increase tree cover and its perceived value for local actors -from food, building material, cash crops, fuel or handicrafts- while delivering climate resilience and improved livelihoods.

2. Community Conservation Areas (CCA). This intervention focused on promoting investments for improved livelihoods through technical assistance, targeted investments and other support that can ‘promote and realize’ economic benefits from forests and subsistence gardens.

3. Lease performance review and assessment of public benefit. Through the Minister of Lands, this option could entail the enactment of new regulations to enable the lease review in order to assess the achievement of the original purpose established in the lease. As noted in the draft REDD+ NS3, the SESA identified that lease acquisition entailed several potential negative risks, with the least public support including in the context of distrust around government holding of leases and sub-leasing to communities.

As a result of said risk assessment, this SO has preliminarily re-focused towards a ‘lease performance review and potentially the enactment of new regulations for the lease review’, yet more recent developments in the draft NS have seen this option removed entirely. Considering the above, and given the lack of clarity on the feasibility, scope and scale of this SO, potential risks and benefits were not possible to identify in the context of this SESA.

Main Risks Identified

The main social and environmental risks identified identified in relation to each strategic option are:

Strategic Option 1: Enabling interventions

1. Exacerbate land tenure conflicts. Rights to land are often not easily identifiable, but tend to depend upon oral stories, ‘memory culture’, complex local categories, and varying inheritance practices. The clustering of the population into villages, plantation communities and towns has also meant that many customary landowners and users no longer live within their traditional boundaries or even with their own communities. Because of this, boundaries and rights have inevitably become less certain over time. While the Constitution recognises that custom rules apply to customary land dealings, the lack of formal rules has led to ongoing disputes and a lack of certainty and security over ownership, boundaries and use of the land. Customary and new adoption practices have also contributed to disputes over the customary rules themselves and those that regulate inheritance rules and practices relating to land ownership and land usage rights. Land use planning, including spatial planning, if not appropriately designed and formally linked with promoting tenure security, carries the risk of exacerbating potential land tenure conflicts.

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2. Exacerbate inequalities. Evidence suggests women are being more marginalised from the decision-making processes involving land, and many of the decisions are even less socially equitable and transparent than before. Tensions may arise if land use planning is designed and carried out without due consideration and respect for the unique needs, interests and skills of women and girls and give women a voice in the land use planning process. Women’s traditional economic activities, including agricultural and fishing duties, mean they are impacted by changes in the environment in ways that are distinct from men. As per noted in the analytical studies, land reform actions have been considered to exacerbate inequities. It has been estimated that nearly 60% of the poor live in Vanuatu’s rural areas, and women are the actors in the population most affected.4

3. Limit access or loss of access to natural resources that are currently accessible to customary landowners, persons with land use rights and other land / resource users. Land use planning often involves “allocation and zoning of land for specific uses, regulation of the intensity of use, and formulation of legal and administrative instruments that support the plan”. If land use planning is designed without adequate consideration of the livelihoods of customary landowners and land / resource users, it could adversely impact them and their livelihoods. As per the analytical studies, rural livelihoods are largely dominated by subsistence agriculture (production of vegetable crops and livestock) supplemented by cash crop production. While enabling interventions under this SO seek to promote the cultural connectedness that ni- Vanuatu traditionally have held with the land and the territory through their kinship ties and heritage, there may be negative consequences associated to multiple customary owners with overlapping claims to the land, which may not be easy to identify during the design of the interventions. Customary norms, practices and rules, known as kastom, vary greatly throughout the country and play a central role in determining how land is managed and by whom.

4. Ecosystem modification and reduction of biodiversity. There is a risk that land use planning policies and interventions may not integrate and/or prioritize the conservation of biodiversity and ecosystems. Inadequate design of land use planning policies and interventions may pose the risk of increased loss of wildlife if intensive management practices are promoted/prioritized in new land use regulations. Agriculture, farming and forestry impact a number of threatened plant species in Vanuatu including the endangered Fijian Kauri Pine (Agathis macrophylla), which faces ongoing unsustainable logging in natural forests in parts of its range. The Pacific Sheath-tailed Bat (Emballonurasemicaudata) is also impacted by the loss of native forests to agricultural and grazing land.

Strategic Option 2: Agroforestry (direct intervention)

1. Exacerbate inequalities among customary landowners and persons with land use rights. The SO is expected to encompass customary lands, and it would be for customary owners and user’s discretion to decide which lands to promote agroforestry on. Although all SOs under the NS will provide the opportunity to opt-in, under a high risk approach this SO may pose a risk on vulnerable persons such as women and others that do not have rights or status within the clan regarding decision-making on land use or management, as well as on other land users as squatters or landless persons that do not have any rights to land usage or decision making over land use or management, as well as on populations whose livelihoods are precarious and

4 Ibid.

8 do not count on other sources of income to fall back on as the new models of production pay off.

2. Exacerbate conflicts. This SO considers the provision of technical support, best-practices, guidelines, and the use of certification ‘as a key means of achieving minimum standards in production and product quality’. Disputes may arise if certification conditions/requirements are too restrictive for local producers, particularly when new production methods are encouraged over the ‘traditional methods’. Disputes may also arise between communities and government over issues of inequality raised above. Where access to land is limited, opportunities to benefit from the support is also limited, potentially benefiting only a few.

3. Risks of introduction/presence of pests. Under the assumption this SO may result in the introduction of new trees’ species in subsistence gardens, there is a risk of the presence of pests, and that in turn could lead to the use of pesticides. Crop rotation has proven to be an important pest and disease control strategy in annual cropping systems, and the principle of altering host with non-host plants can also be applied in improved fallow systems, provided that hosts of crop pests and diseases are avoided when selecting the fallow species. When annual cropping systems are replaced by simultaneous agroforestry systems, pest and disease control strategies are to some extent substituted by the strategy of increased stability and internal control mechanisms. However, reduced pest and disease risk is not automatically achieved by introducing perennial plants and increasing species diversity in a system. If tree and crop species that harbour pests or diseases of other species are introduced in the system, the risk of pest and disease outbreaks may actually increase.

Strategic Option 3: Community Conservation Areas (direct intervention)

1. Exacerbate land tenure conflicts. Land tenure disputes are common in ni-Vanuatu communities and villages and have at times been caused or exacerbated by CCAs in Vanuatu, potentially leading to their collapse or failure5. As highlighted in the situation analysis, rights to land, are often not easily identifiable, but tend to depend upon oral histories, ‘memory culture’, complex local categories, and varying inheritance practices. While the Constitution recognises that custom rules apply to customary land dealings, the lack of formal rules has led to ongoing disputes and a lack of certainty and security over ownership, boundaries and use of the land. The delivery of technical assistance and targeted investments contemplated under this SO for CCAs, carries the risk of exacerbating potential land tenure conflicts among stakeholders

2. Exacerbate inequalities. Evidence suggest women are significantly more marginalised from the decision-making processes involving land that other land owners/users, and in many cases, decisions over land are less socially equitable and transparent than before. Tensions may arise if CCA is promoted and supported without due consideration and respect for the unique needs, interests and skills of women and girls and give women a voice in the land use planning process. Women’s traditional economic activities, including agricultural and fishing duties, mean they are impacted by changes in the environment in ways that are distinct from men.

3. Ecosystem modification and reduction of biodiversity. Specifics on trees and crop species that will be promoted for use in agroforestry systems in the context of this SO are yet to be determined and may include exotic species. If exotic species are included, or not prohibited

5 Department of Environmental Protection and Conservation. Community Conservation Area (CCA), Information Booklet. Annex 10

9 for agroforestry activities within CCAs under this SO, there is potential risk of ecosystem modification, degradation and/or loss of biodiversity within these conservation areas.

The World Bank triggered policies and instruments that must be prepared are presented below:

Policies Description of Policy and Applicability

OP 4.01 OP 4.01 Environmental Assessment requires the conduct of an Environmental Purpose environmental assessment (EA) of projects/programs proposed for Bank Assessment financing to help ensure that they are environmentally and socially sound and sustainable. This is the umbrella policy for the Bank's environmental and social safeguard policies. The EA needs to consider natural and social aspects in an integrated way. Justification of The policy is triggered because there are potential environmental and why this OP is social risks and impacts from enabling and strategic implementation triggered interventions that require mitigation and management; such as inequitable access to benefits, inequitable effects of social impacts, that can create or exacerbate community conflicts and conflicts with the State, and potential for degradation or destruction of natural habitat from changes in land uses. Safeguard The Environmental and Social Management Framework (ESMF) includes Instrument the principles, rules, guidelines and procedures for the screening and assessment of environmental and social impacts of project activities once they have been defined with sufficient detail to be specifically evaluated. The National Draft REDD+ Strategy adopts a coherent set (or “package”) of national policies and measures (PaMs) aimed at addressing priority direct drivers and their related indirect drivers (and obstacles) in a coherent way. This set of PaMs involve a series of legislative measures and incentives, policies, programs and plans, programs, which are a mix of of enabling interventions and direct interventions. Due to the nature and scope of the PaMs, the main applicable safeguard instrument for these PaMs under the ESMF is an Strategic Environment and Social Assessment (SESA). OP 4.04 Purpose OP 4.04 The application of this policy seeks to ensure projects promote Natural and support natural habitat conservation and improved land use, Habitats including the rehabilitation of degraded natural habitats. It also seeks to ensure the Bank does not support projects that, in the Bank's opinion, involve the significant conversion or degradation of critical natural habitats. Justification of Overall, PaMs are expected to have significant positive impacts on why this OP is natural habitats. However, without detailed information about the triggered scope of the PaMs in the current draft NS, a high risk approach was taken to consider that the PaMs could displace habitats with intensive agriculture or exotic agroforestry. Safeguard The ESMF includes the principles, rules, guidelines and procedures for Instrument the screening and assessment of environmental impacts of the PaMs once they have been defined with sufficient detail to be specifically evaluated, in line with national regulatory and OP4.01 and 4.04 requirements, as relevant. OP 4.36 Forests Purpose The objective of this policy is to assist borrowers to harness the potential of forests to reduce poverty in a sustainable manner, integrate forests effectively into sustainable economic development, and protect the vital local and global environmental services and values of forests.

10 Justification of Overall, PaMs are expected to have significant positive impacts on why this OP is forests, in that the main goal of the NS is to reduce deforestation and triggered forest degradation, while contributing to the well-being of forest- dependent communities. However, without detailed information about the scope of the PaMs in the current draft NS, a high risk approach was taken to consider that the PaMs may affect the rights and livelihoods of some people and their level of dependence upon or interaction with forests. Safeguard The ESMF includes the principles, rules, guidelines and procedures for Instrument the screening and assessment of environmental impacts of the PaMs once they have been defined with sufficient detail to be specifically evaluated, in line with national regulatory and OP4.01 and 4.36 requirements, as relevant. OP 4.09 Pest Purpose In assisting borrowers to manage pests that affect either agriculture or Management public health, the Bank supports a strategy that promotes the use of biological or environmental control methods and reduces reliance on synthetic chemical pesticides. Justification of Overall, PaMs are not expected to use pesticides or require other forms why this OP is of pest management. However, without detailed information about the triggered scope of the PaMs in the current draft NS, a high risk approach was taken to consider that the PaMs may include reforestation activities or the intensification of agricultural activities on degraded lands that may lead to the use of pesticides or require other forms of pest management. Safeguard A pest management framework will be prepared under the ESMF. A pest Instrument management plan will need to be prepared for activities/subprojects, as relevant. OP 4.11. Purpose To ensure physical cultural resources of local and national significance Physical cultural are protected and not permanently degraded or lost as a result of the resources Project. Justification of Overall, PaMs are not expected to present any potential risks to physical why this OP is cultural resources. However, without detailed information about the triggered scope of the PaMs in the current draft NS, a high risk approach was taken and as a necessary precautionary measure the policy is triggered. Safeguard Cultural Heritage Protection Framework (CHPF) is included in the ESMF Instrument and will need to be followed for activities/sub-projects, as relevant.

OP 4.12. Purpose This policy aims to restrict the involuntary taking of land or any form of Involuntary economic displacement of populations affected by World Bank financed Resettlement activities; and where displacement is unavoidable, to assist persons to improve (or at least restore) their incomes and standards of living; and to identify and accommodate the needs of vulnerable groups. Justification of Overall, PaMs are not designed to be implemented via involuntary land why this OP is acquisition from communities, nor the involuntary restriction of access triggered to registered conservation and protection areas. However, without detailed information about the scope of the PaMs in the current draft NS, a high risk approach was taken and as a necessary precautionary measure the policy is triggered to ensure landowners, leaseholders and land users and forest-dependent communities and/or individuals are properly consulted and not coerced or forced to accept or commit to REDD+ activities or other forest management/reforestation activities involuntarily. Safeguard The Resettlement Policy Framework (RPF) includes the principles and Instrument processes to avoid involuntary resettlement and to provide compensation, entitlements and prepare Resettlement Action Plans where involuntary resettlement is unavoidable. The Process Framework (PF) includes the principles and processes to support those people who

11 are restricted from accessing protected areas as a result of the activities. Resettlement action plan (RAP) will need to be adopted for subproject/activities, as relevant.

12 I. Introduction

This section presents an overview of Reducing Emissions from Deforestation and Forest Degradation (REDD) under the United Nations Framework Convention on Climate Change (UNFCCC), REDD in Vanuatu, and the methods, objectives and structure of this report.

1.1. REDD+ under the UNFCCC

In recognition of the role of forests to mitigate and adapt to global climate change, Parties to the UNFCCC developed a policy initiative to contribute to the reduction of global carbon emissions from deforestation and degradation and enhance their resilience by providing financial incentives in the form of ‘results-based payments’, to developing countries that successfully slow or reverse forest loss. This initiative is known as REDD, and sustainable management of forests, conservation, and enhancement of forest carbon stock (+). The UNFCCC Conference of the Parties (COP) outlined five REDD+ activities that developing countries can implement to be eligible to receive these payments:6

1. Reducing emissions from deforestation; 2. Reducing emissions from forest degradation; 3. Sustainable management of forests; 4. Conservation of forest carbon stocks; and 5. Enhancement of forest carbon stocks

After several years of negotiations and discussions at the international level, the UNFCCC COP adopted the ‘Warsaw Framework for REDD+’ at its 19th meeting in December 2013.7 This officially anchored REDD+ to the UNFCCC regime. The Warsaw Framework builds on previous COP decisions and clarifies and consolidates the requirements and methodological guidance countries must meet in order to access results-based finance. According to the Warsaw Framework, developing country Parties aiming to receive results-based finance for REDD+ must:

6. Ensure that the anthropogenic forest-related emissions by sources and removals resulting from the implementation of REDD+ activities are fully measured, reported and verified (MRV) in accordance with UNFCCC guidance;8 7. Have in place:9 a. A national strategy or action plan (a link to which is shared on the UNFCCC REDD+ Web Portal); b. A national forest reference emission level and/or forest reference level, or if appropriate, as an interim measure, subnational forest reference emission levels and/or forest reference level (that has undergone a UNFCCC-coordinated technical assessment process); c. A robust and transparent national forest monitoring system for the monitoring and reporting of REDD+ activities; and d. A system for providing information on how the safeguards are being addressed and respected (also referred to as safeguards information system-SIS);

6 UNFCCC Decision 1/CP.16 paragraph 70 7 UNFCCC Decisions 9/CP.19; 10/CP.19; 11/CP.19; 12/CP.19; 13/CP.19; 14CP.19 and 15/CP.19 8 UNFCCC Decision 1/CP.16 paragraph 73 9 UNFCCC Decision 1/CP.16 paragraph 71

13 8. Ensure that REDD+ activities, regardless of the source and type of funding, are implemented in a manner consistent with the UNFCCC REDD+ safeguards;10 and 9. Provide the most recent summary of information on how all the UNFCCC REDD+ safeguards have been addressed and respected before they receive results-based payments.11

REDD+ is based on a three-phased approach, which includes: Readiness (Phase I), implementation (Phase II) and results-based actions (Phase III).12 However, due to the significant time-frame between REDD+’s initial conception and introduction as a UNFCCC negotiation topic at COP 13 in Bali13 and its finalisation at COP 19 in Warsaw, several multilateral institutions and bilateral agreements were established to fund initial REDD+ readiness activities, including the World Bank’s Forest Carbon Partnership Facility (FCPF) , which was set up in 2010 “to assist eligible REDD Countries in their efforts to achieve Emission Reductions from deforestation and/or forest degradation by providing them with financial and technical assistance in building their capacity to benefit from possible future systems of positive incentives for REDD.”14

1.2. REDD+ in Vanuatu

The REDD+ Readiness process in Vanuatu began in 2007 when its Preparation Proposal was developed and accepted by the World Bank’s Forest Carbon Partnership Facility (FCPF). The REDD+ Readiness Process activities were then funded by the FCPF in 2013. A large part of the readiness phase activities have focused on strengthening Vanuatu’s existing institutions and engagement processes required to carry out the REDD+ project. Strategic activities being carried out more recently include the National Forestry Inventory, the development of Vanuatu’s National REDD+ Strategy, as well as a Strategic Environmental and Social Assessment (SESA) and an ESMF, the latter two being undertaken as part of this assignment.

Deforestation in Vanuatu is historically low, with a zero-deforestation rate between 1990 and 2000, according to FAO’s Global Forest Resources Assessment and has a national forest cover of about 440,000 hectares as of 2010, according to the Analytical Studies15. A broad range of drivers from infrastructure to extreme weather events are however significant forces behind the degradation of forest ecosystems. More recent information informing the development of Vanuatu’s National REDD+ Strategy suggest that between 2001 to 2019 about 12.4kha of tree cover were lost, resulting in 4.53 Mt of CO2.

10 UNFCCC Decision 2/CP.17 paragraph 63 11 UNFCCC Decision 9/CP.19 paragraph 4 12 UNFCCC Decision 1/CP.16 paragraph 73 13 UNFCCC Decision 2/CP.13 14 The other stated objectives of the FCPF are: To pilot a performance-based payment system for Emission Reductions generated from REDD activities, with a view to ensuring equitable benefit sharing and promoting future large scale positive incentives for REDD; to test ways to sustain or enhance livelihoods of local communities and to conserve biodiversity; and To disseminate broadly the knowledge gained in the development of the Facility and implementation of Readiness Preparation Proposals and Emission Reductions Programs. FCPF, (2010) Charter Establishing the FCPF. The International Bank for Reconstruction and Development (IBRD). Available: http://www.forestcarbonpartnership.org/sites/forestcarbonpartnership.org/files/Documents/PDF/Sep2010/FCPF_Charter- August_2010_clean.pdf 15 Carodenuto, S., B. Schwartz, G. Andre, J.Kampai, A. Nelson, S. McDonnell, S. Weaver, 2017. Analytical Studies for Reducing Emissions from Deforestation and Forest Degradation (REDD+) in Vanuatu. UNIQUE forestry and land use.

14 largest islands forming Vanuatu, as per the R-PP. Similarly, given Vanuatu’s vulnerability to natural disasters, the definition of strategy options considered the potential to generate co-benefits (as food security, community resilience and adaptive capacity). While acknowledging data limitations, particularly regarding spatial analysis that can provide more accurate information for Vanuatu’s forests, the Analytical Studies identifies as main direct drivers of deforestation the following: i) agriculture, distinguishing between subsistence agriculture, (semi-)commercial agriculture, and commercial agriculture; ii) forestry, including formal and informal logging, fuelwood and charcoal production; iii) invasive species; iv) natural disasters, and; v) infrastructure development, particularly for tourism and settlements.

Furthermore, the Analytical studies examined a series of underlying drivers of forest loss and degradation, including demographic, economic, technological (particularly regarding agricultural productivity), policy and institutional, social and cultural (associated with agricultural traditional practices), environmental (related to extreme weather events), governance (from a weak implementation and enforcement perspective), and other issues related to land tenure and leasing. The country-wide National Forest Inventory being undertaken will provide relevant more recent data on forest cover change, and thus will represent a significant update to the 2017 Analytical Studies in terms of assessing Vanuatu’s drivers of deforestation and degradation.

REDD+ Readiness

Following the 2017 analysis of drivers of deforestation and forest degradation aforementioned, the Analytical Studies16 further identified a series of preliminary Strategy Options for REDD+ implementation in Vanuatu, which are largely related to the types of land tenure in the country. All Strategy Options must be seen as complementary across the landscapes and are not mutually exclusive. Similarly, all strategy options have been considered not only from a climate change mitigation perspective but from their potential to deliver food security, enhanced resilience and other adaptation benefits when considering Vanuatu’s vulnerability to climate change. Understanding land use planning as an overarching strategy option, the Analytical Studies identified the following:

1. Land Use planning, seen as a cross-cutting REDD+ strategy option as a means to deal with conflicting demands on land, which requires well-articulated and widely accepted land use policy, emphasizing balance and trade-offs among different land- use options. This is particularly relevant to enable close collaboration and coordination among the different Government authorities responsible for land, agriculture, livestock, forestry, climate change adaptation, provincial governments, customary chiefs and land-owners. 2. Acquisition of expired and/or degraded agriculture leases with climate funding by the government in order to promote the transformation of unused or undermanaged areas into productive and restored forest landscapes. Historically, some of the most valuable areas in Vanuatu were leased to foreign interests.17 These are mostly coconut plantations and permanent grazing areas, which have since become unproductive. The land area currently occupied by coconut plantations (74,145 ha) and pastures (15,311 ha) is much greater than the total area under food crops (7,511 ha), and account for 82% of leased land.18 Areas are mostly on Efate and Santo. Following acquisition, as per the process outlined in the Land Acquisition Act, the national government would then in turn sub-lease smaller parcels of land to local

16 Carodenuto, S., B. Schwartz, G. Andre, J.Kampai, A. Nelson, S. McDonnell, S. Weaver, 2017. Analytical Studies for Reducing Emissions from Deforestation and Forest Degradation (REDD+) in Vanuatu. UNIQUE forestry and land use. 17 Farran, S. and J. Corrin, 2016. Developing Legislation to Formalise Customary Land Management: Deep Legal Pluralism or a Shallow Veneer?” Law Development Review 2016 18 Carodenuto et al, 2017.

15 landowner groups or community groups. These sub-leases would allocate rights to sustainable activities through gardening or agroforestry systems to integrate priority tree species in gardens. 3. Activity-based strategies identified at the Provincial or island level on customary land, with climate funding and aiming to enhance the delivery of extension services to smallholder farmers through moving to agroforestry systems in existing subsistence gardens and/or customary land. This Ni-Vanuatu subsistence gardens often consist of intercropping a diversity of short-term crops with perennial multipurpose trees in shifting cultivation systems.19 However, cash cropping is increasingly occurring -differing from island to island- with kava, cassava, and taro, along with willingness to sell land to expatriate leaseholders.20 These crops are more likely to expand into forest areas, as their production levels exceed that necessary for the household. They also tend to be mono-cropped, rather that integrated into multi- species or intercropped farming systems. Agroforestry systems can play a key role in addressing the drivers of forest loss and degradation in Vanuatu, while maintaining forest cover and enhancing climate resilience (e.g. shaded agriculture outperforming mono-cropped sun systems) and livelihoods (diversified crop types deliver staggered income and increased revenue). 4. Area-based large-scale conservation on customary land is considered a strategic option to expand the currently limited protected areas in Vanuatu and would be implemented through both reinforcing existing or creating new conservation areas. This intervention seeks to promote livelihood investments that create value for local custom communities from the forest around them through active conservation activities that can generate sustainable income flows to those communities (e.g. ecotourism, extraction of non-timber forest products, etc.). Thus, rather than forest carbon payments accruing, stakeholders would receive assistance, targeted investments, technical capacity, and other types of support to promote and realize the economic opportunities possible from forests and gardens.

Ongoing development of National REDD Strategy

Recently the country has started the preparation of Vanuatu’s NS. The development of a NS is currently being undertaken drawing upon all analytical studies21 and readiness efforts to date in Vanuatu, particularly considering the Analytical Studies as a starting point. With this basis, the NS will propose finally selected strategy options that are in line with Vanuatu’s development and climate priorities, for which a comprehensive set of assessments with refined criteria are being conducted and will be further complemented by an implementation plan. Similarly, more up-to-date data is expected to be available soon, including from the country-wide National Forest Inventory under way and a revised assessment of forest cover change and activity data, and therefore it is expected that the NS and its strategic options require to be revised in case new or revised drivers of forest loss and degradation are identified, and thus further revisions to this SESA and resulting ESMF might be required accordingly.

The current process to develop Vanuatu’s NS relies in a comprehensive assessment of drivers of deforestation and degradation -including considering the ‘+’ activities to encompass for instance agroforestry, further elaborates on those underlying drivers, including agents and actors, by

19 Addinsall, C., K Glencross, N Rihai, L Kalomor, G Palmer, D Nichols, G Smith, 2016. Enhancing agroforestry in Vanuatu: striking the balance between individual entrepreneurship and community development, Forests, Trees and Livelihoods, 25:1, 78-96. 20 McMahon, T., 2012. The development of insecurity in Vanuatu and beyond: seeking new ways to evaluate land and livelihood, Doctor of Philosophy (PhD), Global, Urban and Social Studies, RMIT University. 21 Including the NFI (National Forest Inventory), SESA, NTFP value chain study and all relevant Vanuatu’s policies and regulations, development and sectoral plans.

16 conducting a multicriterial analyses and further consultations. The analysis of underlying drivers is particularly relevant towards the identification of actionable strategy options, complementing the Analytical Studies, as it allows to better comprehend interactions between direct and underlying drivers as well as motivations behind decisions and behaviours behind those drivers. Moreover, the refined strategic options identified as a result of the on-going development of the strategy are further informed from a more recent understanding of the scope and scale of future pressures on forests, taking into account development plans or permits, changes in international commodity demand, etc.

While recognizing that the primary focus of Vanuatu’s NS will be on national level interventions, as previously identified in the Analytical Studies, the process to develop the NS acknowledges that drivers occur at different scales and thus strategies to address them should be implemented at the right scale. As part of the multiple criteria analysis, finance opportunities gain particular relevance given the limited deployment of REDD+ results-based payments to date and in contrast the opportunities for Vanuatu to access to readiness and implementation funding under the Green Climate Fund or alternative non-REDD+ financing for instance through on-going concept proposals on non-market performance-based financing for forest-based outcome, among others in the context of enhanced resilience or PES. Similarly, ensuring synergies at the policy level in Vanuatu will further inform the strategy in a way that actionable strategic options to be prioritized can rely in a comprehensive institutional framework already in place in the country and contributing to national and international development and climate commitments, as for instance the NDCs under the Paris Agreement.

Such an approach to develop Vanuatu’s NS is particularly relevant to ensuring the REDD+ process in Vanuatu is fully consistent with the methodological framework under the UNFCCC for REDD+ results- based implementation. Such methodological framework, known as the Warsaw Framework for REDD+ (WFR), states the need for the development and implementation of national strategies and actions plans to ‘address, inter alia, drivers of deforestation and forest degradation, land tenure issues, gender consideration and the safeguards […] ensuring the full and effective participation of relevant stakeholders’.22 23 Moreover, the thorough assessment to further refine the preliminary strategic options as the basis for Vanuatu’s REDD+ strategy will allow the country to pursue a mix of enabling interventions and priority strategic options for implementing interventions, that can best affect behaviour at the most appropriate scale and can effectively reduce the pressure on forests. These are:

Enabling interventions are traditionally known as those policies and measures at a policy and/or institutional level, which provide the enabling environment to facilitate the implementation of direct interventions at the local level.24 In the case of Vanuatu, according to the most recent NS draft, enabling interventions, together with the right incentives and disincentives are essential for REDD+ to be successful, and which include effective information systems, policies and regulations, institutional capacity or accountability, political will and participation, are seen as conditions required to be in place to support those on-the-ground implementation measures in a way that engaged all stakeholders at all levels required to addressing both direct and underlying drivers of deforestation and forest degradation. These enabling interventions include: 5. Land use planning, with a focus on spatial planning to overcome conflicting policies across sectors and identify synergies. This enabling intervention is seen as key for long term land use planning and operationalization of the already existing National Land Use Policy in Vanuatu, at both national and island level planning, for instance through respective Council of Chiefs. Land use planning is seen as essential for the implementation of all REDD+ activities as well as

22 Decision 1/CP.16, paragraph 72. 23 Decisions 4/CP.15, paragraph 1, and 15/CP.19. 24 Salvini et al., 2014. How countries link REDD+ interventions to driver in their readiness plans: implications for monitoring systems

17 provides the foundations for future analysis and projections of drivers and respective policies and measures to be defined. 6. Legislating a % tree cover on farms and lease holdings is envisioned as an enabling intervention that will maximize climate adaptation benefits by diversifying rural incomes, enhance food security and improve soils in current farms and pastures by helping to restore degraded areas. In order to do so, this enabling intervention seeks to establish a minimum percentage for tree canopy cover over a number of years, and which will be supported by technical advice and support, seedlings, and farmer-to-farmer support networks to contribute to planting and maintenance efforts. In existing pasture lands, this enabling intervention could be operationalized through existing extension services as well as could be supported by the agroforestry SO when appropriate. More details on the REDD+ activities and drivers to be addressed through this intervention are yet to be determined. 7. Policy coherence across the land use sector, including through the enactment of an umbrella piece of legislation, is regarding as essential for REDD+ success -including to achieve broader sustainable rural development as under Vanuatu’s Vision 2030, when considering the fact that Vanuatu’s environmental laws are in some cases inconsistent and/or conflicting. This is the case for instance of misaligned operational rules regarding riparian set-back requirements on rivers which largely differ from logging operations, cattle grazers, agricultural producers, and infrastructure developers. Policy coherence is both essential for supporting land use planning efforts as well as for strengthening Environmental Impact Assessments (EIAs), which broadly rely on existing environmental legal frameworks. As in the previous case, more details on the REDD+ activities and drivers to be addressed through this intervention are yet to be determined. 8. Innovative financing for stewardship aims to activate an array of sources of funding that are not donor dependent, including blended financing that encompasses tourism revenues and other investments. Capturing property tax revenues, departure and arrival taxes, bed taxes and/or payments for ecosystem services (PES) can all support efforts to diversify sources of funding through changes in fiscal policies. This in turn is seen as critical to provide funding for enhance climate resilience and rural development, while supporting both the enabling interventions and the implementation of the strategic options. As for the previous cases, more details on the REDD+ activities and drivers to be addressed through this intervention are yet to be determined.

Strategic options for implementing interventions, or direct interventions, have been refined from those preliminarily identified in the Analytical Studies, as a result of the multi-criteria assessment aforementioned, including considering the feedback on their feasibility provided from local stakeholders during the consultations undertaken in the development of the SESA Report, as well as further interviews conducted by the REDD+ Strategy consultancy team. According to international best practice, direct interventions encompass those REDD+ actions that aim to address direct drivers of deforestation and barriers to more sustainable land uses on the ground, and which in turn have a direct impact on emissions reductions and removals. In such context, Strategic Options for implementing interventions as per the most recent draft NS are intended to be implemented as a portfolio of direct interventions at various scales and across island. The implementing interventions include:  Agroforestry is seen as an alternative that can reduce pressure in existing forest cover and increase tree cover and its perceived value for local actors -from food, building material, cash crops, fuel or handicrafts- while delivering climate resilience and improved livelihoods. In this sense, agroforestry systems are aligned with traditional Ni-Vanuatu agroforestry gardens that include intercropping and represent an alternative for increasing occurrences of cash cropping that is likely to result in larger

18 mono-cropped systems. Island specific agroforestry systems/options will be further identified, including considering market analyses. Likewise, it is anticipated that islands can opt-in and choose from a menu of options, including from through a diversity of products including sandalwood, canarium (Nangai), Tamanu, Indian Almond (Natapoa), Noni Juice (Morinda), NTFP for both handicrafts and building, rattan and bamboo, trees intercropped with livestock, others. It is anticipated that area-specific interventions will be defined, and communities can opt-in. Similarly, it is expected that this intervention will largely rely on private sector engagement and leadership to support access to markets, and the provision of technical support (including best practices and guidelines for intercropping, or seedlings), with a particular emphasis on developing value-chains and strengthening linkages with the tourism sector toward establishing long-term markets.

 Community Conservation Areas (CCA) are already being implemented under Vanuatu’s law and therefore this SO aims to complement on-going conservation efforts through the definition by communities of conservation areas across integrated mosaic landscapes in a way that conservation and protection are pursued for multiple uses including watershed protection, in alignment with the conservation and protection objectives under the Environmental Protection and Conservation Act. This intervention focuses on promoting investments for improved livelihoods through technical assistance, targeted investments and other support that can ‘promote and realize’ economic benefits from forests and subsistence gardens. In this sense, agroforestry and non-timber product interventions can be complementary to this SO, which is envisioned to promote integrated multi-use planning at local/CCA scale, investments in agroforestry and NTFP, and custom landowner/user led management and business planning, stewardship and enforcement.

 Lease performance review and assessment of public benefit. Through the Minister of Lands, this option could entail the enactment of new regulations to enable the lease review in order to assess the achievement of the original purpose established in the lease. As noted in the draft REDD+ NS25, the SESA identified that lease acquisition entailed several potential negative risks, with the least public support including in the context of distrust around government holding of leases and sub-leasing to communities. As a result of said risk assessment, this SO has preliminarily re-focused towards a ‘lease performance review and potentially the enactment of new regulations for the lease review’, yet more recent developments in the draft NS have seen this option removed entirely. Considering the above, and given the lack of clarity on the feasibility, scope and scale of this SO, potential risks and benefits were not possible to identify in the context of this SESA.

1.3. Objective and Structure of this Report

The objective of this report is to present the findings of the SESA. The SESA stems from environmental assessment (EA) requirements of the World Bank.26 It is intended to be an inclusive process whereby the REDD+ country, with the participation of all potentially affected stakeholders, seeks to “identify likely impacts and risks, as well as opportunities,” among different strategic REDD+ options. During the SESA process these impacts, risks and opportunities are assessed and weighed by the various stakeholders.

25 Version 15/08/2020 26 See OP 4.01 – Environmental Assessment, para. 7; and Annex A, para. 10.

The report is structured in the following manner:

Section I- Introduction. Provides the context, objectives and structure of this document.

Section II: Situational analysis of social and environmental issues. Presents the historical context of social and environmental issues related to forest areas and other land uses in Vanuatu, which are relevant to the implementation of REDD+. This section delves into Vanuatu’s relevant context regarding land tenure, biodiversity, gender, economy and others.

Section III: Drivers of Deforestation and Forest Degradation. Provides a description of Vanuatu’s identified drivers of deforestation and forest degradation, as contained in the available Analytical Studies 27.

Section IV: Social and Environmental Risks. Presents the SESA results in accordance with the preliminary REDD+ Strategic options of the NS.

Section V: Applicable Safeguards. Presents the applicable/triggered safeguards of the World Bank.

1.4. Methodology

In keeping with the guidance provided by the FCPF, the SESA was conducted through mix methods, which comprises in depth analyses and consultations with stakeholders.

1. Analyses

Analytical work included:

 An analysis of the legal and institutional framework  A situational analysis of the relevant socio-environmental context. This analysis covers among other things, land tenure, economic context, gender, biophysical context, etc.

The development of these analyses and their associated reports was executed through mixed methods, which included an extensive review of the literature and consultations with interested parties.

2. Consultation with stakeholders

Consultations were carried out at the community level in 8 locations across the 5 REDD+ priority islands, namely Santo, Malekula, Efate, Erromango, and Tanna, between June – December 2019. These consultations resulted in approximately 85 communities being represented for a total of 216 individuals, 68 (31%) of whom were women.

The five islands had a range of community representation. On Santo, Nakere had five communities represented, while Luganville had 12. For Malekula, Lakatoro had representatives from nine communities and Lamap, on south Malekula had eight. Tanna had the greatest number of communities represented with 14 communities represented at the Lenakel consultations and twenty

27As noted above, the SESA was conducted in relation to preliminary options laid by the Analytical Studies for REDD+ in Vanuatu:.Carodenuto, S., Schwartz, B., Andre, G., Kampai, J., Nelson, A., McDonnell, S., Weaver, S. 2017. Analytical Studies for Reducing Emissions from Deforestation and Forest Degradation (REDD+). Unique LLC on behalf of Vanuatu Department of Forests. Port Vila, Vanuatu.

20 at Whitesands. Efate had ten communities and Erromango had participants from seven communities in attendance. Table 1 below provides an overview.

Table 1 Community representation for all consultation by community, island, and total for project.

Island Consultation Total Communities – Total Communities – Consultation Island Santo Nakere 5 17 Luganville 12 Malekula Lakatoro 9 17 Lamap 8 Efate Port Vila 10 10 Erromango Dillon’s Bay 7 7 Tanna Whitesands 20 34 Lenakel 14 Total 85

The stakeholders came from forest dependent communities and locations on the five islands that exhibit the highest deforestation rates were selected by the Department of Forestry (DoF). A concerted effort was made by the DoF organisers to ensure the participation in the consultations was representative of various community groups, especially in terms of participation by women and youth. Various representatives of the different governance levels, including representatives of chiefs, councils of chiefs, village councils, provincial level, and national level government. Government representatives were present from the national and provincial departments of livestock, agriculture, and forestry.

The focus of these consultations, in line with the purpose of the SESA, was on determining potential risks and benefits of the possible REDD+ strategies. However, group activities were also incorporated to collect data on participants perspectives on how potential risks in the REDD+ strategy options could be mitigated and appropriate grievance redress mechanisms, relevant to the development of the ESMF, RPF, and PF.

These consultations were facilitated through participatory group activities, to collect qualitative data, and supplemented with individual survey forms, for both qualitative and quantitative data. The community-based workshops adopted appropriate participatory techniques and workshop-based methods28 to facilitate short presentations with visual tools followed by question-led group activities to guide the groups’ common purpose and accommodate the range of literacy levels and different contexts. Group members worked collaboratively to share local knowledge, carry out their own appraisals and critically analyse the strategy options currently identified for REDD+ implementation in Vanuatu. Each group’s discussions were presented to the other groups and afterwards time was given for questions and further clarification on the points raised, which were added by the group presenter to the written presentation for data collection.

Annex I presents the details for the consultation process.

28 Methods and Tools, The World Bank Participation Sourcebook, available at: http://web.worldbank.org/archive/website01028/WEB/IMAGES/PARTICIP.PDF

II. Situation Analysis of Social and Environmental Issues

This section presents the socio-environmental-economic context in Vanuatu that must be considered in addressing any potential negative impacts that may arise from design and implementation of the REDD+ Strategic Options.

This section is structured as follows:

 Section 2.1 provides an overview of the local population and household contexts in Vanuatu with the most currently population statistics and projected population growth, and more specific information relevant to REDD+ such as the percentages of households engaging in livestock production, cash crop production, vegetable crop production and other crop productions.

 Section 2.2. provides an overview of the land tenure system in Vanuatu, firstly setting the contextual backdrop within which the land tenure system operates, followed by the identification of the key categories of land tenure that determine land ownership and usage relevant to the REDD+ SOs. This section also explains the land tenure issues that exist within Vanuatu that are important to take into consideration in the design and implementation of the REDD+ interventions, including issues relevant to the environmental, social and gender assessment.

 Section 2.3 details the economic context of Vanuatu, including employment rates in the country, types of household income, and specific information relevant to REDD+ such as the percentage of people engaging in crop production, livestock production and other forest and agricultural related productions indicating the level of engagement with the local population on with their land and its resources.

 Section 2.4 provides an overview of Vanuatu’s gender equity context, highlighting the many challenges faced by women in relation to land ownership and usage, and an analysis of how the systemic discrimination against women in relation to land and decision makings impacts on access to natural resources and opportunities within the forestry and agriculture sectors.

 Section 2.5 details the most recent information available on Vanuatu’s biophysical context. It highlights the terrestrial biodiversity found within Vanuatu including forest cover, natural and critical habitats, climate and natural disasters. To the extent possible, this section aims to identify species of plants and animals throughout Vanuatu, though with a focus on the 5 REDD+ priority islands, their corresponding natural and critical habitats and threats to biodiversity to support the environmental assessment of the REDD+ SOs.

 Section 2.6 provides an overview of key life ecosystems services in Vanuatu, threats and their impact on dependant populations.

 Section 2.7 summarises the institutional and legal framework analysis29 relevant to REDD+ in Vanuatu. It details key gaps and institutional capacity issues within the current framework.

2.1. Overview of population and household context

29 Report on the legal and institutional framework of Vanuatu, undertaken under this assignment. 23

The Republic of Vanuatu is both environmentally and socio-culturally diverse. The nation consists of 83 islands distributed across six provinces, with an array of ecosystems spanning from active and dormant volcanos, lowland forests, coral reefs and open ocean. There is a similarly diverse range of cultures and economic practices.

The total population of Vanuatu was reported as 272,459 persons in the 2016 Post Cyclone Pam Mini Census Report. The census defines urban residents in Vanuatu as residents of Port Vila or Luganville, while the remainder of the population are considered rural. The urban population was found to be 67,749 whereas the remainder are rural. A total of 55,527 households were identified in Vanuatu at an average size of 4.8 persons per household. The majority of all households are engaged in production of vegetable crops, in both urban and rural contexts. For the urban population, approximately 62% of households are engaged in select vegetable production, whereas the vast majority (97%) of rural households are producing vegetables. Urban households are less engaged in other forms of production (timber trees, livestock, fishing, cash crops & spices), whereas the majority of rural households engage in these forms of production. Additionally, households tend to be large in both rural and urban contexts, with approximately 72.7% of rural households and 70.2% of urban households having a household size greater than 4 persons (considered replacement rate, assuming 2 children per couple).

The total rural population was estimated at 146,584 in 1999, which would indicate an average rural population growth rate of 3,419 persons per annum from 1999 to 2016. In 2007, approximately 80% of the population of Vanuatu was reported to be rural, whereas in 2016 approximately 75% of Vanuatu’s population was reported to be rural. There is therefore an apparent trend towards urbanization within Vanuatu.

A breakdown of population by ethnicity is notably absent from the 2016 Mini Census. Only the distinction between Melanesian vs. non-Melanesian groups is made, with 99.2% of the population (264,516 persons) identified as Melanesian. A disaggregation of the population to different indigenous groups (e.g., that reflect the 113 languages found in Vanuatu) is not reported. Key statistics from the 2016 Post Cyclone Pam Mini Census Report in Table 2.

Table 2:Household engagement in resource production sectors from the 2016 Republic of Vanuatu Census. All values are taken from the 2016 Post Cyclone Pam Mini Census Report.

Census variables Vanuatu Urbana Rural Population, 2016 272,459 67,749 204,710 Number of Households, 2016 55,527 14,048 41,479 Households engaged in selected vegetable crop production 88.1 61.6 97.1 (%) Households engaged in selected cash crop production (%) 57.4 8.8 73.9 Households engaged in selected spice production (%) 5.6 1.7 6.9 Households engaged in selected timber trees production 44.5 11.0 55.8 (%) Households engaged in livestock production (%) 68.8 20.1 85.6 Households engaged in fishing (%) 49.0 22.8 57.8

2.2. Land Tenure

This section provides an overview of land tenure in Vanuatu and the many issues that have the potential to manifest throughout the implementation of REDD+ in Vanuatu. The National Statistics Office classify land tenure into five main categories: customary, rural lease, urban lease, occupied with informal

arrangements, and other. For urban households, land tenure is primarily under urban (69.5%) and rural (17.5%) leases. The urban population is defined as the population residing in Port Vila & Luganville. Rural is all others.

For rural households, the vast majority of land tenure is customary (79%), followed by agricultural leases (8.9%). No rural households reported land tenure under urban leases. It is also important to note that 11.5% of rural households were reported as being under informal land tenure arrangements, which offer limited security for the tenants under the formal legal system.

The formal legal system recognises customary land ownership and places it at the top of the hierarchy of land ownership and limits ownership to indigenous ni-Vanuatu under custom. Land can only be acquired by the state for public purposes. Interests in land can otherwise be registered through leases for various purposes. Each of these legal mechanisms are further detailed in the following sections. However, it is important to provide background on the context in which these laws operate within to understand the challenges the land tenure system presents to REDD+ and the SOs. This context largely revolves around traditional cultural practices (or kastom), shifts towards greater urbanisation or modern influences, and the tensions between these spaces that will potentially be influenced by REDD+ interventions.

a) Land, culture and kastom

Connectedness to land is central to indigenous ni-Vanuatu identity. This relates to the idea of ples (Bislama for ‘place’) and the notion that every ni-Vanuatu person has a ples to which they are connected.30 This ples may not be where they currently reside but instead relates to the territory to which they have connection through their kinship ties and heritage. Custodianship and the exchange of rights are central to kastom31 practice, and have a significant role in ensuring that harmony, authority, relationship networks and social responsibility are maintained.

Kastom is the term used for those customary rules, practices and norms that define appropriate ways of acting. While kastom rules vary greatly throughout Vanuatu, kastom always plays a central role in determining how land is managed and by whom. Customary kinship-based groups have historically governed access to and use of land and resources in Vanuatu and continue to do so to an extent. These rules that govern rights to land, however, are often not easily identifiable and are normally dependent upon oral histories, ‘memory culture’, complex local categories, and varying inheritance practices.

The clustering of the population into villages, plantation communities and towns has also meant that many customary landowners and users no longer live within their traditional boundaries or even with their own communities. Because of this, boundaries and rights have inevitably become less certain over time.

Within a single community it is not uncommon for there to be conflicting forms of interest in the same area of land. While the Constitution recognises that custom rules apply to customary land dealings, the lack of formal rules has led to ongoing disputes and a lack of certainty and security over ownership, boundaries and use of the land. Dispute resolution in general vitally depends on custom and community chiefs and kastom, in the sense of customary norms, practices and rules, to clarify any conflicting local practices. Despite its diversity, kastom retains wide respect and authority in Vanuatu society and is almost universally regarded as the core of national identity. Formal dispute resolution relating to customary land ownership, however, is dependent on the land laws current at the time, which vary in their approach to

30 McDonnell, S. 2016. My Land My Life: Power, Property and Identity in Land Transformations in Vanuatu. A thesis submitted for the degree of Doctor of Philosophy of The Australian National University. Canberra, Australia. 31 Customary rules are known as kastom. 25

incorporating kastom or custom rules into the laws that regulate the identification of customary land ownership.

Population pressures and economic surges are also affecting land relations under customary principles leading to changes in resource and land management. These changes included shifts towards land being converted to coconut plantations for export purposes and later tourism development, reduction in the size of subsistence gardens accompanying a greater reliance on imported food, yet greater intensified use of land for cash crops. Population growth has also contributed to tensions and disputes over land allocations and the applicability of customary rules to land disputes and use.32

Research carried out on Tongoa Island has revealed that resource scarcity, including access and use of land, due to these drivers mentioned above was resulting in migration to urban centres. This included 14 of the paramount chiefs from Tongoa, whose absence has had a direct impacted on the communities’ ability to resolve land disputes and manage community resources according to customary rules and practices. The absence of the chiefs in these functions undermines the legitimacy of custom governance, as often representatives are chosen to enforce customary rules in their place, however, they do not always have the same level of community respect, support and cooperation. Also observed was communities’ reluctance to obey restrictions on the use of natural resources for cultural or environmental protection. The research suggests that population pressures may be a crucial factor to these issues and concludes that cultural connectedness to land is weakening due to population increase and urbanisation.33

Specific cultural practices present in Vanuatu in some cases have direct impacts on forest use and forest clearing. On Tanna, for example, babies are often gifted pieces of land by family members. As those children grow, they are able to live on that land and cultivate it as they desire, which generally leads to the clearing of forest in order to plant gardens or mono-cultures.34 The cultural importance of yam also plays a role in the dynamics of forest clearing. Yam is a valuable traditional crop with ceremonial significance. On some islands, for example Malekula and Ambrym, the majority of households will own a yam garden. Because yam requires full sun and high soil fertility, it is often planted in areas that have recently been cleared and burned.35 In the north of Ambrym, kastom places tabus on accessing certain areas of the forests during the yam planting season, which has created tensions in the past between those requiring access to the volcano for tourism purposes and those committed to respecting traditional practices.

Kastom tabus can also play an important role in forest conservation by protecting areas from access or resource extraction36. In Vanuatu, as in other Melanesian cultures, the concept of conservation can be difficult to separate from the concept of sustainable use.37 The intertwined nature of these two concepts can pose a challenge for activities that focus exclusively on forest conservation. However, the strong kastom tradition of sustainable land management and integrated agricultural systems also provides an opportunity for interventions aimed at reducing forest loss.

b) Customary land tenure

32Ainka A Granderson, The Role of Traditional Knowledge in Building Adaptive Capacity for Climate Change: Perspectives from Vanuatu (2017) 554. 33Ainka A Granderson, The Role of Traditional Knowledge in Building Adaptive Capacity for Climate Change: Perspectives from Vanuatu (2017) 555. 34Ibid. 35 Ibid. 36 Ibid. 37 Govan, H., and Jupiter, S. 2013. Can the IUCN 2008 protected areas management categories support Pacific island approaches to conservation? Parks 19:1.

Customary land is the dominant tenure comprising 99% of land. The remaining 1% is public or government land acquired from a public purpose.38 90% of the customary land is unleased, which means landowners have unalienable rights to use their land according to their own terms. This includes most, if not all of Vanuatu’s forests and natural resources.

At independence in 1980, the return of alienated land to the Indigenous ni-Vanuatu population was central to narratives of national independence.39 The new Constitution proclaimed: ‘All land in the Republic of Vanuatu belongs to the indigenous custom owners and their descendants’. It further proclaimed that the rules of custom form the basis of land ownership and use in Vanuatu.40 Land transactions between indigenous citizens and either non-indigenous citizens or non-citizens required the consent of the government.41 The Constitution also built in specific safeguards that required any land transaction to not be prejudicial to customary owners or indigenous citizens who are not customary owner and recognised customary law as a source of law.

As such, land is linked through the legal framework to cultural and clan heritage, power structures, and spirituality, and ultimately controlled by the custom owners subject to any laws or regulations limiting the custom landowners powers to make decisions over their land.

Since the land law reforms in 2013, the process of identifying the customary owners of the land requires a consensus, and only after all owners are identified can a green certificate be issued. The green certificate is a requirement for a lease to be agreed to by the Government on the land. The exception to this is if all parties claiming ownership of the land agree to the lease before ownership is resolved.42 These land reforms along with mechanisms established in the Constitution aimed to protect customary owners from potentially unscrupulous actions when establishing long-term formal leases. The Minister of Lands also has the duty to protect customary owners from formal dealings that may be prejudicial to the owner, user or national interest.43

c) Land Leases

Under the current law, persons that are not the custom owners of the land, including Government and private investors, can negotiate long-term (e.g. 75 year renewable) leases with the customary owners. While all land is deemed customary, leases are deemed to be incontestable by law and there is no legal recourse for a customary owner to rescind the deal or regain any right to their land, subject to overriding interests that existed at the time of first registration.44 However, leasehold title can be transferred. The registered interest can also be mortgaged without any restrictions on who can be the mortgagee.45

Urban and broader development on the two main islands of Efate and Espiritu Santo account for 93 percent of all leases in the country. The remaining 7 percent are mainly large agricultural leases, spread across all islands, many of which are significantly under-developed. Approximately 2,800 leases (or 27 percent) are taken out directly on customary land, while the rest are sub-leases of public land (mainly residential and commercial). On Efate, 43.6% of rural land is under lease while on Santo, 9.7% of rural land

38 See Land Acquisition Act. 39 McDonnell, S. 2016. My Land My Life: Power, Property and Identity in Land Transformations in Vanuatu. A thesis submitted for the degree of Doctor of Philosophy of The Australian National University. Canberra, Australia. 40 Article 73 and 74 of the Constitution 41Carodenuto, S., Schwartz, B., Andre, G., Kampai, J., Nelson, A., McDonnell, S., Weaver, S. 2017. Analytical Studies for Reducing Emissions from Deforestation and Forest Degradation (REDD+). Unique LLC on behalf of Vanuatu Department of Forests. Port Vila, Vanuatu. 42Customary Lands Management Act 43 Land Reform Act: Part V, Section 8 (2) (c). 44 See ss 14 and 17(a) Land Leases Act. 45 See s 51(1) Land Leases Act Cap 163 (Vanuatu).

is under lease.46 On Efate, the largest area of unleased customary land also includes some of the highest- quality (least degraded) forests on the island: this is the proposed ELMA conservation area that was first proposed in 1995.47

The proprietary of a lease registered under the Land Lease Act ‘can grant a forest right of the land’ in accordance with the Planted Forests Act 2015. The majority of the forest is within untitled customary land territories. To access the forest for purposes of extraction or conservation in accordance relevant formal laws will require the identifying of the custom owners, however, the process of identifying the owners for these purposes are different from those required to enter into formal leases.

In the past, leases for the development of large agricultural holdings, or for the provision of land for public needs, have been the touchstone of many ongoing disputes. However, these are insignificant compared to recent land development issues. Vanuatu is now being heavily promoted as a tourist destination, resulting in many pristine coastal and hilltop sites having been leased, with local community access being blocked to beach frontages, foreshores and associated infrastructure. In other cases, the leased land has remained idle for speculative purposes or has tied up prime agricultural land for alternative land uses.

d) Informal Land Tenure

While customary land tenure is the dominant form of land tenure, most customary land is not registered. It is common for people to make arrangements to use, access, or live on land, which is not registered customary land or registered through a lease. The arrangements are also not often no made through written agreements.

Identification customary ownership is required for the customary land rights to be formally registered and both the identification and registration processes are time consuming and costly. Vanuatu only scored 65.6 out of 100 of the Doing Business index in relation to registering property, however, these scores were also assessed on the assumption that the land subject to registration was already formally registered.48 Since the 2013 land law reforms, only 9 land disputes have been resolved through the new processes and resulted in ownership of the land being formally registered.

Informal settlements are also occurring at more than twice the national average. Vanuatu’s population growth rates are quite high (2.6 percent) and in 2004, 41 percent of people were under 15 years of age. This demographic profile places a huge strain on education and youth employment, which is driving growth in urban areas and peri-urban villages placing further pressures on land leading to conflict when incursions on customary land occur. As a result, many informal settlements have been established which lack basic services, including water and sanitation, thereby posing a serious public health risk.

e) Land tenure issues

Although the land tenure system creates a framework where indigenous ni-Vanuatu’s customary land rights are protected and respected, and a mechanism for land rights to be formally registered by others, there are issues that frequently hinder development and present unique challenges.

Kastom rules being used for the determination of land ownership and disputes for example enable each indigenous group to govern land in line with own traditions or customary practices and institutional

46Scott, S., Stefanova, M., Naupa, A., Vurobaravu, K. 2012. Vanuatu national leasing profile: a preliminary analysis. Justice for the Poor Briefing Note. The World Bank, Washington, DC 47Carodenuto, S., Schwartz, B., Andre, G., Kampai, J., Nelson, A., McDonnell, S., Weaver, S. 2017. Analytical Studies for Reducing Emissions from Deforestation and Forest Degradation (REDD+). Unique LLC on behalf of Vanuatu Department of Forests. Port Vila, Vanuatu. 48 Doing Business: Vanuatu Economy Profile, World Bank 2020 28

frameworks, including who is able to access and to use land, and make decisions regarding land management. However, the inherent subtleties of custom law, the uncertainty of custom authority and the lack of recognition of the customary group as a legal entity, has also been the source of many land ownership disputes and reports of inequitable land dealings.

Gaps exist in how kastom rules guide the distribution of benefits. In the case of lease registration, benefits have often only being captured by a few, with some being estranged from their land because the lease terms and conditions have unfavourable clauses for renewal and fail to provide access rights and/or long- term financial return. Benefits derived from improvements to the land, or agricultural activities, planted forests etc. will be owned by the individual or group involved in making the improvements. How those benefits are shared within the group is determined within the groups, which is where considerations over gender equity in these decision-making processes will be of importance. The legal framework relating to forestry rights under the Forestry Act does not contain any benefit-sharing processes or mechanisms for ensuring that all members rights within a land owners collective will be recognised to distribute benefits to. Benefit-sharing in land lease situations is also not well-documented, nor consistent across Vanuatu. Only monies received from leases issued over disputed customary land is required to be placed in a trust for the customary owners, yet to be determined.

Authority in custom is eroding. The Malvatumauri (National Council of Chiefs) is the peak organisation providing advice to Government on kastom values and practices in Vanuatu, and according to the Constitution it must be consulted on all matters related to land.49 However, chiefly authority is frequently bypassed, and while the chiefs make many decisions on customary land tenure, a fundamental issue confronting all of these decisions has been a lack of clarity on customary authority and leadership.50

Today authority is exercised by a range of chiefs who hold varying sway. These include both kastom chiefs and community chiefs. Generally, a kastom chief can be distinguished from a community chief through the process in which they have gained the title of ‘chief’: generally a kastom chief will have undertaken kastom ceremonies or come from a chiefly bloodline, entitling him to hold that rank, whereas community chiefs are more commonly nominated by their communities as a community leader.51 The strength of the authority of both is largely dependent on community members’ respect for their authority, community harmony and the relationship of the chief with local police. Traditional enforcement by chiefs has been largely eroded due to conflicts with national laws.

The Malvatumauri membership is made up of chiefs that have been elected by their peers i.e. other chiefs to represent their island, in a voting styled electoral process.52 The chiefs elected will generally have authority as kastom chiefs, however, due to the non-customary process used to nominate and elect chiefs to the Council, historically there has also been chiefs without authority under kastom elected.

Chiefly status is also attributed to many religious or political leaders and this diffusion and lack of clarity has led to many uncertainties over how leadership and authority is exercised in different contexts.53 Of particular concern is that the legal system accepts the legal status of a chief to sign official documents on behalf of their community, despite underlying uncertainty regarding the scope or status of their authority.

The 2013 land law reforms rely to an extent on the authority of custom and have faced many challenges hindering their successful implementation. As a result, are currently being reviewed by the Government.

49 Article 30 (1) (2) of the Constitution of Vanuatu 50 Conflict Management and Access to Justice in Rural Vanuatu, AusAid 2016, at 121 51 Lissant Bolton, ‘Chief Willie Bongmatur and the Role of Chiefs in Vanuatu’, (1998) 33(2) Journal of Pacific History, 180-182 52 Section 13 of National Council of Chiefs Act 2006 53 Len Garae, ‘Worwor claims “political trend” in chiefs appointment’, Daily Post Newspaper (Port Vila, Vanuatu) 27 October 2018

Although the reforms intended to address gaps in the legal protections over customary land, such as abuse of Ministerial powers to grant leases and processes that enabled a custom owner to enter into a lease without the consent of the all members of custom owning group,54 the success of these reforms in achieve these aims is difficult to measure given the limited number of land disputes that have been successfully resolved to date.

Determination of customary ownership of land v resources on the land is inconsistent. For example, the Forestry Act prescribes a different process to the Customary Lands Management Act to determine customary land ownership and the corresponding rights to sell timber rights. There are many examples of disputes over licences being issued by Department of Forestry. The system could benefit from the identification and harmonisations of rights with the Customary Lands Management Act. What is more, the green certificate process appears to be complicated for many land owners and many land owners in rural areas as a result are not willing to engage in the process.55

The land lease administration system in its currently application, is also believed by many to have gone well beyond the original intent of providing security of tenure. The consequences of this are central to many of the disputes over land in Vanuatu. Generally, it is the less powerful and less vocal segments of the community who are most negatively impacted. Without effective policy and enforcement, the long- term social and economic impacts of current practice are likely to harm both investors and local communities alike.

Severe problems exist with a significant backlog of leases awaiting registration in the Department of Land’s (DoL) Registry Office. Lease approvals are very slow, particularly residential leases for ni-Vanuatu, and can often take from two to four years to establish. In contrast, international investors generally find that their leases take less time. As such, ni-Vanuatu are disadvantaged as banks will not lend until leases are officially registered. Furthermore, the poor record-keeping and uncertainty of the lease registration process leads at best to huge operational inefficiencies and at worst to the exploitation of loopholes in the process to facilitate speedier registration. Hence clearing the backlog and establishing transparent and efficient processes for land lease administration are seen as an urgent priority for the land sector.

Without formal registration, access to credit using land as security is limited, and investment is unsecured. It is also common for land disputes to arise where land has been used for private, community and government developments without being formally registered or currently going through formal dispute resolution processes without ownership having yet been determined.

f) Gender Perspectives

A section on gender equity in Vanuatu’s context can be found under ‘Gender Equality Context’ below. This section specifically address gender perspectives in relation to land tenure.

Land legislation in Vanuatu does not directly discriminate against women, however, women do generally not have rights to participate in decision-making processes. Although there is variance in kastom rules from area to area, kastom rules relating to land ownership predominately dictate that land ownership rights can only been inherited patrilineally. There are aa few areas and islands where land can be inherited through both the matrilineal and patrilineal lines, and there are also a few that exclusively transfer land matrilineally, however, this does not equate to women being involved in the decision-making relating to

54Carodenuto, S., Schwartz, B., Andre, G., Kampai, J., Nelson, A., McDonnell, S., Weaver, S. 2017. Analytical Studies for Reducing Emissions from Deforestation and Forest Degradation (REDD+). Unique LLC on behalf of Vanuatu Department of Forests. Port Vila, Vanuatu. 55Interview with Department of Forestry, 18 October 2019

land. The decision-making processes relating to how land is utilised and managed remain predominately patriarchal.56

While one of the strengths of customary systems is their ability to evolve to ensure social security, safety and sustainability in traditional subsistence communities, integrating many practices that go some way toward protecting women’s rights and participate in decision-making processes, this does not extend to land issues generally.

There are some exceptions for women that do not have any brothers or are widows, however, there is more evidence of women being relegated to acting as a secretary in land processes, or being undermined and marginalised by formal, national processes relating to land. There are also indications that the 2013 land law reforms do not adequately address these issues and may further marginalise women’s participation in decision-making relating to land, including ownership. More significantly, it is possible that the decision-making processes. 57

Furthermore, evidence suggests that even the traditional protection of women’s interests afforded by kastom are being eroded, and the management of customary land is becoming even more male-centric. This is driven in part through the manipulation of kastom in response to issues such as pressures on limited land resources and the increasing commoditisation of land. Women have generally become more marginalised from the decision-making processes involving land and many of the decisions are potentially less socially equitable and transparent than before.58

Although land legislation is gender-neutral, the implementation of the process, combined with custom rules relating to land, has adopted a male bias. Women hold less than 0.1% of registered leases in land. One report from the land registry evidenced that less than 20 of the 30,000 registered leases were held by women. This is because, unless a woman is recognised as the owner of customary land and for a lease to be granted in her favour, which is virtually unknown in Vanuatu, the only way a woman can acquire title to land is to buy an existing lease in an urban area.59

The issue of women’s access to land has been placed on the national agenda in Vanuatu to ensure that gender-specific policies are addressed.60 Improved gender equality has been shown to improve social cohesion, security and economic opportunity. This is reinforced if women are included in decision-making and their rights to utilise, own and develop land are protected and their awareness of these rights is increased.

2.3. Economic Context

Despite having access to a diverse source of income, rural areas in the country have experienced poverty due to the stagnation of the agriculture, fishery and forestry sectors between 2006 and 2010. The National Poverty Line is estimated in 12.7%.61 The country’s GINI index is of 37,6.62 Poverty reduction in rural areas has been in that sense mostly linked to government expenditure and internal expenditure (urban to rural),

56 Bowman et al. Women in Vanuatu, Analyzing Challenges to Economic Participation, World Bank, 2009, at 47-8 57 Conflict Management and Access to Justice in Rural Vanuatu, AusAid 2016 at 118-9 58 Bowman et al. Women in Vanuatu, Analyzing Challenges to Economic Participation, World Bank, 2009, at 50 59 Bowman et al. Women in Vanuatu, Analyzing Challenges to Economic Participation, World Bank, 2009, at 50 60 See for example, Vanuatu National Gender Equality Policy, 2015-2019 61 World Bank Data Bank. Accessed at https://databank.worldbank.org/data/download/poverty/33EF03BB-9722-4AE2-ABC7- AA2972D68AFE/Archives-2019/Global_POVEQ_VUT.pdf 62 World Bank. Poverty and Equity Brief. East Asia &PActific. April 2019. Accessed at https://databank.worldbank.org/data/download/poverty/33EF03BB-9722-4AE2-ABC7-AA2972D68AFE/Archives-2019/Global_POVEQ_VUT.pdf

and remittances.63 It has been estimated that nearly 60% of the poor live in Vanuatu’s rural areas, while 30% live in Port Vila. Women are the sector of the population most affected. Within women, disparities also change across locations. In Port Vila and rural areas girls below 14 years are estimated to be more vulnerable to food poverty than women above 14, while in Luganville, vulnerability for women of all ages has been observed about the same.64

The last time an estimate was made in 2012, unemployment rates across the country were higher for women (5.2%) than for men (4.2%). The difference between male and female unemployment was found to be larger in urban areas, with an unemployment rate of 14.7% for women compared to 9.9% for men. In rural areas the rates were 2.4% for women compared to 2.2% for men.65

Furthermore, amongst the self-employed and the market vendors, women are among the most vulnerable. Self-employed males are significantly better off than their female counterparts. The majority of market vendors were female (91%) and were more vulnerable to falling below the basic needs poverty line than any other group, yet only a small portion of them (5.3%) were already below the basic needs poverty line.66

In general, livelihoods in rural settings are largely dominated by subsistence agriculture (production of vegetable crops and livestock) supplemented by cash crop production. The income from cash crop production is used largely for education costs, health costs, maintenance of homes and goods, and supplementing diets. The vast majority of urban households receive income from wages and salaries (87.2%), whereas income production in rural households is dominated by sale of fish, crops, and handicrafts (75.9%). While there is overlap in the categories reported in the Mini Census Report (i.e., households reporting multiple forms of income), it is clear that for rural households, diversification of income is important. While the majority engage in sale of fish, crops and handicrafts, approximately 45.4% of households also derive income from wages and salary, remittance, or other sources of income. Approximately 24% of rural households report owning a business, although the nature of such a business is not specified. An overview of household income from the 2016 Post Cyclone Pam Mini Census Report is provided in Table 3.

Table 3:Overview of household income for urban, rural, and all households in Vanuatu. The income categories are not mutually exclusive, with some income productions reported for more than one category (e.g., “Own business” & “Wages/salary”).

Income source Vanuatu Urban Rural (Total number of households) 55,285 13,989 41,296 Wages/Salary 22,413 12,204 10,209 Land lease 185 31 154 Remittance 5,688 721 4,967 House rent 1,046 762 284 Sale of fish/crops/handicrafts 33,304 1,933 31,371 Own business 12,894 2,944 9,950 Others 3,850 285 3,565 None 535 67 468

Crop production (non-cash crop, produced for subsistence or market) within Vanuatu is diverse. Within rural contexts, the majority of households are engaged in the production of kumala, corn, island cabbage,

63 UNDP and Vanuatu National Statistics Office. Vanuatu Hardship and Poverty Report. Analysis of the 2010 Household Income and Expenditure Survey. Accessed at http://www.undp.org/content/dam/rbap/docs/Research%20&%20Publications/poverty/UNDP_PC_Van_HIES.pdf 64 Ibid. 65 Ibid. 66 Ibid. 32

yam, papaya, island/water taro, Fijian taro, manioc/cassava, and banana (Table 4). Approximately two- thirds to three-quarters of all rural households are engaged in the production of these crops, indicating that vegetable production in rural regions is largely diversified, with individual households likely to specialize in any one crop. For urban households, approximately half are involved in the production of island cabbage (a staple of ni-Vanuatu cuisine), papaya, manioc/cassava, and bananas. Production of rice and peanuts is relatively limited in both urban and rural contexts.

Table 4: Food crop production by number of urban, rural and total households. Data from the 2016 Post Cyclone Pam Mini Census Report.

Food crop produced Vanuatu Urban Rural (Total number of households) 55,285 13,989 41,296 Kumala (sweet potato) 32,799 3,013 29,786 Rice 189 22 167 Peanut 10,315 473 9,842 Corn 30,471 2,096 28,375 Island cabbage 43,271 6,685 36,586 Yam 33,052 2,081 30,971 Papaya 38,385 6,145 32,240 Island/water taro 25,240 1,663 23,577 Fijian taro 31,628 2,519 29,109 Manioc/cassava 45,020 6,821 38,199 Banana 45,195 7,287 37,908

The dominant cash crops in Vanuatu are cocoa, coconut, coffee, and kava. Production of these cash crops are almost entirely in rural contexts, with over 95% of each crop produced by rural households (Table 5). The most commonly produced cash crops are coconut (53.4% of households) and kava (42.9% of households), which are widespread throughout the five focal islands of the REDD+ program. Coconut is commonly produced in combination with cattle (keeping the cattle in the coconut plantations), whereas kava is a booming crop associated with a high-value market. Current investment in kava production is high, with unseen future effects on market prices.67 The production of cocoa and coffee are largely island specific, with 78.9% of coffee produced on the island of Tanna, and 52.5% and 17% of cocoa produced on the islands of Malekula and Espiritu Santo, respectively a land cover classification for 2018 is currently being conducted by the geospatial analysis lab of the Department of Forestry, but the results are not yet available and thus it is not clear whether the expansion of these crops coincides with areas that would be prioritized for REDD+ actions.

Table 5: Cash crop production by number of urban, rural, and total households. Data from the 2016 Post Cyclone Pam Mini Census Report.

Cash crop produced Vanuatu Urban Rural (Total number of households) 55,285 13,989 41,296 Cocoa 9,000 79 8,921 Coconut 23,164 1,121 22,043 Coffee 1,953 24 1,929 Kava 17,893 174 17,719

67 Consultation participants in South Santo were planting kava at high rates. However, some farmers and some extension staff expressed concern that the extensive planting at present could depress prices in coming years as the existing kava plantings mature.

Cash crop production reaches both local as well as international markets. Approximately 51.9% of total export commodities (2,514 million VUV) were kava in 2018, followed by copra (8.7%), coconut oil (8.3%), and cocoa (3.9%)68. However, kava exports in 2018 were anomalously high, given that kava exports represented only 22% and 21% of exports in 2016 and 2017 respectively. In these years, copra was the dominant export at approximately a third of total export value. Trends in export of the dominant export products from 2003 – 2018 are detailed in Figure3. Despite substantial variation in export value, it is clear that exports of kava have increased substantially within recent years. The production of cash crops is an important form of income for rural households, which provides access to education, healthcare, and insurance against losses in subsistence crop production.

Figure 1: Dominant exports from Vanuatu, 2003 – 2018 in millions of VUV. Data taken from the annual summaries of the Overseas Trade statistics reports.

Similar to cash crops, production of timber is largely dominated by rural households in Vanuatu. The most popular timber species to produce is sandalwood, with approximately 40.3% of rural households engaged in its production (Table 6). Sandalwood is the only timber species with a substantial proportion of urban households (9.9%) engaged in its production. A relatively small proportion of rural households produce mahogany, followed by moderate levels of production of whitewood, nangai, and natapoa. Discussions with local land owners have shown that while timber production is looked on favourably, markets do not always exist or are difficult to access, resulting in inaccessible profits. Local landowners on Espiritu Santo noted the presence of government subsidies for producing particular timber species, but the inability to profit from its production due to failed or inaccessible markets. Nevertheless, timber production holds

68 VNSO (Vanuatu National Statistics Office). 2016. Post-TC Pam National Mini Census. https://vnso.gov.vu/index.php/mini-census-2016. Vanuatu National Statistics Office, Ministry of Finance and Economic Management. Port Vila, Vanuatu 34

local value, with wood being an intermediately important material for construction of house walls and floors.

Table 6:Production of timber by urban, rural, and total households in Vanuatu. All data are taken from the 2016 Post Cyclone Pam Mini Census Report.

Type of timber produced Vanuatu Urban Rural (Total number of households) 55,285 13,989 41,296 Sandalwood 18,044 1,389 16,655 White wood 7,451 205 7,246 Mahogany 3,735 44 3,691 Nangai 9,969 182 9,787 Natapoa 8,696 233 8,463

Similar to vegetable productions, ownership of livestock is largely dominated by rural households. Poultry is commonly owned by rural households (74.8%), as well as a substantial proportion of urban households (16.5%). Ownership of cattle, pigs or goats in urban households, however, is relatively rare, with 78.9% of urban households reporting no livestock ownership. Approximately a quarter of rural households report owning cattle and approximately half report owning pigs. Ownership of cattle is likely correlated to ownership of coconut plantations, as the two are commonly produced in parallel. Household ownership of livestock is summarized in Table 7.

Table 7: Ownership of livestock for urban, rural, and all households in Vanuatu. All data are taken from the 2016 Post Cyclone Pam Mini Census Report.

Type of livestock owned Vanuatu Urban Rural (Total number of households) 55,285 13,989 41,296 Cattle 13,424 119 13,305 Pig 21,632 911 20,721 Poultry 33,238 2,312 30,926 Goat 2,450 54 2,396 No livestock 16,866 11,046 5,820

Value-added products that also bring discretionary income for rural households are largely concentrated in production of handicrafts (29.4%), beverage production including kava (18.7%), and flour, chips and bread production (16.9%). Importantly, each of these activities are tied to agricultural or timber products (similar to cash crops), indicating that rural populations discretionary incomes are additionally tied to agricultural production. Shocks from climate change and/or natural disasters hold the possibility of adversely impacting the discretionary income that commonly acts as a form of insurance for rural populations. A relatively small proportion of rural households (8.1%) are engaged in value-added activities that are less tied to agricultural products (i.e., sewing, printing & painting or building – including block and furniture). Household engagement in value-added products and services are summarized in Table 8.

Table 8:Production of value-added products and services for urban, rural, and all households in Vanuatu. All data are taken from the 2016 Post Cyclone Pam Mini Census Report.

Product or service Vanuatu Urban Rural (Total number of households) 55,285 13,989 41,296 Oil, cream, soap & perfume production 2,064 183 1,881 Flour, chips, & bread production 8,478 1,499 6,979

Product or service Vanuatu Urban Rural Handicrafts (carving, weaving, pottery) production 12,837 694 12,143 Beverage production, including kava 8,898 1,180 7,718 Sewing, printing, painting 3,400 895 2,505 Building – including block and furniture 1,015 190 825

From the 2016 Mini Census data (see Table 9), the majority (82.8%) of urban households have relatively stable access to water (private piped or shared piped). Approximately 13% of urban households are dependent upon private or shared rainwater wells, which is an intermediately stable water source.

Rural households are generally more dependent on less reliable sources of water. Approximately a third (34.2%) have access to piped water sources, either shared or private, whereas the remainder have access through mixed sources. The most common water source (44.1%) for rural households is through rainwater wells, piped or shared. Of key note is that approximately 10.8% of rural households access water through rivers, streams, creeks, lakes and springs. These households are likely vulnerable to climate change or alternative impacts on local hydrological systems. Given an average household size of 4.8 people (a conservative estimate as this is both urban and rural households), this portion of households equates to approximately 21,400 people (7.8% of Vanuatu’s total population) accessing water through rivers, streams, creeks, lakes or springs.

Table 9:Main source of drinking water for urban, rural and all households in Vanuatu. All data are taken from the 2016 Post Cyclone Pam Mini Census Report.

Type of water source Vanuatu Urban Rural (Total number of households) 55,285 13,989 41,296 Piped, private 9,226 5,410 3,816 Piped, shared 16,373 6,044 10,329 Village stand pipe 2,345 167 2,178 Rainwater well / tank, private 10,385 1,269 9,116 Rainwater well / tank, shared 9,743 623 9,120 Bottled water (processed water from shops) 314 189 125 River, stream, creek, lake, spring 4,502 44 4,458 Underground borehole / well 2,203 224 1,979 Other 194 19 175

The percentage of households who use firewood as their primary cooking fuel ranges from 13.8% to 22.6% among the 28 area council territories on the five REDD+ islands (Table 10). Fuelwood is an important household resource to consider in the context of REDD+ investments because its collection can contribute to forest degradation, but its use can also be an important incentive for the expansion of agroforestry. Additionally, the burden of collecting fuelwood often falls disproportionately on women and girls, meaning that changes in the supply of fuelwood that may result from some REDD+ interventions can have gender-specific impacts.

Table 10: Household fuelwood use in Vanuatu (2016)

Island Area Council Population 2016 Percent for whom firewood is primary fuel

Efate Port Vila 50944 14.5% Erakor 8918 16.2%

Island Area Council Population 2016 Percent for whom firewood is primary fuel

Eratap 6640 17.8% Mele 4711 13.8% Eton 3518 18.4% North Efate 2987 18.8% Malorua 2759 18.3% Pango 2326 14.4% Santo Luganville 15865 16.1% South Santo 8120 20.7% South East Santo 5641 20.3% North Santo 4615 19.8% East Santo 4463 20.9% West Santo 2930 21.6% North West Santo 1554 21.3% Malekula North East Malekula 7150 22.5% Central Malekula 6115 21.4% North West Malekula 5407 21.3% South East Malekula 4942 19.3% South Malekula 3879 22.6% South West Malekula 3488 22.0% Tanna West Tanna 8545 17.3% Middle Bush Tanna 5994 18.0% South West Tanna 5593 17.7% North Tanna 4165 18.4% South Tanna 1250 no data Erromango North Erromango 1466 16.8% South Erromango 618 17.5%

2.4. Gender Equity Context

Traditional ni-Vanuatu kastom establishes men as decision-makers within communities whereas women are placed in supporting or subordinate roles. Ensuring equal representation and rights of women is a key social concern. Improving opportunities and equity for women in Vanuatu will be challenging and must extend beyond simple legal specifications, as gender inequities are deeply entrenched within traditional practices throughout Melanesian cultures more broadly.69

Some progress has been made to change these norms at the national and provincial government levels through initiatives such as the inclusion of a ‘Women’s Wing’ in political parties, as seen in the Vanuatu Party since in 2006, the creation of a ‘Public Service Network of Women’ by the Department of Women’s

69Farran, S. 2017. Land rights and gender equity in the Pacific region. Australian Property Law Journal 11.

Affairs with the aim of supporting women’s career progression, Municipal Councils’ ‘reserved seats’ electoral systems, and other initiatives within Provincial Councils’ to encourage more representation of the Councils. However, the results have not been overwhelmingly positive.70Recent data shows that women continue to only occupy 39% of the public sector, despite having a higher level of qualification than male counterparts in general, and in the private sector, women’s participation drops to 36%.71 There was no representation of women in the national parliament during the last government and despite a significant increase in support for female candidates in the 2020 election, there were still no women elected to Parliament.

As aforementioned in section 1-(d), the legal framework relating to land is gender-neutral, but the implementation of the process has adopted a male bias. The Vanuatu Government ratified UN Convention on the Elimination of Discrimination Against Women (CEDAW) in 2004. Before the CEDAW was transformed into domestic legislation, the Supreme Court took a proactive approach by relying on CEDAW to recognise women’s rights to land although those rights did not exist under custom rules. It is worth noting here that the claimant in this case, was the nephew of the respondent who relied on discrimination against his mother as the basis of his claim. This case and subsequent cases have not gone as far as stating that women have equal rights to land as men or ownership, only that they had rights to equal distribution of proceeds derived from the land. However, the land law reforms in 2013 now require that all customary land disputes are resolved under customary institutions according to the rules of custom, and no appeals are permitted to higher courts other than on grounds of improper process. There have not been any cases to date to provide guidance on the interpretation of these changes and their relationship to CEDAW, leaving the law uncertain.

Within the productive sector relevant to land use, data shows that women make up approximately 28% of unpaid subsistence farming and included in the highest ranking occupations for women in Vanuatu were cash crop farming, subsistence mixed crop and livestock farming, crop farm labourers, copra cutters, handicrafts, and market selling. Women’s’ traditional economic, agricultural and fishing duties also mean they are impacted by changes in the environment in ways that are distinct from men. Therefore, it is considered important that all projects that have potential to impact on the environments where these activities are carried out consider and respect the unique needs and skills of women and girls and give women a voice in the planning process.72

Violence against women is a prominent issue in Vanuatu with over 60% of women having experienced physical or sexual violence or both. There are also significant gaps between gender equality and cultural practices supporting the subordination of women in marriage. The kastom of ‘bride price’ is an example of this. The majority of women believe women become the property of their husband, or the husbands family, after the bride price is paid. 32% of women also believe that a man is justified in beating his wife if a bride price has been paid. Mechanisms to address these norms needs to be taken into consideration if project activities are placing women in vulnerable economic or social positions, particularly if this is a result of changes to the natural environment or displacement as a result of project activities. Adequate mechanisms should also be put in place to encourage gender equity in decision-making processes.73

Land reform actions have been considered to exacerbate inequities. Recognizing this, former attempts at land reform in Vanuatu have been examined as mechanisms through which to increase the agency of

70AndoniaPiau-Lynch, Vanuatu: Country Gender Profile Final Report (2007) 9. 71UN Women, Vanuatu Country Profile, available at: www.asiapacific.unwomen.org/en/countries/fiji/co/vanuatu 72UN Women, Vanuatu Country Profile, available at: www.asiapacific.unwomen.org/en/countries/fiji/co/vanuatu 73UN Women, Vanuatu Country Profile, available at: www.asiapacific.unwomen.org/en/countries/fiji/co/vanuatu

women in Vanuatu.74Land grabs are commonly portrayed as foreign interests taking land from Ni- Vanuatu, which ignores the role that local power inequities (either in government or local communities) play in facilitating the land grabs75. In other words, individuals who are adept at playing middle men between foreign interests and local communities are able to influence information and decision-making to their benefit.

One particular case that exemplifies the challenges of strengthening women’s agency was the integration of inclusive decision-making into the 2013 amendments to the Land Reform Act.76The amendments to the Land Reform Act were identified as an opportunity to expand women’s agency, but it was unclear how best to do so given existing power structures and male-dominated decision-making processes. Engaging men as allies for women’s agency was found to be critical for building protection of women’s rights to land into the Land Reform Act. Furthermore, framing the issue as one of social inclusion rather than women’s rights allowed the male allies to advocate for increased agency of disadvantaged groups without losing social standing. A side-effect of this approach was that organizations traditionally aligned with the goals of the effort (i.e., women’s rights groups) were not formally included in the amendments to the Land Reform Act. While the Department of Women’s Affairs was consulted, such organizations were not at the forefront of the efforts to build in protections for women’s rights to land.

2.5. Biophysical Context

This section provides the baseline information on Vanuatu’s biophysical context. It provides overview of the terrestrial biodiversity in Vanuatu, including forest cover, natural and critical habitats, climate, natural disasters, water sources, soils and species, and threats to terrestrial biodiversity. This is followed by an overview of inland water biodiversity and threats to biodiversity, and coastal and marine biodiversity and threats to biodiversity.

a) Overview of Terrestrial Biodiversity77

The National Biodiversity Strategy Action Plan (NBSAP) of Vanuatu defines biodiversity as “the variety of life forms, the different plants, animals and micro-organisms, the genes they contain, and the ecosystems they form. It is usually considered at three levels, genetic diversity, species diversity, and ecosystem diversity.”78

According to the National Forest Inventory (1990-1993)79 around 74% of Vanuatu was covered by woody vegetation, half of which is closed forests and the remainder is discontinuous scrub and thicket. Of this, only 10% is primary forest. Forest types include tropical lowland evergreen rain forest, broad-leaved deciduous forest, closed conifer forest, montane rain forest, cloud forest and coastal forest. Other notable vegetation includes swamp forest on Efate, kauri pine strands on Erromango and scattered mangrove forests covering around 3,000 ha (most of which occur on Malekula Island).

Forest Cover

74Naupa, A. 2017. Making the invisible seen: Putting women’s rights on Vanuatu’s land reform agenda. In Kastom, Property and Ideology: Land Transformations in Melanesia. Eds., McDonnell, S., Allen, M.G., and Filer, C 75 Ibid. 76 Ibid. 77Information drawn from DEPC (Department of Environmental Protection and Conservation). No date (b). National Biodiversity Strategy and Action Plan, 2018-2030. Department of Environmental Protection and Conservation. Port Vila, Vanuatu 78 Ibid. 79Forest Data and Resource Assessment of Forestry in Vanuatu http://www.fao.org/forestry/18248-0b2552633ff6923bf49424c42a79c8740.pdf

Vanuatu’s total land area is about 12,336km2 with more than 36.1% (440,000 hectares) covered by tropical forest. By 2006, about 4,800 hectares were covered with planted forests; about 3% of the mid to high forest (about 6,000 hectares) and 0.7% of the low forest (about 1,400 hectares) are in protected areas.80 All forest lands, are on custom land, owned by indigenous clans, either individually or collectively. The government does not own any forest covered land in Vanuatu. Vanuatu forest types have been described as: (a) Lowland rainforest which includes i. Climax closed canopy high forest, found mainly on windward wetter slopes and ii. Cyclone-perpetuated two-storeyed closed-canopy high forest, such as the kauri (Agathis macrophylla) forest on Erromango; (b) Semi-deciduous forest, mainly found on leeward drier slopes, such as those forests found on Malekula; (c) Altitude-influenced forest (montane and cloud forest), found on Santo and Tanna; (d) Riverine and swamp forest; and (e) Mangroves.81

In general, lowland forest has largely been cleared and replaced by anthropogenic vegetation, but forested areas remain the dominant landscape element on most islands. High forests are restricted on most of the islands (especially those that are densely populated, such as Pentecost, Ambae, Tanna and Shepherd; or have active volcanoes, such as Ambrym). However, low montane forests are generally well preserved and occupy large areas. Secondary forests (often consisting of a Hibiscus community) are dense and extensive in Vanuatu.

The figure below shows the forest classification and other wooded vegetation types according to VANRIS 1993.82 It is important to note that this data has been re-reported to the FAO every 5 years with the same figures and will remain the current forest cover data available on Vanuatu until the second National Forestry Inventory is completed.83

80 ibid. 81 Adrien Mourgues, State of Environment Report-Vanuatu (2005) at 19 82 Forest resource Report Assesment Vanuatu Country Report, Dept of Forests 2001 83 Information provided by Department of Forestry, email correspondence dated 14 August 2020 40

Deforestation rates on the REDD+ islands have been estimated below using the ‘Hansen Global Forest Change ‘ dataset for 2000-2018. The data is available at 30 x 30 m resolution and forest loss was estimated by summing pixels for each of the five islands. This method was used due to limited government statistics and data on forest cover at the time and does not discriminate plantation forests from natural forests. 84

Table 11 Estimated deforestation from 2000–2018 for each of the five focal islands.

Loss of Forest 1990- Loss of Forest 2000- Loss of Forest Forest Cover 2000 Island 2000 2018 2000-2018 (ha)1 (ha)2 (ha)1 (%) Efate 91,234.7 302.5 1,899.7 2.08 Erromango 93,850.2 666.0 2,474.5 2.64 Espiritu Santo 406,089.0 1,114.4 1,398.9 0.34 Malekula 212,906.2 293.4 1,006.8 0.47 Tanna 50,223.0 811.6 464.8 0.93 Total 854,303 2,187.9 7,244.7 0.85

Changes in forest type and land use present throughout the five REDD+ islands of Vanuatu, can also be estimated through the recent datasets collected in the National Forestry Inventory. The maps below

84 Hansen, M.C., Potapov, P.V., Moore, R., Hancher, M., Turubanova, S.A., Tyukavina, A., et al. 2013. High-resolution global maps of 21st-century forest cover change. Science 342(6160): 850-853; Corrigan, H. 2009. Forest Data and Resource Assessment of Forestry in Vanuatu. Ministry of Agriculture, Quarantine, Forestry and Fisheries (MAQFF). 41

(figures 3-12) show the recent 2020 NFI data on forest cover, followed by the 2011 data for the same island. The 2020 maps provide data and mapping, distinguishing plantation forests from other forests, however, there are some discrepancies between the land use and land cover classifications used in the two datasets. For example, the identification of thickets on the 2011 maps, appear to be mostly identified as a forest category in the 2020 maps, suggesting increased forestation is occurring in these areas, rather than further deforestation.

Figure 2 Map of Malekula Island (Department of Forestry (Vanuatu), 2020)

Figure 3 Vegetation and Land Cover Map of Malekula (Department of Forests, 2011)

Figure 4: Map of Santo island (Department of Forestry (Vanuatu), 2020)

Figure 5 Vegetation and Land Map of Santo (Department of Forests, 2011)

Figure 6: Efate island (Department of Forestry (Vanuatu), 2020)

Figure 7 Vegetation and Land Cover Map of Efate (Department of Forests, 2011)

Figure 8 Map of Erromango island (Department of Forestry (Vanuatu), 2020)

Figure 9 Vegetation and Land Cover Map of Erromango (Department of Forests, 2011)

Figure 10 Map of Tanna island (Department of Forestry (Vanuatu), 2020)

Figure 11 Vegetation and Land Cover Map of Tanna (Department of Forests, 2011)

Natural and Critical Habitats85

Vanuatu has ratified the Convention on Biological Diversity, and passed legislation adopting the literal text of the CBD into its domestic legal framework through the Convention on Biodiversity (Ratification) Act 1993 (CBD Act). Although Vanuatu has committed to ‘protecting its ecosystems, natural habitats and viable populations of species in natural surroundings’ through this Act, there is nothing in legal framework distinguishing natural habitats from habitats or critical habitats other than the general definition of ‘habitat’ provided for in the CBD Act referring to a place where an organism or population naturally occurs. However, there is reference linking protected and endangered species to critical habitats,86 and a requirement in the CBD Act, that natural habitats are conserved to ensure certain species are protected or recover their population numbers, aligning the concept of critical habitats to the WBs definition of critical habitats.

Vanuatu’s habitats have high levels of biodiversity containing over 1,000 vascular plant species in Vanuatu of which around 150 are endemic. Important biodiversity areas are found across the archipelago making Vanuatu a biodiversity hotspot. This includes 27 key critical natural habitats in which 8 species of mammals, 10 species of birds, 5 species of reptile, 15 species of fish and 10 species of plants that are globally endangered and found within.87 The main islands for this are Ambae, Ambrym, Aneityum, Epi, Erromango, Futuna, Gaua, Malekula, Tanna, North Efate, Santo, Maewo, Pentecost and the Torres Islands. The figure and table below map the 27 key biodiversity areas and provide specifics on the total land area identified as a key biodiversity area on each island.

The major threats to biodiversity and natural habitats highlighted in the most recent ‘State of the Environment’ report include: 1) over-exploitation leading to a significant decline in the abundance and contribution of the species within their habitat and ecosystem; 2) development leading to the degradation of natural habitats and ecosystems; and 3) introduction of invasive species, such as Mile-a-Minute, American Rope, the Rhinocerous beetle and Fire Ants harming natural habitats and the biodiversity within them. 88

85Information drawn from DEPC (Department of Environmental Protection and Conservation). No date (b). National Biodiversity Strategy and Action Plan, 2018-2030. Department of Environmental Protection and Conservation. Port Vila, Vanuatu 86 Section 2(i), Environmental Protection and Conservation Act 87 Critical Ecosystem Partnership Fund, University of the South Pacific in collaboration with Conservation International University of Papua New Guinea, Ecosystem Profile: East Melanesian Islands Biodiversity Hotspots (2012) 88 Adrien Mourgues, State of Environment Report-Vanuatu (2005) at p 20, 21 53

Figure 12 Map of Key Biodiversity areas in Vanuatu (Critical Ecosystem Partnership Fund, University of the South Pacific in collaboration with Conservation International University of Papua New Guinea, Ecosystem Profile: East Melanesian Islands Biodiversity Hotspots (2012)

Table 12 Table showing codes used in figure 15 to name the islands of Vanuatu

Places and habitats of significance for conservation identified in the EU commissioned State of the Environment Report – Vanuatu, are found throughout the 5 REDD+ islands. Bat caves, mangroves, rivers and creeks are found on these islands and are identified as important habitats that are vunerable. Mangroves, rivers, seagrass beds and low-land forest ecosystems are all identified as both places that are damaged or degraded, due to human impacts, and also vulnerable. Further details on specific places and habitats are provided in the following figure, which also identifies places beyond the 5 REDD+ islands.89

89 Adrien Mourgues, State of Environment Report-Vanuatu (2005), at p 58 55

Figure 13 Places and habitats of conservation significance (Adrien Mourgues, State of Environment Report-Vanuatu (2005) at 59)

Specific plant and animal species found in each of the provinces are listed in the tables below, extracted from the Vanuatu National Biodiversity and Action Plan90 and includes marine, forest and inland water species.

Torba Province

Table 13 Plants and Animal species in Torba Province as identified in the State of the Environment Report for Vanuatu in 2005

Sanma Province Table 14: Plants and Animal species in Sanma Province as identified in the State of the Environment Report for Vanuatu in 2005

Penama Province Table 15: Plants and Animal species in Penama Province as identified in the State of the Environment Report for Vanuatu in 2005

Malampa Province

90 Vanuatu National Biodiversity and Action Plan (NSAP) 2018-2030, 2018 57

Table 16: Plants and Animal species in Malampa Province as identified in the State of the Environment Report for Vanuatu in 2005

Shefa Province Table 17:Plants and Animal species in Shefa Province as identified in the State of the Environment Report for Vanuatu in 2005

Tafea Province Table 18 Plants and Animal species in Torba Province as identified in the State of the Environment Report for Vanuatu in 2005

Climate Long-term average weather is the definition of climate used in Vanuatu.91 Vanuatu only experiences two main seasons throughout the year, beginning with hot and wet from November to April, and cool and dry from May to October. The temperature range throughout the year is fairly consistent, ranging between

91 CLIMsystems, Dr. Peter Kouwenhoven, Profile of risks from Climate Change and Geohazards in Vanuatu, (2013) at p 16 58

21oC and 27oC, and with an average rainfall that declines from over 4000 mm in the north to less than 1500 mm in the south. Tropical cyclones generally occur between September and May.92 The country usually experiences 2-3 cyclones per cyclone season.

Vanuatu’s risk and vulnerability to the impacts of climate change are evident in the annual increase in its temperature baselines, and projections of surface air temperature, and sea surface temperature continuing to increase. The potential direct impacts of climate change on forests in Vanuatu include increased fire risks, evapotranspiration, introduction of new pests, greater disease risk, loss of competitative advantages with other species, and altitudinal migration, all which also have an impact on some species of flora and fauna. The direct impacts on Vanuatu’s population include diseases related to increased temperature, and food and water security issues.93 Excessive heat from the increase in temperature can cause some species to suffer and die, soil may degrade if water is not retained because of the excessive heat. Flash flooding as result of the climatic variability may also cause some species to die. All negatively impacting tree species and the forest biodiversity.94 The need for sustainable forest management is recognised through various government policies and regulations to address the impacts of climate change. Climatic changes will effect the oceanic habitats such as mangroves and sea grasses and other ocean life.

Natural Disasters Vanuatu has a high exposure to geohazards as it is located in a seismically and volcanically active region. Its latitude also makes it prone to tropical cyclones and cycles of El Niño and La Niña, making it vulnerable to droughts and flooding.95 Common geohazards in Vanuatu include volcanic eruptions, earthquakes, landslides, floods, tsunamis and liquefaction. The direct impacts of these natural disasters on forests are high chances of forest fires with regards to volcanic eruptions. Trees may die from prolonged flooding and erosion may undermine trees on slopes. Trees may also be uprooted during cyclones. The effects of the natural disasters on biodiversity are namely causing damage to natural habitats and ecosystems, whether from cyclones, volcanic eruptions or tsunamis, and disrupt ecosystem services, such as the natural occurances that clean the reef and air.96

The direct impacts for the population include safety, water and food security issues.97 Natural disasters are inevitable in Vanuatu and therefore it is recognised that disaster management mechanisms developed in Vanuatu’s context should target changes in land use and population

Water Sources The larger islands in Vanuatu all have access to ground water and/or surface water, however, some of the smaller islands e.g. all of the Torres Group, Mataso and Buninga in the Shepherd’s Group, and some small islands adjacent to Malekula and Santo lack significant ground or surface water and are reliant on rainwater harvesting.98 However, of the 5 REDD+ islands, water sources were only identified in Santo and Efate in 2020 land use and land coverage maps above.

Population increase, particularly in urban centers, has stressed water supply at some times of the year. Loss of tree cover in watersheds in addition to poor farming practices has contributed to erosion and sedimentation. This has been recognized by the government, in particular by efforts to promote

92 Adrien Mourgues, State of Environment Report-Vanuatu (2005) at p 7 93 CLIMsystems, Dr. Peter Kouwenhoven , Profile of risks from Climate Change and Geohazards in Vanuatu, 2013, at 23-30. 94 Republic of Vanuatu, Second National Communication to United Nations Framework Convention (UNFCCC), (2014) at p 6-11. 95 Above, n 74, at p 57 96 Republic of Vanuatu, Second National Communication to United Nations Framework Convention (UNFCCC), (2014) at p 64-68 97 CLIMsystems, Dr. Peter Kouwenhoven, Profile of risks from Climate Change and Geohazards in Vanuatu, 2013, at p 31-40 98 SPC (Secretariat of the Pacific Community). 2012. Catalogue of Rivers for Pacific Islands. World Meteorological Organisation. Geneva. 150 pages

integrated water resources planning and management with an explicit focus on land-use planning in watersheds.99

Erosion in watersheds caused by forest loss reduces water quality downstream and reduces the health of marine life around river mouths. In addition, because large areas of Vanuatu’s land are affected by active volcanoes, erosion can lead to contamination with fluoride, hydrochloric acid, and sulphuric acid. This can affect both surface water quality and rainwater collection system.100

Soils Soils in Vanuatu originate either from volcanic rock or coralline limestone of uplifted reefs. A survey of the soils in Vanuatu had been done and published in 1981 has shown that Vanuatu has soils of good fertility, optimum for growing plants, due to frequent nutrient input through volcanic ash deposition.101

The survey found that 73% of the favourable land in Vanuatu is found on: Santo-Malo (31%); Efate (15%); Malekula (14%); and in Tafea Province (12%). These islands still have a large portion of this suitable land available for agricultural development. However, soil erosion is a localised problem with occurrences identified in Paama, Aneityum and Nguna (Shepherds). Soil erosion threatens biological diversity as it may damage ecosystems found within the soils and those found on the topsoils, such as plant species and invertebrates. Soil erosion may also damage aquatic ecosystems especially where water has been contaminated with acids from volcanoes.

Species Under the IUCN Red List of Endangered Species, 65 species endemic to Vanuatu have been assessed for their conservation status. Of these, 18 were found to be of conservation concern. This includes 12 bird species, one of which, the Tanna Ground Dove (Gallicolumba ferruginea) is considered extinct. Five are considered ‘vulnerable’: the Santo Mountain Starling (Aplonissanto vestris), Green Palm Lorikeet (Charmosyna palmarum), Royal Parrotfinch (Erythrura regia), Vanuatu Mountain Pigeon (Ducula bakeri) and Vanuatu Megapode (Megapodius layardi).

Of the mammals, the Banks Flying Fox (Pteropus fundutas) is ‘endangered’ and the Vanuatu Flying Fox (Pteropus anetianus) is ‘vulnerable’.

There are nine endemic reptiles of which the Anatom Emo Skink (Emoiaaneity umensis), found only on Aneityum, is endangered and the common Emo Skink (E. erronan), found only on Futuna and Aniwa, is endangered. One endemic land snail (Partula milleri) is critically endangered and P. eurania is endangered. There are 38 recorded endemic freshwater species, of which only the Lobed River Mullet (Cestraeus plicatilis) is listed on the IUCN Redlist. The rest still need to be assessed.

These endemic species are threatened with extinction by a variety of factors and invasive species are likely to be one of the most important. Rats, particularly the ship or Black Rat (Rattus rattus) which is a very good climber, are known to prey on the eggs and chicks of many birds and take lizards. They are implicated in the extinction of the Tanna ground dove. Big leaf rope (Merremia peltata) (or locally, Big Lif) and other weeds damage the forest habitats in which most of these species live, and rats and Mice (Mus musculus) eat the fruits and seeds of trees and alter the composition of the forest. Native partulid land snails have been wiped out in several countries by the Rosy Wolf-Snail (Euglandina rosea). Lizards are a favourite food of feral cats though this is not an issue for the two threatened skinks as they live up in trees, but they will

99 VNWS 2008. Vanuatu National Water Strategy 2008-2018. Department of Geology, Mines & Water Resources. Government of Vanuatu, Port Vila. 38 pages. 100 Above, n 83 101 Quantin, P., 1981, Atlas des Sols et de Quelques Données du Milieu Naturel, ORSTOM, Paris; Adrien Mourgues, State of Environment Report- Vanuatu (2005) at p 31 60

be vulnerable to rats. Yellow Crazy Ants (Anoplolepis gracilipes) have been recorded, for example, on Australia’s Christmas Island) killing crabs, lizards and nestling birds and can change the forest structure leading to declines in other native species.

Important terrestrial ecosystems occupied by a range of species can also be threatened by invasive species. For example, the Vatthe Conservation Area covers 2,720 ha of Big Bay, on the Island of Espiritu Santo and is one of Vanuatu’s biodiversity hot spot. It is the most significant area of extensive alluvial and limestone forest left in Vanuatu. It provides habitat for a diversity of wildlife, including six of Vanuatu’s endemic bird species, including the globally endangered Santa Cruz Ground Dove (Galliclumba santecrusis), three vulnerable or near threatened endemic bird species (the Vanuatu Megapode, Royal Parrotfinch, Chestnut-bellied Kingfisher (Todirampus farquahri)), three of Vanuatu’s six endemic skinks and three endemic freshwater fish. The conservation area hosts many culturally significant tabu sites for the communities nearby. The people from Matantas and Sara depend on this area for their daily activities, including tourism, bean tree seed harvesting and copra production. However, this massive primary forest is now threatened by the Big Lif vine, which is smothering and killing the native trees. This vine is seen as the number one killer of intact forest in the islands where they exist in Vanuatu. The Teouma River is also a critical ecosystem that was threatened by water hyacinth, which covered a large surface area of the river. The Water Hyacinth (Eichhornia crassipes) has been removed through biocontrol processes, however the losses that it may have caused is still to be confirmed.

b) Threats to Terrestrial Biodiversity102

Agriculture, farming and forestry impact a number of threatened plant species in Vanuatu. The forests of Vanuatu have been impacted by human activities, which have diminished and altered forest cover and biodiversity. There has been immense pressure on some timber species on the larger islands, where harvesting is concentrated. In the mid-2000s, natural forest cover in Vanuatu was estimated at 444,000 ha, equivalent to 36% of the total land area (1.22 million ha), and at least 40% of the commercial forest area was regarded as degraded.103 However, these estimates correspond to the forestry data collected during the 1989-1992 first National Forestry Inventory, which was published in 1993 reporting 444,000 ha of mid height forests and low forest areas. This data has been re-reported to the FAO every 5 years with the same figures and will remain the current forest cover data available on Vanuatu until the second National Forestry Inventory is completed.104

Most of the high value forests were over-exploited in the 1980s and 1990s, before the government imposed a ban on the export of round logs in 1998. Since the ban on large scale logging, many landowners have used their logged forest lands for alternative activities, like commercial agriculture. The following figure shows the annual log production from 1989 to 2008. Logging activities have contributed to changes in forest cover. In 1998, for instance, 92% of logs harvested were of just two species, Endospermum medullosum (Whitewood or Basswood), and Antiaris toxicaria (known in Vanuatu as Milk Tree). The results of the National Forest Inventory published in 1993 suggested that the level of harvest for sustainable yield to be 68,000 m3. However, most logging activities only involve the two mentioned species above meaning that the logging activities are not sustainable for these species (see figure below). The endangered Fijian Kauri Pine (Agathis macrophylla), also faces ongoing unsustainable logging in natural forests.

102Information drawn from DEPC (Department of Environmental Protection and Conservation). No date (b). National Biodiversity Strategy and Action Plan, 2018-2030. Department of Environmental Protection and Conservation. Port Vila, Vanuatu 103 King, P. 2007. Regional: Mainstreaming Environmental Consideration in Economic and Development Planning Processed in Selected Pacific Developing Member Countries. Technical Assistance Consultant’s Report for the Asian Development Bank 104 Information provided by Department of Forestry, email correspondence dated 14 August 2020 61

Increased activity in agriculture and livestock have also impacted on forests and biodiversity, having grown by 5.9% and 2.6% respectively. This can be contrasted with an only 0.7% growth in forestry related activities i.e. logging.

Figure 14 Annual Log Productions (Department of Forestry, 2020)

In addition to traditional forest management concerns, such as declining forest cover and imbalance between utilisation and reforestation, invasive alien species are of significant concern and several have been identified as priority species for management under Vanuatu’s National Invasive Species Strategy and Action Plan (NISSAP) 20142020. Of all invasive plants in Vanuatu, perhaps the most widely cited pest is Ecuador Laurel or Salmwood (Cordia alliodora). Introduced as a forestry tree to Vanuatu in the 1970s, this species has now become dominant and is considered a serious pest on Santo, Vanua Lava, Mota Lava, Ureparapara, Malekula, Ambae, Maewo, Pentecost, Efate, Epi and Eromango Islands. These islands are all mountainous in nature. Another invasive plant species that is common in the drier parts of certain islands, is kasis (Leucaena leucocephala), which forms dense monospecific thickets and is difficult to eradicate, rendering extensive areas unusable and inaccessible. Invasive species found across almost all the islands of Vanuatu are: the Mikania micrantham, commonly referred to as Mile-a-Minute is a climbing vine, which can be found in forests, roadside, plantations and cultivated crops, and suppresses young trees and food crops; and the Merremia peltatap also known as the Big Leaf Rope, which can be found in forests, roadsides and hillsides and is also a climbing vine that has underground tubers.105 Both these vines flourish in already disturbed forests apposed to established forests. Meaning the more human interference the greater the habitat created for this invasive species.106

Exploitation is the most significant threat faced by (or potentially faced by) Vanuatu’s threatened (Critically Endangered, Rare, Endangered or Vulnerable) species recorded in the IUCN Red List. Hunting and exploitation affect 66% of total threatened species in Vanuatu, while agriculture and invasive alien

105 Department of Environment, National State of the Environment Report 2005 106 Global Invasive species Database, www.iucngisd.org, January 2005 62

species impact 20% and 15% of threatened species in Vanuatu, respectively. Some species face multiple threats. For example, the Endangered Santa Cruz Ground Dove (Gallicolumba sanctaecrucis) is threatened by hunting and exploitation, the establishment of the invasive vine Merremia peltata in the Vatthe Conservation Area, and competition from the common native Emerald Dove (Chalcophaps indica) in degraded forest. The Pacific Sheath-tailed Bat (Emballonura semicaudata) is also impacted by the loss of native forests to agricultural and grazing land. This bat faces multiple threats including disturbance of roosting sites, pesticide use, invasive species and stochastic events.

c) Overview of Inland Water Biodiversity107

Large rivers are present on the larger islands, but the most common freshwater habitats are steep gradient mountain streams. Unique and rare habitats include freshwater lakes on several islands (including crater lakes on inactive volcanic islands) and subterranean streams in karst areas. Exploration of caves on Santo revealed four species of invertebrate that were new to science and confined exclusively to these caves. Atolls and coral islets generally have underground freshwater lenses due to the porosity of the rock.

Most islands of Vanuatu contain a dense network of seas, lakes and rivers. The larger islands are well watered by rapid mountain rivers and creeks. Other freshwater systems include low gradient lowland streams, deep pits called blue holes, some lakes and swamps/marshes on plains. Most of the 2530 lakes are crater lakes, with Lake Letas on the volcanic island of Gaua, being the largest freshwater system in the Pacific at 19 km2 in area and 350 m deep (Vanuatu National Museum and Vanuatu Environment Unit, 2004). The caldera lakes of Ambae lie at an altitude of over 1,300m and are the highest of the South Pacific. Freshwater swamps and swamp forests are generally restricted to fringing areas around lakes (Efate, Thion), in depressions on plateaux (Efate, Epi, Maewo and Gaua), in extinct volcanoes (Vanua Lava) or on floodplains (East Santo). Dasheen (taro) fields may sometime host freshwater species.

Streams and rivers in Vanuatu are highly variable in size and length and can be divided into six zones depending on altitude and water velocity: spring zone (over 800 m); higher course (450-800 m; steep); middle course (150-450 m; less than 10% slope), upper lower course (50-150 m) and lower course (less than 50 m; tidal). Understanding this typical zonation allows understanding of the distribution of freshwater species. While the majority of species are found in low velocity reaches, high velocity reaches often contain unique species adapted to this type of environment (e.g. Sicyopterusspp, Gobiidae). The estuarine zone is also an important thoroughfare for a freshwater fauna dominated by migratory species.

All freshwater fishes in the identified important biodiversity areas are amphidromous (i.e. with a marine larval stage), providing a clear linkage between freshwater and marine ecosystems. Diversity is dominated by gobies and some endemism is known in the subfamily Sicydiinae. However, these are very small fish, which are not currently utilised by local communities or represented in indigenous taxonomies. The larger but non-endemic species like eels (Anguilla spp.), Spot-tail Bass (Lutjanus fuscescens), Mullets (Mugilidae) and Grunters (Terapontidae) are utilised for food, as are neritid snails and prawns, and reduction in their populations is of direct concern to villagers. Surveys in Vanuatu indicate there may be some endemism in freshwater crustacea. The intense utilisation of freshwater species for protein in some areas is having an impact on freshwater ecosystems but there is little to no research in this area.

Freshwater fish biodiversity can be highly localised and even small lake or stream systems may harbour unique locally evolved forms of life. The numbers of different species in any given freshwater habitat can

107Information drawn from DEPC (Department of Environmental Protection and Conservation). No date (b). National Biodiversity Strategy and Action Plan, 2018-2030. Department of Environmental Protection and Conservation. Port Vila, Vanuatu 63

be high even if the population numbers of the individual species are low. Generally speaking, the fauna of riverine systems has been better studied than other systems. The number of endemic species is greater in older islands that have retained a good natural vegetation cover and where flows have not been altered. Of the 96 known crustacean and fish species (29 decapod crustaceans and 67 fish), 5 are endemic to Vanuatu and 7 to both Vanuatu and New Caledonia.

d) Threats to Inland Water Biodiversity108

The major threats to freshwater ecosystems in Vanuatu are from human activities, including poor land use practices; catchment alteration primarily for irrigation, weirs or hydropower dams; pollution from urban areas; and invasion of exotic species such as water lily Water Hyacinths (Eichhornia crassipes), Guppy (Poecilia reticulata), Mosquitofish (Gambusia affinis) and Tilapia (Sarotherodon occidentalis).

Poor agricultural practices often result in loss of riparian habitat, erosion of soil and increased turbidity which may disrupt feeding success of fishes. Forest clearance and land reclamation may affect river flows and water temperature in some catchments. Higher course species in particular, require good vegetation cover to survive. Dams or weirs reduce or block flow in others to the extent that lower reaches of waterways can no longer support aquatic life and migratory species such as eels and amphidromous species lose their migratory paths and cannot complete their life cycles.

Pollutants from increased agricultural practices may be washed into the water during rainfall events and affect the chemical and biophysical characteristics of the water, making the habitat non-conducive to aquatic life. Other threats to freshwaters include overfishing. For example, during the Santo expedition in 2006 it was observed that some villages were relying on freshwater fish for food because of the scarcity of marine resources. The aquarium trade is another threat to freshwater fish, especially colourful species.109

Vanuatu is particularly exposed to cyclones and hydrological changes resulting from climate change could be significant in some of the catchments. Conservation initiatives have included freshwater surveys by the Department of Environmental Protection and Conservation (DEPC) and the requirement for an assessment of impacts on freshwater ecosystems as part of development projects and to implement good practice have also considered options for optimising conservation of freshwater habitats in Santo.

e) Overview of Marine and Coastal Biodiversity110

Vanuatu’s marine and coastal biodiversity contributes to generating goods and services that people value. These values total over VT4.5 billion. The values include, not surprisingly, tourism and tuna. The net value of tourism in 2013 was approximately VT850 million. The value of tuna to Vanuatu, mainly from access fees, was about VT160 million in 2013. The benefits of Vanuatu’s tuna to the world is billions of Vatu/year. More surprising is how coastal habitats are valued in terms of what they contribute to subsistence fishers (about VT580 million), small-scale inshore commercial fishers (VT290 million), coastal protection (VT1.6 billion) and carbon sequestration (VT760 million).

108Information drawn from DEPC (Department of Environmental Protection and Conservation). No date (b). National Biodiversity Strategy and Action Plan, 2018-2030. Department of Environmental Protection and Conservation. Port Vila, Vanuatu 109 Keith, P., Marquet, G., Lord, C., Kalfatak, D. and Vigneux, E. (2010). Vanuatu Freshwater Fish and Crustaceans. Société Française d’ichtyologie (SFI) 110Information drawn from DEPC (Department of Environmental Protection and Conservation). No date (b). National Biodiversity Strategy and Action Plan, 2018-2030. Department of Environmental Protection and Conservation. Port Vila, Vanuatu 64

Vanuatu has a range of marine habitats and species, from inshore coral reefs to deep water seamounts and canyons that generate these values, and some are described in more detail here. Vanuatu’s coral reefs are categorised as either fringing, barrier or atoll reefs. Within each of these categories there are patch reefs, where the coral reef forms patches within a matrix of sand or seagrass. Coral species generally have wide geographic ranges in the Indo-Pacific region, but many are listed as globally threatened due to reef damage and bleaching and will suffer additional impacts from sea temperature and pH changes associated with climate change. Reefs support a variety of molluscs, crustaceans and fishes, which in turn provide the main source of protein for people living in coastal villages. Coral reefs are also the habitat for most of the threatened coastal fishes of the region, such as Humphead Wrasse (Cheilinusundulatus), Green Bumphead Parrotfish (Bolbometopon muricatum) and Hump-backed Rock Cod (Cromilepte saltivelis). White sand beaches adjacent to coral reefs are important nesting sites for Green Turtle (Chelonia mydas) and Hawksbill Turtle (Eretmochelys imbricata).

Seagrass beds occur in soft-bottom areas and, like coral reefs, require clear water (low turbidity) away from sediment plumes of large rivers. Seagrass beds are the habitat of Dugong (Dugong dugon), which reaches the eastern limits of its distribution in Vanuatu.

Results of aerial and postal surveys conducted at least 17 years ago (in 1987) indicated that dugongs occur in small groups (single or pairs of animals) throughout the sheltered waters of Vanuatu. The 2005 State of the Environment Report for Vanuatu more recently reported that dugongs are still found throughout Vanuatu, mostly in seagrass habitats that are sheltered from the prevailing southeast trade winds.111 The Amal Crab bay in Malekula is home to the dugongs, turtles and few terrestrial mammals as it has suitable feeding and roosting grounds.112 Tame dugong are known to reside in Lamen Bay (Epi Island) and Tanna Bay (Tanna Island). Dugongs are protected in Vanuatu under the Fisheries Act 2014, which prohibits the capture of marine mammals in Vanuatu’s international waters. Dugongs were formerly hunted but their numbers are so low now that there are few contemporary records of hunting. A recent initiative being implemented by the Vanuatu Environmental Science Society (VESS) involves mapping the distribution of dugong and their seagrass habitat, which will help to identify priority areas of conservation and raise awareness in moving the dugong conservation forward.

Mangroves (as seen in above figure 4, 6, 8, 10 & 12) are a marine habitat and widely recognised as an important nursery for juvenile fish. They also provide coastal buffering against tropical cyclones and other extreme weather events. As with terrestrial forests, mangroves and seagrass meadows remove and store carbon from the atmosphere. Other ecosystem services include tourism, wood extraction and bioremediation and sediment trapping. In 2009, the Mangrove Ecosystems for Climate Change Adaptation and Livelihoods (MESCAL) project conducted an economic valuation of nine ecosystem services in Crab Bay, Malekula and Eratap on Efate Island. The study found that in 2012, 136.5 ha of mangroves in Crab Bay produced ecosystem services worth US$586,000, while in Eratap, 31.2 has produced ecosystem services worth US$266,000.

There are no specific maps detailing mangroves. Maps of the two islands with mangroves mentioned above, namely Malekula and Efate, are above in Figures 4 and 8 respectively. The mangroves in Crab Bay is situated on the central eastern coastline of Malekula. Crab Bay consist of extensive reefs and sea grass beds. It is also abundant with crabs, and hence aptly named. The bay is also home to diverse invertebrate species and fin fishes and has suitable feeding and roosting grounds for various endangered species such as turtles, dugongs and few terrestrial mammals.

111 Adrien Morgues, State of Environment Report (Vanuatu) 2005 112 United Nations Development Programme. 2012. Amal - Crab Bay Community Resource Management Initiative, Vanuatu. Equator Initiative Case Study Series. New York, NY. 65

Rocky shorelines occur along the coasts of islands of recent volcanic origin, or where rapid uplift or steep drop-offs preclude the development of coral reefs. The intertidal zones are frequented by people collecting gastropods for food. River mouths and sandy beaches often form small lagoons, which are important spawning sites for amphidromous fish. The river mouths themselves are important for larval/juvenile fish exchange between marine and freshwater ecosystems, and thus are favourite sites for fishing during “whitebait” runs, with people targeting both the larval fish themselves and the large predatory fish chasing them, such as trevallies. Intertidal zones on coral reef flats, mangrove mudflats, rocky shores and river mouths are important habitats for migratory waders (families Charadriidae and Scolopacidae), which migrate from breeding grounds mostly in Siberia but also in Alaska, and include species such as the Bristle-thighed Curlew (Numenius taitensis). Most species recorded from the hotspot are passage migrants in route to or from “wintering” (i.e. northern hemisphere winter) grounds in New Zealand but a few are regular winter visitors, which remain in the islands through the non-breeding season, and, in some cases, the first few years of life. These include Whimbrel (Numenius phaeopus), Ruddy Turnstone (Arenaria interpres), common Sandpiper (Actitis hypoleucos) and Pacific Golden Plover (Pluvialis fulva).

f) Threats to Marine and Coastal Biodiversity113

While the oceans offer great potential in terms of sustainable economic development, they are also under increasing pressure from many uses and impacts. Changes in the marine environment resulting from human activities are occurring faster than previously anticipated, affecting, especially, vulnerable marine ecosystems such as coral reefs. Major threats to the marine ecology of Vanuatu include: impacts associated with climate change including rising ocean temperatures, increasing ocean acidity, sea level rise,, coastal and offshore developments (e.g. from Deep Sea Mining, shipping) and the destruction of marine ecosystems such as coral reefs and mangroves; unsustainable and destructive fisheries practices; pollution from land-based and offshore sources including from ships and damage from shipwrecks; conflicting uses and the increasing intensity of cyclones and other storm events, as recently experienced.

Many stretches of coastline, notably some important tourism areas within Vanuatu, have experienced dramatic rates of coastal erosion with considerable economic costs to owners and the nation. Nevertheless, significant areas remain relatively pristine and are targeted for tourism and other development.

2.6. Life Supporting Ecosystem Services

Forests in Vanuatu provide a wide range of products that support direct subsistence and the incomes of the Vanuatu population supporting livelihoods. Timber, largely from secondary forests, is used for house construction throughout the islands114 and non-timber forest products (NTFPs) such as nuts and oils, forest cash crops, handicraft NTFPs, non-timber building materials (primarily thatch), and firewood115 all contribute to livelihoods.

113Information drawn from DEPC (Department of Environmental Protection and Conservation). No date (b). National Biodiversity Strategy and Action Plan, 2018-2030. Department of Environmental Protection and Conservation. Port Vila, Vanuatu 114 SPC (Secretariat of the Pacific Community). 2012. Catalogue of Rivers for Pacific Islands. World Meteorological Organisation. Geneva. 150 pages. 115Amanda R. Bourne Andrew E. McKechnie Susan J. Cunningham Amanda R. Ridley Stephan M. Woodborne William H. Karasov, 2019, Non‐ invasive measurement of metabolic rates in wild, free‐living birds using doubly labelled water

More specific to life supporting ecosystem services, is the quality, quantity, and reliability of the water supply in which forests play an important role in maintaining.116 As mentioned above, the larger islands all have access to ground water and/or to surface water; however, some of the smaller islands–e.g. all of the Torres Group, Mataso and Buninga in the Shepherd’s Group, and some small islands adjacent to Malekula and to Santo lack significant ground or surface water and are reliant on rainwater harvesting.117 Population increase, particularly in urban centres, has stressed water supply at sometimes of the year.118 Loss of tree cover in watersheds in addition to unsustainable farming practices has contributed to erosion and sedimentation. Increased infrastructure creates more surface runoff which contributes to erosion and greater variability of stream flow. The latter is because the rain water is not infiltrating into the soil which in turn leads to lower stream flows during drier months.119 This has been recognized by the government, in particular by efforts to promote integrated water resources planning and management with an explicit focus on land-use planning in watersheds120 and is thus a key issue to consider in the design and implementation of a REDD+ strategy in Vanuatu.

Erosion in watersheds caused by forest loss reduces water quality downstream as well as reduces the health of marine life around river mouths. This impacts seagrasses and corals neither of which cope well with increased sediment loads. Corals with additional stressors of bleaching due to increased ocean temperatures and increased ocean acidity can’t cope. This in turn leads to reduced shoreline protection if the coral is impacted and can’t cope with the multiple stressors.121 In addition, because large areas of Vanuatu’s land are affected by active volcanoes, erosion can lead to contamination with fluoride, hydrochloric acid, and sulphuric acid. This can affect both surface water quality and rainwater collection systems.122

With no forest cover over the streams, evaporation would increase from not only the stream, but from the riparian areas bordering it. Loss of forest cover also increases erosion rates and leads to reduced moderation in water flows–i.e. the same volume of annual discharge in a water course, in the absence of forest cover, will tend towards floods and dry spells instead of more moderated constant flows.123 In Vanuatu, this process has important implications for water supply for human consumption as well as for the rates of erosion and sedimentation in that periods of flood accelerate erosion. The current extent of erosion and sedimentation in Vanuatu is difficult to assess because of data limitation; an assessment in SOPAC124 concluded that at the time of that publication, there was no data for Vanuatu on the impact of forest loss on sedimentation and other watershed impacts.

Coastal fisheries are important to the livelihoods of many of Vanuatu’s population. These fisheries are threatened by coastal development and specifically the increased erosion, sedimentation, and

116 VNWS 2008. Vanuatu National Water Strategy 2008-2018. Department of Geology, Mines & Water Resources. Government of Vanuatu, Port Vila. 38 pages 117 SPC (Secretariat of the Pacific Community). 2012. Catalogue of Rivers for Pacific Islands. World Meteorological Organisation. Geneva. 150 pages. 118 VNWS 2008. Vanuatu National Water Strategy 2008-2018. Department of Geology, Mines & Water Resources. Government of Vanuatu, Port Vila. 38 pages 119 Surface Runoff and the water cycle, USGS 120 VNWS 2008. Vanuatu National Water Strategy 2008-2018. Department of Geology, Mines & Water Resources. Government of Vanuatu, Port Vila. 38 pages 121Surface Runoff and the water cycle, USGS 122 VNWS 2008. Vanuatu National Water Strategy 2008-2018. Department of Geology, Mines & Water Resources. Government of Vanuatu, Port Vila. 38 pages 123 IPBES (Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services). 2019. Summary for policymakers of the global assessment report on biodiversity and ecosystem services of the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services. S. Díaz, J. Settele, E. S. Brondízio E.S., et al. (eds.). IPBES secretariat, Bonn, Germany. 56 pages. 124 SOPAC (Pacific Islands Applied Geoscience Commission). 2007. National integrated water resource management diagnostic report: Vanuatu. GEF, UNDP, and UNEP. 72 pages.

pollution.125 Inland forest cover provides important protection against erosion and sedimentation, thus providing protection to fishing-based livelihoods.126 Mangrove forests are critically important in that they act to trap sediment and thus further mitigate some of the impacts of development. Mangroves are important nursery areas for invertebrates, reef and ocean fish.127

Perhaps one of the most important regulating services provided by Mangrove ecosystems in Vanuatu is that of protection against the effect of cyclones to both population and ecosystems. Vanuatu has been identified as the country in the world that is most vulnerable to disasters.128The area of ocean where Vanuatu is situated sees the development of an average of 16 tropical storms with hurricane-force winds every year.129The presence of established mangroves along a coastline greatly reduces the impact of storms on coastal communities with mangroves able reduce the effect of storm-induced waves up to six metres high.130An assessment of the economic impact of mangroves on coastal protection considered a mangrove forest that extended for 500m from the shoreline to provide “high” protection from storm damages.131That assessment provided a case study of the ecosystem services of mangroves in two study areas–one Crab Bay on Malekula and the other Eratap on Efate–and found that in Eratap, the coastal protection value was the most important local economic value of mangroves, eclipsing even the beneficial impact of mangroves on the local subsistence fishery. The estimated value of coastal protection of mangroves–more than $47,000 USD–was about 28% of the total local value of the mangroves while mangrove tourism was 27% and impact on subsistence fishery was 22%. This value is very site-specific, however, and depends on local shoreline exposure. The role in mangroves in a REDD+ Strategy in Vanuatu, and with this the ecosystem services provided by mangrove ecosystems as a result of REDD+ implementation, will however depend on the extent to which these ecosystems are included or not in the definition of forests that the country ultimately choses to apply for REDD+ purposes.

2.7. Institutional and Legal Framework

This section provides a description of the institutions and framework it works within, relevant laws and regulations and key points relating to the institutions capacity for implementing the REDD+ SOs. These key points are summarised from the findings of the legal and institutional assessment.132 While most of the institutions below were consulted in stakeholder interviews throughout the preparation of the SESA, key institutions such as the Department of Environment, the Department of Climate Change and the Ministry of Justice and Community Services were unavailable for multiple requests from the REDD+ Unit for meetings. Information on these institutions are based on desk research and information shared from other stakeholders relevant to these institutions.

The primary aspects of Vanuatu’s legal framework are the Vanuatu Constitution and the National Sustainable Development Policy (NSDP) also commonly referred to as the ‘Peoples’ Plan. The Constitution is the supreme law of Vanuatu and therefore all laws, regulations, or government actions must be consistent with the articles of the Constitution. The NSDP guides the work of the Government allocating

125 SOPAC (Pacific Islands Applied Geoscience Commission). 2007. National integrated water resource management diagnostic report: Vanuatu. GEF, UNDP, and UNEP. 72 pages. 126 VNWS 2008. Vanuatu National Water Strategy 2008-2018. Department of Geology, Mines & Water Resources. Government of Vanuatu, Port Vila. 38 pages. 127 Economic Valuation of Mangrove Ecpsystems, Vanuatu, 2014, INCN, Nicolas Pascal, Molu Bulu 128 UN. 2015. World Risk Report 2015 UNU-EHS. www.WorldRiskReport.org. 129 Pascal, N. and Bulu, M. 2014. Economic valuation of mangrove ecosystem services in Vanuatu: Case study of Crab Bay (Malekula Is.) and Eratap (Efate Is.). International Union for Conservation of Nature (IUCN) – MESCAL Project. Geneva. 130 pages. 130 Ibid. 131 Ibid. 132 Report on the legal and institutional framework of Vanuatu, undertaken under this assignment.

activities between the Ministries and their departments. Policies at the ministry or department level are also supposed to align with the NSDP.

REDD+ falls under the ‘environment’ pillar of the NSDP and the following policy objectives specifically refer to REDD+:  Environment 4A – A nation which utilises and sustainably manages our land, water and natural resources133  Environment 5A – A nation committed to ensuring the conservation and sustainable management of our biodiversity and ecosystems134

International conventions that have been ratified by Vanuatu are incorporated into the domestic legal framework only if an enacting piece of legislation is passed by Parliament. Those that do not have a corresponding domestic Act are do not legally binding.

REDD+ Unit and Forestry The REDD+ Unit operates as a project unit within the Department of Forestry (DoF), which sits under the Ministry of Agriculture, Livestock, Forestry, Fisheries and Biosecurity (MALFFB). The REDD+ Unit operates on external funding from the FCPF, and prior to accessing the FCPF the German Ministry of Environment, and the Secretariat of the Pacific Community.

Relevant laws and regulations implemented under the DoF include: - Forestry Act [Cap 276] providing for the protection, development and sustainable management of forests and regulation of the forestry industry in Vanuatu. - Forestry Act [2019] replaces Cap 276 and in addition to the objectives in the old Forestry Act, is intended to strengthen sector collaboration and update the institutional framework, streamline operational regulations and improve the regulation of domestic markets. - Regulations made under the Forestry Act: . Code of Logging Practice (Order 1998) . Control of Mobile Sawmills (Order 1996) . Sandalwood Harvesting Season (Order 2013) . Maximum Annual Quantity for Harvesting Sandalwood (Order 2006) . Management and Control of Sandalwood Trade and Exports (2008) . Sandalwood Harvesting Season (Order 2014) - Planted Forests Act 2018 [repealing the Timber Rights and Registration Act) this Act was largely driven in response to REDD+ and provides for the registration of planted forests, regulation of harvesting of planted forests and carbon rights.

Gaps in the legal framework The Forestry Act is in a state of transition, with the new Forestry Act of 2019 only being gazetted in May 2020 . There are plans for national awareness to be carried out on the new act, but they are yet to commence. The Planted Forests Act was initially passed by Parliament in 2015, but only gazetted in 2018, and does not address many of the issues under the previous act in relation to carbon rights that were identified in the 2012 Study on REDD+ Forest Carbon Rights in Vanuatu.135 There are no implementation plans or activities for this transition in relation to these two Acts.

133 Activities 4.1, 4.2, 4.3, 4.5, 4.6, 4.7 134 Activities 5.2, 5.3, 5.4, 5.5, 5.6 135 Jennifer Corrin, SPC/GIZ Regional REDD+ Project, REDD+ and forest carbon rights in Vanuatu: Background Legal Analysis, November 2012 69

The regulation of logging, a major contributor to deforestation in Vanuatu, is provided for in the Code of Logging Practice under the Forestry Act, however, training and enforcement of the Code in not widely implemented. The Planted Forests Act provides for harvesting code to be created, but this is yet to happen and there is limited awareness of the Act being in force. Without a current land use planning policy being in place, there are few limitations to where these activities can take place, subject to consent from the customary land owners. REDD+ SO1 policy focused activities could strengthen sustainable forestry management in this regard. However, important to note for any land use planning initiatives are the different standards for forestry harvesting between these two Acts. The definitions of ‘forests’ vs ‘planted forests’ between the two Acts provide an opportunity for similar, if not the same, forestry harvesting to be carried out under the Planted Forests Act without needing to comply with the same harvesting standards set out under the Forestry Act. This may lead to the conversion of natural forests into ‘planted forests’ and potentially further deforestation.

Carbon rights are only addressed in the Planted Forests Act, which as mentioned above is yet to be implemented. The legislation creates a separate property right in carbon, that can be decoupled from the land. It provides for the sharing of benefits arising from carbon rights, subject to the agreement of the customary land owners. The details of the benefit sharing mechanisms for its implementation are yet to be determined. Although there are ‘Access and Benefit Sharing Protocols’ referred to in the Biodiversity Strategy and Action Plan, these have not been made available to date for analysis.

The findings of the legal analysis carried out on ‘REDD+ and forest carbon rights in Vanuatu’ indicate that there is no framework for customary land owners to exercise their forest carbon rights, unless their land is registered as a planted forest.136 This creates significant legal gaps for any plans of the Vanuatu Government trading carbon stocks in Vanuatu, without agreements in place with the customary owners, the large majority of which are not formally registered owners of the land (see land tenure overview in Section 1(2) above). The government would otherwise be trading carbon stocks that it does not have legal rights to, which may constitute unjust deprivation of property, infringing on the constitutional rights of customary land owners.

Forest Protected Areas are provided for under the Forestry Act, which provides a mechanisms for expanding Vanuatu’s protected areas (REDD+ SO4), however, it is one of the many mechanisms that currently exist for declaring areas as protected or conservation areas under Vanuatu law. These mechanisms exist across five pieces of legislation, each referring to different government departments for their implementation and with different levels of protection. Only the creation of Community Conservation Areas under the Environmental Conservation and Protection Act is currently being actively promoted and implemented under the Department of Environment. DoF are also prioritising CCAs over Forest Protected Areas, given their limited capacity to ensure enforcement of Forest Protected Areas and the additional protection provided under CCAs in comparison. The mechanisms under the National Parks Act and the Preservation of Sites and Artefacts Act, are potentially unconstitutional given that they do not require consent from the customary land owners, unless the government acquires the land first under the Land Acquisition Act.

There are conflicts and inconsistencies between the policy objectives for the productive sector under MALFFB and sustainable forestry. Many of the activities being pursued under the policies having been identified as drivers of deforestation and there is no active land use planning policy to effectively manage the competing interests between these sectors. Agriculture and agroforestry (REDD+ SO3) fall under the productive sector, and increased activity in this sector, without adequate land use planning to underpin the promotion of these activities and ensure they are not taking place in natural forests, may result in

136 see above.

further deforestation. Particularly given the ‘lack of incentives for local people to sustainably manage forests due to non-existent benefit sharing mechanisms’.137

Institutional capacity The DoF is limited in its capacity to effectively implement and enforce these laws and regulations largely due to budget constraints. It has the smallest budget allocation under MALFFB and fewest number of staff, impacting on the capacity of DoF to fulfil its mandate. Although additional funding is available to the DoF through MALFFB, this funding is allocated on a competitive tender basis against the other departments under the Ministry. The tender process is involved and the DoF have limited capacity to tender due to staffing constraints. Additionally, the DoF has limited competitive advantage against the other departments given their proposed activities are not revenue generating activities or focusing on directly economic development – one of the selection criteria. To date, successful DoF tenders have been limited to national awareness campaigns for International Forestry Day, amounting to approximately USD35,000 in 2019.138

The REDD+ Unit and the DoF’s constraints on human resources is also due to the limited pool of applicants for vacant positions with adequate experience and skills for the roles. Scholarships and training programmes are part of the DoF’s corporate plan; however, the impacts of this investment are yet to benefit the DoF. There is currently only one full-time local staff member in the National REDD+ Office, the Communications Officer. However, a REDD+ Network has been established and are active, subject to funding, on each of the five priority islands under REDD.

The MALFBB also has a new initiative under the Primary Producers Authority Act, passed by Parliament in 2018, intended to establish a network of primary producers whose interests in matters critical to the ‘development and advancement of Vanuatu’s primary producers’, including forestry, which are represented through associated forums, by area, and can also register their primary product groups with the Authority. There is potential for this institution to influence the direction of forestry, land use and planning. The Authority was established in early 2020 and is yet to implement the creation of the networks.

Environment and Biodiversity The institutions responsible for environment and biodiversity are as follows: - The Department of Environment (DoE) operates under the Ministry of Climate Change Adaptation, Meteorology, Geo-Hazards, Environment, Energy and Disaster Management (MCC) and is the main department responsible for environmental matters, including biodiversity. - The Department of Biosecurity operates under MALFFB, and is responsible for biosecurity. - The Department of Forestry has the mandate to declare endangered plant species protected species under the Forestry Act. -

Relevant laws and regulations include: - Environmental Protection and Conservation Act (EPC Act), which sets out the requirements for environmental assessments, the registration of community conservation areas and their management …. - Convention on Biological Diversity, Convention on Biological Diversity Ratification Act (CBD Act) supported by the Biodiversity Strategy and Action Plan

137 Unique, Analytical Studies Report 138Information provided by the Acting Director of the Department of Forestry, 20 March 2020 71

- International Trade (Flora and Fauna) Act, supported by the National Invasive Species Strategy and Action Plan - Plant Protection Act, also supported by the National Invasive Species Strategy and Action Plan - Forestry Act, supported by the Forestry Policy - Acts with mechanisms to declare protected areas: National Park Act, Forestry Act 2019, EPC Act, Land Leases (Amendment) Act, Fisheries Act and Preservation of Sites and Artefacts Act.

Gaps in the legal framework The EPC Act and CBD Act generally regulate the protection and conservation of the environment and biodiversity in accordance with standards set under international conventions ratified.139 The EPC Act makes it a requirement that evaluations of social, human health, custom, climatic, economic and ecological considerations and issues when developing national environmental policies. The Act also sets out the criteria and procedures for carrying out environmental impact assessments, which is then required under multiple other laws in Vanuatu.140 However, EIAs are only triggered by large scale projects, particularly if foreign investors are involved. Conversion of forests to plantations or agriculture on customary land is largely unregulated.

Supplementing EIAs are sector specific protective mechanisms such as the protection of plant species and Forest Protected Areas under the Forestry Act, which have the effect of prohibiting logging, and other acts referred to above that provide mechanisms to declare protected areas, provided consent is given by the custom owners or the land is acquired for a public purpose by the Government.

These protective and conservation mechanisms are limited in their impact when viewed within the larger framework including land tenure. There are no public forests in Vanuatu. They are owned by custom owners and cannot be dealt with without their consent. While the Forestry Policy states that you cannot clear forests to plant forests, there are no other mechanisms prohibiting the conversion of natural forests, which is left to the discretion of the custom owners. Even CCAs registered under the EPC Act can be deregistered if the landowners request this in writing. The only requirement that the Minister consult the landowner and other interested parties before making a determination. There is no guidance as to whether all of the landowners must agree if collectively owned or who would constitute interested parties.

The mapping of biological diversity is under the responsibility of the DoE, in collaboration with the DoF, which is provided for under the National Biodiversity Strategy and Action Plan, which refers to carrying out marine, terrestrial and inland water biodiversity rapid assessments, inventories and threat identification, gap analyses and prioritisation. A National State of the Environment Report (NSER) is also required under the Act. The DoE has yet to carry out any SNERs and it is not known if biodiversity rapid assessments, inventories or threat identification, gap analysis and prioritisation are required to be carried out for its purposes. A State of Environment Report was carried out by the EU in 2005, however, this is not officially endorsed by the Vanuatu Government.141 The National Forestry Inventory is currently underway as one of the REDD+ project activities under Vanuatu REDD+ Readiness Phase, but yet to be completed.

The Plant Protection Act also gives powers to the Minister of MALFFB to make orders restricting, prohibiting, placing conditions or other controls of any plant materials, goods, pests or conveyances, for

139 CBD (1992), CITES (1989) 140See for example the Quarry Act, Foreshore Development Act, Vanuatu Investment Regulation and Promotion Act and the Forestry Act 141 Adrien Mourgues, State of Environment Report (Vanuatu) 2005 (EU) 72

the purposes of managing plant pests. However, it also allows the Ministers responsible to determine the outcome of inconsistencies arising between it and Vanuatu’s international obligations under the International Trade (Flora and Fauna) Act, and the Convention on Biological Diversity. In the case of the International Trade (Flora and Fauna) Act, there are also powers for the Minister of Environment to make regulations protecting the import and export of certain species of flora and fauna, however, these are expressly stated to be in addition to any other laws in Vanuatu, not in derogation.142 Duplication also exists between the provisions in the Plant Protection Act, International Trade (Flora and Fauna) Act, and possibly the EPC Act and Quarantine Act.

Institutional Capacity Officers in both the DoF and Department of Environment have also advised that the two departments are working together to strengthen forest protection though registered community conservation areas under the EPC Act. However, there is limited progress towards the establishment of formal protected areas because of limitations of conventional protected area approaches in the context of customary land ownership and resource tenure and limited government capacity, and also in part due to conflicting land uses, especially logging in lowlands and mining in highlands.143

There are also requirements for management plans and sustainable use of forests in CCAs under the EPC Act, which fall under the responsibility of the CCA management committee. However, no financial support is provided by the government to assist communities in the registration process, training and ongoing management of the conservation areas. When viewed in context, for communities and customary land owners to engage in the registration of CCAs, it requires that they firstly decide to dedicate their customary land to environmental conservation thereby limiting the land’s economic potential for their own livelihoods, then establish a management committee, which in rural areas may have limited skills and capacity to carry out these functions, and finally find the financial support for the committee manage the CCA for example through the creation of eco-tourism activities, which are yet to prove viable in most of the currently registered CCAs.

Climate Change The Department of Climate Change (DoCC) also operates under the MCC. It is the department responsible for activities relating to climate change mitigation and is intended to support programmes, projects, research, education and other committees and bodies with anything relating to climate change or climate change science, including the National Disaster Management Office in relation to disaster risk reduction the Meteorology, Geological Hazards and Climate Change Act 2016. It is also responsible for maintaining a database on climate change adaptation and risk reduction strategy, including locations, effectiveness and lessons learned.144

A National Advisory Board on Climate Change and Disaster Risk Reduction (NAB) has been established to act as an advisory board on all climate change projects, initiatives and activities. Projects relating to climate change reduction, including REDD+ must be endorsed by the NAB before proceedings and may be subject to requirements set by the NAB. It is the designated national authority for the UNFCCC and any other international convention relating to climate change that Vanuatu has ratified. It also has the mandate to provide technical advice to the Council of Ministers on matters relating to climate change, assist other departments and agencies implement international obligations, provide training, establish financing mechanisms, ‘examine and consider’ existing or proposed policies, and endorse or draft reports and publications relevant to climate change reduction.145

142 Sections 2, 3, 4 and 15, International Trade (Flora and Fauna) Act and its regulations. 143 4.0 Measures in place to address threats to biodiversity: Biodiversity Strategy and Action Plan 2018-2030 144 Sections 23 and 24, Meteorology, Geological Hazards and Climate Change Act 2016 145 Sections 9, 10, 26 and 27, Meteorology, Geological Hazards and Climate Change Act 2016 73

Institutional Capacity One of the institutional strengths of the DoCC is its experienced project team, which could be harnessed to support the DoCC more specifically in its adaptation and mitigation functions. Some institutional and capacity gaps exist in the legislative, policy and operational level. For example, at the legislative level, the current legal framework, i.e. the Meteorology, Geological Hazards and Climate Change Act 2016, provides the framework for not only climate change, but also meteorology and geological hazards as the name suggests, which results in the functions and powers of both the DoCC and the NAB in relation to climate change being of general nature with limited specific focus on climate change adaptation and mitigation leadership. A separate and more focused piece of standalone legislation may address this.

At the policy level, gaps exist in the drive for implementing existing policies and develop new policies, strategies or plans relevant to adaption and mitigation. This is couple with gaps at the operational level in relation to resource constraints in terms of budget, the infancy of the DoCC and new staff developing the skills and experience to effectively fill these gaps.

Disaster Management The National Disaster Management Office (NDMO) sits under the MCC and is the institution responsible for disaster management related issues. It also has overall responsibility for the National Policy on Climate Change and Disaster Induced Displacement (NPCCDID). While the NPCCDID is intended to guide the government with addressing displacement and resettlement as a result of climate change, disaster and any development project, there is currently no legal framework to operationalise the policy.

Land Use and Management The Department of Lands (DoL) operates under the Ministry of Lands and Natural Resources, and is responsible for the registration of land leases, acquiring land for public purposes and to an extent, land use planning. In 2013 significant changes were made to the legal framework around land in Vanuatu, which sought to address long standing historical misuse of Ministerial powers to register land leases over customary land. However, these laws are currently under review by the current government and may be repealed or amended at the conclusion of the review.

The changes under current legal framework aimed to strengthen the mechanisms for free, prior and informed consent of indigenous land owners in land dealings on customary land as reflected in the following laws: - Vanuatu Constitution: Section 73 states that land belongs to custom owners, in fact all land in Vanuatu belongs to indigenous custom owners. Section 74 states as well that the rules of custom forms the basis of ownership and use of land in Vanuatu 9. - Land Leases Act provides for the creation and disposition of leases of land, for their registration and for other relevant matters. - Land Reform Act deals with alienated land or land that has be occupied by an alienator, being a person that has been living on land before the day of independence and not registered, leased or entered into some agreement with the traditional land owners. - Land Acquisition Act outlines the requirements for the Government of Vanuatu to acquire land for lease purposes. - Customary Lands Management Act (replacing the Customary Lands Tribunal Act) provides the mechanisms for resolving customary land disputes and determining ownership of customary land.

The Customary Lands Management Office (CLMO), sits under the Ministry of Justice and Community Services is the institution established under the Customary Lands Management Act (CLM Act) and also

relevant to land use in that they are the main institution responsible for recording customary land ownership and outcomes of customary land disputes. To date, only nine customary land disputes have been resolved by the CLMO, which is largely due to the complex procedures required to resolve disputes under the CLM Act as well as limited ongoing support provided to the CLMO, customary authorities and customary groups, tasked with implementing the new laws.

Key to implementation of the changes to the land laws was the implementation of the ‘Malvatumauri Road Map Resolutions’, launched by the Malvatumauri National Council of Chiefs in 2011. These resolutions identified priority issues to strengthen custom governance, including land related issues such as: - Identifying customary land boundaries (Res. 1) - Undertaking land use planning and zoning for customary land (Res. 3) - Promoting and strengthening custom ways of managing and maintaining resources on custom land (Res. 4) - Ensuring land leasing processes are approved by the relevant custom authority (Res.7) - Secure and protect custom landmarks and historical sites (Res. 12) - Also included in the resolutions were changes to land laws that were implemented in the 2013 land law reforms (see Res. 7, 8, 11, 13, 18, 19)

However, the Malvatumauri operates on a limited budget, which leaves limited to no resources for providing support at the local level for these activities to be carried out and monitored.

At the local level, Chiefs have a significant role in allocating land use within their community and resolving issues relating to land use, amongst other issues. In general, the Chiefs have more presence, and are responsible for resolving more disputes, in the rural areas of Vanuatu than the government institutions. They are more accessible to communities, often more economical and carry out their functions and decision-making under custom rules or laws that vary from custom area to custom area (roughly following the 113 language groups). It is important to note, the role and authority of the chief in land use issues is not harmonious across Vanuatu due to the variance in kastom across the country. The chiefly domain being almost exclusively patriarchal. Women often have a limited, if any, role in decision-making under custom, particular relating to land-use given that land ownership is predominately passed through patrilineal lines.146

The Provincial Planning Act is also relevant to land use and management, and is administered under the Department of Local Authorities, which sits under the Ministry of Internal Affairs. This Act is supported by the Vanuatu Land Use Planning and Zoning Policy, which provides some guidance on protections that the Government has committed to in relation to addressing negative impacts from land use changes and development, including a requirement for consultation, mechanisms to assess and minimise damage and compensation for land use changes. However, it must be noted that this policy is out of date and was not widely implemented during when current.

Women’s Affairs The Department of Women’s Affairs sits under the Ministry of Justice and Community Services, and is responsible for implementing the National Gender Equality Policy.

Relevant laws include: - Vanuatu Constitution Art. 5 prohibiting discrimination on the basis of sex - Convention on the Elimination of All Forms of Discrimination Against Women Ratification Act (CEDAW Act)

146ViranMolisaTrief and Heidi Tydemers, Conflict Management and Access to Justice in Rural Vanuatu, DFAT 2016 75

- Optional Protocol to the Convention on the Elimination of all Forms of Discrimination against Women (CEDAW) (Ratification) Act

The National Gender Equality Policy 2015-2019 has been directing the work of the Department of Women’s Affairs and is currently under review. It is the only policy specifically address gender equity or women’s empowerment, with a strong focus on gender mainstreaming in government processes. Under the policy, all government institutions must nominate at least one qualified woman for each vacancy on a government committee, task force, working group or other official body. While it does include strategic areas focusing on enhancing women’s economic empowerment and promoting women’s leadership and equal political participation, success in these areas has been limited, particularly in relation to equal political participation – there were no women elected to the national parliament in the 2020 elections.

The new policy is expected to be launched in 2020. The current draft continues to focus on the same 4 strategy areas but adds two additional strategy areas, one of which focuses on gender and humanitarian response, which incorporates aspects of displacement and resettlement.

Other initiatives more specific to REDD+ activities include the Biodiversity Strategy and Action Plan, which underpins gender mainstreaming and equality into all NBSAP related policies, strategies, actions and project stages, and a Gender and Climate Change Adaptation in Vanuatu Report (however, a copy is not available online nor available from the Department of Women’s Affairs).

The Forestry Act, Planted Forests Act and the EPC Act have no specific references to gender equity or women’s empowerment, however, the Forestry Policy does include objectives to develop awareness programs and income generating programs for women, and consider gender balance and equality in all forest operations and activities, which may assist in addressing some of the economic livelihood challenges faced by women in this sector, particularly in regards to access to land and natural resources.

The most significant challenge within the legal framework in implementing of the REDD+ SOs in relation to gender discrimination are the processes for identifying customary land owners. For example, the Customary Lands Management Act requires that all land disputes are resolved in accordance with the custom laws of that area. Custom land tenure is predominately patrilineal in Vanuatu. Although there have been cases successfully challenging discrimination on the basis of sex, relying on both constitution protections against discrimination on the basis of sex, and CEDAW,147 these cases were determined under the previous land laws. There are no specific anti-discrimination provisions under the current Customary Lands Management Act, therefore decisions made in accordance with custom would potentially be inconsistent with Vanuatu’s international obligations under CEDAW. The Forestry Act and the Planted Forests Act both contain processes for granting licences or certificates of ownership over resources on customary land, which is determined by the custom law. The process of determining who has ownership to grant access to these resources is not in accordance with the Customary Lands Management Act. However, they still refer to ownership being determined by custom, which in most areas of Vanuatu, would be discriminatory against either women, or men, depending on whether the land is passed through patrilineal or matrilineal inheritance.148

Institutional Capacity The Department of Women’s Affairs (DWA) has established cross-sectoral relationships with the Departments of Agriculture and Fisheries (amongst others), both of which have been involved in review the new policy and programs run by the DWA at both the national and provincial levels. However, there

147 See Noel v Toto (VUSC) 1995; Gongi v Kalwatsin (2015) and Lapenmal v Awop (VUSC) 2016 148 See A. Naupa and J. Simo, ―‗Hu i Kakae Long Basket‘ Matrilineal Land Tenure in Vanuatu, Case Studies of Raga and Mele‖ (Suva, Fiji: Pacific Islands Forum Secretariat, 2008). 76

is otherwise limited engagement from the productive sector, and no engagement from the Department of Forestry.

Capacity issues within the DWA also include a lack of funding – while there is considerable funding from external donors for the DWA to run programs that address violence against women and economic empowerment, the operational budget is limited. While the DWA has provincial officers in each province (subject to one current vacancy) that are fully engaged with implementation of the National Gender Equality Policy and the DWA programs at the local level, there is insufficient operational budget to provide the officers with an office to work from.

Human resources are also limited – the DWA currently operates with a total of 13 officers and faces challenges in finding experienced and qualified staff to fill vacancies efficiently. One vacancy for an economic empowerment officer took five years to fill.

Social Welfare Social welfare assistance or programs are limited in Vanuatu. There is no public sector cash social assistance or in-kind social assistance, or funding provided to NGOs or agencies for social welfare assistance.

There have been a few government programs addressing specific areas of social welfare, such as the Home Island Passage Allowance; scholarship allowance, administered by the scholarship office under the MOE, family assistance support program, administered under the Ministry of Justice and Community Services; and disaster assistance, administrated by the NDMO. Assistance for the elderly is also available, however, employers and employees are required to make monthly contributions to the Vanuatu National Provident Fund, which provides lumpsum payment of these contributions on retirement or earlier in the event of death, medical incapacity or permanent emigration.149

The legal framework also provides for paid maternity leave (12 weeks at 66% pay) and workers compensation, both of which are the responsibility of the employer.150

The following table summarizes the institutional roles and capacity gaps.

Institution Functions in relation to REDD+ Institutional Capacity Strategy Gaps REDD+ Unit A Project Unit under the Department - Budget constraints of Forestry established specifically to - Dependent on external lead the development and funding implementation of the REDD+ project - Limitations on human in Vanuatu. resources both in numbers and expertise Department of Forestry Department under MALFFB – lead - Limited institution for Forestry, with a implementation and primary focus on regulating logging enforcement of activities and forestry extension relevant laws and services. Protected Forest Areas can regulations

149 Hannington Alatoa, Republic of Vanuatu: Updating and Improving the Social Protection Index, Republic of Korea e-Asia and Knowledge Partnership Fund, ADB, 2012 150 Employment Act; Workmen’s Compensation Act 77

be declared by the Director of - Complex legal Forestry. framework with some inconsistencies - Conflicting and competing objectives with other departments under MALFFB - Budget constraints - Limitations on human resources both in numbers and expertise Department of Environment Department under MCC – lead - Gaps in the institution responsible for the implementation and environment and biodiversity, enforcement of EIA including conservation and the requirements for registration of community conversion of forests conservation areas. on customary land particularly for agricultural purposes. - Protection and conservation area mechanisms are duplicated in other Acts - Limited implementation of biodiversity mapping - Limited support provided by Dept for CCA management - Limited progress in registering CCAs Department of Biosecurity Department under the MALFFB – - Limited capacity to lead institution responsible for develop regulations biosecurity, including and standards, and enforcement Department of Climate Change Department under MCC – - Legal framework responsible for climate change provides general mitigation and adaptation. functions and powers Responsible for overseeing only international obligations under the - Limited UNFCCC and other climate change implementation of related conventions ratified by existing policies or Vanuatu are fulfilled. development or new policies - Resource constraints – budget, experienced human resources

dedicated to climate change National Advisory Board Advisory Body for all climate change - Low attendance by projects, initiatives and activities, Board members including REDD+ - Not all functions being Projects must be reviewed and fulfilled, e.g. limited endorsed by NAB before proceeding. advisory functions, National Designation Authority for focus on endorsement UNFCCC National Disaster Management Office under the MCC with overall - No current legal Office responsibility for displacement and framework to resettlement. operationalise displacement and resettlement policy Department of Lands Department under the Ministry of - Limited capacity to Lands and Natural Resources – implement National responsible for the registration of Land Use Planning and leases, state acquisition of land for Zoning Policy or review public purposes and some land use policy planning. Customary Lands Management Office under the Ministry of Justice - Process for resolving Office and Community Services – customary land responsible for recording customary disputes complex land ownership and facilitating the resulting in very few process for the resolution of resolutions customary land disputes. - Limited support provided to implementing bodies (nasaras, nakamals and chiefs) to effectively implement - Legal framework for this office under review by current Government Malvatumauri National Council National institution for chiefs under - Budget constraints of Chiefs the Ministry of Justice and - Lack of expertise to Community Services, responsible for fulfil legislative review implementing the Malvatumauri function Road Map Resolutions, which identify key issues in relation to customary land management. Also constitutionally require to be consulted on any new laws or amendments relating to land or custom. Department of Local Authorities Department under the Ministry of - Budget constraints Internal Affairs responsible for - Limitations to national coordination of provincial implementation and governments and area councils, enforcement of policies and guidelines

including provincial planning through the provincial governments. Provincial planning requires consideration of land use changes, resettlement and displacement issues, following consultations with local communities. Department of Women’s Affairs Department under the Ministry of - Budget constraints Justice and Community Services - Limitations in responsible for implementing and addressing issues that fulfilling obligations under CEDAW, relate to customary pursuing gender equity and women’s land, due to laws empowerment, with strong focus of enabling discrimination gender mainstreaming in against women government processes, which extend - No capacity/legal to REDD+ project. expertise to implement Has recently developed policy recommendations that strategies to address gender issues in require law reform humanitarian responses, - HR capacity limitations displacement and resettlement. – limited locally available expertise National Park Board and Has powers to declare areas of land - Powers have not been Minister of MCC as National Parks used to date and potentially unconstitutional Vanuatu Cultural Centre Has functions to determine sites that - Protection and need to be protected or preserved for conservation area artefacts and cultural reasons mechanisms are duplicated in other Acts

III. Drivers of Deforestation and Forest Degradation

This section presents a summary of the drivers of deforestation and forest degradation. These are the following and examined below:

The direct drivers of deforestation and forest degradation are: a) Agriculture (subsistence, commercial and semi-commercial) b) Forestry (formal logging and informal logging) c) Invasive species d) Natural disasters e) Infrastructure development f) Tourism g) Settlements

The indirect drivers are: a) Population growth and land availability b) Economic growth c) Technological d) Governance e) Market influences

A qualitative understanding of the direct and indirect drivers of deforestation was undertaken as part of a set of Analytical Studies,151 which identified ten primary drivers of deforestation, the agents involved, the islands where each played an important role in forest change, and the underlying causes of each. These drivers are summarised in Table 10 and presented in detail below.

Table 19 The ten most important direct drivers of deforestation on the five REDD+ islands and their underlying causes as compiled from Carodenuto et al. 2017. Drivers are organized by sectors.

Driver Driver of Primary agents Islands where Underlying causes (indirect category deforestation involved identified drivers) (direct) Agriculture Commercial Investors, growers’ Santo, Local and international agriculture associations, mid- Malekula, market demand; high (copra, coffee) sized landholders Tanna commodity prices Agriculture Livestock Investors Efate, Santo Local and international demand for high quality beef Agriculture Semi-commercial Smallholders Efate, Santo, Need for cash income, agriculture Malekula, particularly for education; (coffee, peanuts, Tanna market demand kava)

151Carodenuto, S., Schwartz, B., Andre, G., Kampai, J., Nelson, A., McDonnell, S., Weaver, S. 2017. Analytical Studies for Reducing Emissions from Deforestation and Forest Degradation (REDD+). Unique LLC on behalf of Vanuatu Department of Forests. Port Vila, Vanuatu.

Driver Driver of Primary agents Islands where Underlying causes (indirect category deforestation involved identified drivers) (direct) Agriculture Subsistence Smallholders All five REDD+ Population movements; agriculture islands population increase; slash and burn farming techniques; land degradation Forestry Commercial Smallholders; Chinese Malekula International demand; poor logging buyers compliance / enforcement Forestry Small-scale Smallholders; All five REDD+ Market demand and logging exporters islands incentives; population movements; population growth Forestry Fuel wood Smallholders Santo, Population growth; market consumption Malekula, incentives Tanna Infrastructure Tourism Investors; hotels and Santo, Tanna Market demand; road development development, resorts expansion; economic growth particularly coastal forest clearing Infrastructure Settlements Smallholders Tanna Population movements development

Invasive Merremiapeltata Smallholders and Santo, Production techniques; species (suppression of commercial Malekula, climate change impact on regrowth agriculturalists Erromango forest resources following forest disturbance)

3.1. Direct Drivers of Deforestation and Forest Degradation

a) Agriculture

For the purpose of understanding the drivers linked to agriculture, these are presented in relation to subsistence, semi-commercial land commercial agriculture. It is important to note that there is not always a clear distinction between subsistence and semi-commercial (i.e. cash cropping). Many crops are grown for household consumption and when excess is produced, this is sold at local markets.

Subsistence agriculture

Subsistence agriculture is composed of smallholder farmers growing crops mainly for their household consumption. These agriculture systems have few cash crops like kava, cocoa or coffee. The majority of food produced is consumed by the farmers and their families themselves. The traditional economy places

great importance on meeting subsistence needs for achieving food security while encouraging trade and economic activity at the individual and household level within reciprocal networks of exchange and obligation at the community level.

These production systems are highly diverse, and crops may include island cabbage, cassava, taro, papaya, banana, and sweet potato. For the purposes of this study, we assume that the type of subsistence agriculture causing deforestation or forest degradation is that which does not integrate tree planting (e.g. sandalwood, fruit trees, etc.).

More than eighty percent of Ni-Vanuatu are smallholder agriculturalists who work plots of land as a family unit. Communities with access to markets produce surplus crops for sale while the majority of rural people grow crops for subsistence needs. As traditional food crops are increasingly substituted or combined with cash crops, the need for farmland increases.

(Semi-)commercial agriculture

Vanuatu’s traditional agriculture systems are increasingly being replaced by a cash economy, which often requires high-input mono-culture cultivated systems. These semi-commercial systems divert from traditional planting methods which in many cases result in soil degradation leading to deforestation pressure on forest areas (ibid.). This semi commercial system most often takes place on Ni-Vanuatu owned land under customary land tenure arrangements with semi-formal usufruct rights as opposed to commercial agriculture which operates through formal leasing arrangements and often involves foreign investment.

The main crops for semi-commercial agriculture are kava, livestock, coconut, coffee (Tanna), cocoa (Malekula), and other food crops that are produced on a commercial scale. Although the land under cultivation is expanding in line with the Government’s priority to develop the country’s productive sectors, it is unclear whether all types of agriculture result in deforestation because the national forest definition is broad, e.g. including coconut palms. In most cases, therefore, the crop expansion results in forest degradation.

In Vanuatu, cash cropping for both domestic and international markets plays an important role for rural smallholders to remain on customary land while meeting rising costs such as school and medical fees, mobile phones and inter-island transport.

Commercial agriculture

With its lush terrestrial ecosystems, Vanuatu has one of the most conducive environments in the world for raising beef cattle. Commercial cattle ranching is extensive, with livestock grazing on large areas (usually fenced pastures) and limited or no fodder production. Much of Vanuatu’s cattle ranching is grown on mixed pastures with coconut. Many small holder ranchers allow cattle to roam freely in forest areas, leading to forest degradation. Interviews with commercial cattle famers on Efate suggest there is limited room for increasing productivity while maintaining the grass-fed (and possibly non-certified organic) production system for which Vanuatu is known.

Exact figures of cattle in Vanuatu is unknown. However, estimates suggest Vanuatu’s national cattle herd is approximately 145,000, of which an estimated 68,000 are owned by large-scale commercial cattle ranchers.

In terms of scale, cattle farming for beef production is characterized by two main groups of agents:  Smallholder cattle ranchers owning less than 100 head of cattle, with land use system productivity estimated at one head per hectare.  Large-scale commercial cattle ranchers owning more than 100 head of cattle, with improved pasture management reaching 2 heads per hectare carrying capacity.

Commercial cattle ranching is often comprised of a mixed system, with cattle integrated in coconut plantations that produce copra. The high demand for copra and beef is likely to cause expansion of these commercial activities. With Government-supported restocking of coconuts, farmers are already clearing new plantations. In many cases, existing plantations are unproductive as the coconut palms had been planted many decades ago.

b) Forestry

Formal logging

Commercial forestry was a major driver of forest degradation in the past. However, the trend in annual log volumes harvested from the natural forests for the entire country increased and decreased very rapidly between 1983 and 2010. This is likely due to a large volume of Callophyllumneoebudicum that was harvestedonErromango Island for export. The last logging peak in 2005 was the harvesting of Whitewoodon Pentecost Island. The volume harvested after 2005 was mainly processed in portablesawmills, with log volumes continuing to decrease due to the reduced supply of merchantabletimber in natural stands. The diminishing volume of native forest timber has been replaced by imported pine from New Zealand and Fiji, and processed wood products including rubberwood furniture from Asia.

Informal logging

Small-scale loggers usually have a mobile sawmill and either cut trees on their own land or are commissioned by land owners to cut their trees. Small-scale logging happens on forest land as well as in agroforestry plots. The wood is sold locally. Most sawmillers cut roughly 2 logs of DBH 70cm per sawmill per day on about 3 to 4 days a week when there are no mechanical problems, processing roughly 30m2 of mixed wood per month. The forest area affected is estimated at roughly 5 ha per month.

Small-scale loggers harvest wood in different types of forests. Wherever they see harvestable trees on their own land or wherever they are commissioned to harvest wood on other land, they use mobile sawmills (or chainsaws) to harvest the trees. There is limited active tree planting, as perceive natural regeneration as sufficient. Further, small-scale loggers explained that the logging tax is used by the government to plant new trees that compensate for the logged ones. However, when the forest restoration process is left unmanaged, invasive vines slow down or overgrow the natural regeneration so that the forest is left degraded.

Fuelwood and charcoal

Biomass sources in Vanuatu are 50% mixed fuelwood (5% moisture content) and 50% coconut residues (air dry – 0% moisture content). These types of biomass are locally available to the rural population at no, or very low cost. Biomass-based charcoal is also used but no data is available on quantities. With an annual increase between 3% and 4%, the required volume of fuelwood and coconut residues being burnt aligns with the assumptions used for population and GDP growth, estimated at 3.1% and 3.6% respectively.

In 2004, the Secretariat of the Pacific Regional Environment Programme (SPREP) estimated that biomass provides over 50% of gross national energy production. About 106 kilotons of fuelwood were estimated to be consumed per annum for cooking, as 95% of the rural population and 47% of the urban population cook with biomass fuel. It is worth noting that cooking with biomass in Vanuatu is predominantly via open fire cooking and other inefficient cooking methods. In addition, a large portion of biomass is used for drying purposes in agriculture with copra as one of the main commodities. The International Renewable Energy Agency (IRENA) estimated that in 2012 around 43,600 tons of fuelwood is burned each year for cooking and crop drying.

c) Invasive Species

The largest risk to intact forests is the aggressively growing vine, Merremia peltata, known as big lifrop or just big lif in Vanuatu152 (Figure 5). M. peltata is believed to have been introduced to Vanuatu around the time of World War II. Once established, M. peltata presents a widespread management challenge in disturbed and degraded areas as it smothers, and eventually kills, natural vegetation153. While some local land managers value M. peltata for its soil stabilization ability as well as forage for cattle, it can quickly become unmanageable and difficult to eradicate, taking over large plots of land. While cattle may be effective in limiting the expanse of M. peltata, cattle also degrade edge forest conditions and may create the conditions in which M. peltata is able to establish.

Management of M. peltata is currently labour intensive, primarily through cutting back emerging Merremia vines with machetes. It is believed that cover crops may be effective in limiting the expansion of M. peltata, and projects such as the Loru Forest Carbon project have had success in using agroforestry to recreate canopy cover and discourage the establishment of M. peltata. While just one project, the Loru Forest Carbon project currently has a land management practice of clearing areas of M. peltata (~1 ha), planting agroforestry trees and crops, and allowing the area to naturally regenerate after canopy closure of the agroforestry canopy. While the Loru Forest Carbon project has had notable success in managing M. peltata, the vine is considered the dominant killer of natural forests on those islands in which it exists.

152 Day, M.D., and Bule, S. 2016. The status of weed biological control in Vanuatu. NeoBiota 30: 151-166. 153 Taylor, S., and Kumar, L. 2016. Will climate change impact the potential distribution of a native vine (Merremiapeltata) which is behaving invasively in the Pacific region? Ecology and Evolution 6(3): 742-754

Figure 15 Merremiapeltata, known as big lif, growing over a stand of secondary forest on Espiritu Santo

Other notable invasive tree species include Cordia alliodora and Leucaena leucocephala154. C. alliodora was introduced from South America (Ecuador laurel or “salmwood”) as a timber tree in the 1970s. No market exists for C. alliodora and it is well-suited for the climatic conditions of Vanuatu, causing it to expand into natural forests faster than it is being harvested. L. leucocephala was similarly introduced from South America but was brought for its nitrogen fixing properties and as potential forage for cattle. However, the tree has been known to establish in dense monospecific stands that are hard to eradicate. Among the primary concerns with L. leucocephala is the loss of potentially usable land due to the difficulty of removing it.

The Department of Environmental Protection and Conservation of Vanuatu has developed a National Invasive Species Strategy and Action Plan (NISSAP), 2014-2020 for managing the impacts of invasive species on the nation’s endemic flora and fauna. Among the actions proposed are the education of local communities on invasive species as well as appropriate actions for their management. Given the significant risk to endemic species and ecosystems in Vanuatu, any capacity development actions associated with REDD+ would do well to include education on the impacts and appropriate courses of

154Bakeo, R., and Qarani, F. No date. Country report on the forestry invasive species situation in Vanuatu. http://www.fao.org/3/ae944e0a.htm. Food and Agriculture Organisation. Rome.

action for managing invasive species155. Furthermore, data on the extent and scale of impacts from invasive species is currently limited. Efforts such as the ongoing National Forest Inventory will be key for providing a more accurate depiction of the situation, as medium to high resolution remote sensing products are incapable of providing such information.

d) Natural Disasters

Vanuatu is the most at risk country in the world according to the World Risk Report 2016, which measures likelihood of catastrophic natural event and the country’s capacity to respond and cope to the event. Low-income individuals and those depending on subsistence livelihoods suffer in post-disaster periods due to reduced incomes and food sources. The impact on subsistence farming, in which women feature prominently in the division of labour, means that the ability of women to generate income to provide food, nutrition, and other basic needs for their families is significantly decreased. Given rural households rely on their natural environments for food and income, the destruction of these goods makes these households even more vulnerable.

Cyclone disturbance has been followed by drought and unpredictable rainfall events which have further degraded forest resources reducing the resilience of the people and ecosystems on affected islands. The impact of natural disasters on forest cover in Vanuatu is exacerbated by anthropogenic, forest degrading activities.

e) Infrastructure Development

Tourism

Tourism is a priority sector in Vanuatu. Various forms of niche tourism activities such as agritourist and ecotourism have been advocated to integrate conservation and development goals in rural areas of Vanuatu. Vanuatu promotes the idea of a green island paradise. However, most tourism has caused significant mangrove deforestation. Further, the concentration of tourism infrastructure in the capitals, as with other South Pacific countries, has resulted in non-inclusive development and increased economic inequalities, reliance on imported foods, dispossession of land, contributing to a potential disruption to the social fabric of many Pacific Islands.

Vanuatu’s Department of Tourism and key national stakeholders are actively seeking to improve the social and environmental impacts of tourism in the country through the development of Minimum Standards, rural education and training and through the promotion of ecotourism. Tourism is seen as a less significant driver nationally than the productive sectors.

Settlements

The movements of internal migrant populations to the main islands of Efate and Santo is placing significant pressure on forest resources on these islands. Increasing populations on these islands greatly increases land area needed for subsistence agriculture, resulting in new settlements impinging on forest areas. Low

155 DEPC (Department of Environmental Protection and Conservation). No date (b). National Biodiversity Strategy and Action Plan, 2018-2030. Department of Environmental Protection and Conservation. Port Vila, Vanuatu

employment and low housing density in urban centres cannot cater for the current influx of migrants to these centres.

3.2. Indirect Drivers of Deforestation and Forest Degradation

a) Population growth and limited land availability

Vanuatu is a country with generally low population density–about 22 people per square kilometre based on the most recent mini-census of 2016.156 However, density varies greatly among islands and among the land administered by different area councils. Combining data from the most recent 2016 census with spatial data on Vanuatu administrative divisions indicates that urban areas of Port Vila, Luganville, and their adjacent areas (e.g. Erakor and Pango on Efate) have very high densities relative to most of the country (Table 20). However, even within rural areas, there is very great variation from higher-density rural areas such as Middle Bush Tanna (73.7 people per square kilometre in 2016), North Efate (33.0 persons/km2), and North East Malekula (38.9 persons/km2) and low-density rural areas such as North West Santo (3.3 persons/km2) and South Erromango (1.7 persons/km2).

Table 20:Population and population density in 2016 by area council on the five REDD+ islands.

Island Area Council Population Area (km2) Density 2016 2016 (people / km2) Port Vila 50944 28 1846.5 Erakor 8918 114 78.3 Eratap 6640 78 84.9 Mele 4711 72 65.2 Efate Eton 3518 342 10.3 North Efate 2987 90 33.0 Malorua 2759 257 10.7 Pango 2326 7 324.0 Luganville 15865 26 614.2 South Santo 8120 442 18.4 South East Santo 5641 274 20.6 Santo North Santo 4615 1070 4.3 East Santo 4463 651 6.9 West Santo 2930 924 3.2 North West Santo 1554 478 3.3 North East Malekula 7150 184 38.9 Central Malekula 6115 393 15.5 North West Malekula 5407 360 15.0 Malekula South East Malekula 4942 291 17.0 South Malekula 3879 248 15.6 South West Malekula 3488 705 4.9 West Tanna 8545 107 79.5 Tanna Middle Bush Tanna 5994 81 73.7

156VNSO (Vanuatu National Statistics Office). 2016. Post-TC Pam National Mini Census. https://vnso.gov.vu/index.php/mini-census-2016. Vanuatu National Statistics Office, Ministry of Finance and Economic Management. Port Vila, Vanuatu

Island Area Council Population Area (km2) Density 2016 2016 (people / km2) South West Tanna 5593 147 38.0 North Tanna 4165 108 38.4 South Tanna 1250 27 46.2 North Erromango 1466 586 2.5 Erromango South Erromango 618 374 1.7

The population of Vanuatu has been growing steadily in the past decades and is on track to continue to increase, as noted in the 2.1% increase per year in the years between the 2009 and 2016 censuses. These rates varied greatly among islands (Table 21). On the five study islands, population increase between 2009 and 2016 ranged from highs of 35.3% (4.4% annualized) on Malekula and 26% (3.4% annual) on Efate to lower rates of 9.1% (1.2% annual) on Santo and 6.4% (0.9% annual). Tanna was the one island of the five that actually saw population decrease (of 11.3% or 1.7% annually) between 2009 and 2016. Growth rates at the level of Area Councils are not available because the 2009 census did not report population levels for each council.

Table 21 Population change 2009-2016 and population density on the five REDD+ islands.

Island Area Population Population Population Population Density 2016 Density (km2) 2009 2016 change 2009- change (people / 2009 2016 annualized km2) (people / (%) km2) Efate 989 65734 82803 26.0% 3.4% 83.7 66.5 Santo 2659 39601 43188 9.1% 1.2% 16.2 14.9 Malekula 3580 22902 30981 35.3% 4.4% 8.7 6.4 Tanna 950 28799 25547 -11.3% -1.7% 26.9 30.3 Erromango 1720 1959 2084 6.4% 0.9% 1.2 1.1

It impacts all agents as an increasing population (through high fertility rates rather than international migration) places increasing demands on food security and the need for smallholders to generate incomes to support their families. Domestic migration to urban centres is increasing rapidly as smallholders move to urban centres such as Port Vila, Luganville and Lenakel looking for employment and better access to markets and services. While the majority of Ni-Vanuatu live in rural areas and are reliant on local systems of food production, growing numbers of rural smallholders are leaving their farms for urban migration due to increasing needs for income generation as well as access to health and education services. This places pressure on urban centres to house and feed these populations and has a high impact on forest stocks on those islands and nearby offshore islands. This impact is already being felt on Efate and Santo. It is likely to increase on Efate, Tanna and Santo but remain business as usual on Erromango and Malekula.

The relationship between population density and sustainability of land management is complex and it would not be appropriate to infer that higher-density areas are necessarily less sustainable. Higher densities do introduce additional challenges, as mentioned above with a potential requirement for shorter rotations in shifting cultivation systems. In addition, as will be discussed below, more land availability per person can make practices such as agroforestry more feasible to establishment. However, there are some cases where low population density itself may lead to problems in land management, especially in the case of preventing illegal or unsustainable extractive activities. As an example, one key informant from Luganville pointed out that illegal logging had taken place in North West Santo that had remained

undetected for most of a year in large part because the area was so remote and there was little human presence to detect it.

b) Economic

Economic growth is focused in urban centres and the majority of the population in rural areas derive their livelihoods outside of the cash economy. The move towards semi-commercial agriculture by smallholders is increasingly impacting forest resources. Despite a reliance on imported foods, subsistence farming still plays an important role for many smallholders, especially on offshore and outer islands where access to goods and services are limited. As access to tinned foods and rice improve, smallholders increasingly seek to generate cash crops rather than grow food for consumption. This further reinforces the trend of smallholders to adopt semi-commercial agriculture.

Semi-commercial agriculture is an increasingly viable source of income in Vanuatu. Domestic and increasing access to international markets for beef, kava, coffee and cocoa as well as other novel crops such as cannarium nut and tamarind are providing attractive opportunities for economic development through semi-commercial agriculture.

Access to markets are available for beef and copra farmers on Malekula, Efate and Santo which drives a lot of the commercial agriculture on those islands. Copra farmers respond very much to market price indicators despite the fact that establishing new plantations move at a far slower pace than market fluctuations.

Although beef exports have increased in recent years, there remain many capacities hindering such growth. Cattle production is limited by poor transport, a lack of credit for rural farmers, and limited government extension programs. Processing for export is hindered by high quality standards and freight costs compounded by the relatively small-scale level of processing throughout.

If markets for coffee and cocoa continue to develop, semi-commercial agriculture will become increasingly attractive. Rapid expansion of coffee plantations in Tanna are an example of the growth in this industry. Interestingly, smallholders do not necessarily have plans to expand their plantations, but rather want to farm just as much as is needed to cover the costs of education and health care for their families. Some farmers are reported to not even complete harvesting their plantations because they have already earned enough cash that year.

Given a relatively small market for local timber and lack of price competitiveness, wood harvesting is not expected to increase greatly in the future. The need to generate income for smallholders will continue to drive forest degradation.

c) Technological

Generally speaking, improvements in technology in agriculture move the sector further towards sustainability and away from deforestation and forest degradation thereby having a low negative impact on forests. Climate-resilient agriculture and improved feed technologies are all ways to intensify agricultural systems reducing pressure for forest clearing.

One exception to this is in the coffee industry where significant support is provided to growers through the provision of seedlings, machinery and training. In this sector, though, there is a sustainable focus such as through World Vision’s program, Agriculture Development for Tanna Economic Growth which targets farmers from South to South West Tanna supporting farmers to replant existing coffee plantations. The provision of saw mills and chainsaws to islands such as Tanna after Cyclone Pam are examples where technology has negatively impacted forest resources although it is hoped that lessons from the humanitarian response to Cyclone Pam will help to mitigate such issues in future.

d) Governance: Competing management mandates & coordination of governance

Section 2.7 above details the instititutional and legal framework relevant to REDD+ in general, identifying institutional and legal gaps. This section provides an overview of these gaps more specific to the underlying causes of deforestation and forest degradation. Governance in this context is understood as weak policy implementation, poor coordination, poor law enforcement, and lacking participation of rural communities in the decision-making process that affects forest and their land.

Within a managed landscape, multiple government bodies will typically hold partial responsibility for its governance, and each government body will have specific mandates or targets that may or may not align. For example, in a landscape matrix of agricultural and forested areas, competing targets for expanding the production of a particular crop (e.g., Ministry of Agriculture) and conserving forests (e.g., Department of Environmental Protection and Conservation) may exist. Without coordinated land use planning that engages both government agencies, the specific targets will likely be in competition with one another. These competing targets can be a significant and major challenge for conservation and therefore a key issue to consider in in the REDD+ process in Vanuatu as will play a key role in its effective implementation.

Notably, the NFP identifies a number of issues and constraints affecting the forest sector, which relate to this indirect driver. The main relevant issues and constraints are the following: · out of date legislation; · weakness of the institutional component; and · inadequate funding and management of protected areas.

The Forestry Act and Planted Forests Act does not refer to any EIA requirements. Although the EPC Act requires EIAs for any projects likely to cause environmental, social or custom impact, this broad approach to triggering EIAs is not replicated in the VIPA Act, Forestry Regulations and Code of Logging Practice. The trigger for EIAs under the VIPA Act are left to the discretion of VIPA Officers when assessing applications, whereas the forestry EIA requirements are limited to large logging activities, which would be inconsistent with the EPC Act.

The Code of Logging Practice covers similar processes to the EIA, however, the relationship with the EPC Act is unclear and changes to Code are not subject to the same level of parliamentary scrutiny as legislative amendments, although they do go through a Council of Ministers approval process. Sawmill logging does not trigger the Code of Logging Practice, or the EPC Act EIA processes unless over 5,000m3 are being harvested and reported.157

157Interview with Department of Forestry, 18 October 2019

The National Advisory Board is limited to its mandate of climate change and disaster risk reduction. Wider forestry related practices are not included in its mandate. The NAB meets regularly, however, in practice there is limited multi-sectoral input into policy development at these meetings and policy making remains very sectoral.158 The REDD+ Technical Committee does not play an active role in forestry management either. Their mandate is limited to REDD+ activities, approving consultancies, project admin and management.159

It is clear that coordination across agencies responsible for land governance is a necessary precondition for a successful REDD+ strategy, or any sustainable land management, in Vanuatu. Mechanisms that require coordination across agencies (e.g., requiring awarded licenses to provide harvesting plans with clear spatial information, and having the DEPC review the licenses before they are awarded) are an important step for mitigating future conflicts in competing land uses, and will be essential for the successful implementation of REDD+ strategy options as the one on land use planning. Key informants interviewed emphasized the need for improved cross-sectoral coordination and law enforcement as a condition for successful REDD+ implementation when pointing out cases in which foreign logging companies had been permitted to log in legally established community conservation areas that were registered with the government. Another example underscored by key informants and participants in community-based workshops is the need to improve coordinated sharing of data relevant to REDD+ across governmental institutions.

Poor law enforcement is explained by the remoteness/isolation of many islands, where Government presence is hindered by the high costs of travel. The Government does not generate the revenue to be able to have a presence in all areas. Some Provinces do not have adequate Government representation (for example through DOF) let alone individual islands. This often results in unsustainable use of forest and other natural resources. In many cases, communities are unaware of the laws.

With regard to communication participation in forest governance, Vanuatu is highly decentralised and travel/communication through many parts of the country is expensive. Additionally, the highly diverse local customary governance systems continue to determine much of what happens in rural areas, with low levels of involvement from Government in customary decision making.

e) Market Influences

High prices and effective markets raise the profitability of less sustainable land-use practices like cattle raising and extensive kava production. On the other side, several of the species that are most commonly discussed as playing a role expanded agroforestry systems have limited markets or are limited by transport and processing constraints.

Timber in particular has relatively limited local markets at present. Two sawmill operators consulted in Luganville both faced quite narrow margins for their wood products; local markets are small, and international markets are faced with very high transport costs. One of the two operators was trying to focus on veneer as a higher-value product for export markets, but he was finding that it was hard to find buyers who would pay a price that allowed him to be profitable. Both of the sawmill operators were clear that the wood processing industry at and the existing markets at present were not particularly favourable to a large increase in supply. Some species may offer better returns than others–for example, at present

158Interview with Brian Philips, Director of PMU and acting Director of REDD+ Unit, 18 September 2019 159Interview with Department of Forestry, 18 October 2019

Natora (Intsiabijuga or ‘Island Teak’) was described as the best value species for planting–but market concentration on a single species also tends to drive the price down for that species in the longer-term. These realities of timber markets in Vanuatu have the effect of limiting incentives for smallholders to plant timber trees as part of an agroforestry system.

On the other side, prices for commodities that compete with forest cover have tended to be very strong. Although beef prices have dropped recently, Vanuatu is known for very high-quality beef and that industry has historically been very profitable and has driven lease acquisitions and forest clearing. At the time of writing of this report, kava prices are climbing rapidly and the export market–to Fiji in particular–is expanding. Although there are varieties of kava that grow under a forest canopy, the preferred variety for consumption and sale grows best in full sun.

IV. Social and Environmental Risks

This section presents the potential social and environmental impacts that may occur in the implementation of the National REDD+ Strategy. The methodology used to prepare this section considered the following: a. The situation analysis (see Section 2) and the results of the consultation process160 were used to identify the key potential risks that may arise from the implementation of the National REDD Strategy161, from an analytical and strategic perspective. Given the strategic, national and multisectoral nature of the REDD+ strategic options, this implied that many of the risks identified were grouped into strategic categories of risks (such as, for example, risks linked to complaints and claims). b. For each identified risk, a justification or reasoning anchored to the diagnostic studies and the results of the consultation process was provided. c. Finally, these risks were categorized taking into consideration their probability and the severity of the associated impacts identified. The categorization considered the criteria in table 23. This section is structured as follows: • The potential risks and associated impacts are presented in a tabular format in relation to each strategic option (distinguishing ‘enabling’ and ‘direct’ interventions) • Each table also identifies the categorization of said risks162, along with mitigation measures. • Finally, potential benefits are presented for each REDD+ Strategic Option.

Notes: • It should be noted this analysis only considers risks and their direct impacts163. This is in accordance with World Bank guidelines, which determines that indirect164 and cumulative165 impacts should be considered if they are reasonably foreseeable166. Impacts that are merely possible, or that are considered "speculative," are not reasonably foreseeable167. • It should also be noted that this risk analysis distinguishes between ‘enabling’ and ‘direct’ REDD+ interventions, and assumptions are based on the available information about these interventions to date168. Enabling interventions are aimed at facilitating the implementation of direct interventions. Direct interventions are specific on the ground activities which result

160 Please see SESA Workshops Report: Preliminary identification of social and environmental impacts associated with the proposed REDD+ activities 161 Note the SESA considered the Draft National REDD Strategy dated 15/08/2020. 162 This methodology utilizes ESS1 and its guidance notes as ‘guidance tools’ for purposes of risk categorization, as the OPs do not offer detailed guidance on this matter. 163 A direct impact is an impact which is caused by the project and occurs contemporaneously in the location of the project. World Bank, ESF, pg18, footnote 20 164 An indirect impact is an impact which is caused by the project and is later in time or farther removed in distance than a direct impact, but is still reasonably foreseeable, and will not include induced impacts. World Bank, ESF, pg18, footnote 21 165 The cumulative impact of the project is the incremental impact of the project when added to impacts from other relevant past, present and reasonably foreseeable developments as well as unplanned but predictable activities enabled by the project that may occur later or at a different location. Cumulative impacts can result from individually minor but collectively significant activities taking place over a period of time. World Bank, ESF, pg18, footnote 22. 166 WB, ESF, ESS 1 Guidance Note, GN23.5 (Footnote 21) 167 Ibid. 168 Draft National REDD Strategy dated 15/08/2020.

in a direct change in the carbon stock (i.e. reforestation, protected area strategies, agricultural intensification to reduce pressure on forests). In both cases it is important to note the available draft National REDD+ Strategy (NS)169 only provides an initial outline for the scope and scale of these interventions. Hence, the risks identified are linked to the adequate ‘design’ of these interventions. The main assumption applied is that a positive outcome is only possible when the interventions are designed appropriately. • It should be noted that the recent development of Vanuatu’s NS has overlapped with the final stages of revision of the SESA. In such context, is important to consider that the potential social and environmental risks identified in the previous iterations of the SESA have been addressed in the evolving national REDD+ Strategy through the integration of social and environmental considerations in the refinement of the proposed interventions. Hence, the risks linked to the current draft NS (and presented below) are now reduced. For the purposes of this section, table 22 below presents an overview on how the SOs defined in the Analytical Studies have been reconciled in the NS into enabling and implementation interventions. • As noted in the draft REDD+ NS170, previous iterations of this SESA identified that lease acquisition entailed several potential negative risks, with the least public support including in the context of distrust around government holding of leases and sub-leasing to communities. As a results of said risk assessment in previous SESA iterations, SOs in the current draft NS have since been reviewed and revised. SO4 has preliminarily re-focused towards a ‘lease performance review and potentially the enactment of new regulations for the lease review’, yet more recent developments in the draft NS have seen this option removed entirely. Considering the above, and given the lack of clarity on the feasibility, scope and scale of this SO, potential risks and benefits were not possible to identify in the context of this SESA.

Table 22: Overview of Strategic Options in the NS from Analytical Studies

Preliminary Strategy Analytical Studies Draft National Strategy (2020) Options for REDD+ in (2017) Vanuatu Overarching / Land use planning Land use planning Enabling Legislating a % tree cover on farms and lease holdings interventions Policy coherence across the land use sector Innovative financing for stewardship Strategy options / Acquisition of expired Lease performance review and assessment of public Priority Strategic and/or degraded benefit options for agriculture leases with implementing climate funding interventions Activity-based Agroforestry strategies identified at the Provincial or island level on customary land Area-based large-scale Community Conservation Areas (CCA) conservation on customary land

169 Draft National REDD Strategy dated 15/08/2020. 170 Version 15/08/2020

Table 23: Risk Categorization171

Categorization Probability and the severity of the associated impacts High 1. Likely to generate a wide range of significant adverse risks and impacts on human populations or the environment. This would take into account whether the potential risks and impacts associated have the majority or all of the following characteristics: (i) long term, permanent and/or irreversible (e.g., loss of major natural habitat or conversion of wetland), and impossible to avoid entirely due to the nature of the Project; (ii) high in magnitude and/or in spatial extent (the geographical area or size of the population likely to be affected is large to very large); (iii) significant adverse cumulative impacts; (iv) significant adverse transboundary impacts; and (v) a high probability of serious adverse effects to human health and/or the environment (e.g., due to accidents, toxic waste disposal, etc.); 2. The area likely to be affected is of high value and sensitivity, for example sensitive and valuable ecosystems and habitats (legally protected and internationally recognized areas of high biodiversity value), lands or rights of Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities and other vulnerable minorities, intensive or complex involuntary resettlement or land acquisition, impacts on cultural heritage or densely populated urban areas. 3. Some of the significant adverse ES risk and impacts cannot be mitigated or specific mitigation measures require complex and/or unproven mitigation, compensatory measures or technology, or sophisticated social analysis and implementation. 4. There are significant concerns that the adverse social impacts of the activity, and the associated mitigation measures, may give rise to significant social conflict or harm or significant risks to human security. 5. There is a history of unrest in the area or the sector, and there may be significant concerns regarding the activities of security forces. 6. The activity is being developed in a legal or regulatory environment where there is significant uncertainty or conflict as to jurisdiction of competing agencies, or where the legislation or regulations do not adequately address the risks and impacts of complex activities, or changes to applicable legislation are being made, or enforcement is weak. 7. The past experience of the Borrower and the implementing agencies in developing complex activities is limited, their track record regarding ES issues would present significant challenges or concerns given the nature of the activity’s potential risks and impacts. 8. There are significant concerns related to the capacity and commitment for, and track record of relevant parties, in relation to stakeholder engagement. 9. There are a number of factors outside the control that could have a significant impact on the ES performance and outcomes. Significant 1. The ES scale and impact of activities may be smaller (large to medium) and the location may not be in such a highly sensitive area, and some risks and impacts may be significant. This would take into account whether the potential risks and impacts have the majority or all of the following characteristics: (i) they are mostly temporary, predictable and/or reversible, and the nature of the activity does not preclude the possibility of avoiding or reversing them (although substantial investment and time may be required);

171 This is a risk categorization, not a project categorization. The methodology utilizes ESS1 and its guidance notes as ‘guidance tools’ for the preparation of this methodology, as OPs do not offer guidance on this matter.

(ii) there are concerns that the adverse social impacts, and the associated mitigation measures, may give rise to a limited degree of social conflict, harm or risks to human security; (iii) they are medium in magnitude and/or in spatial extent (the geographical area and size of the population likely to be affected are medium to large); (iv) the potential for cumulative and/or transboundary impacts may exist, but they are less severe and more readily avoided or mitigated than for High Risk activity; and (v) there is medium to low probability of serious adverse effects to human health and/or the environment (e.g., due to accidents, toxic waste disposal, etc.), and there are known and reliable mechanisms available to prevent or minimize such incidents; 2. The effects of the activity on areas of high value or sensitivity are expected to be lower than High Risk ones. 3. Mitigatory and/or compensatory measures may be designed more readily and be more reliable than those of High Risk ones. 4. The Project is being developed in a legal or regulatory environment where there is uncertainty or conflict as to jurisdiction of competing agencies, or where the legislation or regulations do not adequately address the risks and impacts, or changes to applicable legislation are being made, or enforcement is weak. 5. The past experience of the Borrower and the implementing agencies in developing complex activities is limited in some respects, and their track record regarding ES issues suggests some concerns which can be readily addressed through implementation support. 6. There are some concerns over capacity and experience in managing stakeholder engagement, but these could be readily addressed through implementation support. Moderate 1. The potential adverse risks and impacts on human populations and/or the environment are not likely to be significant. This is because the activity is not complex and/or large, does not involve activities that have a high potential for harming people or the environment, and is located away from environmentally or socially sensitive areas. As such, the potential risks and impacts and issues are likely to have the following characteristics: (i) predictable and expected to be temporary and/or reversible; (ii) low in magnitude; (iii) site-specific, without likelihood of impacts beyond the actual footprint of the Project; and (iv) low probability of serious adverse effects to human health and/or the environment (e.g., do not involve use or disposal of toxic materials, routine safety precautions are expected to be sufficient to prevent accidents, etc.). 2. The risks and impacts can be easily mitigated in a predictable manner. Low The potential adverse risks to and impacts on human populations and/or the environment are likely to be minimal or negligible.

Strategic Option 1: Enabling interventions

These enabling interventions include:  Land use planning, as a means to overcome conflicting policies across sectors and identify synergies through spatial planning. As an example of current sectoral policy conflicts, in 2017 the national government set up a target of 1 million new coconuts and another for 500,000 new head of cattle. Said policies have the potential to impact forests and and have implications in overall land uses, yet spatial plans of where this expansion would occur, and what the potential impacts would be (on arable land for communities, conversion of natural forest, impacts on water resources, etc.) are lacking.  Legislating a % tree cover on farms and lease holdings, including technical advice and support, seedlings, and farmer-to-farmer support networks to help with the planting and maintenance to support income diversification at farm level, provide food, improve soils— through improved performance in current yields on farms and pastures.  Policy coherence across the land use sector, including considering the enactment of an umbrella piece of legislation in response to the fact that Vanuatu’s environmental laws are in some cases inconsistent and/or conflicting. This is the case for instance of misaligned operational rules regarding riparian set-back requirements on rivers which largely differ from logging operations, cattle grazers, agricultural producers, and infrastructure developers.  Innovative financing for stewardship, which broadly entails a diversification of sources of funding, including blended financing, to support putting in place both the enabling interventions and the implementation of the strategic options, for instance a mix tax revenue.

Table 24: Potential negative risks and impacts

Potential Risks Associated Impacts Categorization Mitigation measures of the risk 1. Exacerbate land tenure Conflicts between customary Moderate-Low Ensure an adequate conflicts landowners and State that impact participatory process is Justification on the whole community or carried out in relation to Rights to land are often not easily multiple communities. This may the design and identifiable, but tend to depend result on loss of economic implementation of this upon oral stories, ‘memory opportunities for landowners, intervention. culture’, complex local categories, users and communities to and varying inheritance practices. implement livelihood activities in Ensure the design of this The clustering of the population their land. intervention is not open into villages, plantation to political interference. communities and towns has also Conflicts among customary meant that many customary landowners and persons with Include social landowners and users no longer land use rights may result in assessments in the live within their traditional social services being blocked design and boundaries or even with their from operating for extended implementation of the own communities. Because of periods of time (e.g. airports, intervention. this, boundaries and rights have police stations, postal services etc inevitably become less certain on disputed land), displacement over time. While the Constitution of those with unregistered land recognises that custom rules use rights, potential violence apply to customary land dealings, between disputing parties, the lack of formal rules has led to removal or changes in customary ongoing disputes and a lack of rights beyond land rights e.g. clan certainty and security over representation rights, or status in ownership, boundaries and use of decision-making.

the land. Customary and new adoption practices have also contributed to disputes over the customary rules themselves and those that regulate inheritance rules and practices relating to land ownership and land usage rights. Land use planning, including spatial planning, if not appropriately designed and formally linked with promoting tenure security, carries the risk of exacerbating potential land tenure conflicts. 2. Exacerbate inequalities Exclusion of women in the design Moderate-Low Ensure an adequate of the intervention, as well as not participatory process Justification streamlining gender-sensitive that duly recognizes Evidence suggests women are considerations in the design women is carried out in being more marginalised from the process, may hinder the relation to the design decision-making processes possibility for the REDD+ NS to and implementation of involving land, and many of the ensure women’s rights and this intervention. decisions are even less socially interests are protected and equitable and transparent than enhanced, particularly were they Ensure the design and before. Tensions may arise if land do not have formal rights to land implementation of the use planning is designed and ownership, use or decision- intervention is gender- carried out without due making. informed and does not consideration and respect for the infringe on the role, unique needs, interests and skills Accordingly, the absence of rights, interests of of women and girls and give gender-sensitive considerations women and maximises women a voice in the land use in the design of the intervention, their involvement and planning process. Women’s as well as the failure to conduct a their benefits from the traditional economic activities, gender-inclusive design process intervention. including agricultural and fishing may in turn result in loss of duties, mean they are impacted income for women due to by changes in the environment in changes in access to land use or ways that are distinct from men. ownership. As per noted in the analytical studies, land reform actions have been considered to exacerbate inequities. It has been estimated that nearly 60% of the poor live in Vanuatu’s rural areas, and women are the actors in the population most affected.172 3. Limit access or loss of Inadequate engagement of Moderate-Low Ensure an adequate access to natural landowners, persons with land participatory process is resources that are use rights and other land / carried out in relation to currently accessible to resource users in the design of the design of this customary landowners, the interventions may result in intervention. persons with land use increased unemployment for rights and other land / groups whose economic activities Ensure the design of the resource users. depend on access and use of intervention does not natural resources or land. infringe on the Justification Similarly, not considering the livelihoods of needs and interests of customary landowners,

172 Ibid.

Land use planning often involves landowners and other land / land / resource users “allocation and zoning of land for resource users in the design of and their future specific uses, regulation of the the intervention may result in generations. intensity of use, and formulation loss of income for custom land of legal and administrative owners or persons with rights to Include social instruments that support the use customary land for income assessments in the plan”. If land use planning is generating activities, particularly design and designed without adequate in the informal sector, primary implementation of the consideration of the livelihoods of productive sector, tourism intervention. customary landowners and land / development, other commercial resource users, it could adversely development activities. impact them and their livelihoods. As per the analytical studies, rural livelihoods are largely dominated by subsistence agriculture (production of vegetable crops and livestock) supplemented by cash crop production. While enabling interventions under this SO seek to promote the cultural connectedness that ni-Vanuatu traditionally have held with the land and the territory through their kinship ties and heritage, there may be negative consequences associated to multiple customary owners with overlapping claims to the land, which may not be easy to identify during the design of the interventions. Customary norms, practices and rules, known as kastom, vary greatly throughout the country and play a central role in determining how land is managed and by whom. Land use planning should consider this kastom in its development as it may otherwise result in land disputes at the local level. 4. Ecosystem modification The failure to consider Moderate-Low Include environmental and reduction of ecosystems and biodiversity assessments in the biodiversity conservation objectives and design and Justification priorities in the design of land use implementation of the There is a risk that land use planning policies and instruments intervention. planning policies and may results in the loss of interventions ecosystems or habitats, posing Ensure integrated land may not integrate and/or further threats to critical habitats use planning when prioritize the conservation of and moreover increasing the designing and biodiversity and ecosystems. As likelihood of extinction of implementing this notes in the analytical studies, vulnerable species. intervention. forests in Vanuatu have been impacted by human activities, Particular ecosystem resulting in reduced and degraded types that are highly forest cover and biodiversity. threatened (e.g., Logging, increased agriculture and lowland forests or coastal systems) should

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livestock activities have impacted be identified and forests and biodiversity. mechanisms included in Moreover, inadequate design of the planning process to land use planning policies and ensure their protection. interventions may pose the risk of increased loss of wildlife if intensive management practices are promoted/prioritized in new land use regulations. Agriculture, farming and forestry impact a number of threatened plant species in Vanuatu including the endangered Fijian Kauri Pine (Agathis macrophylla), which faces ongoing unsustainable logging in natural forests in parts of its range. The Pacific Sheath- tailed Bat (Emballonurasemicaudata) is also impacted by the loss of native forests to agricultural and grazing land. This bat faces multiple threats including disturbance of roosting sites, pesticide use, invasive species and stochastic events.

Potential positive impacts  Land use planning, if adequately designed, has the potential to reduce economic and social vulnerabilities to climate change and to allow for a more strategic economic growth. Similarly, adequate land use planning can contribute to national sustainable development objectives, reducing inequalities among landowners, persons with land use rights and other land / resource users.  Land use planning, if adequately designed, will be able to determine the best uses for the land and provide information on where are the best areas to plant crops, raise cattle, plant gardens or carry out other activities. Efficiency in the use of the land could make the land more productive, which will contribute to an increase in products derived from crops and forest, increasing the production and provision of forest products.  Land use planning, if adequately designed, may also enable a diversification in the sources of income, particularly relevant for rural areas, where income production is dominated by sale of fish, crops and handicrafts and where households could benefit from a diversification in the use of the land to increase their options to access income sources. At a local scale, it has also been identified as having the potential to contribute to the protection of pigeons (a food source), and hence, to food security in the areas where implemented.  Legislating a % tree cover on farms and lease-holdings can contribute to the preservation of natural forests and ecosystem services; particulary where reforestation is targeted at priority areas (e.g. riparian areas, steep slopes) to maximise ecological and ecosystem services outcomes. This outcome is highly relevant considering that 7.8% of Vanuatu’s total population access water through rivers, streams, creeks, lakes or springs. The quality and salubrity of these sources of fresh water is highly interconnected to the healthiness of forests and soil around them.

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 An integrated land use planning approach for the design of these enabling interventions can help achieve the objectives of Vanuatu’s National Biodiversity Strategy Action Plan (NBSAP) to protect the variety of life forms, the different plants, animals and micro-organisms, the genes they contain, and the ecosystems they form and to “guide government, provinces, local communities and landholders to sustainable management of Vanuatu's natural resources”, one of the main objectives of the NBSAP.

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Strategic Option 2: Agroforestry (direct intervention)

This intervention is seen as an alternative that can both maintain forest cover while delivering climate resilience and improved livelihoods. Similarly, it is aligned with traditional Ni-Vanuatu agroforestry gardens that include intercropping, as a response to increasing occurrences of cash cropping that is likely to result in larger mono-cropped systems. Island specific agroforestry systems/options will be further identified, including considering market analyses. Likewise, it is anticipated that landowners, land and resource users or communities can opt-in and choose from a menu of agroforestry options, including a diversity of products including sandalwood, canarium (Nanagi), Tamanu, Indian Almond (Natapoa), Noni Juice (Morinda), NTFP for both handicrafts and building, rattan and bamboo, trees intercropped with livestock, others.

It is therefore anticipated the intervention would be pursued, emphasizing:  Communities presented with menu of options, and can opt-in.  The NS provides technical support, best-practices and guidelines (inter-copping, species mixes and phasing of crops for continuous revenue-generation, Santo FD demonstration with 50 farmers), and seedlings.  Emphasis is on value-chain development: a) crops for community/domestic consumption, b) cash crops for specialized markets and export– need to identify buyers, product lines, product development, promote value-addition for local people (not just raw product).  Certification of non-forest timber products

Table 25: Potential negative risks and impacts

Potential Risks Associated Impacts Categorization Mitigation measures of the risk 1. Exacerbate inequalities Marginalization and Low Identify vulnerable among customary exclusion of people that do groups/populations and landowners and persons not have access to land, or engage them in the with land use rights rights to make decisions consultation process during about land use or the development of the Justification management by land schemes ensuring The SO is expected to encompass owners, community leaders, participatory approaches customary lands, and it would be or possibly even and gender equity; put in for customary owners and user’s government, as a result of place instruments support discretion to decide which lands the lack of legally them to engage in the to promote agroforestry on. recognised rights to land programmes and benefits. Although all SOs under the NS will ownership or usage. provide the opportunity to opt- Persons with access to land Instruments to consider in, under a high risk approach this or land usage, especially may include special credit SO may pose a risk on vulnerable through informal lines and government persons such as women and arrangements-, may have support to allow for quality others that do not have rights or said access or usage rights control and increased status within the clan regarding overridden by members of support from Vanuatu decision-making on land use or land owning groups that aim Bureau of Standards so that management, as well as on other to profit from economic all producers can access. land users as squatters or landless opportunities arising from persons that do not have any this SO. rights to land usage or decision making over land use or Unequal benefit sharing is management, as well as on also possible within the

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populations whose livelihoods are clans, families or precarious and do not count on communities engaged in other sources of income to fall activities opted into in the back on as the new models of context of this SO. For production pay off. Economic example, while returns to tree crops are by nature implementation and slow when compared to annual maintenance of crops. That is generally the case agroforestry activities is in for both timber and fruit trees. A practice carried out by survey of two villages on Efate– certain group members, Epau and Etas–found agroforestry including women, the head far more developed in Epau than of the family may be in Etas for reasons that were entitled to sale crops and closely linked to community other products on behalf of history and demographics173. Epau the land owning group, and is a long-established community the profits are then with relatively abundant land distributed among heads of whereas Etas consists of one large each family as per cultural landholder with five hectares of norms. In community-based land and 26 other households with iniatiatives, a community very small plots (0.1 to 0.2 leader, chief or committee hectares each). While most may be given responsibility households in Epau are engaged in to make decisions on behalf agroforestry to some level, the of the community and only household to do so in Etas is allocate benefits according the largest land holder. This is to common community largely the result of the development objectives, interaction between the long time which may in turn overlook need for economic returns from the special needs of those tree crops and the limited land. with disabilities, or youth Even if tree crops would make and women and other households better off in the long persons with no legal rights term, with so little land per over land, further household they could not afford marginalising those groups to put any land aside while they and exacerbating wait for tree crops to bear fruit or inequalities. to be mature enough for timber harvest. As such, the design of this SO without consideration of the aforementioned may result in increased inequality. Moreover, there is the practical challenge that communities nearer to urban centres or in lands that are more accessible may have easier access to/benefit from technical support in the context of this SO. Perceptions of unequal access may also arise when those communities owning larger portions of land, and that already better off, may benefit from these schemes in a greater fashion.

173Alauddin, M., Kabir, M.J., and Karim, M.S. 2016. Agroforestry and sustainable livelihoods in Vanuatu: insights from two case studies. Chapter 15 in Promoting sustainable agriculture and agroforestry to replace unproductive land use in Fiji and Vanuatu. Eds Harrison, S. and Karim, M.S. Australian Centre for International Agricultural Research. Canberra, Australia.

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2. Exacerbate conflicts Marginalization and Moderate-Low Creation of training sessions exclusion of persons that do to ensure understanding of Justification not have ownership, usage the new production This SO considers the provision of or access rights to land may methods’ and avoid technical support, best-practices, result in the context of this misunderstandings/conflicts guidelines, and the use of SO if designed in a way that with producers and / or certification ‘as a key means of benefits only land owning potential negative economic achieving minimum standards in groups with access to land consequences for them. production and product quality’. viable for carrying out Disputes may arise if certification agroforestry activities. Identify and generate conditions/requirements are too Those with informal land spaces for dialogue to bring restrictive for local producers, usage arrangements may the parties closer together. particularly when new production also have their rights methods are encouraged over the overridden or removed by Adopt an education and ‘traditional methods’. those with formal rights to information strategy linked Disputes may also arise between the land, or by customary to generation of best communities and government land owners, if activities or practices and guidelines. over issues of inequality raised resources on the land above. Where access to land is increase in value as a result limited, opportunities to benefit of the implementation of from the support is also limited, this SO. potentially benefiting only a few. Conflicts between customary landowners, users or communities and State may arise where benefits of activities are not realised. For example, activites promoted by the relevant government institution may not deliver the economic, environmental or social benefits expected due to lack of access to markets, lack of market demand, limited access to markets due to unattainable standards required, or lack of adequate or timely information about market requirements/opportunities prior to opting in. 3. Risks of Potential negative impacts Low Development of studies that introduction/presence to the provision of evaluate the pest rates of of pests ecosystem services and/or the species proposed to be Under the assumption this SO may biodiversity may result if the used in agroforestry result in the introduction of new SO is designed in a way that systems. Is important to trees’ species in subsistence does not promote the use of consider host-ranges of gardens, there is a risk of the native species being diseases on the pathovar presence of pests, and that in turn planted. This impact could instead of the species level. could lead to the use of pesticides. be exacerbated if the use of Beside the selection of Crop rotation has proven to be an only market valuable compatible plant species, important pest and disease species is promoted in the their spatial arrangement control strategy in annual context of this SO. may be important for cropping systems, and the reducing the spread of pest principle of altering host with non-

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host plants can also be applied in Increased use of pesticides / and disease organisms improved fallow systems, other chemicals for pest and through the system. provided that hosts of crop pests disease control. and diseases are avoided when Investigate the conditions of selecting the fallow species. When the land/property/garden annual cropping systems are and the native species to replaced by simultaneous plant, with better criteria. agroforestry systems, pest and disease control strategies are to some extent substituted by the strategy of increased stability and internal control mechanisms. However, reduced pest and disease risk is not automatically achieved by introducing perennial plants and increasing species diversity in a system. If tree and crop species that harbour pests or diseases of other species are introduced in the system, the risk of pest and disease outbreaks may actually increase.

Potential Positive Impacts Potential positive impacts from this SO have been identifying under the assumption of increased tree cover as a result of the SO, which in turn results in increased value for people derived from increased tree cover (food, building material, cash crops, fuel, handicrafts).  Supporting smallholder farmers to uptake agroforestry schemes could contribute to the economic development at the community level in a two-fold manner. Rural livelihoods in Vanuatu are largely dependent on subsistence agriculture, both from vegetable crops and farming livestock. Two thirds of rural households are engaged in the production of crops for their subsistence or for selling their products in local markets. Often times individual households are likely to specialize in any one crop. Some of these crops include papaya, cabbage, yam, taro, cassava, etc. This SO can contribute to providing households with the tools for improving efficiency in crop lands and diversifying income sources through improved agricultural production, forestry (wood, timber, etc), as well as enhanced production and use of traditional medicines and other non-timber forest products. Such economic diversification may in turn result in economic growth and rural development, through the sale of crops in the short term, and marketing forest products in the long-term. This economic growth may be accompanied by a boost in rural employment.  The uptake of effective agroforestry schemes could reduce the vulnerability of the agricultural production, protecting crops from cyclones, as well as allowing the identification of areas where to locate wind breaks to protect the agroforestry schemes. This will in turn contribute to an increase in food security at the community level.  As the intervention seeks to increase tree cover, this SO has the potential to result in environmental benefits as enhanced provision of environmental services and improved wildlife habitat (e.g. by providing shelter and a food source of native wildlife and pollinators as bees).

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Strategic Option 3: Community Conservation Areas (direct intervention)

This intervention is already being implemented under Vanuatu’s Environmental Protection and Conservation Act (EPC Act). While there are other legal mechanisms to create protected areas in Vanuatu, this is the only mechanism currently being used in practice.There are currently 8 Community Conservation Areas (CCAs) registered under the EPC Act in Vanuatu. This intervention aims to support the increase in the number of registrated CCAs as well as the increase of conservation areas not only in protected areas but also as a means for communities to define conservation within landscapes that have multiple uses (including protected forest zones, household garden, agroforestry and NTFP), watershed protection, and so on, depending on the local circumstances defined by the communities. The EPC Act already accommodates both conservation and protection activities within the CCAs, but to date the focus of registered CCAs has been on protection, i.e. restricing access and activities on the land. As such, this SO could expand the scope of CCAs to include broader protect/produce activities that promote investments for improved rural livelihoods, including through technical assistance and targeted investments.

Given that forests are located on kastom land, the role of the government through the DEPF and DoF is to provide guidance and support to customary owners/users in planning the use and development of their forest resources. Following national applicable safeguards, this SO expanding on the current EPC Act offers the option to opt in, as any decision on how to use forest resources must be made by custom landowner groups as per the mechanism for registering CCAs under the EPC Act, which requires consent from the custom landowner groups and communities involved. Said registration mechanism in turn requires custom landowner groups and communities registered to be responsible for the management of the area.

In summary, this intervention seeks to:  Integrate multi-use planning at local/CCA scale.  Focus investments for agroforestry and NTFP’s. Many of the agroforestry and non-timber forest product interventions may be encouraged under this SO, but will need to be adapted to each locality and CCA, while achieving increased carbon storage, forest cover, biodiversity, adaptation and livelihood benefits nationally (which could be measured and documented).  Empower custom landowners and users – income options, management planning, business planning (ecotourism, etc.), local stewardship and enforcement.

Table 26: Potential negative risks and impacts

Potential Risks Associated Impacts Categorization of Mitigation measures the risk 1. Exacerbate land Conflicts among customary Moderate-Low Participatory approaches to tenure conflicts landowners over disputed developing and implementing Justification ownership of the land in the intervention. Land tenure disputes are the context of CCAs, common in ni-Vanuatu particularly if income Ensure design of the communities and villages and generating activities are intervention formally linked have at times been caused or envisaged. with promoting tenure exacerbated by CCAs in security, and does not infringe Vanuatu, potentially leading Conflicts between on the interests, ownerships, to their collapse or failure174. customary landowners and privileges and rights on land.

174 Department of Environmental Protection and Conservation. Community Conservation Area (CCA), Information Booklet. Annex 10

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As highlighted in the situation State over the registration For community-led CCA’s, analysis, rights to land, are of the land through the ensure there is broad often not easily identifiable, CCA process, particularly if community support through a but tend to depend upon oral incorrect, unlawful or process of engagement. histories, ‘memory culture’, incomplete owners/ complex local categories, and members of the customary varying inheritance practices. land are registered. This While the Constitution can in turn result in recognises that custom rules restrictions of access or apply to customary land usage of the land dealings, the lack of formal involuntarily. rules has led to ongoing disputes and a lack of certainty and security over ownership, boundaries and use of the land. The delivery of technical assistance and targeted investments contemplated under this SO for CCAs, carries the risk of exacerbating potential land tenure conflicts among stakeholders. 2. Exacerbate Exclusion of women in the Low Ensure an adequate inequalities design of the intervention, participatory process that duly Justification as well as not streamlining recognizes women is carried Evidence suggest women are gender-sensitive out in relation to the design of significantly more considerations in the this intervention. marginalised from the design process, may hinder decision-making processes the possibility for the Engage vulnerable involving land that other land REDD+ NS to ensure groups/populations during the owners/users, and in many women’s rights and design of the intervention and cases, decisions over land are interests are protected and in the consultation process to less socially equitable and enhanced, partticularly ensure the role, rights and transparent than before. were they do not have interests of women and other Tensions may arise if CCA is formal rights to land vulnerable groups are not promoted and supported ownership, use or infringed and their roles and without due consideration and decision-making. benefits are enhanced. respect for the unique needs, interests and skills of women Accordingly, the absence and girls and give women a of gender-sensitive voice in the land use planning considerations in the process. Women’s traditional design of the intervention, economic activities, including as well as the failure to agricultural and fishing duties, conduct a gender-inclusive mean they are impacted by design process may in turn changes in the environment in result in loss of income for ways that are distinct from women due to changes in men. access to land use or ownership.

3. Ecosystem The failure to consider Low Include environmental modification and ecosystems and assessments in the design and reduction of biodiversity conservation implementation of the biodiversity objectives and priorities in intervention. Justification the promotion of

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Specifics on trees and crop productive activities in the species that will be promoted context of CCAs may for use in agroforestry systems results in the negative in the context of this SO are impacts to the provision of yet to be determined and may ecosystem services or include exotic species. If biodiversity conservation. exotic species are included, or Similarly, if conditions not prohibited for requiring the use of native agroforestry activities within forest species are not in CCAs under this SO, there is place, this SO could lead to potential risk of ecosystem only market valuable modification, degradation species being utilised in and/or loss of biodiversity agroforestry systems within these conservation under this SO. areas.

Potential positive impacts  Vanuatu hosts a diversity of plants, animals, and micro-organisms, entrenched in a diversity of ecosystems and habitats. In the past, ni Vanuatu livelihoods have depended entirely upon these plants and animals for their food, medicine, energy, transport and many other uses. If such considerations are internalized in the design of this SO, CCAs have the potential to increase access to these products and services from forests, including traditional medicine and firewood, as well as increased food security.  Contribute towards the achievement of Vanuatu National Biodiversity Strategy and Action Plan (NSAP)’s goals. Specifically, the NSAP’s Strategic Area 1 that seeks to increase CCAs175

175 NSAP, pg.31: “By 2030, representative examples of at least 17% of terrestrial and 10% of coastal and marine areas to support 100% of local communities’ livelihoods and kastom importance are conserved through effective community and government management measures. 2. By 2020, there are 10 legally registered CCAs and 50% of CCAs are effectively supported and managed in Vanuatu. 3. By 2030, 90% of CCA management committees are complying with their reporting obligations to DEPC. 4. Targets for conservation areas set in provincial strategic plans are achieved.”

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V. Applicable Safeguards

This section describes the applicable World Bank safeguard operational policies (OPs) and Vanuatu’s specific policy, legal and institutional framework, identifying any gaps between Bank policies and existing country systems.

5.1. World Bank Safeguard Policies

Table 27 below contains a brief description of the aim of the safeguard policy, why the policy is triggered, and the applicable safeguard instruments.

Table 27: Applicable World Bank Safeguard Operational Policies

Policies Description of Policy and Applicability

The National Draft REDD+ Strategy adopts a coherent set (or “package”) of national policies and measures (PaMs) aimed at addressing priority direct drivers and their related indirect drivers (and obstacles) in a coherent way. This set of PaMs involve a series of legislative measures and incentives, policies, programs and plans, programs, which are a mix of of enabling interventions and direct interventions. Due to the nature and scope of the PaMs, the main applicable safeguard instrument for these PaMs is an Strategic Environment and Social Assessment (SESA). OP 4.04 Purpose OP 4.04 The application of this policy seeks to ensure projects promote Natural and support natural habitat conservation and improved land use, Habitats including the rehabilitation of degraded natural habitats. It also seeks to ensure the Bank does not support projects that, in the Bank's opinion, involve the significant conversion or degradation of critical natural habitats. Justification of Overall, PaMs are expected to have significant positive impacts on why this OP is natural habitats. However, without detailed information about the triggered scope of the PaMs in the current draft NS, a high risk approach was taken to consider that the PaMs could displace habitats with intensive agriculture or exotic agroforestry.

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Safeguard The ESMF includes the principles, rules, guidelines and procedures for Instrument the screening and assessment of environmental impacts of the PaMs once they have been defined with sufficient detail to be specifically evaluated, in line with national regulatory and OP4.01 and 4.04 requirements, as relevant. OP 4.36 Forests Purpose The objective of this policy is to assist borrowers to harness the potential of forests to reduce poverty in a sustainable manner, integrate forests effectively into sustainable economic development, and protect the vital local and global environmental services and values of forests. Justification of Overall, PaMs are expected to have significant positive impacts on why this OP is forests, in that the main goal of the NS is to reduce deforestation and triggered forest degradation, while contributing to the well-being of forest- dependent communities. However, without detailed information about the scope of the PaMs in the current draft NS, a high risk approach was taken to consider that the PaMs may affect the rights and livelihoods of some people and their level of dependence upon or interaction with forests. Safeguard The ESMF includes the principles, rules, guidelines and procedures for Instrument the screening and assessment of environmental impacts of the PaMs once they have been defined with sufficient detail to be specifically evaluated, in line with national regulatory and OP4.01 and 4.36 requirements, as relevant. OP 4.09 Pest Purpose In assisting borrowers to manage pests that affect either agriculture or Management public health, the Bank supports a strategy that promotes the use of biological or environmental control methods and reduces reliance on synthetic chemical pesticides. Justification of Overall, PaMs are not expected to use pesticides or require other forms why this OP is of pest management. However, without detailed information about the triggered scope of the PaMs in the current draft NS, a high risk approach was taken to consider that the PaMs may include reforestation activities or the intensification of agricultural activities on degraded lands that may lead to the use of pesticides or require other forms of pest management. Safeguard A pest management framework will be prepared under the ESMF. A pest Instrument management plan will need to be prepared for activities/subprojects, as relevant. OP 4.11. Purpose To ensure physical cultural resources of local and national significance Physical cultural are protected and not permanently degraded or lost as a result of the resources Project. Justification of Overall, PaMs are not expected to present any potential risks to physical why this OP is cultural resources. However, without detailed information about the triggered scope of the PaMs in the current draft NS, a high risk approach was taken and as a necessary precautionary measure the policy is triggered. Safeguard Cultural Heritage Protection Framework (CHPF) is included in the ESMF Instrument and will need to be followed for activities/sub-projects, as relevant.

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land users and forest-dependent communities and/or individuals are properly consulted and not coerced or forced to accept or commit to REDD+ activities or other forest management/reforestation activities involuntarily. Safeguard The Resettlement Policy Framework (RPF) includes the principles and Instrument processes to avoid involuntary resettlement and to provide compensation, entitlements and prepare Resettlement Action Plans where involuntary resettlement is unavoidable. The Process Framework (PF) includes the principles and processes to support those people who are restricted from accessing protected areas as a result of the activities. Resettlement action plan (RAP) will need to be adopted for subproject/activities, as relevant.

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5.2. National Legislative and Institutional Framework

This sub-section presents a succinct description and analysis of all relevant legal and institutional framework of Vanuatu in relation to the World Bank’s applicable OPs. 176 Note OP/BP 4.10 Indigenous Peoples does not apply in the case of Vanuatu. Notably the WB recent analytical work completed by the East Asia Pacific Regional Safeguard Secretariat found that ‘three out of the four defining characteristics of IPS under this OP are not met in Vanuatu. Accordingly, OP 4.10 is not triggered.

Operational Policies Legal and institutional framework linked to the OP Gaps in legal and institutional framework linked How the gaps are addressed in the Safeguards to the OP Instruments OP/BP 4.01. Environmental Assessment Objective of the policy The Environment Protection and Conservation Act (EPC Act) Vanuatu legislation only requires EIAs and does not The Environmental and Social Management The Bank requires environmental requires all projects that may have environmental, social or consider SESAs for the assessment of policies, laws, Framework (ESMF) includes the principles, rules, assessment (EA) of projects custom impacts to undertake an environmental impact plans and programs, as per the scope of the strategic guidelines and procedures for the screening and proposed for Bank financing to assessment (EIA). What is defined as an impact under these options under the NS. assessment of environmental and social impacts help ensure that they are categories is detailed in s11. The EPC Act ‘provides for the of activities once they have been defined with environmentally sound and conservation, sustainable development and management Activities to be implemented under EIAs are mostly sufficient detail to be specifically evaluated. sustainable, and thus to improve of the environment of Vanuatu and the regulated of related environmentally focused. There is limited guidance to decision making. activities’. on the assessment requirements for cultural and social The National Draft REDD+ Strategy adopts a aspects. coherent set (or “package”) of national policies The Bank undertakes Other Acts such the Forestry Act, Quarry Act, Foreshore and measures (PaMs) aimed at addressing priority environmental screening of each Development Act and Vanuatu Investment Promotion There is no specific reference to subprojects and direct drivers and their related indirect drivers proposed project to determine Authority Act (VIPA Act) reiterate this by also requiring EPC financial intermediaries being required to undertake (and obstacles) in a coherent way. This set of the appropriate extent and type Act EIAs be carried out for some projects under their EIAs if the larger EIA project has already been PaMs involve a series of legislative measures and of SEA. The Bank classifies the respective Acts. completed and the project subsequently approved. incentives, policies, programs and plans, proposed project into one of four programs, which are a mix of enabling categories, depending on the The Vanuatu National Policy on Climate Change and There are no specific guidelines or checklists to interventions and direct interventions. Due to the type, location, sensitivity, and Disaster Induced Displacement (VNPCCID) also requires determine the need for EIAs for certain projects under nature and scope of the PaMs, the main scale of the project and the nature assessments of development projects’ displacement the VIPA Act. The other Acts contain specific guidelines applicable safeguard instrument for these PaMs and magnitude of its potential impacts, including assessment, which include for projects under these Acts, however, REDD+ does not under the ESMF is conducting a Strategic environmental impacts. environmental assessments of disaster risks of the new fit into their project criteria activating EIAs under these Environment and Social Assessment (SESA). The sites for reintegration. Acts. procedures for the SESA have been prepared in accordance with best practices177 .

176 Text extracted from Operational Manual documents and respective Annexes. 177 OECD, Applying Strategic Environmental Assessment Good Practice Guidance for Development Co-Operation https://www.oecd.org/environment/environment-development/37353858.pdf and World Bank guidance https://openknowledge.worldbank.org/bitstream/handle/10986/2517/578810PUB0Stra101public10BOX353783B.pdf?sequence=1&isAllowed=y

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Institutional Th VNPCCID takes the form of a framework policy and The Department of the Environment is the main institution has limited specific guidance on how these assessments responsible for environmental assessments. Other are to be carried out and by whom, and how social and institutions including the Vanuatu Investment and cultural impacts are assessed. The responsibilities Promotion Authority, Department of Forestry and the placed on the different institutions in relation to these Ministry of Lands are also required to refer certain projects assessments are not reflected in any corresponding for EIAs or approve certain projects to be subject to EIAs legislation. being carried out. Institutional Although the EIA requirements remain the responsibility of the Department of Environment, in practice there appear to be gaps in the coordination between the different institutions that refer projects for EIAs and the Department of Environment. Scope of the policy The EPC Act takes into account activities that could affect Vanuatu legislation only requires EIAs and does not As above, the ESMF includes the principles, rules, EA evaluates a project's potential the natural environment (land, water and air quality), social consider SESAs for the assessment of policies, laws, guidelines and procedures for the screening and environmental risks and impacts aspects (specifically custom areas), protected areas and plans and programs, as per the scope of the strategic assessment of environmental and social impacts in its area of influence; examines unsustainable usage of renewable resources. It also options under the NS. of PaMs once they have been defined with project alternatives; identifies requires that the Director take into consideration whether sufficient detail to be specifically evaluated. Due ways of improving project any proposed actions are likely to effectively mitigate, The EPC Act does not fully cover cultural and social to the nature and scope of the PaMs, the main selection, siting, planning, design, minimise, reduce or eliminate any identified significant aspects of the assessment requirements. There is also applicable safeguard instrument for these PaMs and implementation by impacts’ and any residual impacts that may remain before no specific reference to ‘integrated’ approaches to under the ESMF is conducting a Strategic preventing, minimizing, granting an environmental permit (s17). considering natural and social aspects. Environment and Social Assessment (SESA). The mitigating, or compensating for procedures for the SESA have been prepared in adverse environmental impacts Section 12 of the EPC Act defines the activities that may be The Environmental Impact Assessment Regulations in accordance with best practices180 and enhancing positive impacts; subject to the EIA, which includes forestry, clearing of any broad terms requires impacts and and includes the process of area over 10 ha. And agriculture activities. EIAs must alternatives/mitigation measures to be considered and mitigating and managing adverse describe ‘ways to modify, mitigate and manage different recommended in the EIA report, but lacks the detail environmental impacts aspects of the project to avoid or lessen negative impacts required by OP 4.01. Terms such as preventing, throughout project and enhance positive impacts’ (s2). minimizing, and compensating. There is no specific implementation. The Bank reference to preventative measured being favoured favours preventive measures over The Environmental Impact Assessment Regulations require over mitigatory or compensatory measures. mitigatory or compensatory that EIA reports recommendations on the considered and measures, whenever feasible. selected alternatives, mitigation measures, monitoring, The VNPCCDID only provides guidance as it is only a other studies, analysis and additional consultation (s7 & 8). framework policy. It does not cover the practicalities of

180 OECD, Applying Strategic Environmental Assessment Good Practice Guidance for Development Co-Operation https://www.oecd.org/environment/environment-development/37353858.pdf and World Bank guidance https://openknowledge.worldbank.org/bitstream/handle/10986/2517/578810PUB0Stra101public10BOX353783B.pdf?sequence=1&isAllowed=y

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EA takes into account the natural the assessments such as how the assessments are to be environment (air, water, and The Vanuatu National Policy on Climate Change and carried out and by whom and how social and cultural land); human health and safety; Disaster Induced Displacement (VNPCCID) also covers impacts are to be assessed. social aspects (involuntary assessments of development projects that may have resettlement, indigenous displacement impacts, including assessment of the new peoples, and physical cultural sites for reintegration and also environmental assessment Institutional resources);178 and transboundary of disaster risks of new sites. Although the EIA requirements remain the and global environmental responsibility of the Department of Environment, in aspects.179 EA considers natural Institutional practice there appear to be gaps in the coordination and social aspects in an integrated The main institution within the country that is responsible between the different institutions that refer projects way. It also takes into account the to carry out the EIAs is the Department of the Environment. for EIAs and the Department of Environment. variations in project and country Other institutions including the Vanuatu Investment and conditions; the findings of country Promotion Authority, Department of Forestry and the environmental studies; national Ministry of Lands are also required to refer certain projects environmental action plans; the for EIAs or approve certain projects to be subject to EIAs country's overall policy being carried out. framework, national legislation, and institutional capabilities related to the environment and social aspects; and obligations of the country, pertaining to project activities, under relevant international environmental treaties and agreements. The Bank does not finance project activities that would contravene such country obligations, as identified during the EA. EA is initiated as early as possible in project processing and is integrated closely with the economic, financial, institutional,

178 See OP/BP 4.12, Involuntary Resettlement; OP/BP 4.10, Indigenous Peoples; and OP/BP 4.11, Physical Cultural Resources.

179 Global environmental issues include climate change, ozone-depleting substances, pollution of international waters, and adverse impacts on biodiversity

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social, and technical analyses of a proposed project.

Roles and responsibilities with The EPC Act requires all projects that may have Vanuatu legislation only requires EIAs and does not As above, the ESMF includes the principles, rules, regards to the EA environmental, social or custom impacts to undertake an consider SESAs for the assessment of policies, laws, guidelines and procedures for the screening and The borrower is responsible for environmental impact assessment (EIA). All costs plans and programs, as per the scope of the strategic assessment of environmental and social impacts carrying out the EA. For Category associated with the EIA are the responsibility of the project options under the NS. No roles are hence allocated for of PaMs once they have been defined with A projects,181 the borrower proponent (s13A). SESAs. sufficient detail to be specifically evaluated. Due retains independent EA experts The Environmental Impact Assessment Regulations to the nature and scope of the PaMs, the main not affiliated with the project to Section 6 of the Environment Impact Assessment allow the Director to appoint a team of consultants in applicable safeguard instrument for these PaMs carry out the EA.182 For Category Regulations requires all EIAs to be carried out by an consultation with the interested parties and also review under the ESMF is conducting a Strategic A projects that are highly risky or independent consultant or team, selected by the Director and seek comments from interested parties (s6 and 12). Environment and Social Assessment (SESA). The contentious or that involve of the Department of Environment, and required to register This mechanism can facilitate the role of the advisory procedures for the SESA have been prepared in serious and multidimensional according to the process set out in the regulations and must panel if required. There are also provisions for requiring accordance with best practices184, which include environmental concerns, the meet the criteria determined by the Director (S27). additional EA work including public consultations and clear allocation of responsibilities for conducting borrower should normally also disclosure (s10 and 14). the SESA and consultation and disclosure engage an advisory panel of The Environmental Impact Assessment Regulations also procedures. independent, internationally require an EIA report that includes a comprehensive study The responsibilities placed on the different institutions recognized environmental of the potential environmental, resource management and in relation to the VNPCCID assessments are not specialists to advise on all aspects socio-cultural impacts of the projects. reflected in any corresponding legislation. This affects of the project relevant to the the overall role and responsibility of the borrower to EA.183 The role of the advisory The Vanuatu National Policy on Climate Change and ensure EIAs are successfully carried out and subjected panel depends on the degree to Disaster Induced Displacement (VNPCCID) requires Vanuatu to the World Bank to determine adequate basis for which project preparation has to carry out EIAs of development projects displacement Bank financing. progressed, and on the extent and assessments which also include environmental assessment quality of any EA work completed, of disaster risks of new sites. Institutional

181 Refer to screening.

182 EA is closely integrated with the project's economic, financial, institutional, social, and technical analyses to ensure that (a) environmental considerations are given adequate weight in project selection, siting, and design decisions; and (b) EA does not delay project processing. However, the borrower ensures that when individuals or entities are engaged to carry out EA activities, any conflict of interest is avoided. For example, when an independent EA is required, it is not carried out by the consultants hired to prepare the engineering design. 183 The panel (which is different from the dam safety panel required under OP/BP 4.37, Safety of Dams) advises the borrower specifically on the following aspects: (a) the terms of reference for the EA, (b) key issues and methods for preparing the EA, (c) recommendations and findings of the EA, (d) implementation of the EA's recommendations, and (e) development of environmental management capacity

184 OECD, Applying Strategic Environmental Assessment Good Practice Guidance for Development Co-Operation https://www.oecd.org/environment/environment-development/37353858.pdf and World Bank guidance https://openknowledge.worldbank.org/bitstream/handle/10986/2517/578810PUB0Stra101public10BOX353783B.pdf?sequence=1&isAllowed=y

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at the time the Bank begins to Institutional There appear to be gaps in the coordination between consider the project. The Department of Environment is responsible for the different institutions that refer projects for EIAs and environmental assessments in the country. Other the Department of Environment. The Bank advises the borrower on institutions such as the Vanuatu Investment and Promotion the Bank's EA requirements. The Authority, Department of Forestry and the Ministry of Bank reviews the findings and Lands are also required to refer certain projects for EIAs or recommendations of the EA to approve certain projects that have been assessed under the determine whether they provide EIAs. an adequate basis for processing the project for Bank financing. When the borrower has completed or partially completed EA work prior to the Bank's involvement in a project, the Bank reviews the EA to ensure its consistency with this policy. The Bank may, if appropriate, require additional EA work, including public consultation and disclosure. EA instruments The Environmental Protection and Conservation Act Vanuatu legislation only requires EIAs and does not As above, the ESMF includes the principles, rules, Depending on the project, a range requires all projects that may have environmental, social or consider SESAs for the assessment of policies, laws, guidelines and procedures for the screening and of instruments can be used to custom impacts to undertake an environmental impact plans and programs, as per the scope of the strategic assessment of environmental and social impacts satisfy the Bank's EA requirement: assessment (EIA). options under the NS. There is also no specific reference of PaMs once they have been defined with environmental impact to regional or EAs being required, nor hazard or risk sufficient detail to be specifically evaluated. Due assessment (EIA), regional or The Environmental Impact Assessment Regulations require assessment, or requirements for SESA’s to be carried to the nature and scope of the PaMs, the main sectoral EA, strategic an EIA report to be prepared as part of the EIA. This report out generally. applicable safeguard instrument for these PaMs environmental and social must include a comprehensive study of the potential under the ESMF is conducting a Strategic assessment (SESA), environmental, resource management and socio-cultural There is no specific reference to subprojects and Environment and Social Assessment (SESA). The environmental audit, hazard or impacts of the project. It also requires environmental audits financial intermediaries being required to undertake procedures for the SESA have been prepared in risk assessment, environmental are carried out and EMMPs form part of the EIA report (s9). EIAs if the larger EIA project has already been accordance with best practices186. management plan completed and the projects subsequently approved. (EMP) and environmental and Institutional social management framework

186 OECD, Applying Strategic Environmental Assessment Good Practice Guidance for Development Co-Operation https://www.oecd.org/environment/environment-development/37353858.pdf and World Bank guidance https://openknowledge.worldbank.org/bitstream/handle/10986/2517/578810PUB0Stra101public10BOX353783B.pdf?sequence=1&isAllowed=y

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(ESMF). EA applies one or more of The Department of Environment is responsible for Institutional these instruments, or elements of environmental assessments in the country. Other There appear to be gaps in the coordination between them, as appropriate. When the institutions such as the Vanuatu Investment and Promotion the different institutions that refer projects for EIAs and project is likely to have sectoral or Authority, Department of Forestry and the Ministry of the Department of Environment. regional impacts, sectoral or Lands are also required to refer certain projects for EIAs or regional EA is required.185 approve certain projects that have been assessed under the EIAs.

Environmental screening Section 12 of the EPC Act defines the activities that may be As above, Vanuatu legislation only requires EIAs and As above, the ESMF includes the principles, rules, The Bank undertakes subject to the EIA. Section 14 requires that project does not consider SESAs for the assessment of policies, guidelines and procedures for the screening and environmental screening of each proponents for any projects, proposals or development are laws, plans and programs, as per the scope of the assessment of environmental and social impacts proposed project to determine subject to a preliminary environmental assessment (PEA), strategic options under the NS. Consequently, there is of PaMs once they have been defined with the appropriate extent and type and the Director must give consideration to any potential no requirement or procedure for the screening sufficient detail to be specifically evaluated. Due of EA. The Bank classifies the environmental, social or custom impacts and their categorization and respective assessment of policies, to the nature and scope of the PaMs, the main proposed project into one of four significance as well as any proposed actions are likely to laws, plans and programs, as per international best applicable safeguard instrument for these PaMs categories, depending on the effectively mitigate, minimise, reduce or eliminate the practices. under the ESMF is conducting a Strategic type, location, sensitivity, and impacts. The Director then determines whether or not an Environment and Social Assessment (SESA). The scale of the project and the nature EIA is required (s18). Additionally, there are nothing in the EPC Act or procedures for the SESA have been prepared in and magnitude of its potential Regulations specifically referring to categorisation of accordance with best practices189, which requires environmental impacts. The EIA process under the EPC Act requires that project- projects according to potential impacts, only which the screening categorization and respective (a) Category A: A proposed affected groups and NGOs views are consulted for all activities that are subject to EIAs. There are 17 assessment of the PaMs. project is classified as projects that require an EIA, regardless of categories. categories of activities that require EIAs, which includes Category A if it is likely to Section 20 requires public notice of the Environment Impact forestry, clearing of any area over 10 ha. and agriculture have significant adverse Assessment to the public and any impacted persons. activities. environmental impacts that are sensitive,187 diverse, or Institutional Institutional unprecedented. These

185 Annexes Guidance on the use of sectoral and regional EA is available in EA Sourcebook Updates 4 and 15.

187 A potential impact is considered "sensitive" if it may be irreversible (e.g., lead to loss of a major natural habitat) or raise issues covered by OP 4.04, Natural Habitats; OP/BP 4.10, Indigenous Peoples; OP/BP 4.11, Physical Cultural Resources or OP 4.12, Involuntary Resettlement.

189 OECD, Applying Strategic Environmental Assessment Good Practice Guidance for Development Co-Operation https://www.oecd.org/environment/environment-development/37353858.pdf and World Bank guidance https://openknowledge.worldbank.org/bitstream/handle/10986/2517/578810PUB0Stra101public10BOX353783B.pdf?sequence=1&isAllowed=y

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impacts may affect an area The Department of Environment is the main institution Although the EIA requirements remain the broader than the sites or responsible for environmental assessments. However, responsibility of the Department of Environment, in facilities subject to physical other institutions including the Vanuatu Investment and practice there appear to be gaps in the coordination works. EA for a Category A Promotion Authority, Department of Forestry and the between the different institutions that refer projects project examines the Ministry of Lands are required to refer certain projects for for EIAs and the Department of Environment. project's potential negative EIAs, or approval of certain projects subject to EIAs being and positive environmental carried out. impacts, compares them with those of feasible alternatives (including the "without project" situation), and recommends any measures needed to prevent, minimize, mitigate, or compensate for adverse impacts and improve environmental performance. For a Category A project, the borrower is responsible for preparing a report, normally an EIA (or a suitably comprehensive regional or sectoral EA) that includes, as necessary, elements of the other instruments referred to in para. 7. (b) Category B: A proposed project is classified as Category B if its potential adverse environmental impacts on human populations or environmentally important areas--including wetlands, forests, grasslands, and other natural habitats--are less adverse than those of Category A projects. These impacts are site-specific; few if any of them are

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irreversible; and in most cases mitigatory measures can be designed more readily than for Category A projects. The scope of EA for a Category B project may vary from project to project, but it is narrower than that of Category A EA. Like Category A EA, it examines the project's potential negative and positive environmental impacts and recommends any measures needed to prevent, minimize, mitigate, or compensate for adverse impacts and improve environmental performance. The findings and results of Category B EA are described in the project documentation (Project Appraisal Document and Project Information Document). 188 (c) Category C: A proposed project is classified as Category C if it is likely to have minimal or no adverse environmental impacts. Beyond screening, no further EA action is required for a Category C project. (d) Category FI: A proposed project is classified as

188 When the screening process determines, or national legislation requires, that any of the environmental issues identified warrant special attention, the findings and results of Category B EA may be set out in a separate report. Depending on the type of project and the nature and magnitude of the impacts, this report may include, for example, a limited environmental impact assessment, an environmental mitigation or management plan, an environmental audit, or a hazard assessment. For Category B projects that are not in environmentally sensitive areas and that present well-defined and well-understood issues of narrow scope, the Bank may accept alternative approaches for meeting EA requirements: for example, environmentally sound design criteria, siting criteria, or pollution standards for small-scale industrial plants or rural works; environmentally sound siting criteria, construction standards, or inspection procedures for housing projects; or environmentally sound operating procedures for road rehabilitation projects.

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Category FI if it involves investment of Bank funds through a financial intermediary, in subprojects that may result in adverse environmental impacts.

EA for Special Project Types The EPC Act and EIA Regulations require any ‘projects, As above, Vanuatu legislation only requires EIAs and As above, the ESMF includes the principles, rules, proposals or development activity’ that may have does not consider SESAs for the assessment of policies, guidelines and procedures for the screening and Projects Involving Subprojects environmental, social or custom impacts to undertake EIAs laws, plans and programs, as per the scope of the assessment of environmental and social impacts For projects involving the (s2) as determined by the Director (s18 EPC Act). Specific strategic options under the NS. Consequently, there is of PaMs once they have been defined with preparation and implementation activities requiring EIAs are also listed in the EIA Regulations no requirement or procedure for the screening, sufficient detail to be specifically evaluated. Due of annual investment plans or (Schedule 1). Both reference to ‘projects, proposals or categorization and respective assessment of any to the nature and scope of the PaMs, the main subprojects, identified and development activities’ and the activities listed could potential sub-projects linked to the implementation of applicable safeguard instrument for these PaMs developed over the course of the capture projects involving subprojects. these policies, laws, plans and programs, as per under the ESMF is conducting a Strategic project period during the international best practices. Environment and Social Assessment (SESA). The preparation of each proposed Institutional procedures for the SESA have been prepared in subproject, the project The Department of Environment is the main institution There is no specific reference to subprojects and accordance with best practices195, which requires coordinating entity or responsible for environmental assessments. However, financial intermediaries being required to undertake the screening categorization and respective implementing institution carries other institutions including the Vanuatu Investment and EIAs if the larger EIA project has been completed and assessment of the PaMs, which would be out appropriate EA according to Promotion Authority, Department of Forestry and the the project subsequently approved. applicable to sub-projects. country requirements and the Ministry of Lands are required to refer certain projects for requirements of this policy.190 The EIAs, or approval of certain projects subject to EIAs being Bank appraises and, if necessary, carried out. Institutional includes in the SIL components to Although the EIA requirements remain the strengthen, the capabilities of the responsibility of the Department of Environment, in coordinating entity or the practice there appear to be gaps in the coordination implementing institution to (a) between the different institutions that refer projects screen subprojects, (b) obtain the for EIAs and the Department of Environment. necessary expertise to carry out

190 In addition, if there are sector wide issues that cannot be addressed through individual subproject EAs (and particularly if the project is likely to include Category A subprojects), the borrower may be required to carry out sectoral EA before the Bank appraises the project.

195 OECD, Applying Strategic Environmental Assessment Good Practice Guidance for Development Co-Operation https://www.oecd.org/environment/environment-development/37353858.pdf and World Bank guidance https://openknowledge.worldbank.org/bitstream/handle/10986/2517/578810PUB0Stra101public10BOX353783B.pdf?sequence=1&isAllowed=y

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EA, (c) review all findings and results of EA for individual subprojects, (d) ensure implementation of mitigation measures (including, where applicable, an EMP), and (e) monitor environmental conditions during project implementation.191 If the Bank is not satisfied that adequate capacity exists for carrying out EA, all Category A subprojects and, as appropriate, Category B subprojects--including any EA reports--are subject to prior review and approval by the Bank.

Projects Involving Financial Intermediaries For a project involving a financial intermediary (FI), the Bank requires that each FI screen proposed subprojects and ensure that subborrowers carry out appropriate EA for each subproject. Before approving a subproject, the FI verifies (through its own staff, outside experts, or existing environmental institutions) that the subproject meets the environmental requirements of appropriate national and local authorities and is consistent with this OP and other applicable

191 Where, pursuant to regulatory requirements or contractual arrangements acceptable to the Bank, any of these review functions are carried out by an entity other than the coordinating entity or implementing institution, the Bank appraises such alternative arrangements; however, the borrower/coordinating entity/implementing institution remains ultimately responsible for ensuring that subprojects meet Bank requirements.

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environmental policies of the Bank.192 In appraising a proposed FI operation, the Bank reviews the adequacy of country environmental requirements relevant to the project and the proposed EA arrangements for subprojects, including the mechanisms and responsibilities for environmental screening and review of EA results. When necessary, the Bank ensures that the project includes components to strengthen such EA arrangements. For FI operations expected to have Category A subprojects, prior to the Bank's appraisal each identified participating FI provides to the Bank a written assessment of the institutional mechanisms (including, as necessary, identification of measures to strengthen capacity) for its subproject EA work.193 If the Bank is not satisfied that adequate capacity exists for carrying out EA, all Category A subprojects and, as appropriate, Category B subprojects--including EA reports-

192 The requirements for projects involving FI are derived from the EA process and are consistent with the provisions of para. 6 of this OP. The EA process takes into account the type of finance being considered, the nature and scale of anticipated subprojects, and the environmental requirements of the jurisdiction in which subprojects will be located.

193 Any FI included in the project after appraisal complies with the same requirement as a condition of its participation.

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-are subject to prior review and approval by the Bank.194

Projects in Situations of Urgent Need of Assistance or Capacity Constraints under OP 10.00 The policy set out in OP 4.01 normally applies to projects processed under paragraph 11 of OP/BP 10.00, Investment Project Financing. However, when compliance with any requirement of this policy would prevent the effective and timely achievement of the objectives of such a project, the Bank may (subject to the limitations set forth in paragraph 11 of OP 10.00) exempt the project from such a requirement. The justification for any such exemption is recorded in the project documents. In all cases, however, the Bank requires at a minimum that (a) the extent to which the situation of urgent need of assistance or the capacity constraints were precipitated or exacerbated by inappropriate environmental practices be determined as part of the preparation of such projects, and (b) any necessary corrective measures be built into either the project or a future lending operation

194 The criteria for prior review of Category B subprojects, which are based on such factors as type or size of the subproject and the EA capacity of the financial intermediary, are set out in the legal agreements for the project.

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Public consultation The EIA process under the EPC Act requires that project- As above, Vanuatu legislation only requires EIAs and As above, the ESMF includes the principles, rules, For all Category A and B projects affected groups and NGOs views are consulted for all does not consider SESAs for the assessment of policies, guidelines and procedures for the screening and proposed for IBRD or IDA projects that require an EIA, regardless of categories. laws, plans and programs, as per the scope of the assessment of environmental and social impacts financing, during the EA process, Section 20 requires public notice of the Environment Impact strategic options under the NS. Consequently, there is of PaMs once they have been defined with the borrower consults project- Assessment to the public and any impacted persons. no requirement or procedure for the public sufficient detail to be specifically evaluated. Due affected groups and local Submissions made under this section are referred to in consultation of policies, laws, plans and programs, as to the nature and scope of the PaMs, the main nongovernmental organizations Section 21, which allows the Director to require the project per international best practices. applicable safeguard instrument for these PaMs (NGOs) about the project's proponent correct any deficiencies after reviewing the under the ESMF is conducting a Strategic environmental aspects and takes submissions and EIA report. There are no general consultation guidelines or policies Environment and Social Assessment (SESA). The their views into account. The in Vanuatu and no laws that require NGOs are procedures for the SESA have been prepared in borrower initiates such The EIA Regulations allow the Director to invite consulted. accordance with best practices197, which require consultations as early as possible. participation of these groups at least twice: 1) to assist in disclosure and public consultation of all For Category A projects, the the preparation of the terms of reference for the EIA, and While the DLA has created the Provincial Planning affected/interested stakeholders. borrower consults these groups at 2) once the draft EIA report is prepared (Part 3). Guidelines referred to, they may only be relevant to least twice: (a) shortly after The EIA report must also state the details of the persons provincial level initiatives. The extent of their environmental screening and that have been consulted and the EIA report review process implementation is not clear beyond this. before the terms of reference for allows the Director to seek comments, request further the EA are finalized; and (b) once consultations and establish a committee with a draft EA report is prepared. In representation from project-affected groups and NGOs. addition, the borrower consults with such groups throughout project implementation as The Department of Local Authorities (DLA) has created the necessary to address EA-related Risk informed Planning, Budgeting and Monitoring issues that affect them.196 Guidelines for Sub-National Government which provides procedures for local and provincial planning. These procedures are mostly community driven and therefore require consultation with the representatives of the different groups of the society. These procedures can be used for consultation with the project-affected groups.

Institutional

196 For projects with major social components, consultations are also required by other Bank policies--for example, OP/BP 4.10, Indigenous Peoples, and OP/BP 4.12, Involuntary Resettlement.

197 OECD, Applying Strategic Environmental Assessment Good Practice Guidance for Development Co-Operation https://www.oecd.org/environment/environment-development/37353858.pdf and World Bank guidance https://openknowledge.worldbank.org/bitstream/handle/10986/2517/578810PUB0Stra101public10BOX353783B.pdf?sequence=1&isAllowed=y

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The Department of Environment is responsible for organising consultations with project-affected groups. Disclosure Section 20 of the Environmental Protection and As above, Vanuatu legislation only requires EIAs and As above, the ESMF includes the principles, rules, For meaningful consultations Conservation Act requires public notice of the Environment does not consider SESAs for the assessment of policies, guidelines and procedures for the screening and between the borrower and Impact Assessment to the public and any impacted persons. laws, plans and programs, as per the scope of the assessment of environmental and social impacts project-affected groups and local The notice must specify the time period for submissions and strategic options under the NS. Consequently, there is of PaMs once they have been defined with NGOs on all Category A and B where submissions must be sent. no requirement or procedure for the disclosure of sufficient detail to be specifically evaluated. Due projects proposed for IBRD or IDA information and the meaningful consultation with to the nature and scope of the PaMs, the main financing, the borrower provides The EIA Regulations requires that project-affected groups potentially affected stakeholders in relation to the applicable safeguard instrument for these PaMs relevant material in a timely and local NGOs are consulted on all projects requiring an design and implementation of policies, laws, plans and under the ESMF is conducting a Strategic manner prior to consultation and EIA. There is a requirement that noticing of the meeting programs, as per international best practices. Environment and Social Assessment (SESA). The in a form and language that are include the locality and nature of the projects, and location procedures for the SESA have been prepared in understandable and accessible to of the time of the meeting (s10), and also requires that the The existing legal framework does not specify whether accordance with best practices199, which require the groups being consulted. public is informed of where copies of the EIA report can be information concerning project category, and lay out best practices and a process for the For a Category A project, the obtained and time limit for submissions as determined by environmental and social issues, proposed disclosure and public consultation of all borrower provides for the initial the Director (s14). consultations and EIA schedule are required to be affected/interested stakeholders. consultation a summary of the disclosed to the public. It only provides for EIA and proposed project's objectives, The Department of Local Authorities has created the Risk forestry sector plans to be disclosed to the public. With description, and potential informed Planning, Budgeting and Monitoring Guidelines regards to proposed consultations, the framework impacts; for consultation after the for Sub-National Government which provides procedures provides for consultation to be carried out but does not draft EA report is prepared, the for local and provincial planning. These procedures are mention that the findings be published to the public. borrower provides a summary of mostly community driven and therefore require the EA's conclusions. In addition, consultation with the representatives of the different for a Category A project, the groups of the society. While the Department of Local Authorities have created borrower makes the draft EA guidelines for local government and provincial report available at a public place The Department of Environment are responsible for making planning, and consultation requirements for any accessible to project-affected public disclosures for environmental assessments under the developments at these levels of government, the groups and local NGOs. For EPC Act. effectiveness and wide-spread implementation of these projects described in paragraph 9 guidelines has been limited to date. above, the borrower/FI ensures that EA reports for Category A subprojects are made available in a public place accessible to affected groups and local NGOs.

199 OECD, Applying Strategic Environmental Assessment Good Practice Guidance for Development Co-Operation https://www.oecd.org/environment/environment-development/37353858.pdf and World Bank guidance https://openknowledge.worldbank.org/bitstream/handle/10986/2517/578810PUB0Stra101public10BOX353783B.pdf?sequence=1&isAllowed=y

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Any separate Category B report for a project proposed for IDA financing is made available to project-affected groups and local NGOs. Public availability in the borrowing country and official receipt by the Bank of Category A reports for projects proposed for IBRD or IDA financing, and of any Category B EA report for projects proposed for IDA funding, are prerequisites to Bank appraisal of these projects. Once the borrower officially transmits the Category A EA report to the Bank, the Bank distributes the summary (in English) to the executive directors (EDs) and makes the report available through its Info Shop. Once the borrower officially transmits any separate Category B EA report to the Bank, the Bank makes it available through its Info Shop.198 If the borrower objects to the Bank's releasing an EA report through the World Bank InfoShop, Bank staff (a) do not continue processing an IDA project, or (b) for an IBRD project, submit the issue of further processing to the EDs.

Implementation The EIA Regulations require Environmental Management As above, Vanuatu legislation only requires EIAs and As above, the ESMF includes the principles, rules, and Monitoring Plans (EMMPs) to be submitted with the does not consider SESAs for the assessment of policies, guidelines and procedures for the screening and

198 For a further discussion of the Bank's disclosure procedures, see The World Bank Policy on Access to Information which as of July 1, 2010, replaced The World Bank Policy on Disclosure of Information. Specific requirements for disclosure of resettlement plans and indigenous peoples development plans are set out in OP/BP 4.10, Indigenous Peoples and OP/BP 4.12, Involuntary Resettlement.

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During project implementation, EIA reports, which also specifies that an environmental laws, plans and programs, as per the scope of the assessment of environmental and social impacts the borrower reports on (a) monitoring manager be appointed in consultation with the strategic options under the NS. Consequently, there is of PaMs once they have been defined with compliance with measures agreed DEPC to verify that the EMMP and protection measures are no requirement or procedure for the adoption and sufficient detail to be specifically evaluated. Due with the Bank on the basis of the being fulfilled and documented (s9). Environmental Audits implementation of mitigation measures and monitoring to the nature and scope of the PaMs, the main findings and results of the EA, must be carried out by DEPC annually before renewing any plans in relation to the adoption of policies, laws, plans applicable safeguard instrument for these PaMs including implementation of any business licences applicable to the project (s21). It is also an and programs, as per international best practices. under the ESMF is conducting a Strategic EMP, as set out in the project offence to contravene or comply with the terms or Environment and Social Assessment (SESA). The documents; (b) the status of conditions of the EMMP in both the EIA Regulations (s17) Additionally, there is not specific requirement that procedures for the SESA have been prepared in mitigatory measures; and (c) the and the EPC Act (s25). mitigatory measures are reported on as part of the accordance with best practices201, which require findings of monitoring programs. EMMPs monitoring, however, this is inferred. and lay out best practices and a process for the The Bank bases supervision of the The Department of Environment are responsible for making adoption of mitigation and monitoring activities project's environmental aspects public disclosures for environmental assessments under the along with implementing arrangements. on the findings and EPC Act. recommendations of the EA, including measures set out in the legal agreements, any EMP, and other project documents.200

Definitions As above, the ESMF includes the principles, rules, 1. Environmental audit: An 1. The EIA Regulations define environmental audit as an 1. There is no specific reference to measures to guidelines and procedures for the screening and instrument to determine the assessment of compliance with any environmental mitigate, costs or schedule, only assessments of assessment of environmental and social impacts nature and extent of all requirements, standards or approval conditions (s1), compliance. of PaMs once they have been defined with environmental areas of which is required to be undertaken on an annual basis 2. No gaps sufficient detail to be specifically evaluated. Due concern at an existing facility. for all projects, proposals and development activities 3. No gaps to the nature and scope of the PaMs, the main The audit identifies and that have been granted an EIA approval (s21). 4. There are no specific definitions of ESMFs or applicable safeguard instrument for these PaMs justifies appropriate 2. EIA is defined in the EPC Act in accordance with the OP specific sub-project requirements, instead they are under the ESMF is conducting a Strategic measures to mitigate the definition (s2). captured in the general wording of the EIA and Environment and Social Assessment (SESA). The areas of concern, estimates 3. EMPs are defined in the EPC Act as an Environmental EMMP definitions and provisions which apply to procedures for the SESA have been prepared in the cost of the measures, and Management and Monitoring Plan (EMMP), and projects, proposals or development activities are recommends a schedule for describe how impacts identified in the application for any number of stages or phases.

200 See OP/BP 10.00, Investment Project Financing.

201 OECD, Applying Strategic Environmental Assessment Good Practice Guidance for Development Co-Operation https://www.oecd.org/environment/environment-development/37353858.pdf and World Bank guidance https://openknowledge.worldbank.org/bitstream/handle/10986/2517/578810PUB0Stra101public10BOX353783B.pdf?sequence=1&isAllowed=y

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implementing them. For an environmental permit (following EIA approval) will 5. There is no specific reference to hazard accordance with best practices202, including certain projects, the EA be mitigated, minimised, reduced or eliminated and assessments within the EIA processes. alignment with relevant definitions. report may consist of an includes a monitoring and surveillance program of 6. There is no specific reference or definition for the environmental audit alone; action to ensure compliance with the permit granted ‘project area of influence’. Only EIA requirements in other cases, the audit is by the Director (s2). that broadly capture its intent. part of the EA 4. ESMFs fall within the general EIA and EMMP provisions. 7. There is no specific reference to regional EAs. documentation. 5. Hazard Assessments are only referred to as an 8. There is no specific reference to risk assessment. 2. Environmental impact information requirement for risk profiles under the 9. There is no specific reference to sectoral EAs. assessment (EIA): An Stockholm Convention on Persistent Organic Pollutants 10. There is no specific reference to SESAs or SEAs. instrument to identify and (Ratification) Act, which has literally transferred the assess the potential Stockholm Convention into domestic law. environmental impacts of a 6. Project area of influence can be seen as broadly proposed project, evaluate referred to in the contents of the EIA report alternatives, and design requirements, that require a description of the appropriate mitigation, environmental setting including projection or management, and estimation of changed environmental circumstances, monitoring measures. and environmental and resource management Projects and subprojects requirements, including pollution or waste at all need EIA to address project phases (s8 EIA Regulations). The EPC Act also important issues not covered requires EIAs for a range of aspects, which broadly by any applicable regional or correspond on the definition of ‘project area of sectoral EA. influence’ under the OP. 3. Environmental management 7. Regional EAs - Projects that can impact particular plan (EMP): An instrument regions are required to have EIAs carried out under the that details (a) the measures EPC Act. to be taken during the 8. Risk Assessment – risk assessments are only broadly implementation and captured in the EIA process, without and specific operation of a project to requirements for risk assessment. eliminate or offset adverse 9. Sectoral EA - Projects that can impact particular sectors environmental impacts, or to are required to have EIAs carried out under the EPC Act. reduce them to acceptable 10. SESAs – EIA requirements may broadly correspond to levels; and (b) the actions SESA requirements in the OP. needed to implement these measures. The EMP is an integral part of Category A

202 OECD, Applying Strategic Environmental Assessment Good Practice Guidance for Development Co-Operation https://www.oecd.org/environment/environment-development/37353858.pdf and World Bank guidance https://openknowledge.worldbank.org/bitstream/handle/10986/2517/578810PUB0Stra101public10BOX353783B.pdf?sequence=1&isAllowed=y

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EAs (irrespective of other instruments used). EAs for Category B projects may also result in an EMP. 4. Environmental and social management framework (ESMF): An instrument that examines the issues and impacts associated when a project consists of a program and/or series of sub-projects, and the impacts cannot be determined until the program or sub-project details have been identified. The ESMF sets out the principles, rules, guidelines and procedures to assess the environmental and social impacts. It contains measures and plans to reduce, mitigate and/or offset adverse impacts and enhance positive impacts, provisions for estimating and budgeting the costs of such measures, and information on the agency or agencies responsible for addressing project impacts. The term "Environmental Management Framework" or "EMF" may also be used. 5. Hazard assessment: An instrument for identifying, analysing, and controlling hazards associated with the presence of dangerous materials and conditions at a project site. The Bank

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requires a hazard assessment for projects involving certain inflammable, explosive, reactive, and toxic materials when they are present at a site in quantities above a specified threshold level. For certain projects, the EA report may consist of the hazard assessment alone; in other cases, the hazard assessment is part of the EA documentation. 6. Project area of influence: The area likely to be affected by the project, including all its ancillary aspects, such as power transmission corridors, pipelines, canals, tunnels, relocation and access roads, borrow and disposal areas, and construction camps, as well as unplanned developments induced by the project (e.g., spontaneous settlement, logging, or shifting agriculture along access roads). The area of influence may include, for example, (a) the watershed within which the project is located; (b) any affected estuary and coastal zone; (c) off-site areas required for resettlement or compensatory tracts; (d) the airshed (e.g., where airborne pollution such as smoke or dust may enter or leave the area of influence; (e)

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migratory routes of humans, wildlife, or fish, particularly where they relate to public health, economic activities, or environmental conservation; and (f) areas used for livelihood activities (hunting, fishing, grazing, gathering, agriculture, etc.) or religious or ceremonial purposes of a customary nature. 7. Regional EA: An instrument that examines environmental issues and impacts associated with a particular strategy, policy, plan, or program, or with a series of projects for a particular region (e.g., an urban area, a watershed, or a coastal zone); evaluates and compares the impacts against those of alternative options; assesses legal and institutional aspects relevant to the issues and impacts; and recommends broad measures to strengthen environmental management in the region. Regional EA pays particular attention to potential cumulative impacts of multiple activities. 8. Risk assessment: An instrument for estimating the probability of harm occurring from the presence of dangerous conditions or materials at a project site.

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Risk represents the likelihood and significance of a potential hazard being realized; therefore, a hazard assessment often precedes a risk assessment, or the two are conducted as one exercise. Risk assessment is a flexible method of analysis, a systematic approach to organizing and analysing scientific information about potentially hazardous activities or about substances that might pose risks under specified conditions. The Bank routinely requires risk assessment for projects involving handling, storage, or disposal of hazardous materials and waste, the construction of dams, or major construction works in locations vulnerable to seismic activity or other potentially damaging natural events. For certain projects, the EA report may consist of the risk assessment alone; in other cases, the risk assessment is part of the EA documentation. 9. Sectoral EA: An instrument that examines environmental issues and impacts associated with a particular strategy, policy, plan, or program, or with a series of projects for a specific sector

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(e.g., power, transport, or agriculture); evaluates and compares the impacts against those of alternative options; assesses legal and institutional aspects relevant to the issues and impacts; and recommends broad measures to strengthen environmental management in the sector. Sectoral EA pays particular attention to potential cumulative impacts of multiple activities. 10. Strategic environmental and social assessment (SESA): An instrument that describes analytical and participatory approaches that aim to integrate environmental and social considerations into policies, plans and programs and evaluate their inter linkages with economic considerations. The term "Strategic Environmental Assessment" or "SEA" may also be used.

OP 4.04 Natural Habitats Objective of the policy The Convention on Biological Diversity Act (CBD Act) There are no gaps relating to the definition of natural As above, the ESMF includes the principles, rules, The conservation of natural includes provisions promoting the protection of the natural habitats and its protection as the Convention on guidelines and procedures for the screening and habitats, like other measures that habitats, including the rehabilitation of degraded Biological Diversity has been ratified and transformed assessment of environmental and social impacts protect and enhance the ecosystems. (s8) The CBD Act also requires that measures into the Vanuatu legal system. The whole CBD text has of PaMs once they have been defined with environment, is essential for long- be adopted for the recovery and rehabilitation of been copied into the domestic Convention on Biological sufficient detail to be specifically evaluated. Due term sustainable development. threatened species in their natural habitats (s9). Diversity (Ratification) Act 2006. to the nature and scope of the PaMs, the main The Bank therefore supports the applicable safeguard instrument for these PaMs protection, maintenance, and Other legislation such as the EPC Act (s35) and the Forestry The CBD ratified act focuses on promoting and under the ESMF is conducting a Strategic rehabilitation of natural habitats Act (s34), also provide mechanisms for creating encouraging the protection of natural habitats. Environment and Social Assessment (SESA). The and their functions in its Therefore, there are no gaps here. procedures for the SESA have been prepared in

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economic and sector work, conservation and protection areas for natural habitats in accordance with best practices203, including project financing, and policy the form of conservation areas and forest protected areas. screening, categorization, assessment and dialogue. The Bank supports, and management to any potential risks to natural expects borrowers to apply, a Furthermore, the Forestry Policy (Objective H19) aims to habitats (see Annex II of ESMF). precautionary approach to protect 30% of the nation’s natural forests by protecting natural resource management to threatened forest habitats and ecosystems, establish ensure opportunities for protected areas to protect biodiversity and ecosystems and environmentally sustainable enforce status of conservation areas. development. The Department of Environment work with the Department of Forestry in identifying natural habitats and adopting measures to protect them. The National State of the There are some challenges to implementing Environment Assessment, required to be carried out every environmental planning and management, particularly 5 years provides a platform for monitoring the conversion those implementing conservation and mitigation or degradation of natural habitats, and facilitate measures at the national level. environmental planning, that could include environmental management to implement conservation and mitigation One challenge is the customary land tenure system measures where custom land owners are responsible for decision- making over their own land, which is where most if not all of the natural habitats in Vanuatu exist. The Departments of Environment and Forestry are promoting the use of community conservation areas (CCAs) under the EPC Act rather than forest protected areas. The processes for establishing CCAs involves more community engagement and ownership of the process, which again takes place on customary land.

However, under the EPC Act, the custom owners have the right to cancel registration of CCAs on their land. It is a simple process that contrasts to the process to register a CCA in that a custom owner, possibly even a single member of a custom owning group, can cancel the registration without the agreement of the community or group that was involved in the registration. Furthermore, the EPC Act places the onus

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on the community and custom owners involved to find the resources for the registration process, as well as the ongoing resources required for the management and maintenance of the CCA. These issues, coupled with the limitations CCAs place on livelihood or income generating opportunities on customary land means creates considerable challenges to sustainably managing conservation areas under this framework and consequently the conversion of natural habitats. Economic and sector work The EPC Act provides for the identification of sites that have The Convention on Biological Diversity has been ratified As above, the ESMF includes the principles, rules, The Bank's economic and sector national biodiversity significance (s35) and allows the and transformed into the Vanuatu legal system. The guidelines and procedures for the screening and work includes identification of (a) Director of Environment to negotiate with custom whole CBD text has been copied into the domestic assessment of environmental and social impacts natural habitat issues and special landowners for the protection and registration of any site Convention on Biological Diversity Ratification Act of PaMs once they have been defined with needs for natural habitat as a Community Conservation Area. The Director must be 2006. Thus, there are no gaps relating to the definition sufficient detail to be specifically evaluated. Due conservation, including the satisfied that the area contains genetic, cultural, geological on ‘natural habitats’ and its identification, protection, to the nature and scope of the PaMs, the main degree of threat to identified and biological resources, or is the habitat of wild fauna or maintenance and rehabilitation. applicable safeguard instrument for these PaMs natural habitats (particularly flora species of unique importance or merits protection under the ESMF is conducting a Strategic critical natural habitats), and (b) under the Convention Concerning the Protection of World While there are no specific provisions within the legal Environment and Social Assessment (SESA). The measures for protecting such Cultural and Natural Heritage. framework that prohibit the conversion of critical procedures for the SESA have been prepared in areas in the context of the natural habitats, the EIA process requires assessment of accordance with best practices204, including country's development strategy. EIAs are required under the EPC Act for any project this prior to project activities being granted screening, categorization, assessment and As appropriate, Country activities that may impact on natural or critical habitats environmental permits. management to any potential risks to natural Assistance Strategies and projects (s12). habitats (see Annex II of ESMF). incorporate findings from such economic and sector work. Article 6 of the CBD Act places obligations on the government to develop national strategies and policies to ensure the sustainable use and conservation of biological diversity within their natural habitats. The CBD Act also requires: identification and monitoring of the processes and categories of activities which have or are likely to cause significant adverse impacts on the conservation and sustainable use of biological diversity (s7(c)); the promote the protection of ecosystems and natural habitats (s8(d)); and that research and training should be carried out to

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contribute to the conservation and sustainable use of biological diversity (s12).

The Forestry Policy (Objective I20) supports the implementation of these requirements by requiring that the Department of Forestry carry out national biodiversity surveys to identify important biodiversity sites, with specific aims to protect and manage rare and threatened species in the environment.

Project design and The EPC Act (s35) and the Forestry Act (s34), provide The CBD Act focuses on promoting and encouraging the As above, the ESMF includes the principles, rules, implementation mechanisms for creating conservation and protection areas protection of natural habitats. Therefore, there are no guidelines and procedures for the screening and The Bank promotes and supports for natural habitats in the form of conservation areas and gaps here. assessment of environmental and social impacts natural habitat conservation and forest protected areas. of PaMs once they have been defined with improved land use by financing sufficient detail to be specifically evaluated. Due projects designed to integrate to the nature and scope of the PaMs, the main into national and regional Furthermore, the Forestry Policy (Objective H19) aims to applicable safeguard instrument for these PaMs development the conservation of protect 30% of the nation’s natural forests by protecting under the ESMF is conducting a Strategic natural habitats and the threatened forest habitats and ecosystems, establish Environment and Social Assessment (SESA). The maintenance of ecological protected areas to protect biodiversity and ecosystems and procedures for the SESA have been prepared in functions. Furthermore, the Bank enforce status of conservation areas. accordance with best practices205, including promotes the rehabilitation of screening, categorization, assessment and degraded natural habitats. The Department of Environment work with the Department management to any potential risks to natural The Bank does not support of Forestry in identifying natural habitats and adopting Institutional habitats (see Annex II of ESMF). projects that, in the Bank's measures to protect them. The National State of the There are some challenges to implementing opinion, involve the significant Environment Assessment, required to be carried out every environmental planning and management, particularly conversion or degradation of 10 years, provides a platform for monitoring the conversion those implementing conservation and mitigation critical natural habitats. or degradation of natural habitats, and facilitate measures at the national level. Wherever feasible, Bank-financed environmental planning, that could include environmental projects are sited on lands already management to implement conservation and mitigation converted (excluding any lands measures that in the Bank's opinion were converted in anticipation of the project). The Bank does not support projects involving the

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significant conversion of natural habitats unless there are no feasible alternatives for the project and its siting, and comprehensive analysis demonstrates that overall benefits from the project substantially outweigh the environmental costs.

Mitigation measures The EPC Act and EIA Regulations require EIA reports to The legal framework requires the identification of As above, the ESMF includes the principles, rules, If the environmental include mitigation measures and measures to minimise habitats and its conservation priorities, and their focus guidelines and procedures for the screening and assessment206 indicates that a habitat loss if relevant. Furthermore, EMMPs may be is on promoting and encouraging compliance, leaving assessment of environmental and social impacts project would significantly required for EIA approval that address any impacts on activities to fulfil these objectives to policy of PaMs once they have been defined with convert or degrade natural natural habitats. implementation without any enforcement sufficient detail to be specifically evaluated. Due habitats, the project includes mechanisms. to the nature and scope of the PaMs, the main mitigation measures acceptable Article 6 of the CBD Act places obligations on the applicable safeguard instrument for these PaMs to the Bank. Such mitigation government to develop national strategies and policies to Mitigation measures are only required if triggered in under the ESMF is conducting a Strategic measures include, as appropriate, ensure the sustainable use and conservation of biological the EIA report. Environment and Social Assessment (SESA). The minimizing habitat loss (e.g., diversity within their natural habitats. The CBD Act also procedures for the SESA have been prepared in strategic habitat retention and requires: accordance with best practices207, including post-development restoration) identification and monitoring of the processes and screening, categorization, assessment and and establishing and maintaining categories of activities which have or are likely to cause management to any potential risks to natural an ecologically similar protected significant adverse impacts on the conservation and habitats (see Annex II of ESMF). area. The Bank accepts other sustainable use of biological diversity (s7(c)); the promote forms of mitigation measures only the protection of ecosystems and natural habitats (s8(d)); when they are technically and that research and training should be carried out to justified. contribute to the conservation and sustainable use of In deciding whether to support a biological diversity (s12). project with potential adverse impacts on a natural habitat, the The Forestry Policy (Objective I20) supports the Bank takes into account the implementation of these requirements by requiring that borrower's ability to implement the Department of Forestry carry out national biodiversity the appropriate conservation and surveys to identify important biodiversity sites, with specific

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mitigation measures. If there are aims to protect and manage rare and threatened species in potential institutional capacity the environment. problems, the project includes components that develop the Institutional capacity of national and local The Department of Environment and the Forestry institutions for effective Department. The department of Environment was environmental planning and mandated to conserve, manage and ensure the sustainable management. The mitigation development the environment. They can work alongside measures specified for the project the forestry department in terms of sharing data and may be used to enhance the collaborating to carry out similar activities. practical field capacity of national and local institutions. In projects with natural habitat components, project preparation, appraisal, and supervision arrangements include appropriate environmental expertise to ensure adequate design and implementation of mitigation measures.

Policy dialogue The EPC Act requires all national environment plans and There are general obligations existing in the legislation As above, the ESMF includes the principles, rules, The Bank encourages borrowers policies to be developed through public consultations (s9). requiring that consultation take place, which infers guidelines and procedures for the screening and to incorporate into their affected parties participate in decision making process assessment of environmental and social impacts development and environmental Specific projects that have any impacts on habitats must of projects that will affect the natural habitats. of PaMs once they have been defined with strategies analyses of any major also be subjected to the consultation process required However, there is no specific guidance on how affected sufficient detail to be specifically evaluated. Due natural habitat issues, including under the EIA process (s19, 20 EPC Act). stakeholders are identified for projects that affect to the nature and scope of the PaMs, the main identification of important natural habitats nor at which stage in the design, applicable safeguard instrument for these PaMs natural habitat sites, the Although not specific to natural habitat decision-making, implementation and monitoring of such project they under the ESMF is conducting a Strategic ecological functions they the DLA Planning Guidelines do require a ‘community are required to be consulted or involved in the decision- Environment and Social Assessment (SESA). The perform, the degree of threat to driven development approach’ be used for government making. procedures for the SESA have been prepared in the sites, priorities for planning at the sub-national level, which could incorporate There are no clear definitions of ‘effective participation’ accordance with best practices209, which require conservation, and associated natural habitat decision-making. The processes include nor any requirements that affected stakeholders are and lay out best practices and a process for the recurrent-funding and capacity- community consultations at the village level, requiring involved in the evaluation of projects. disclosure and public consultation of all building needs. representation from specified community groups, including affected/interested stakeholders.

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The Bank expects the borrower to vulnerable groups, separate male and female focus groups, Institutional: take into account the views, roles, and mapping of villages and village resources. Besides from the DLA Planning Guidelines, which are and rights of groups, including intended to be implemented under the Department of local nongovernmental The Department of Forestry and all other departments Local Authorities, there are no guidelines or processes organizations and local carry out consultation as a standard practice. within the Departments of Environment or Forestry for communities,208 affected by Bank- ensuring effective participation of affected financed projects involving stakeholders in decision-making for projects that affect natural habitats, and to involve natural habitats. such people in planning, designing, implementing, monitoring, and evaluating such projects. Involvement may include identifying appropriate conservation measures, managing protected areas and other natural habitats, and monitoring and evaluating specific projects. The Bank encourages governments to provide such people with appropriate information and incentives to protect natural habitats.

Definitions As above, the ESMF includes the principles, rules, 1. Natural habitats210are land 1. Natural habitats - The Convention on Biological Diversity 1. Natural habitats - No gaps guidelines and procedures for the screening and and water areas where (i) the has been ratified and its literal text transformed into the 2. Critical natural habitats – no specific reference to assessment of environmental and social impacts ecosystems' bio-logical Vanuatu legal system through the CBD Act. Thus, there critical natural habitats or critical habitats within the of PaMs once they have been defined with communities are formed are no gaps relating to the definition on ‘natural habitats’ legal framework. sufficient detail to be specifically evaluated. Due largely by native plant and and its protection, maintenance and rehabilitation. 3. Significant conversion – no specific reference to to the nature and scope of the PaMs, the main animal species, and (ii) 2. Critical natural habitats – are generally referred to as significant conversion within the legal framework. applicable safeguard instrument for these PaMs human activity has not habitats within the legislation and EIAs are required for 4. Degradation – no specific reference to degradation under the ESMF is conducting a Strategic essentially modified the any endemic, protected, rate, threatened or endangered within the legal framework. Environment and Social Assessment (SESA). The area's primary ecological species, its habitat or nesting grounds (s12 EPC Act). The procedures for the SESA have been prepared in functions. All natural habitats definition of environmental impacts also include

208 See OP/BP 4.10, Indigenous Peoples, when local communities include indigenous peoples. 210 Biodiversity outside of natural habitats (such as within agricultural landscapes) is not covered under this policy. It is good practice to take such biodiversity into consideration in project design and implementation.

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have important biological, anything impacting on ecosystem functions and services, 5. Appropriate conservation and mitigation measures – accordance with best practices214, including social, economic, and including anything affecting threatened or endemic are not detailed with specific guidance within the legal screening, categorization, assessment and existence value. Important species and their habitat (s11 EPC Act). framework. management to any potential risks to natural natural habitats may occur in 3. Significant conversion – not specifically referred to in the habitats (see Annex II of ESMF), in accordance tropical humid, dry, and same terms, but captured in the definition of an with these definitions. cloud forests; temperate and environmental impact that includes ‘altering the physical boreal forests; geography of an area’ including the characteristics of its mediterranean-type shrub geographical area, generating pollution or impacting on lands; natural arid and semi- ecosystem functions and services (s11 EPC Act). arid lands; mangrove 4. Degradation - not specifically referred to in the same swamps, coastal marshes, terms, but captured in the definition of an environmental and other wetlands; impact that includes ‘altering the physical geography of estuaries; sea grass beds; an area’ including the characteristics of its geographical coral reefs; freshwater lakes area, generating pollution or impacting on ecosystem and rivers; alpine and sub functions and services (s11 EPC Act). alpine environments, 5. Appropriate conservation and mitigation measures – are including herb fields, required under the EIA report to be approved. grasslands, and paramos; and tropical and temperate grasslands. 2. Critical natural habitats are: (i) existing protected areas and areas officially proposed by governments as protected areas (e.g., reserves that meet the criteria of the World Conservation Union [IUCN] classifications211),

211 IUCN categories are as follows: I--Strict Nature Reserve/Wilderness Area: protected area managed for science or wilderness protection; II--National Park: protected area managed mainly for ecosystem protection and recreation; III-- Natural Monument: protected area managed mainly for conservation of specific natural features; IV--Habitat/Species Management Area: protected area managed mainly for conservation through management intervention; V--Protected Landscape/Seascape: protected area managed mainly for landscape/seascape conservation and recreation; and VI-- Managed Resource Protected Area: protected area managed mainly for the sustainable use of natural ecosystems.

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areas initially recognized as protected by traditional local communities (e.g., sacred groves), and sites that maintain conditions vital for the viability of these protected areas (as determined by the environmental assessment process212); or (ii) sites identified on supplementary lists prepared by the Bank or an authoritative source determined by the Regional environment sector unit (RESU). Such sites may include areas recognized by traditional local communities (e.g., sacred groves); areas with known high suitability for bio-diversity conservation; and sites that are critical for rare, vulnerable, migratory, or endangered species.213 Listings are based on systematic evaluations of such factors as species richness; the degree of endemism, rarity, and vulnerability of component species; representativeness; and integrity of ecosystem processes. 3. Significant conversion is the elimination or severe

212 See OP/BP 4.01, Environmental Assessment. 213 Rare, vulnerable, endangered, or similarly threatened, as indicated in the IUCN Red List of Threatened Animals, BirdLife World List of Threatened Birds, IUCN Red List of Threatened Plants, or other credible international or national lists accepted by the RESUs.

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diminution of the integrity of a critical or other natural habitat caused by a major, long-term change in land or water use. Significant conversion may include, for example, land clearing; replacement of natural vegetation (e.g., by crops or tree plantations); permanent flooding (e.g., by a reservoir); drainage, dredging, filling, or channelization of wetlands; or surface mining. In both terrestrial and aquatic ecosystems, conversion of natural habitats can occur as the result of severe pollution. Conversion can result directly from the action of a project or through an indirect mechanism (e.g., through induced settlement along a road). 4. Degradation is modification of a critical or other natural habitat that substantially reduces the habitat's ability to maintain viable populations of its native species. 5. Appropriate conservation and mitigation measures remove or reduce adverse impacts on natural habitats or their functions, keeping such impacts within socially defined limits of acceptable environmental change. Specific measures depend on

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the ecological characteristics of the given site. They may include full site protection through project redesign; strategic habitat retention; restricted conversion or modification; reintroduction of species; mitigation measures to minimize the ecological damage; post development restoration works; restoration of degraded habitats; and establishment and maintenance of an ecologically similar protected area of suitable size and contiguity. Such measures should always include provision for monitoring and evaluation to provide feedback on conservation outcomes and to provide guidance for developing or refining appropriate corrective actions.

OP 4.36 Forests Policy objectives The Forestry Act 2019 defines a forest as an area of land While the existing legal and policy framework does Is important to consider the aim of the NS is to The management, conservation, that is larger than 0.5 ha, outside of agricultural production create mechanisms that allow for forest ecosystem address these inconsistencies and overlaps, with and sustainable development of systems, urban parks and gardens, that contains trees being management, conservation and sustainable a view of effectively reducing the pressure on forest ecosystems and their or being capable of reaching 5 meters tall with a canopy development, these mechanisms have to operate forests. associated resources are essential cover of over 10 percent (s2). within the same legal and policy framework for primary for lasting poverty reduction and production, the two of which conflict in their objectives. As above, the ESMF includes the principles, rules, sustainable development, The Planted Forest Act 2015 distinguishes a ‘planted forest’ guidelines and procedures for the screening and whether located in countries with from a forest as defined under the Forestry Act as one There are also multiple acts that allow protected areas, assessment of environmental and social impacts abundant forests or in those with which is planted or seeded in the process of reforestation which could include forests, to be created (e.g. Forestry of PaMs once they have been defined with depleted or naturally limited or reforestation consisting of introduced species or Act, National Parks Act, EPC Act, Preservation of Sites sufficient detail to be specifically evaluated. Due forest resources. indigenous species. and Artifacts Act etc.). There is a degree of overlap to the nature and scope of the PaMs, the main between these Acts creating legal and institutional applicable safeguard instrument for these PaMs

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The objective of this policy is to Both fall under the framework for management, duplication and potential confusion over which under the ESMF is conducting a Strategic assist borrowers to harness the conservation and sustainable development based on the legislation forests have been protected under (and the Environment and Social Assessment (SESA). The potential of forests to reduce definitions used for forest ecosystems, forest biodiversity corresponding nature of that protection). procedures for the SESA have been prepared in poverty in a sustainable manner, and conversion of forests under EPC Act, which adopt the accordance with best practices215, including integrate forests effectively into same definitions as those contained in the Convention on Institutional screening, categorization, assessment and sustainable economic Biological Diversity. This has been ratified by Vanuatu and As mentioned above, the policy objectives aiming to management to any potential risks to forests (see development, and protect the transferred into domestic law through the Convention on manage, conserve and sustainably develop forests are Annex II of ESMF). vital local and global Biological Diversity Ratification Act. at odds with the policy objectives of the primary environmental services and producers’ sector, which has recently established the The institutional arrangements proposed in the values of forests. The EPC Act provides for the conservation, sustainable Primary Producers Authority, which is tasked with ESMF aim at fostering interinstitutional development and management of the environment which marketing and promoting the development of that coordination and coherence in policy Where forest restoration and includes forest conservation, development and sector. implementation, this will include the necessary plantation development are management. It also provides for the establishment of coordination between the Department of necessary to meet these community conservation areas to protect areas with unique The goals between the two directly conflict. For Agriculture and the Department of Livestock if objectives, the Bank assists genetic, cultural, geological or biological resources or are example, the Department of Agriculture is targeting the any mismatches arise. borrowers with forest restoration habitats for flora and fauna species (s34). replanting of coconuts around Vanuatu, and the activities that maintain or Department of Livestock has a target of 500,000 heads enhance biodiversity and The Forestry Act 2019 adds to this framework by allowing of cattle. These activities are drivers of deforestation ecosystem functionality. The Bank Forest Protected Areas to be declared by the Minister for that the Department of Forestry is trying to reduce. also assists borrowers with the the protection of ecosystems, biodiversity, scientific, There are no restrictions on custom land owners establishment and sustainable climate, cultural, social functions of significance to the carrying out primary production activities on their land. management of environmentally custom land owners, community and future generations appropriate, socially beneficial, (s34). and economically viable forest plantations to help meet growing Furthermore, the Vanuatu Forestry Policy provides demands for forest goods and directives for the management, sustainable development services. and conservation of forests. Specifically, objective A1 requires assessments of the national forest resources to be carried out every 4 years. It also provides for the management of forests through strategic harvesting plans in accordance with outline prepared by the forestry department, monitor harvesting levels, apply the sustainable forest management concepts aimed at reducing forest degradation and maintaining healthy forest

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ecosystems. All processing facilities must also be registered and monitored as well.

Institutional The Director of the Department of Environment is in charge of development, co-ordination and, where appropriate, implementation of the Government’s environmental policies and programs. With regards to the forests, the Department of Forestry is in charge of leading the implementation procedures. The Department of Forestry can work with custom land owners, forest users and others. The Bank does not finance The Forestry Policy under objective B5 prohibits the Since the CBD Act literally transposes the text of the Is important to consider the main aim of the NS is projects that, in its opinion, would conversion of natural forests. convention into Vanuatu’s legislation, there are no gaps to effectively reduce the pressure on forests. involve significant conversion or within the domestic legal framework. degradation216 of critical forest The Convention on Biological Diversity Ratification Act (CBD As above, the ESMF includes the principles, rules, areas or related critical natural Act) defines ‘habitat’ as a place where an organism or guidelines and procedures for the screening and habitats.217 If a project involves population naturally occurs. The inference drawn from this assessment of environmental and social impacts the significant conversion or definition is that habitat and natural habitat refer to the of PaMs once they have been defined with degradation of natural forests or same thing and are used interchangeably. Article 8 (d) of Engagement and consultation with locally affected sufficient detail to be specifically evaluated. Due related natural habitats that the that act provides for the protection of natural habitats. communities in forest management decision-making is to the nature and scope of the PaMs, the main Bank determines are not critical, generally carried out in practice by the Department of applicable safeguard instrument for these PaMs and the Bank determines that The Department of Forestry is responsible for Forestry. Provincial Forestry Officers that are posted at under the ESMF is conducting a Strategic there are no feasible alternatives implementing the policy objectives under the Forestry the provincial and sometimes area council Environment and Social Assessment (SESA). The to the project and its siting, and Policy and the Department of Environment is responsible headquarters have good local knowledge of local land procedures for the SESA have been prepared in comprehensive analysis for the implementation of the CBD Act. owner groups and communities that have interests in accordance with best practices226, including demonstrates that overall any particular land or forests. screening, categorization, assessment and benefits from the project management to any potential risks to forests (see substantially outweigh the Article 6 of the CBD Act places obligations on the However, the processes set out in the DLA Planning Annex II of ESMF). The procedures also require environmental costs, the Bank government to develop national strategies and policies to Guidelines are largely aspirational and have not yet and lay out best practices and a process for the may finance the project provided ensure the sustainable use and conservation of biological been widely implemented. There are also no clear disclosure and public consultation of all that it incorporates appropriate diversity within their natural habitats. The CBD Act also processes or guidelines for Forestry Officers to follow affected/interested stakeholders. mitigation measures.218 requires: the identification and monitoring of the processes when engaging with locally affected communities to

216 See OP4.04, Definitions. 217 See OP4.04, Definitions. 218 See OPs 4.01 and 4.04. 226 OECD, Applying Strategic Environmental Assessment Good Practice Guidance for Development Co-Operation https://www.oecd.org/environment/environment-development/37353858.pdf and World Bank guidance https://openknowledge.worldbank.org/bitstream/handle/10986/2517/578810PUB0Stra101public10BOX353783B.pdf?sequence=1&isAllowed=y

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The Bank does not finance and categories of activities which have or are likely to cause ensure all groups are identified or engaged, or how The NS does not consider commercial harvesting projects that contravene significant adverse impacts on the conservation and decision-making is carried out taking into consideration operations, nor industrial-scale commercial applicable international sustainable use of biological diversity (s7(c)); the promotion the concerns and issues of locally affected harvesting operations. environmental and the protection of ecosystems and natural habitats communities. agreements.219 (s8(d)); and that research and training should be carried out to contribute to the conservation and sustainable use of biological diversity (s12).

The Forestry Act 2019 requires all commercial forestry operations to have a licence for timber operations, mobile Plantations sawmill and sandalwood (ss30,31, and 32). The licenses The Bank does not finance ensure harvesting is aligned with the Code of Logging plantations that involve any Practice Regulation, which comprehensively regulates conversion or degradation of logging activities for sustainable harvesting consistent with critical natural habitats, including international standards. adjacent or downstream critical natural habitats. When the Bank The Planted Forests Act states that the Minister responsible finances plantations, it gives for Forestry can issue a Planted Forest Harvesting Code of preference to siting such projects Practice which will control any forestry operation on a on unforested sites or lands planted forest on a customary owned land or leased land, already converted (excluding any and require harvesting plans, soil and sediment erosion lands that have been converted in control mechanisms, take into consideration native animals anticipation of the project). In and plants, indigenous relics and cultural sites and some view of the potential for other matters relevant harvesting. plantation projects to introduce invasive species and threaten Objective B2 of the Forest Policy sets out the Department biodiversity, such projects must of Forestry’s policy goals around forest management, and be designed to prevent and includes to activities forest inventory prior to harvesting, mitigate these potential threats preparing strategic plans and detailed crop harvesting plans to natural habitats. that are to be provided by the Department of Forestry.

All commercial forestry related harvesting activities are under the responsibility of the Department of Forestry, who are mandated to issue timber permits and other licenses provided they meet the harvesting requirements and

219 See OPs 4.01.

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licence conditions. There is currently no industrial commercial scale harvesting being carried out in Vanuatu. Commercial Harvesting The Bank may finance commercial harvesting operations220 only when the Bank has determined, on the basis of the applicable environmental assessment or other relevant information, that the areas affected by the harvesting are not critical forests or related critical natural habitats.221 To be eligible for Bank financing, industrial-scale commercial harvesting operations must also: Article 73 of the Vanuatu Constitution provides that a) be certified under an customary land can only be owned by the indigenous independent forest custom owners in perpetuity. 99% of land in Vanuatu is certification system custom owned, which results in most if not all forests being acceptable to the Bank222 as owned by the custom owners. Decision-making in relating meeting standards of to forest management is therefore at the discretion of the responsible forest custom owners. management and use; or b) where a pre-assessment Custom land can only be acquired by the Government for under such an independent public purposes under the Land Acquisition Act (s4) forest certification system following the processes set out in the Act, or leased under

220 Commercial harvesting operations are conducted by entities other than those described in items d and e in the Definitions.

221 However, the Bank may finance community-based harvesting activities that take place within Category VI Protected Areas, Managed Resource Protected Areas, that are established and managed mainly for the sustainable use of natural ecosystems (see Definitions). In these areas, Bank financial support is restricted to situations where such activities are permitted under the legislation governing the establishment of the area and where the activities form an integral part of the management plan for the area. Any such financial support must comply with paragraph 12 of this OP.

222 A forest certification system puts in place a process where a forest area is inspected by an independent certification body to determine whether its management meets clearly defined criteria and performance standards. The requirements for a certification system to be acceptable to the Bank are outlined in paragraphs. 10 and 11 of this OP.

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determines that the the Land Leases Act. Customary land will normally be leased operation does not yet meet for periods between 15-75 years, and these lease the requirements of agreements generally relinquish most of the custom land subparagraph 9(a) [above], owners land usage rights and decision-making, or are at adhere to a time-bound least subject to the lease term and conditions, for that phased action plan period. Only in these circumstances will customary land acceptable to the Bank223 for owners not be engaged in forest management decision achieving certification to making. such standards. For wider engagement, beyond the custom land owning To be acceptable to the Bank, a group, and other locally affected communities, perhaps forest certification system must those that have been given land usage rights by the land require: owners, there are a legislative requirements for this under a) compliance with relevant the EPC Act, the Forestry Act and other government laws; policies. b) recognition of and respect for any legally documented For example, the EPC Act requires national plans and or customary land tenure policies relating to environmental conservation and and use rights as well as the protection to be developed through public consultation rights of indigenous peoples (s9(5)). and workers; c) measures to maintain or The Forestry Act 2019 also requires the Director to consult enhance sound and effective the provincial government council and Island Chief Councils community relations; and obtain the consent of the customary land owners d) conservation of biological before declaring a forest area to be a protected forest area diversity and ecological (s34). functions; e) measures to maintain or Under the Forestry Policy, Objective F 16 states that chiefs, enhance environmentally landowners and communities must be consulted on sound multiple benefits planning of forestry operations, including land-use accruing from the forest; planning, and Objective G 17 emphasises the need for the f) prevention or minimization creation of consultation procedures to assist stakeholders of the adverse in the agroforestry projects. environmental impacts from forest use; The DLA Planning Guidelines also set out detailed process g) effective forest management for local and provincial planning. The guidelines are planning; intended to take a ‘community driven development

223 See BP 4.36, paragraph 5.

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h) active monitoring and approach’ to government planning at the sub-national assessment of relevant forest level. The processes include community consultations at management areas; and the village level, requiring representation from specified i) the maintenance of critical community groups, including vulnerable groups, separate forest areas and other critical male and female focus groups, and mapping of villages and natural habitats affected by village resources. the operation. In addition to the requirements in [these] paragraph, a forest The Department of Forestry and other government certification system must be departments must ensure they carry out consultations all independent, cost-effective, and the time with regards to policies and activities they wish to based on objective and implement measurable performance standards that are defined at the national level and are compatible with internationally accepted principles and criteria of sustainable forest management. The system must require independent, third-party assessment of forest management performance. In addition, the system's standards must be developed with the meaningful participation of local people and communities; indigenous peoples; nongovernmental organizations representing consumer, producer, and conservation interests; and other members of civil society, including the private sector. The decision-making procedures of the certification system must be fair, transparent, independent, and designed to avoid conflicts of interest. The Bank may finance harvesting operations conducted by small-

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scale landholders,224 by local communities under community forest management, or by such entities under joint forest management arrangements, if these operations: (a) have achieved a standard of forest management developed with the meaningful participation of locally affected communities, consistent with the principles and criteria of responsible forest management outlined in paragraph 10 [above]; or (b) adhere to a time-bound phased action plan225 to achieve such a standard. The action plan must be developed with the meaningful participation of locally-affected communities and be acceptable to the Bank. The borrower monitors all such operations with the meaningful participation of locally-affected communities.

Project Design As above, the Environment Protection and Conservation Act As above, Vanuatu legislation only requires EIAs and Is important to consider the main aim of the NS is In accordance with OP/BP 4.01, (EPC Act) requires all projects that may have does not consider SESAs for the screening, to effectively reduce the pressure on forests. Environmental Assessment, the environmental, social or custom impacts to undertake an categorization, assessment and management to any

224 "Small-scale" is determined by the national context of a given country and is generally relative to the average size of household forest landholdings. In some situations, small-scale landholders may control less than a hectare of forests; in others they may control 50 hectares or more.

225 See BP 4.36, paragraph 5.

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environmental assessment (EA) environmental impact assessment (EIA). What is defined as potential risks to forests in relation to the adoption of As above, the ESMF includes the principles, rules, for an investment project an impact under these categories is detailed in s11. The EPC policies, laws, plans and programs, as per the scope of guidelines and procedures for the screening and addresses the potential impact of Act ‘provides for the conservation, sustainable the strategic options under the NS. assessment of environmental and social impacts the project on forests and/or the development and management of the environment of of PaMs once they have been defined with rights and welfare of local Vanuatu and the regulated of related activities’. sufficient detail to be specifically evaluated. Due communities.227 to the nature and scope of the PaMs, the main For projects involving the Other Acts such the Forestry Act, Quarry Act, Foreshore applicable safeguard instrument for these PaMs management of forests proposed Development Act and Vanuatu Investment Promotion under the ESMF is conducting a Strategic for Bank financing, the borrower Authority Act (VIPA Act) reiterate this by also requiring EPC Environment and Social Assessment (SESA). The furnishes the Bank with relevant Act EIAs be carried out for some projects under their procedures for the SESA have been prepared in information on the forest sector respective Acts. accordance with best practices230, including concerning the borrower's overall screening, categorization, assessment and policy framework, national The Vanuatu National Policy on Climate Change and management to any potential risks to forests (see legislation, institutional Disaster Induced Displacement (VNPCCID) also requires Annex II of ESMF). The procedures also require capabilities, and the poverty, assessments of development projects’ displacement and lay out best practices and a process for the social, economic, or impacts, including assessment, which include disclosure and public consultation of all environmental issues related to environmental assessments of disaster risks of the new affected/interested stakeholders. forests. This information should sites for reintegration. include information on the country's national forest programs or other relevant country- driven processes. On the basis of this information and the project's EA,228 the borrower, as appropriate, incorporates measures in the project to strengthen the fiscal, legal, and institutional framework to meet the project's economic,

227 See Definitions, item d.

228 See BP 4.36, paragraph 3, for guidance on the assignment of EA categories for forest projects.

230 OECD, Applying Strategic Environmental Assessment Good Practice Guidance for Development Co-Operation https://www.oecd.org/environment/environment-development/37353858.pdf and World Bank guidance https://openknowledge.worldbank.org/bitstream/handle/10986/2517/578810PUB0Stra101public10BOX353783B.pdf?sequence=1&isAllowed=y

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environmental, and social objectives. These measures address, among other issues, the respective roles and legal rights of the government, the private sector, and local people. Preference is given to small-scale, community-level management approaches where they best harness the potential of forests to reduce poverty in a sustainable manner.229 As appropriate, the design of projects that use forest resources or provide environmental services includes an evaluation of the prospects for the development of new markets and marketing arrangements for non-timber forest products and related forest goods and services, taking into account the full range of goods and environmental services from well-managed forests.

Definitions a. Forest - The Forestry Act 2019 defines a forest as an area a. The definition of Forests in the legal framework are As above, the ESMF includes the principles, rules, The following definitions apply in of land that is larger than 0.5 ha, outside of agricultural general and there are some gaps with the specifics guidelines and procedures for the screening and this policy: production systems, urban parks and gardens, that contains required by the OP. assessment of environmental and social impacts (a) Forest is as an area of land of trees being or being capable of reaching 5 meters tall with of PaMs once they have been defined with not less than 1.0 hectare with a canopy cover of over 10 percent (s2). b. There is no definition of ‘natural forests’ in the sufficient detail to be specifically evaluated. Due tree crown cover (or current legal framework. to the nature and scope of the PaMs, the main equivalent stocking level) of b. There is no definition of ‘natural forests’ however, the applicable safeguard instrument for these PaMs more than 10 percent that Planted Forest Act 2015 distinguishes a ‘planted forest’ c. There is no definition of ‘critical forests’ in the legal under the ESMF is conducting a Strategic have trees with the potential from a forest as defined under the Forestry Act as one framework. IUCN categories can only be protected Environment and Social Assessment (SESA). The to reach a minimum height of which is planted or seeded in the process of reforestation through CCAs that are opt-in mechanisms by the procedures for the SESA have been prepared in

229 See BP 4.36, paragraph 4.

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2 meters at maturity in situ. A or reforestation consisting of introduced species or custom land owners. Other mechanisms within the accordance with best practices234, including forest may consist of either indigenous species. legal framework, such as forest protected areas screening, categorization, assessment and closed forest formations, (Forestry Act) and National Parks (National Park Act) management to any potential risks to natural where trees of various stories c. Critical forests areas are protected within CCAs that have have never been declared or utilised in practice. habitats (see Annex II of ESMF), all aligned with and undergrowth cover a been registered under the EPC Act. This is the only active WB’s definitions. high proportion of the legal mechanism, which relates to IUCN categories IV-VI. d. Local Community – Are not specifically defined ground, or open forest. according to these terms in the legal framework, and Young natural stands and all d. Local Community – The CBD Act refers to local not in relation to forest dependency, which is not easy plantations that have yet to communities in matters of conservation. The to define in Vanuatu’s context. In practice, local reach a crown density of 10 Decentralisation Act also provides for Area Councils communities can refer to custom groups, villages, or per cent or tree height of 2 administered under the Provincial Councils. These are custom area councils. meters are included under geographically designated groupings of sometimes one or forest, as are areas normally more custom groups, which can be defined according to e. Forests operating under joint forest or community forming part of the forest their custom area boundaries or language groups according management – no gaps other than the specific terms area that are temporarily to the Customary Lands Management Act. used within the relevant Acts. unstocked as a result of human intervention such as e. Forests operating under joint forest or community harvesting or natural causes management – Forests are managed by the custom owners but that are expected to of the land, or those with forestry rights according to the revert to forest. The Customary Land Management Act and Forestry Act 2019. definition includes forests The EPC Act also provides for CCAs to be established by dedicated to forest custom land owners and communities, who are the production, protection, principal participants that manage the forests conservation multiple uses, or through a management committee. conservation, whether formally recognized or not. The definition excludes areas where other land uses not dependent on tree cover predominate, such as agriculture, grazing or settlements. In countries with low forest cover, the definition may be expanded to include areas covered by

234 OECD, Applying Strategic Environmental Assessment Good Practice Guidance for Development Co-Operation https://www.oecd.org/environment/environment-development/37353858.pdf and World Bank guidance https://openknowledge.worldbank.org/bitstream/handle/10986/2517/578810PUB0Stra101public10BOX353783B.pdf?sequence=1&isAllowed=y

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trees that fall below the 10 percent threshold for canopy density, but are considered forest under local conditions. (b) Natural forests are forest lands and associated waterways where the ecosystem's biological communities are formed largely by native plant and animal species and where human activity has not essentially modified the area's primary ecological functions. (c) Critical forest areas are the forest areas that qualify as critical natural habitats under OP 4.04, Natural Habitats. Critical forest areas are the subset of natural forest lands that cover: (i) existing protected areas and areas officially proposed by governments as protected areas (e.g., reserves that meet the criteria of The World Conservation Union (IUCN) classifications231), areas initially recognized as protected by traditional local communities (e.g., sacred groves), and sites that maintain conditions vital for

231 IUCN categories are as follows: I - Strict Nature Reserve/Wilderness Area: protected area managed for science or wilderness protection; II - National Park: protected area managed mainly for ecosystem protection and recreation; III - Natural Monument: protected area managed mainly for conservation of specific natural features; IV - Habitat/Species Management Area: protected area managed mainly for conservation through management intervention; V - Protected Landscape/Seascape: protected area managed mainly for landscape/seascape conservation and recreation; and VI - Managed Resource Protected Area: protected area managed mainly for the sustainable use of natural ecosystems.

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the viability of these protected areas (as determined by the environmental assessment process232); or (ii) sites identified on supplementary lists prepared by the Bank or an authoritative source determined by the Regional environment sector unit. Such sites may include areas recognized by traditional local communities (e.g., sacred groves); areas with known high suitability for biodiversity conservation; and sites that are critical for rare, vulnerable, migratory, or endangered species.233 Listings are based on systematic evaluations of such factors as species richness; the degree of endemism, rarity, and vulnerability of component species; representativeness; and integrity of ecosystem processes. (d) Local community describes the group of people living in or near a forest, who are considered to have some significant level of

232 See OP/BP 4.01, Environmental Assessment. 233 Rare, vulnerable, endangered, or similarly threatened, as indicated in the IUCN Red List of Threatened Animals, BirdLife World

List of Threatened Birds, IUCN Red List of Threatened Plants, or other credible international or national lists accepted by the Regional environmental sector units.

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dependence upon or interaction with the forest. (e) Forests operating under joint forest or community management are those where local communities are the principal participants in production and other activities in these forests, and the major beneficiaries in the proceeds.

OP 4.09 Pest Management Policy objectives The Plant Protection Act provides for the management of There are no gaps in the legal framework and the policy As above, the ESMF includes the principles, rules, In assisting borrowers to manage pests. It allows Minister of MALFFB to make Orders framework is well developed to support this OP. guidelines and procedures for the screening and pests that affect either agriculture necessary to manage the pests. The Minister may make assessment of environmental and social impacts or public health, the Bank orders restricting, prohibiting, placing conditions or other of PaMs once they have been defined with supports a strategy that promotes controls of any plant materials, goods, pests or sufficient detail to be specifically evaluated. Due the use of biological or conveyances, for the purposes of managing plant pests. to the nature and scope of the PaMs, the main environmental control methods applicable safeguard instrument for these PaMs and reduces reliance on synthetic There are also prohibitions on planting of invasive species under the ESMF is conducting a Strategic chemical pesticides. In Bank- the International Trade (Flora and Fauna) Act (s19), which Environment and Social Assessment (SESA). The financed projects, the borrower is further supported by the National Invasive Species procedures for the SESA have been prepared in addresses pest management Strategy and Action Plan, and the National Biodiversity accordance with best practices236, including issues in the context of the Strategy and Action Plan. screening, categorization, assessment and project's environmental management to any potential risks linked to pest assessment.235 The National Biosecurity Policy 2016-2030 under objective management. 3 provides that the current invasive species can be In appraising a project that will controlled using bio control where bio control agents are Annex III of the ESMF presents a pest involve pest management, the available. This includes spreading bio control agents to management framework. Bank assesses the capacity of the other islands to control invasive species and pests. country's regulatory framework and institutions to promote and Institutional support safe, effective, and The following departments are involved in pest environmentally sound pest management in Vanuatu:

235 See OP 4.01. 236 OECD, Applying Strategic Environmental Assessment Good Practice Guidance for Development Co-Operation https://www.oecd.org/environment/environment-development/37353858.pdf and World Bank guidance https://openknowledge.worldbank.org/bitstream/handle/10986/2517/578810PUB0Stra101public10BOX353783B.pdf?sequence=1&isAllowed=y

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management. As necessary, the -Department of Environmental Protection Bank and the borrower -Department of Biosecurity incorporate in the project -Department of Agriculture components to strengthen such capacity.

Agricultural Pest Management 237 Pesticides Control Act 2006 defines pesticides and prohibits There are no gaps in the legal framework and the policy As above, the ESMF includes the principles, rules, The Bank uses various means to the importation, manufacture, formulation, use, and framework is well developed to support this OP. guidelines and procedures for the screening and assess pest management in the distribution of pesticides without a permit (s10). There assessment of environmental and social impacts country and support integrated needs to be a disclosure upon application for the permit of PaMs once they have been defined with pest management (IPM)238 and concerning the environmental impacts of the pesticide, sufficient detail to be specifically evaluated. Due the safe use of agricultural information regarding its composition, adequate to the nature and scope of the PaMs, the main pesticides: economic and sector toxicological data and other information concerning its applicable safeguard instrument for these PaMs work, sectoral or project-specific safety. under the ESMF is conducting a Strategic environmental assessments, Environment and Social Assessment (SESA). The participatory IPM assessments, Institutional procedures for the SESA have been prepared in and investment projects and The Department of Biosecurity under MALFFB is accordance with best practices239, including components aimed specifically at responsible for regulating the use of pesticides and issuing screening, categorization, assessment and supporting the adoption and use permits to allow import of pesticides. In practice, the management to any potential risks linked to pest of IPM. majority of pesticides are imported from Australia and New management. Zealand and permits will be approved if the pesticide are In Bank-financed agriculture registered pesticides in Australia. The Department of Annex III of the ESMF presents a pest operations, pest populations are Biosecurity is the leading agency here and may work with management framework. normally controlled through IPM other departments such as the department for Health and approaches, such as biological Environment to regulate the use of pesticides. Especially control, cultural practices, and the where health and environment concerns are evident. development and use of crop varieties that are resistant or tolerant to the pest. The Bank may finance the purchase of

237 OP 4.09 applies to all Bank lending, whether or not the loan finances pesticides. Even if Bank lending for pesticides is not involved, an agricultural development project may lead to substantially increased pesticide use and subsequent environmental problems. 238 IPM refers to a mix of farmer-driven, ecologically based pest control practices that seeks to reduce reliance on synthetic chemical pesticides. It involves (a) managing pests (keeping them below economically damaging levels) rather than seeking to eradicate them; (b) relying, to the extent possible, on nonchemical measures to keep pest populations low; and (c) selecting and applying pesticides, when they have to be used, in a way that minimizes adverse effects on beneficial organisms, humans, and the environment.

239 OECD, Applying Strategic Environmental Assessment Good Practice Guidance for Development Co-Operation https://www.oecd.org/environment/environment-development/37353858.pdf and World Bank guidance https://openknowledge.worldbank.org/bitstream/handle/10986/2517/578810PUB0Stra101public10BOX353783B.pdf?sequence=1&isAllowed=y

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pesticides when their use is justified under an IPM approach.

Criteria for Pesticide Selection and Pesticides Control Act defines pesticides and prohibits the The Pesticides Control Act does not regulate pesticides Annex III of the ESMF presents a pest Use importation, manufacture, formulation, use and to the same standards and formulations as the WHO’s management framework which address these The procurement of any pesticide distribution of pesticides without a permit (s10). There recommended classification on pesticides by hazard gaps according to the requirements of this OP. in a Bank-financed project is needs to be a disclosure upon application for the permit, and guidelines to classification. contingent on an assessment of concerning the environmental aspects of the pesticide, the nature and degree of information regarding its composition, adequate associated risks, taking into toxicological data and other information concerning its While the Department of Biosecurity are responsible for account the proposed use and the safety. regulating the use of pesticides by requiring permits for intended imported pesticides, the Department does not have users.240 With respect to the The Department of Biosecurity under the MALFFB is sufficient resources to carry out testing of the classification of pesticides and responsible for regulating the use of pesticides and issuing standards. The general approach taken is to approve their specific formulations, the permits to allow import of pesticides. In practice, the pesticides that have been approved and registered in Bank refers to the World Health majority of pesticides are imported from Australia and New Australia, on the assumption that they adhere to WHO Organization's Recommended Zealand and permits will be approved if the pesticide are guidelines. Classification of Pesticides by registered pesticides in Australia. The Department of Hazard and Guidelines to Biosecurity is the leading agency here and may work with The Pesticides Control Act does not specifically forbid Classification (Geneva: WHO other departments such as the Department for Health and pesticides that fall into the WHO classes IA and IB, or 1994-95).241 The following criteria Environment to regulate the use of pesticides. Especially formulations of products in Class III. apply to the selection and use of where health and environment concerns are evident. pesticides in Bank-financed The Department of Biosecurity are responsible for the projects: regulation of pesticides but this does not include 11. They must have negligible implementation of any FAO standards for packaging, adverse human health storage etc. effects. 12. They must be shown to be effective against the target species. 13. They must have minimal effect on nontarget species and the natural environment. The methods, timing, and frequency of

240 This assessment is made in the context of the project's environmental assessment and is recorded in the project documents. The project documents also include (in the text or in an annex) a list of pesticide products authorized for procurement under the project, or an indication of when and how this list will be developed and agreed on. This authorized list is included by reference in legal documents relating to the project, with provisions for adding or deleting materials. 241 Copies of the classification, which is updated annually, are available in the Sectoral Library. A draft Standard Bidding Document for Procurement of Pesticides is available from OPCPR.

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pesticide application are aimed to minimize damage to natural enemies. Pesticides used in public health programs must be demonstrated to be safe for inhabitants and domestic animals in the treated areas, as well as for personnel applying them. 14. Their use must take into account the need to prevent the development of resistance in pests. The Bank requires that any pesticides it finances be manufactured, packaged, labelled, handled, stored, disposed of, and applied according to standards acceptable to the Bank.242 The Bank does not finance formulated products that fall in WHO classes IA and IB, or formulations of products in Class II, if (a) the country lacks restrictions on their distribution and use; or (b) they are likely to be used by, or be accessible to, lay personnel, farmers, or others without training, equipment, and facilities to handle, store, and apply these products properly. OP 4.11. Physical cultural resources

242 The FAO's Guidelines for Packaging and Storage of Pesticides (Rome, 1985), Guidelines on Good Labeling Practice for Pesticides (Rome, 1985), and Guidelines for the Disposal of Waste Pesticide and Pesticide Containers on the Farm (Rome, 1985) are used as minimum standards.

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Policy objectives The Preservation of Sites and Artefacts Act 2008 provides While the current legal framework provides some As above, the ESMF includes the principles, rules, This policy addresses physical for the protection of sites that are of national heritage if mechanisms for the consideration, identification and guidelines and procedures for the screening and cultural resources,243 which are they have historical, archaeological, ethnological or artistic protection of physical cultural resources, there are gaps assessment of environmental and social impacts defined as movable or immovable significance (s2). between this and international standards provided for of PaMs once they have been defined with objects, sites, structures, groups under the Convention Concerning the Protection of the sufficient detail to be specifically evaluated. Due of structures, and natural features Supplementing this Act are mechanisms under the Forestry World Cultural and Natural Heritage, which provides to the nature and scope of the PaMs, the main and landscapes that have Act (s34) and the EPC Act (s35) to declare areas of land as definitions of physical cultural resources that do not applicable safeguard instrument for these PaMs archaeological, paleontological, protected or conservations areas on the basis that they exist in the current legal framework. The convention is under the ESMF is conducting a Strategic historical, architectural, religious, have cultural and social significance for the custom yet to be transformed into domestic law in Vanuatu. Environment and Social Assessment (SESA). The aesthetic, or other cultural landowners, community or future generations, or unique procedures for the SESA have been prepared in significance. Physical cultural genetic, cultural, geological, biological resources or natural Although the three Ministries with powers to declare accordance with best practices246, including resources may be located in urban habitats. conservation and protection sites have these screening, categorization, assessment and or rural settings, and may be The EPC Act aligns the protection of wild fauna or fauna mechanisms, they are all subject to the consent of the management to any potential risks linked to above or below ground, or under with the Convention Concerning the Protection of World customary land owners, and may be cancelled at any physical cultural resources. water. Their cultural interest may Cultural and Natural Heritage; however, this convention is time at the request of a custom owner. Annex V of the ESMF presents a Cultural Heritage be at the local, provincial or yet to be transformed into domestic law. Protection Framework (CHPF) to be applied for national level, or within the any potential risks to physical cultural resources. international community. The Vanuatu Cultural Centre is responsible for identifying cultural heritage sites under the Preservation of Sites and Physical cultural resources are Artefacts Act, which sits under the Ministry of Justice and important as sources of valuable Community Services. scientific and historical information, as assets for The Department of Forestry is responsible for informing the economic and social Minister of MALFFB of any potential sites for forest development, and as integral protected areas, however, the Department of Forestry is parts of a people’s cultural currently promoting the use of CCAs rather than Forestry identity and practices. Protected Areas, in coordination with the Department of Environment. The Bank assists countries to avoid or mitigate adverse impacts The Department of Environment is responsible for assisting on physical cultural resources customary land owners and communities in the registration from development projects244 of CCAs under the EPC Act. that it finances. The impacts on

243 Also known as ‘cultural heritage’, ‘cultural patrimony’, ‘cultural assets’ or ‘cultural property’. 244 The project is described in Schedule 2 to the Financing Agreement. This policy applies to all components of the project, regardless of the source of financing 246 OECD, Applying Strategic Environmental Assessment Good Practice Guidance for Development Co-Operation https://www.oecd.org/environment/environment-development/37353858.pdf and World Bank guidance https://openknowledge.worldbank.org/bitstream/handle/10986/2517/578810PUB0Stra101public10BOX353783B.pdf?sequence=1&isAllowed=y

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physical cultural resources The EPC Act requires all projects or developments that may resulting from project activities, have significant environmental, social and custom impacts including mitigating measures, must undergo an EIA (s12) and also requires that national may not contravene either the policies on the environment evaluate ‘custom’ and any borrower’s national legislation, or custom, environmental and social impacts (ss9 and 11). its obligations under relevant Custom impact has been defined under section 11 of the international environmental Environmental Protection and Conservation (Amendment) treaties and agreements.245 Act 2017 as an impact on indigenous custom, culture and tradition, and may include affecting a taboo site or affecting sites declared as a national heritage under the Preservation of Sites and Artefacts Act [CAP 39]

Institutional The Department of Environment is responsible for EIAs.

The Vanuatu Cultural Centre is the institution responsible for identifying physical cultural resources through the Cultural Centre Field Officers that work at the local level. Physical Cultural Resources within The Environmental Protection and Conservation Act The only definition of physical cultural resources in the As above, the ESMF includes the principles, rules, Environmental Assessment requires all projects or developments that may have legal framework is in the Convention Concerning the guidelines and procedures for the screening and The borrower addresses impacts significant environmental, social and custom impacts must Protection of the World Cultural and Natural Heritage, assessment of environmental and social impacts on physical cultural resources in undergo an EIA (s12) and also requires that national policies which is yet to be ratified. of PaMs once they have been defined with projects proposed for Bank on the environment evaluate ‘custom’ and any custom, sufficient detail to be specifically evaluated. Due financing, as an environmental and social impacts (ss9 and 11). Custom While the EPC Act requires EIAs to take into to the nature and scope of the PaMs, the main integral part of the environmental impact has been defined under section 11 of the consideration ‘custom’ impacts, which in practice applicable safeguard instrument for these PaMs assessment (EA) process. The Environmental Protection and Conservation (Amendment) includes physical cultural resources, there are no under the ESMF is conducting a Strategic steps elaborated below follow the Act 2017 as an impact on indigenous custom, culture and specific requirements or guidelines for consultative Environment and Social Assessment (SESA). The EA sequence of screening; tradition, and may include affecting a taboo site or affecting processes that incorporate physical cultural resources procedures for the SESA have been prepared in developing terms of reference sites declared as a national heritage under the Preservation considerations. If they are identified as being of accordance with best practices253, including (TORs); collecting baseline data; of Sites and Artefacts Act [CAP 39] significance under custom, it is not clear if the land screening, categorization, assessment and impact assessment; and owners only need to be consulted or the widely management to any potential risks linked to formulating mitigating measures The Department of Environment is responsible for the EIAs. community and other affected persons that these physical cultural resources. The procedures also and a management plan.247 require and lay out best practices and a process

245 This includes the Convention concerning the Protection of the World Cultural and Natural Heritage, 1972 (UNESCO World Heritage Convention). 247 See OP 4.01, Environmental Assessment. 253 OECD, Applying Strategic Environmental Assessment Good Practice Guidance for Development Co-Operation https://www.oecd.org/environment/environment-development/37353858.pdf and World Bank guidance https://openknowledge.worldbank.org/bitstream/handle/10986/2517/578810PUB0Stra101public10BOX353783B.pdf?sequence=1&isAllowed=y

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The following projects are The Vanuatu Cultural Centre is the institution responsible physical cultural resources might also have significance for the disclosure and public consultation of all classified during the for identifying physical cultural resources through the for. affected/interested stakeholders. environmental screening process Cultural Centre Field Officers that work at the local level. as Category A or B, and are subject to the provisions of this Annex V of the ESMF presents a Cultural Heritage policy: (a) any project involving Protection Framework (CHPF) to be applied for significant excavations, any potential risks to physical cultural resources. demolition, movement of earth, flooding, or other environmental changes; and (b) any project located in, or in the vicinity of, a physical cultural resources site recognized by the borrower. Projects specifically designed to support the management or conservation of physical cultural resources are individually reviewed, and are normally classified as Category A or B. 248 To develop the TORs for the EA, the borrower, in consultation with the Bank, relevant experts, and relevant project-affected groups, identifies the likely physical cultural resources issues, if any, to be taken into account by the EA. The TORs normally specify that physical cultural resources be included in the baseline data collection phase of the EA. The borrower identifies physical cultural resources likely to be affected by the project and assesses the project’s potential impacts on these resources as an integral part of the EA process, in

248 See OP 4.01, Environmental Assessment for Categories.

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accordance with the Bank’s EA requirements.249 When the project is likely to have adverse impacts on physical cultural resources, the borrower identifies appropriate measures for avoiding or mitigating these impacts as part of the EA process. These measures may range from full site protection to selective mitigation, including salvage and documentation, in cases where a portion or all of the physical cultural resources may be lost. As an integral part of the EA process, the borrower develops a physical cultural resources management plan250 that includes measures for avoiding or mitigating any adverse impacts on physical cultural resources, provisions for managing chance finds,251 any necessary measures for strengthening institutional capacity, and a monitoring system to track the progress of these activities. The physical cultural resources management plan is consistent with the country’s overall policy framework and national legislation and takes into account institutional capabilities with regard to physical cultural resources. The Bank reviews, and discusses with the borrower, the findings

249 See OP 4.01, Environmental Assessment. 250 If there is an Environmental Management Plan, it incorporates the physical cultural resources management plan. See OP 4.01, Environmental Assessment 251 For the purposes of this policy, ‘chance finds’ are defined as physical cultural resources encountered unexpectedly during project implementation.

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and recommendations related to the physical cultural resources aspects of the EA, and determines whether they provide an adequate basis for processing the project for Bank financing.252 Consultation The Environmental Protection and Conservation Act There are no department policies or guidelines on this As above, the ESMF includes the principles, rules, As part of the public consultations requires all projects or developments that may have within the relevant departments for conducting guidelines and procedures for the screening and required in the EA process, the significant environmental, social and custom impacts must consultations for the EIA process to ensure that assessment of environmental and social impacts consultative process for the undergo an EIA (s12), which aligns with the consultation relevant information concerning the impacts on of PaMs once they have been defined with physical cultural resources requirements under this OP. physical cultural resources are obtained for affected sufficient detail to be specifically evaluated. Due component normally includes persons, particularly communities that are not custom to the nature and scope of the PaMs, the main relevant project-affected groups, The Department of Local Authorities has created the Risk land owners of that specific land. applicable safeguard instrument for these PaMs concerned government Informed Planning, Budgeting and Monitoring Guidelines under the ESMF is conducting a Strategic authorities, and relevant for Sub-National Government which provides procedures Environment and Social Assessment (SESA). The nongovernmental organizations for local and provincial planning. These procedures are procedures for the SESA have been prepared in in documenting the presence and mostly community driven and therefore require accordance with best practices254, including significance of physical cultural consultation with the representatives of the different screening, categorization, assessment and resources, assessing potential groups of the society. This could be used for the EA management to any potential risks linked to impacts, and exploring avoidance consultative process. physical cultural resources. The procedures also and mitigation options. require and lay out best practices and a process for the disclosure and public consultation of all affected/interested stakeholders.

Annex V of the ESMF presents a Cultural Heritage Protection Framework (CHPF) to be applied for any potential risks to physical cultural resources.

Disclosure The Environmental Protection and Conservation Act No gaps. As above, the ESMF includes the principles, rules, The findings of the physical requires all projects or developments that may have guidelines and procedures for the screening and cultural resources component of significant environmental, social and custom impacts must assessment of environmental and social impacts the EA are disclosed as part of, undergo an EIA (s12). Section 20 of the Environmental of PaMs once they have been defined with

252 See OP 4.01, Environmental Assessment. 254 OECD, Applying Strategic Environmental Assessment Good Practice Guidance for Development Co-Operation https://www.oecd.org/environment/environment-development/37353858.pdf and World Bank guidance https://openknowledge.worldbank.org/bitstream/handle/10986/2517/578810PUB0Stra101public10BOX353783B.pdf?sequence=1&isAllowed=y

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and in the same manner as, the EA Protection and Conservation Act requires public notice of sufficient detail to be specifically evaluated. Due report.255 Exceptions to such the Environmental Impact Assessment to the public and any to the nature and scope of the PaMs, the main disclosure would be considered impacted persons. applicable safeguard instrument for these PaMs when the borrower, in under the ESMF is conducting a Strategic consultation with the Bank and Environment and Social Assessment (SESA). The persons with relevant expertise, procedures for the SESA have been prepared in determines that disclosure would accordance with best practices256, including compromise or jeopardize the screening, categorization, assessment and safety or integrity of the physical management to any potential risks linked to cultural resources involved or physical cultural resources. The procedures also would endanger the source of require and lay out best practices and a process information about the physical for the disclosure and public consultation of all cultural resources. In such cases, affected/interested stakeholders. sensitive information relating to these particular aspects may be omitted from the EA report. Annex V of the ESMF presents a Cultural Heritage Protection Framework (CHPF) to be applied for any potential risks to physical cultural resources.

OP 4.12. Involuntary Resettlement Policy objectives All projects, developments or activities that may have As above, Vanuatu legislation only requires EIAs and Overall, PaMs are not designed to be Bank experience indicates that environmental, social or custom impacts are subject to an does not consider SESAs for the screening, implemented via involuntary land acquisition involuntary resettlement under environment impact assessment (EIA) under section 11 of categorization, assessment and management to any from communities, nor the involuntary restriction development projects, if the Environment Protection and Conservation Act (EPC Act). potential risks to forests in relation to the adoption of of access to registered conservation and unmitigated, often gives rise to Social impacts is defined to include any impacts that require policies, laws, plans and programs, as per the scope of protection areas. severe economic, social, and people to resettle, potentially result in loss of assets or land, the strategic options under the NS. environmental risks: production loss of gardens, affecting health and safety, or As above, the ESMF includes the principles, rules, systems are dismantled; people unsustainable use of natural resources, or use a resource in There are no legal obligations placed on the guidelines and procedures for the screening and face impoverishment when their a way that may conflict with the existing use of that Government or any project implementing agencies to assessment of environmental and social impacts productive assets or income resource, or affect the ability of people to adapt to and assist project/program affected persons unless the land of PaMs once they have been defined with sources are lost; people are mitigate the effects of climate change, generate noise or a is compulsorily acquired by the Government, which is sufficient detail to be specifically evaluated. Due relocated to environments where foul odour (s11 EPC Act). EMMP must accompany EIA limited to compensation. to the nature and scope of the PaMs, the main their productive skills may be less applicable safeguard instrument for these PaMs

255 See The World Bank Policy on Access to Information. 256 OECD, Applying Strategic Environmental Assessment Good Practice Guidance for Development Co-Operation https://www.oecd.org/environment/environment-development/37353858.pdf and World Bank guidance https://openknowledge.worldbank.org/bitstream/handle/10986/2517/578810PUB0Stra101public10BOX353783B.pdf?sequence=1&isAllowed=y

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applicable and the competition reports addressing any impacts that will be mitigated, The EPC Act places obligations on the project proponent under the ESMF is conducting a Strategic for resources greater; community minimised, reduced or eliminated by the applicant (s11). to address any involuntary resettlement in the EMMP, Environment and Social Assessment (SESA). The institutions and social networks but does not specific these requirements in adequate procedures for the SESA have been prepared in are weakened; kin groups are The only legislation in Vanuatu that provides specific detail to align with the OPs overall objectives. accordance with best practices257, including dispersed; and cultural identity, compensation mechanisms for involuntary resettlement is screening, categorization, assessment and traditional authority, and the the Land Acquisition Act, which requires that persons Although the NPCCDID focuses on instructing management to any potential risks linked to potential for mutual help are affected by land compulsorily acquired by the Government departments to develop safeguards to assist displaced involuntary land acquisition from communities, diminished or lost. This policy for public purposes, are compensated. persons, which are yet to be developed. nor the involuntary restriction of access to includes safeguards to address registered conservation and protection areas. and mitigate these The Vanuatu National Policy on Climate Change and There are no detailed provisions that identify a specific impoverishment risks. Disaster-Induced Displacement (NPCCDID), provides a guide agency to implement the policy actions. The procedures also require and lay out best for displacement issues in Vanuatu, and while its focus is The NDMO is only responsible for creating procedures practices and a process for the disclosure and Involuntary resettlement may disaster induced displacement, the policy also explicitly to be used in assisting those displaced in the public consultation of all affected/interested cause severe long-term hardship, states that is applies to any ‘development’ projects. The resettlement process. stakeholders. impoverishment, and policy provides a general framework for the National environmental damage unless Disaster Management Office to develop standard The policy is clearly focused on disaster related Annex VI presents a Resettlement Policy appropriate measures are procedures to protect and assist those being displaced. displacement and project/program related Framework (RPF), which includes the principles carefully planned and carried out. displacement issues are yet to be further developed. and processes to avoid involuntary resettlement For these reasons, the overall Policy Action 3.4 and 3.5 focus on developing safeguards to The policy does not identify specific institutions to and to provide compensation, entitlements and objectives of the Bank's policy on assist the displaced persons in re-integrating back into their facilitate resettlement, nor provided specific guidance prepare Resettlement Action Plans where involuntary resettlement are the local origin as well as their new origin. This aims to assist on how these efforts are to be measured in local involuntary resettlement is unavoidable. following: the displaced people during the resettlement process. contexts by agencies involved. (a) Involuntary resettlement Annex VII presents a Process Framework (PF), should be avoided where NPCCDID (Action 3.7) states that there will be safeguards to which includes the principles and processes to feasible, or minimized, address economic loss encountered by the displaced support those people who are restricted from exploring all viable persons. In addition, a relocation assessment plan should accessing protected areas as a result of the alternative project designs. 2 be developed with regards to the different needs of men, activities. Resettlement action plan (RAP) will (b) Where it is not feasible to women, children and vulnerable groups too. need to be adopted for sub-project/activities, as avoid resettlement, Action 3.7 of the NPCCDID also states that relocation relevant. resettlement activities safeguards should address economic losses that result from should be conceived and loss of access to land and restrictions on access to executed as sustainable resources. development programs, providing sufficient The above policy provides that the Ministry of Climate investment resources to Change is responsible in leading the other ministries within

257 OECD, Applying Strategic Environmental Assessment Good Practice Guidance for Development Co-Operation https://www.oecd.org/environment/environment-development/37353858.pdf and World Bank guidance https://openknowledge.worldbank.org/bitstream/handle/10986/2517/578810PUB0Stra101public10BOX353783B.pdf?sequence=1&isAllowed=y

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enable the persons displaced the government to use the displacement policy. The other by the project to share in ministries could be useful are the Ministry of Internal project benefits. Displaced Affairs, Ministry of Land and Natural Resources, Ministry of persons3 should be Infrastructure and Public Utilities, Ministry of Climate meaningfully consulted and Change and Adaption and the Ministry of Internal Affairs. should have opportunities to The main implementing agency within that Ministry is the participate in planning and National Disaster Management Office (MDMO). The NDMO implementing resettlement can collaborate with the department of Local Authorities programs. and the National Advisory Board on Climate Reduction.

(c) Displaced persons should be The International Migration Organisation also has a assisted in their efforts to Vanuatu Office and have been involved in internal improve their livelihoods and displacement activities in coordination with the MDMO. standards of living or at least

to restore them, in real terms, to pre-displacement levels or to levels prevailing prior to the beginning of project implementation, whichever is higher.4 Impacts covered All projects, developments or activities that may have There are no legal obligations placed on the Overall, PaMs are not designed to be This policy covers direct economic environmental, social or custom impacts are subject to an Government or any project implementing agencies to implemented via involuntary land acquisition and social impacts5 that both environment impact assessment (EIA) under section 11 of assist project/program affected persons unless the land from communities, nor the involuntary restriction result from Bank-assisted the Environment Protection and Conservation Act (EPC Act). is compulsorily acquired by the Government, which is of access to registered conservation and 6 Social impacts is defined to include any impacts that require limited to compensation. The project proponent is protection areas. investment projects, and are people to resettle, potentially result in loss of assets or land, required to address impacts caused by the project in the caused by loss of gardens, affecting health and safety, or EMMP, but does not provide specific guidance on how As above, the ESMF includes the principles, rules, (a) the involuntary7 taking of unsustainable use of natural resources, or use a resource in this can be adequately addressed. guidelines and procedures for the screening and a way that may conflict with the existing use of that assessment of environmental and social impacts land8 resulting in (i) resource, or affect the ability of people to adapt to and The NPCCDID only focuses on instructing departments of PaMs once they have been defined with relocation or loss of shelter; mitigate the effects of climate change, generate noise or a to develop safeguards to assist displaced persons, sufficient detail to be specifically evaluated. Due (ii) loss of assets or access to foul odour (s11 EPC Act). EMMP must accompany EIA which are yet to be developed. to the nature and scope of the PaMs, the main assets; or (iii) loss of income reports addressing any impacts that will be mitigated, applicable safeguard instrument for these PaMs sources or means of minimised, reduced or eliminated by the applicant (s11). While the Land Acquisition Act specifically allows for under the ESMF is conducting a Strategic livelihood, whether or not custom owners as well as other parties who may have Environment and Social Assessment (SESA). The the affected persons must an interest in the acquired land to claim compensation procedures for the SESA have been prepared in move to another location; or and also challenge the government if they are not accordance with best practices258, including

258 OECD, Applying Strategic Environmental Assessment Good Practice Guidance for Development Co-Operation

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(b) the involuntary restriction of Section 9 and 10 of the Land Acquisition Act, state that content with the compensation, section 12B (2), allows screening, categorization, assessment and persons affected by land compulsorily acquired by the the Value General to proceed with the determination of management to any potential risks linked to access9 to legally designated Government for public purposes, are compensated. compensation in the appeal, without the presence of involuntary land acquisition from communities, parks and protected areas the appellant and the acquiring officer. Section 12 (5) nor the involuntary restriction of access to resulting in adverse impacts The Vanuatu National Policy on Climate Change and also states that the Value General is not bound by the registered conservation and protection areas. on the livelihoods of the Disaster-Induced Displacement (NPCCDID), provides a guide rules of evidence. displaced persons. for displacement issues in Vanuatu, and while its focus is The procedures also require and lay out best This policy applies to all disaster induced displacement, the policy also explicitly practices and a process for the disclosure and components of the project that states that is applies to any ‘development’ projects. public consultation of all affected/interested result in involuntary Policy Action 3.4 and 3.5 focus on developing safeguards to stakeholders. resettlement, regardless of the assist the displaced persons in re-integrating back into their source of financing. It also applies local origin as well as their new origin. This aims to assist Annex VI presents a Resettlement Policy to other activities resulting in the displaced people during the resettlement process. Framework (RPF), which includes the principles involuntary resettlement, that in and processes to avoid involuntary resettlement the judgment of the Bank, are Action 3.7 of the NPCCDID states that good relocation and to provide compensation, entitlements and (a) directly and significantly safeguards should consider economic losses as a result from prepare Resettlement Action Plans where related to the Bank-assisted land taking, restrictions on access to land, loss of land and involuntary resettlement is unavoidable. project, its assets or access to assets. (b) necessary to achieve its Annex VII presents a Process Framework (PF), objectives as set forth in the The Valuer-General is responsible for evaluating claims which includes the principles and processes to project documents; and made under the Land Acquisition Act. support those people who are restricted from (c) carried out, or planned to be accessing protected areas as a result of the carried out, activities. Resettlement action plan (RAP) will contemporaneously with the The NDMO is responsible for creating procedures to assist need to be adopted for sub-project/activities, as project. in the resettlement of the displaced persons. relevant. The Ministry of Climate Change is responsible in leading the Requests for guidance on the other ministries within the government to use the application and scope of this displacement policy. The other ministries could be useful policy should be addressed to the are the Ministry of Internal Affairs, Ministry of Land and Resettlement Committee (see BP Natural Resources, Ministry of Infrastructure and Public 4.12, para. 7). 10 Utilities, Ministry of Climate Change and Adaption and the Ministry of Internal Affairs. The main implementing agency within that Ministry is the National Disaster Management Office (MDMO). The NDMO can collaborate with the department of Local Authorities and the National Advisory Board on Climate Reduction.

https://www.oecd.org/environment/environment-development/37353858.pdf and World Bank guidance https://openknowledge.worldbank.org/bitstream/handle/10986/2517/578810PUB0Stra101public10BOX353783B.pdf?sequence=1&isAllowed=y

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The International Migration Organisation also has a Vanuatu Office and have been involved in internal displacement activities in coordination with the MDMO.

Required measures All projects, developments or activities that may have As above, Vanuatu legislation only requires EIAs and Overall, PaMs are not designed to be To address the impacts covered environmental, social or custom impacts are subject to an does not consider SESAs for the screening, implemented via involuntary land acquisition under para. 3 (a) of this policy, the environment impact assessment (EIA) under section 11 of categorization, assessment and management to any from communities, nor the involuntary restriction borrower prepares a resettlement the Environment Protection and Conservation Act (EPC Act). potential risks of involuntary land acquisition from of access to registered conservation and plan or a resettlement policy Social impacts is defined to include any impacts that require communities, nor the involuntary restriction of access protection areas. framework (see paras. 25-30) that people to resettle, potentially result in loss of assets or land, to registered conservation and protection areas in covers the following: loss of gardens, affecting health and safety, or relation to the adoption of policies, laws, plans and As above, the ESMF includes the principles, rules, (a) The resettlement plan or unsustainable use of natural resources, or use a resource in programs, as per the scope of the strategic options guidelines and procedures for the screening and resettlement policy a way that may conflict with the existing use of that under the NS. assessment of environmental and social impacts framework includes resource, or affect the ability of people to adapt to and of PaMs once they have been defined with measures to ensure that the mitigate the effects of climate change, generate noise or a sufficient detail to be specifically evaluated. Due displaced persons are (i) foul odour (s11 EPC Act). EMMP must accompany EIA to the nature and scope of the PaMs, the main informed about their options reports addressing any impacts that will be mitigated, applicable safeguard instrument for these PaMs and rights pertaining to minimised, reduced or eliminated by the applicant (s11). under the ESMF is conducting a Strategic resettlement; (ii) consulted Environment and Social Assessment (SESA). The on, offered choices among, Section 9 and 10 of the Land Acquisition Act, state that procedures for the SESA have been prepared in and provided with technically persons affected by land compulsorily acquired by the accordance with best practices259, including and economically feasible Government for public purposes, are compensated. screening, categorization, assessment and resettlement alternatives; management to any potential risks linked to and (iii) provided prompt and The Vanuatu National Policy on Climate Change and involuntary land acquisition from communities, effective compensation at Disaster-Induced Displacement (NPCCDID), provides a guide nor the involuntary restriction of access to full replacement cost11 for for displacement issues in Vanuatu, and while its focus is registered conservation and protection areas. 12 disaster induced displacement, the policy also explicitly losses of assets states that is applies to any ‘development’ projects. The procedures also require and lay out best attributable directly to the Policy Action 3.4 and 3.5 focus on developing safeguards to practices and a process for the disclosure and project. assist the displaced persons in re-integrating back into their public consultation of all affected/interested (b) If the impacts include local origin as well as their new origin. This aims to assist stakeholders. physical relocation, the the displaced people during the resettlement process. resettlement plan or Annex VI presents a Resettlement Policy resettlement policy Framework (RPF), which includes the principles framework includes

259 OECD, Applying Strategic Environmental Assessment Good Practice Guidance for Development Co-Operation https://www.oecd.org/environment/environment-development/37353858.pdf and World Bank guidance https://openknowledge.worldbank.org/bitstream/handle/10986/2517/578810PUB0Stra101public10BOX353783B.pdf?sequence=1&isAllowed=y

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measures to ensure that the Action 3.7 of the NPCCDID states that good relocation and processes to avoid involuntary resettlement displaced persons are (i) safeguards should consider economic losses as a result from and to provide compensation, entitlements and provided assistance (such as land taking, restrictions on access to land, loss of land and prepare Resettlement Action Plans where moving allowances) during its assets or access to assets. involuntary resettlement is unavoidable. relocation; and (ii) provided with residential housing, or Annex VII presents a Process Framework (PF), housing sites, or, as required, which includes the principles and processes to agricultural sites for which a support those people who are restricted from combination of productive accessing protected areas as a result of the potential, locational activities. Resettlement action plan (RAP) will advantages, and other need to be adopted for sub-project/activities, as factors is at least equivalent relevant. to 13 (c) Where necessary to achieve the objectives of the policy, the resettlement plan or resettlement policy framework also include measures to ensure that displaced persons are (i) offered support after displacement, for a transition period, based on a reasonable estimate of the time likely to be needed to restore their livelihood and standards of living;14 and (ii) provided with development assistance in addition to compensation measures described in paragraph 6(a) [(a) above]; (iii) such as land preparation, credit facilities, training, or job opportunities.

In projects involving involuntary restriction of access to legally designated parks and protected areas (see para. 3(b)), the nature of restrictions, as well as the type

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of measures necessary to mitigate adverse impacts, is determined with the participation of the displaced persons during the design and implementation of the project. In such cases, the borrower prepares a process framework acceptable to the Bank, describing the participatory process by which (a) specific components of the project will be prepared and implemented; (b) the criteria for eligibility of displaced persons will be determined; (c) measures to assist the displaced persons in their efforts to improve their livelihoods, or at least to restore them, in real terms, while maintaining the sustainability of the park or protected area, will be identified; and (d) potential conflicts involving displaced persons will be resolved. The process framework also includes a description of the arrangements for implementing and monitoring the process.

To achieve the objectives of this policy, particular attention is paid to the needs of vulnerable groups among those displaced, especially those below the poverty line, the landless, the elderly, women and children, indigenous peoples,15

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ethnic minorities, or other displaced persons who may not be protected through national land compensation legislation.

Bank experience has shown that resettlement of indigenous peoples with traditional land- based modes of production is particularly complex and may have significant adverse impacts on their identity and cultural survival. For this reason, the Bank satisfies itself that the borrower has explored all viable alternative project designs to avoid physical displacement of these groups. When it is not feasible to avoid such displacement, preference is given to land-based resettlement strategies for these groups (see para. 11) that are compatible with their cultural preferences and are prepared in consultation with them (see Annex A).

The implementation of resettlement activities is linked to the implementation of the investment component of the project to ensure that displacement or restriction of access does not occur before necessary measures for resettlement are in place. For impacts covered in para. 3(a) of this policy [above], these measures include provision of compensation and of other assistance required for relocation,

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prior to displacement, and preparation and provision of resettlement sites with adequate facilities, where required. In particular, taking of land and related assets may take place only after compensation has been paid and, where applicable, resettlement sites and moving allowances have been provided to the displaced persons. For impacts covered in para. 3(b) of this policy [above], the measures to assist the displaced persons are implemented in accordance with the plan of action as part of the project (see para. 30) [below]. 16

Preference should be given to land-based resettlement strategies for displaced persons whose livelihoods are land-based. These strategies may include resettlement on public land (see footnote 1 above), or on private land acquired or purchased for resettlement. Whenever replacement land is offered, resettlers are provided with land for which a combination of productive potential, locational advantages, and other factors is at least equivalent to the advantages of the land taken. If land is not the preferred option of the displaced persons, the provision of land would adversely affect the sustainability of a park or protected area,17 or sufficient land is not available at a

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reasonable price, non-land-based options built around opportunities for employment or self-employment should be provided in addition to cash compensation for land and other assets lost. The lack of adequate land must be demonstrated and documented to the satisfaction of the Bank.

Payment of cash compensation for lost assets may be appropriate where (a) livelihoods are land- based but the land taken for the project is a small fraction18 of the affected asset and the residual is economically viable; (b) active markets for land, housing, and labour exist, displaced persons use such markets, and there is sufficient supply of land and housing; or (c) livelihoods are not land-based. Cash compensation levels should be sufficient to replace the lost land and other assets at full replacement cost in local markets.

For impacts covered under para. 3(a) of this policy [above], the Bank also requires the following: (a) Displaced persons and their communities, and any host communities receiving them, are provided timely and relevant information, consulted on resettlement options, and offered opportunities to participate

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in planning, implementing, and monitoring resettlement. Appropriate and accessible grievance mechanisms are established for these groups. (b) In new resettlement sites or host communities, infrastructure and public services are provided as necessary to improve, restore, or maintain accessibility and levels of service for the displaced persons and host communities. Alternative or similar resources are provided to compensate for the loss of access to community resources (such as fishing areas, grazing areas, fuel, or fodder). (c) Patterns of community organization appropriate to the new circumstances are based on choices made by the displaced persons. To the extent possible, the existing social and cultural institutions of resettlers and any host communities are preserved and resettlers' preferences with respect to relocating in pre-existing communities and groups are honoured.

Eligibility for Benefits19 Land Acquisition Act provides for compensation to be There are only legal obligations to provide Overall, PaMs are not designed to be Upon identification of the need awarded to the custom owner of the land and other compensation for compulsorily acquired land, and this implemented via involuntary land acquisition for involuntary resettlement in a relevant persons for loss of rents and loss of any financial is limited to the value of the land for the land owners, from communities, nor the involuntary restriction

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project, the borrower carries out gains from the time the land was acquired by the and loss of rent and financial gains from the time the of access to registered conservation and a census to identify the persons government. Compensation methods for determining rates land was acquired by the government for ‘other protection areas. who will be affected by the are provided for in the Act, and assessed by the Valuer- relevant persons’. project (see the Annex A, para. General. As above, the ESMF includes the principles, rules, 6(a)), to determine who will be Most of the objectives and safeguards envisaged in the guidelines and procedures for the screening and eligible for assistance, and to NPCCDID (Action 3.7) states that there will be safeguards to NPCCDID are yet to be developed and adapted to assessment of environmental and social impacts discourage inflow of people address economic loss encountered by the displaced project/program affected persons. of PaMs once they have been defined with ineligible for assistance. The persons. In addition, a relocation assessment plan should sufficient detail to be specifically evaluated. Due borrower also develops a be developed with regards to the different needs of men, There is no specific agency to regulate and carry out to the nature and scope of the PaMs, the main procedure, satisfactory to the women, children and vulnerable groups too. compensation and financial assistance. applicable safeguard instrument for these PaMs Bank, for establishing the criteria under the ESMF is conducting a Strategic by which displaced persons will be The NDMO is responsible here for creating procedures to The EPC Act does not provide any details on what Environment and Social Assessment (SESA). The deemed eligible for compensation ensure relocation safeguards addresses economic losses eligibility criteria should be incorporated into the procedures for the SESA have been prepared in and other resettlement and hopefully this includes compensation. EMMP for projects that have social impacts, including accordance with best practices260, including assistance. The procedure involuntary resettlement. screening, categorization, assessment and includes provisions for management to any potential risks linked to meaningful consultations with involuntary land acquisition from communities, affected persons and nor the involuntary restriction of access to communities, local authorities, registered conservation and protection areas. and, as appropriate, nongovernmental organizations The procedures also require and lay out best (NGOs), and it specifies grievance practices and a process for the disclosure and mechanisms. public consultation of all affected/interested stakeholders. Criteria for Eligibility. Displaced persons may be classified in one Annex VI presents a Resettlement Policy of the following three groups: Framework (RPF), which includes the principles (a) those who have formal legal and processes to avoid involuntary resettlement rights to land (including and to provide compensation, entitlements and customary and traditional prepare Resettlement Action Plans where rights recognized under the involuntary resettlement is unavoidable. laws of the country); (b) those who do not have Annex VII presents a Process Framework (PF), formal legal rights to land at which includes the principles and processes to the time the census begins support those people who are restricted from

260 OECD, Applying Strategic Environmental Assessment Good Practice Guidance for Development Co-Operation https://www.oecd.org/environment/environment-development/37353858.pdf and World Bank guidance https://openknowledge.worldbank.org/bitstream/handle/10986/2517/578810PUB0Stra101public10BOX353783B.pdf?sequence=1&isAllowed=y

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but have a claim to such land accessing protected areas as a result of the or assets--provided that such activities. Resettlement action plan (RAP) will claims are recognized under need to be adopted for sub-project/activities, as the laws of the country or relevant. become recognized through a process identified in the resettlement plan (see Annex A, para. 7(f)); and20 (c) those who have no recognizable legal right or claim to the land they are occupying. Persons covered under para. (a) and (b) [above] are provided compensation for the land they lose, and other assistance in accordance with para. 6. Persons covered under para. (c) [above] are provided resettlement assistance21 in lieu of compensation for the land they occupy, and other assistance, as necessary, to achieve the objectives set out in this policy, if they occupy the project area prior to a cut-off date established by the borrower and acceptable to the Bank. 22 Persons who encroach on the area after the cut-off date are not entitled to compensation or any other form of resettlement assistance. All persons included in para. (a), (b), or (c) [above] are provided compensation for loss of assets other than land.

Resettlement Planning, As above, all projects, developments or activities that may As above, Vanuatu legislation only requires EIAs and Overall, PaMs are not designed to be Implementation, and Monitoring have environmental, social or custom impacts are subject does not consider SESAs for the screening, implemented via involuntary land acquisition to an environment impact assessment (EIA) under section categorization, assessment and management to any from communities, nor the involuntary restriction

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To achieve the objectives of this 11 of the Environment Protection and Conservation Act potential risks of involuntary land acquisition from of access to registered conservation and policy, different planning (EPC Act). Social impacts is defined to include any impacts communities, nor the involuntary restriction of access protection areas. instruments are used, depending that require people to resettle, potentially result in loss of to registered conservation and protection areas in on the type of project: assets or land, loss of gardens, affecting health and safety, relation to the adoption of policies, laws, plans and As above, the ESMF includes the principles, rules, (a) a resettlement plan or or unsustainable use of natural resources, or use a resource programs, as per the scope of the strategic options guidelines and procedures for the screening and abbreviated resettlement in a way that may conflict with the existing use of that under the NS. assessment of environmental and social impacts plan is required for all resource, or affect the ability of people to adapt to and of PaMs once they have been defined with operations that entail mitigate the effects of climate change, generate noise or a sufficient detail to be specifically evaluated. Due involuntary resettlement foul odour (s11 EPC Act). EMMP must accompany EIA to the nature and scope of the PaMs, the main unless otherwise specified reports addressing any impacts that will be mitigated, applicable safeguard instrument for these PaMs (see para. 25 and Annex A); minimised, reduced or eliminated by the applicant (s11). under the ESMF is conducting a Strategic (b) a resettlement policy Environment and Social Assessment (SESA). The framework is required for Section 9 and 10 of the Land Acquisition Act, state that procedures for the SESA have been prepared in operations referred to in persons affected by land compulsorily acquired by the accordance with best practices261, including paras. 26-30 that may entail Government for public purposes, are compensated. screening, categorization, assessment and involuntary resettlement, management to any potential risks linked to unless otherwise specified The Vanuatu National Policy on Climate Change and involuntary land acquisition from communities, (see Annex A; and Disaster-Induced Displacement (NPCCDID), provides a guide nor the involuntary restriction of access to (c) a process framework is for displacement issues in Vanuatu, and while its focus is registered conservation and protection areas. prepared for projects disaster induced displacement, the policy also explicitly involving restriction of access states that is applies to any ‘development’ projects. The procedures also require and lay out best in accordance with para. 3(b) Policy Action 3.4 and 3.5 focus on developing safeguards to practices and a process for the disclosure and (see para. 31). assist the displaced persons in re-integrating back into their public consultation of all affected/interested The borrower is responsible for local origin as well as their new origin. This aims to assist stakeholders. preparing, implementing, and the displaced people during the resettlement process. monitoring a resettlement plan, a Annex VI presents a Resettlement Policy resettlement policy framework, Action 3.7 of the NPCCDID states that good relocation Framework (RPF), which includes the principles or a process framework (the safeguards should consider economic losses as a result from and processes to avoid involuntary resettlement “resettlement instruments”), as land taking, restrictions on access to land, loss of land and and to provide compensation, entitlements and appropriate, that conform to this its assets or access to assets. prepare Resettlement Action Plans where policy. The resettlement involuntary resettlement is unavoidable. instrument presents a strategy for achieving the objectives of the The EPC Act and Forestry Act, and other Acts that contain Annex VII presents a Process Framework (PF), policy and covers all aspects of provisions for registering or declaring conservation or which includes the principles and processes to the proposed resettlement. protected areas do not provide for any persons affected to support those people who are restricted from

261 OECD, Applying Strategic Environmental Assessment Good Practice Guidance for Development Co-Operation https://www.oecd.org/environment/environment-development/37353858.pdf and World Bank guidance https://openknowledge.worldbank.org/bitstream/handle/10986/2517/578810PUB0Stra101public10BOX353783B.pdf?sequence=1&isAllowed=y

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Borrower commitment to, and claim compensation for any restrictions to access to natural accessing protected areas as a result of the capacity for, undertaking resources. However, the process for registering CCAs or activities. Resettlement action plan (RAP) will successful resettlement is a key Forest Protected Areas requires consent from the custom need to be adopted for sub-project/activities, as determinant of Bank involvement land owners, communities concerned and all persons relevant. in a project. having rights and interests in the land, and in the case of Resettlement planning includes CCAs under the EPC Act, the custom owners and early screening, scoping of key communities managing the area maintain control over the issues, the choice of resettlement resources and any restrictions would be those they put in instrument, place themselves. and the information required to prepare the resettlement component or subcomponent. The scope and level of detail of the resettlement instruments vary with the magnitude and complexity of resettlement. In preparing the resettlement component, the borrower draws on appropriate social, technical, and legal expertise and on relevant community-based organizations or NGOs.23 The borrower informs potentially displaced persons at an early stage about the resettlement aspects of the project and takes their views into account in project design.

The full costs of resettlement activities necessary to achieve the objectives of the project are included in the total costs of the project. The costs of resettlement, like the costs of other project activities, are treated as a charge against the economic benefits of the project; and any net benefits to resettlers

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(as compared to the “without- project” circumstances) are added to the benefits stream of the project. Resettlement components or free-standing resettlement projects need not be economically viable on their own, but they should be cost-effective. The borrower ensures that the Project Implementation Plan is fully consistent with the resettlement instrument. As a condition of appraisal of projects involving resettlement, the borrower provides the Bank with the relevant draft resettlement instrument which conforms to this policy, and makes it available at a place accessible to displaced persons and local NGOs, in a form, manner, and language that are understandable to them. Once the Bank accepts this instrument as providing an adequate basis for project appraisal, the Bank makes it available to the public through its InfoShop. After the Bank has approved the final resettlement instrument, the Bank and the borrower disclose it again in the same manner. 24 The borrower’s obligations to carry out the resettlement instrument and to keep the Bank informed of implementation progress are provided for in the legal agreements for the project.

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The borrower is responsible for adequate monitoring and evaluation of the activities set forth in the resettlement instrument. The Bank regularly supervises resettlement implementation to determine compliance with the resettlement instrument. Upon completion of the project, the borrower undertakes an assessment to determine whether the objectives of the resettlement instrument have been achieved. The assessment takes into account the baseline conditions and the results of resettlement monitoring. If the assessment reveals that these objectives may not be realized, the borrower should propose follow-up measures that may serve as the basis for continued Bank supervision, as the Bank deems appropriate (see also BP 4.12, para. 16).

Resettlement Instruments Overall, PaMs are not designed to be implemented via involuntary land acquisition Resettlement Plan from communities, nor the involuntary restriction A draft resettlement plan that of access to registered conservation and conforms to this policy is a protection areas. condition of appraisal (see Annex A, para. 2-21) for projects referred As above, the ESMF includes the principles, rules, to in para. 17(a) above.25 guidelines and procedures for the screening and However where impacts on the assessment of environmental and social impacts entire displaced population are of PaMs once they have been defined with minor,26or fewer than 200 sufficient detail to be specifically evaluated. Due people are displaced, an to the nature and scope of the PaMs, the main abbreviated resettlement plan applicable safeguard instrument for these PaMs

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may be agreed with the borrower under the ESMF is conducting a Strategic (see Annex A, para. 22). The Environment and Social Assessment (SESA). The information disclosure procedures for the SESA have been prepared in procedures set forth in para. 22 accordance with best practices262, including apply [see Resettlement Planning, screening, categorization, assessment and Implementation, and Monitoring management to any potential risks linked to above]. involuntary land acquisition from communities, nor the involuntary restriction of access to Resettlement Policy Framework registered conservation and protection areas. For sector investment operations that may involve involuntary The procedures also require and lay out best resettlement, the Bank requires practices and a process for the disclosure and that the project implementing public consultation of all affected/interested agency screen subprojects to be stakeholders. financed by the Bank to ensure their consistency with this OP. For Annex VI presents a Resettlement Policy these operations, the borrower Framework (RPF), which includes the principles submits, prior to appraisal, a and processes to avoid involuntary resettlement resettlement policy framework and to provide compensation, entitlements and that conforms to this policy (see prepare Resettlement Action Plans where Annex A, paras. 23-25). The involuntary resettlement is unavoidable. framework also estimates, to the extent feasible, the total Annex VII presents a Process Framework (PF), population to be displaced and which includes the principles and processes to the overall resettlement costs. support those people who are restricted from For financial intermediary accessing protected areas as a result of the operations that may involve activities. Resettlement action plan (RAP) will involuntary resettlement, the need to be adopted for sub-project/activities, as Bank requires that the financial relevant. intermediary (FI) screen subprojects to be financed by the Bank to ensure their consistency with this OP. For these operations, the Bank requires that before appraisal the borrower or

262 OECD, Applying Strategic Environmental Assessment Good Practice Guidance for Development Co-Operation https://www.oecd.org/environment/environment-development/37353858.pdf and World Bank guidance https://openknowledge.worldbank.org/bitstream/handle/10986/2517/578810PUB0Stra101public10BOX353783B.pdf?sequence=1&isAllowed=y

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the FI submit to the Bank a resettlement policy framework conforming to this policy (see Annex A, paras. 23-25). In addition, the framework includes an assessment of the institutional capacity and procedures of each of the FIs that will be responsible for subproject financing. When, in the assessment of the Bank, no resettlement is envisaged in the subprojects to be financed by the FI, a resettlement policy framework is not required. Instead, the legal agreements specify the obligation of the FIs to obtain from the potential subborrowers a resettlement plan consistent with this policy if a subproject gives rise to resettlement. For all subprojects involving resettlement, the resettlement plan is provided to the Bank for approval before the subproject is accepted for Bank financing. For other Bank-assisted project with multiple subprojects27 that may involve involuntary resettlement, the Bank requires that a draft resettlement plan conforming to this policy be submitted to the Bank before appraisal of the project unless, because of the nature and design of the project or of a specific subproject or subprojects (a) the zone of impact of subprojects cannot be determined, or (b) the zone of impact is known but

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precise sitting alignments cannot be determined. In such cases, the borrower submits a resettlement policy framework consistent with this policy prior to appraisal (see Annex A, paras. 23-25). For other subprojects that do not fall within the above criteria, a resettlement plan conforming to this policy is required prior to appraisal. For each subproject included in a project described in para. 26, 27, or 28 [above, in resettlement policy framework] that may involve resettlement, the Bank requires that a satisfactory resettlement plan or an abbreviated resettlement plan that is consistent with the provisions of the policy framework be submitted to the Bank for approval before the subproject is accepted for Bank financing.

For projects described in paras. 26-28 above, the Bank may agree, in writing, that subproject resettlement plans may be approved by the project implementing agency or a responsible government agency or financial intermediary without prior Bank review, if that agency has demonstrated adequate institutional capacity to review resettlement plans and ensure their consistency with this policy. Any such delegation, and appropriate remedies for the

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entity's approval of resettlement plans found not to be in compliance with Bank policy, are provided for in the legal agreements for the project. In all such cases, implementation of the resettlement plans is subject to ex post review by the Bank.

Process Framework For projects involving restriction of access in accordance with para. 3(b) above, the borrower provides the Bank with a draft process framework that conforms to the relevant provisions of this policy as a condition of appraisal. In addition, during project implementation and before to enforcing of the restriction, the borrower prepares a plan of action, acceptable to the Bank, describing the specific measures to be undertaken to assist the displaced persons and the arrangements for their implementation. The plan of action could take the form of a natural resources management plan prepared for the project.

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Annex I. Participatory Process Implemented for SESA

Consultations These consultations were facilitated through participatory group activities, to collect qualitative data, and supplemented with individual survey forms, for both qualitative and quantitative data. The community-based workshops adopted appropriate participatory techniques and workshop-based methods263 to facilitate short presentations with visual tools followed by question-led group activities to guide the groups’ common purpose and accommodate the range of literacy levels and different contexts. Group members worked collaboratively to share local knowledge, carry out their own appraisals and critically analyse the strategy options currently identified for REDD+ implementation in Vanuatu. Each group’s discussions were presented to the other groups and afterwards time was given for questions and further clarification on the points raised, which were added by the group presenter to the written presentation for data collection.

Each consultation location followed the same format, with four (4) group activities. These four activities were as follows:

Activity 1: climate change, drivers of deforestation, and the potential mitigation of these drivers. This activity introduced the participants to the purpose of REDD+ in Vanuatu and objectives of the SESA, and provided the group with a common understanding of climate change and deforestation within their context.

Activity 2: benefits of the strategy options. This activity familiarised the participants with the strategy options and discussed and collected information on the potential positive impacts of the four (4) strategy options.

Activity 3: risks of the strategy options. This activity further developed the participants understanding of the strategy options and discussed and collected information on the potential negative impacts of the four (4) strategy options. The data collected highlighted the variety of approaches that different communities would take implementing the strategy options, as well as the different kinds of scenarios that could raise both social and environmental issues and challenges, which has been incorporated into this ESMF, RPF and PF.

For this activity, given its more sensitive nature, the participants were divided into the common social groupings to enable the participants to discuss issues with participants with similar community roles and likely have common concerns. This common social grouping approach included a women’s group, a community leaders’ group, a youth group, and in locations where people with a disability were present, a group for those that identified as a person with a disability. Guiding Questions: 1. Could the REDD+ options harm the environment? 2. Could the REDD+ options cause harm to any people?

Activity 4: benefit-sharing and grievance redress mechanisms. This activity collected information that supported the development of thematic issues, validated institutional gaps identified in the legal analysis and provided contextual information. This activity, as mentioned above, supported the identification of appropriate mitigation and GRMs for useful for the SESA, ESMF and RPF. Guiding Questions: 1. What would you need to make the option/s work and ensure benefit sharing?

263 Methods and Tools, The World Bank Participation Sourcebook, available at: http://web.worldbank.org/archive/website01028/WEB/IMAGES/PARTICIP.PDF

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2. Who should be involved to help address grievances? Consultations were carried out at the community level in 8 locations across the 5 REDD+ priority islands, namely Santo, Malekula, Efate, Erromango, and Tanna, between June – December 2019. These consultations resulted in approximately 85 communities being represented for a total of 216 individuals, 68 (31%) of whom were women. Of the participants, excluding the DoF and CLP facilitators, 38 (18%) identified themselves as government workers with the vast majority of participants identifying as local community members. Only one participant identified themselves as being from the NGO sector, while one other identified as being from the private sector. The five islands had a range of community representation. On Santo, Nakere had five communities represented, while Luganville had 12. For Malekula, Lakatoro had representatives from nine communities and Lamap, on south Malekula had eight. Tanna had the greatest number of communities represented with 14 communities represented at the Lenakel consultations and twenty at Whitesands. Efate had ten communities and Erromango had participants from seven communities in attendance (Table 28). Table 28 Community representation for all consultation by community, island, and total for project.

Island Consultation Total Communities – Total Communities Consultation – Island Santo Nakere 5 17 Luganville 12 Malekula Lakatoro 9 17 Lamap 8 Efate Port Vila 10 10 Erromango Dillon’s Bay 7 7 Tanna Whitesands 20 34 Lenakel 14 Total 85 The stakeholders came from forest dependent communities and locations on the five islands that exhibit the highest deforestation rates (Uniq) were selected by the DoF. A concerted effort was made by the DoF organisers to ensure the participation in the consultations was representative of various community groups, especially in terms of participation by women and youth. Various representatives of the different governance levels, including representatives of chiefs, councils of chiefs, village councils, provincial level, and national level government. Government representatives were present from the national and provincial departments of livestock, agriculture, and forestry. Consultation Results Relating to the ESMF, RPF and PF The ESMF is prepared based on the results of SESA report which included extensive qualitative and quantitative consultations, the ESMF and supporting instruments were always seen as the final out of the SESA so much of the operational data collection and consultation and discussions with communities etc. revolved around the what would be required in the ESMF and the SESA includes full details of all consultations undertaken. See Table 29 for direct consultation results for the risks perceived for the four REDD+ strategies. The perceived risks formed the basis of the mechanisms for the ESMF. Data was collected through the use of group workshop activities and individual feedback surveys at each consultation location. As detailed above, Activities 3 and 4, collected information on possible implementation approaches and activities, potential impacts and mitigation measures of the strategy options, and possible GRMs, which were incorporated into the draft of RPF and PF.

Additionally, a National Validation Workshop for SESA, ESMF, RPF and PF took place over the 14 and 15 October 2020. The revised versions of the SESA, ESMF, RPF and PF were presented to stakeholders during a national validation workshop, which took place at the World Bank Vanuatu Office Conference Room. Participants included representatives from the REDD+ Unit, REDD+ CSO Platform, the Department of Forestry, Department of Environmental Protection and Conservation, National

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Advisory Board, Shefa Provincial Council, Vanuatu Environmental Advocacy Network, National Youth Association and the Tonga-Shepard Islands Women’s Association. There were a total 13 participants in attendance.

The workshop was facilitated over two days. Day 1 presented the SESA and ESMF, focusing on the validation of risks identified in the SESA and the corresponding institutional arrangements proposed to assess and manage these risks under the ESMF. Day 2 presented the RPF and the PF, focusing again on validation of the risks relevant to OP 4.12 and institutional arrangements for both. Presentations were followed by plenary sessions where the group collectively discussed the risks and institutional arrangements, which lead to either validation or recommendations for revision. Smaller group activities were initially planned for Day 1, however, at the request of the participants, the plenary sessions were accommodated enabling discussions within the whole group (given its already small size).

The main issues raised were concerns over the risks identified being less significant that articulated, particularly in relation to perceived inequalities, and concerns over involuntary resettlement policies being triggered when the risks of this were highly improbable. Suggestions were made to include additional stakeholders in the institutional arrangements. These revisions have been addressed in the final versions submitted.

Table 29 Risks identified at all consultations for the four REDD+ strategies

Nakere, Santo Risks of land use planning – Nakere workshop Group 1  Disputes  Management/steering committees not actively managing  Unequal benefit sharing  Lack of representation on committees (vulnerable, other groups)  One or a few people making decisions  Lack of participatory decision making Group 2  Lack of capacity/skill  Decisions based on the interests of the few and not the community as a whole  Lack of participatory/representation on management committees  One or a few people making decisions Group 3  Decisions being made for the benefit of a small number of people, not the community as a whole  Only have small areas of land available

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 Lack of representation/participation on committees  One or a small number of people making the decisions

Risks of agroforestry – Nakere workshop Group 1  Disputes  Theft  No markets for produce/products  Lack of capacity/skill  Cyclones/natural disasters destroying effort Group 2  Trees utilise all of the nutrients in the soil  Trees shade crops growing underneath canopy, leading to poor production  Root crops don’t grow well Group 3  Trees shade the food crops – lower production  Crops don’t grow well

Risks of CCAs – Nakere workshop Group 1  Loss of income  Loss of crops due to wildlife – increased habitat Group 2  Loss of crops due to wildlife – increased habitat Group 3  Disputes  Theft  Population increase/overpopulation  Investors have larger areas of land

Risks of lease acquisition – Nakere workshop Group 1  Government control of land  Customary owners having to sub-lease their own land  People from outside the community less likely to care for land - damage Group 2  Government control of land  Loss of custom values if government uses areas to settle displaced people – do not have the same connection with the land and don’t tend to care for it as they would their own customary land

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Group 3  Disputes  Political influence  Changes in the land laws  Island courts not good – populated by chiefs Luganville, Santo Risks of land use planning – Luganville workshop Group 1 - Women264  Disputes Group 2  Too much leased land  Population growth/overpopulation  Only have small areas of land  Sale of land  Disputes Group 3  Could affect historical/custom sites  Disputes  Overuse of land – poor agricultural practices

Risks of agroforestry – Luganville workshop Group 1 - Women  No risks to environment  No risks to people Group 2  Trees take too long to harvest  Loss of areas for crops  Only have small areas of land available  Decisions are made by only a few people  Can impact the community  Disputes Group 3  Small scale production  Can reduce crop production

Risks of CCAs – Luganville workshop Group 1 - Women  No risks to environment to people identified Group 2  Disputes  Lack of government will and capacity Group 3  Unequal benefit sharing  Disputes  Theft and destruction

Risks of lease acquisition – Luganville workshop Group 1 - Women  Could harm the environment  People could be disadvantaged if they have land within the lease area

264 The women’s group was not as active in this location during group activities.

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Group 2  Government holding land too long – to the end of the lease period  Disputes Group 3  No community control  Landowners could lose land rights  Landowners could lose everything they own

Lakatoro, Malekula Risks of land use planning – Lakatoro workshop Group 1  Unequal benefit sharing – people who ‘pay’ for land are better off Group 2  Restricted access to environment and natural resources  Unequal benefit sharing Group 3  Lack of capacity  Reduced access to natural resources  Lack of information/knowledge  Lack of appropriate equipment

Risks of agroforestry – Lakatoro workshop Group 1  Unequal benefit sharing – favouring those with large areas of land Group 2  Disputes  Loss of garden area because of trees Group 3  Lack of proper management skills

Risks of CCAs – Lakatoro workshop Group 1  No harm to people of environment Group 2  Lose access to areas for houses  Loss of access to natural resources – animals and trees  Lose areas for gardens Group 3  Loss of crops to wildlife because of increased habitat  Lack of proper management – including the necessary skills for proper management

Risks of lease acquisition – Lakatoro workshop

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Group 1  Disputes Group 2  Disputes  Unequal benefit sharing  Favors the landowners, not the community Group 3  Lack of proper planning  Disputes

Lamap, Malekula

Risks of land use planning – Lamap workshop Group 1  Population growth/overpopulation  Loss of areas for livestock  Loss of areas for wildlife Group 2 - Women  Can spoil the environment [if not done correctly]  Disputes – communities/chiefs Group 3  Natural disasters  Unequal benefit sharing  Other people – theft/destruction

Risks of agroforestry – Lamap workshop Group 1  Loss of wildlife habitat  Population growth/overpopulation  Fewer crops  Loss of vegetation Group 2 - Women  Can spoil the environment if not done correctly  Unequal benefit sharing Group 3  N/A

Risks of CCAs – Lamap workshop Group 1  Poor management  Clearing land Group 2 - Women  Unequal benefit sharing  By-laws can promote disparities among people Group 3  N/A

Risks of lease acquisition – Lamap workshop Group 1  Loss of potential for future development Group 2 - Women  Unequal benefit sharing Group 3  N/A Whitesands, Tanna Risks of land use planning – Whitesands workshop Group 1  Disputes

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 Communities not actively managing the plan/area  Unequal benefit sharing – one family compared to the community as a whole  People without representation on management committees  Only one or a few people making the decisions  No mechanism for input and inclusion Group 2  No capacity or skill for implementing  Decisions made for the interests of the few and not the community as a whole  Unequal benefit sharing Group 3  Decisions made for the interests of the few and not the community as a whole  Only small areas of land available  People (including vulnerable groups) not represented on the management committees  One or a few people making the decisions without input Group 4 - Women  Disputes

Risks of agroforestry – Whitesands workshop Group 1  Cyclones and natural disasters  Trees take too long to grow  Pests damage trees  Loss of access to firewood  Disputes Group 2  Lack of capacity  Lack of information/knowledge  Natural disasters  Loss of income  Loss of garden areas  Reduced sunlight for crops  Loss of crops from increased wildlife  Falling branches/timber could kill someone Group 3  No consultations  No capacity/skill  Disputes  Natural disasters

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 Lack of planning in order to ensure benefit sharing  Theft/damage Group 4 – Women  Natural disasters – bushfires  Theft – cutting trees, damage

Risks CCAs – Whitesands workshop Group 1  Loss of crops to wildlife  Disputes Group 2  Lack of capacity/skills  Poor management including skills  Theft  Trespassing  No timber for houses  Not enough land for future generations  No fishing/hunting  Loss of crops to wildlife – increased habitat Group 3  No consultations  Lack of capacity  Natural disasters  Disputes  Lack of planning to ensure benefit sharing  Theft Group 4 - Women  Less land available for gardens  Overpopulation  Loss of income  Loss/removal of old/special trees Risks of lease acquisition – Whitesands workshop Group 1  Disputes Group 2  N/A Group 3  N/A Group 4 - Women  Disputes  Land laws are causing problems – CLMA  Too much talking and not enough action  Education is poor Lenakel, Tanna Risks of land use planning – Lenakel workshop Group 1  Theft  Man Tanna afraid of government taking land  Disputes Group 2  Loss of land area for gardens

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 Not enough land for future generations  Unequal benefit sharing  Disputes Group 3 - Women  Inclusive decision making is not used Group 4  Impacts on customary governance  Can impact forests and tabu places if they are not considered in the planning process  Poor planning/skills

Risks of agroforestry – Lenakel workshop Group 1  Reduced crop production  Natural disasters – cyclones can fell trees causing damage  Loss of crops to increased wildlife numbers  Increased pest load potential for crops and trees Group 2  Not good during cyclones  Too many trees  Could kill women who are hit by falling branches/timber  Bushfires and other natural disasters Group 3 - Women  Natural disasters  Loss of food security  Gardens could end up further away. Group 4  Loss of garden areas

Risks of CCAs – Lenakel workshop Group 1  Loss of garden areas  Disputes  Unequal benefit sharing  Lack of by-laws and regulations Group 2  Loss of fruit/crops to wildlife (flying foxes, coconut crabs)  Not enough land for future generations  Small areas available, not good for agroforestry Group 3 - Women  Disputes  Unequal benefit sharing  Poor planning/capacity Group 4  Reduced income  Lack of capacity

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 Poor planning/skills

Risks of lease acquisition – Lenakel workshop Group 1  Death of the lessor/signatory could be problematic  Disputes  Government may give/sub- lease the land to the wrong people  No input from the land owner – sale of land  Government is not trusted Group 2  Unequal benefit sharing – benefitting the few and not the community  Disputes Group 3 - Women  Poor planning/strategies – no skills  Land repatriated to the incorrect people  Disputes Group 4  Lack of legal advice  Unequal benefit sharing Dillon’s Bay, Erromango Risks of land use planning – Dillon’s Bay workshop Group 1  Land disputes.  Large areas of land on Erromango.  Natural disasters.

Risks of agroforestry – Dillon’s Bay workshop Group 2  Will not spoil the environment.  Will not harm people, everyone will benefit.

Risks of CCAs – Dillon’s Bay workshop Group 3  Will not harm the environment.  Will not harm people.  Unequal benefit sharing could occur depending on the management of the CCA. Port Vila, Efate Potential risks of land use planning – Port Vila workshop Group 1  Population increase.  Development.  Land disputes.  Women must be included in consultations and share things with everyone.

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Group 2  Poor management.  Land becomes infertile for next generation to use.  Could make more land. disputes eg Susasu area where deforestation has occurred.  Land degradation. Group 3  Population increase puts pressure on the land which leaves smaller areas available.  Family and community disputes.  We can lose our rights as landowners.

Potential risks agroforestry – Port Vila workshop Group 1  Ground loses/doesn’t have nutrients.  Some crops don’t grow well with trees.  Women must be included in consultations and share things with everyone. Group 2  Lose land area.  Some fruit trees are not friends with forests.  Rocky areas aren’t good for agroforestry – Saama village is an example. Group 3 – Youth  There may not be enough space for this to work.  Trees take longer before the benefit may be attained.

Potential risks of CCAs – Port Vila workshop Group 1  Land disputes.  Theft.  Women must be included in consultations and share things with everyone. Group 2  Population growth will put pressure on CCAs.  Community is the victim [if it is damaged] if they cannot access resources.  There is a lack of respect in the community. Group 3 – Youth  The land area becomes smaller.  More land disputes.  Trespass.

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Potential risks of lease acquisition – Port Vila workshop Group 1  Land disputes.  Women must be included in consultations and share things with everyone. Group 2  N/A Group 3 - Youth  Custom owners could lose their rights.  Lose the right to make decisions.  Communities or custom owners don’t benefit.

Key thematic environmental and social issues for REDD+ in Vanuatu A summary on key thematic and social issues identified by participants with regards to climate change, drivers of deforestation, potential mitigation measures for such drivers, as well as institutional issues raised by the consultation participants are detailed below A Environmental and social issues arising from climate change Summary - Climate Change Impacts

SLR Dry season intensifying/drought Changing weather patterns/increased temperature Changes in planting/harvesting Rivers/streams/wells drying Coastal erosion/soil erosion Changes in crop and tree quality and diseases Increased frequency/intensity of cyclones Increased landslides Coastal innundation/salt water intrusion/flooding Heavy rainfall events increasing Placement of gardens Increased bushfires Marine affects/SST/OA Coral bleaching Rainfall decreasing Intensification El Niño/La Niña Health and diseases 0 5 10 15 20 Efate Port Vila Santo Nakere Santo Luganville Malekula Lakatoro Malekula Lamap Tanna Whitesands Tanna Lenakel Erromango Dillon's Bay

Figure 16 Summary of answers from activity 1, question 1 relating to the experienced impacts of climate change for all workshop islands, Vanuatu, 2019

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B Environmental and social issues arising from the drivers of deforestation Summary - Drivers of Deforestation

Logging Gardens and techniques Bushfires Population growth/urban and rural expansion Pastoralism/overgrazing Infrastructure/development Houses Cyclones/natural disasters Merremia - big leaf/invasives Unskilled forest operators/lack of information Kava/income generation Wildlife Landslides Chemicals - plastic/benzine Diseases/unhealthy forests No reforestation Dry season intensity Salt water intrusion Recreation/sports Uncompleted projects Commercial agriculture Heavy rainfall 0 5 10 15 20 25

Port Vila Nakere Luganville Lakatoro Lamap Whitesands Lenakel Dillon's Bay

Figure 17 Summary of answers from activity 1, question 2 relating to the drivers of deforestation for all workshop islands, Vanuatu, 2019

C Environmental and social issues identified from mitigation of the drivers of deforestation Summary - Mitigation Measures

Replanting/reforestation Conservation areas Awareness of REDD+/climate change Gardens - better techniques (including agroforesty and integrated ag) Better managment/reduce plantations/invasives Strengthening laws/policies Chief/local community inclusion Control of logging Change value of cattle in custom/reduce/manage livestock Enforce replanting Support REDD+ Family planning Reduce logging market Mangrove replanting Coral replanting RSE contribution Control CCECC Protect pigeon species Provincial government inclusion Government help to access lease areas Commercial ag to have forest areas Riparian stabilisation - planting Coast stabilisation - planting 0 5 10 15 20 25 30

Port Vila Nakere Luganville Lakatoro Lamap Whitesands Lenakel Dillon's Bay

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Figure 18 Summary of answers from activity 1, question 1 relating to the mitigation measures for deforestation for all workshop islands, Vanuatu, 2019

D Considerations regarding institutional issues for REDD+ implementation Summary - Who needs to be involved - grievance redress

Appropriate government departments Councils of. Chiefs - village/area/island Land owners Provincial government Village councils Police Area councils Courts/legal cousel Committees NGOs Churches 0 2 4 6 8 10 12 14

Port Vila Nakere Luganville Lakatoro Lamap Whitesands Lenakel Dillon's Bay

Figure 19 Summary of who should be involved in the grievance redress mechanisms for REDD+ strategies from all islands

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