NORTHERN LAOS SESA Strategic Environmental and Social

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NORTHERN LAOS SESA Strategic Environmental and Social SESA Public Disclosure Authorized GFLL GOVERNANCE, FOREST LANDSCAPES AND LIVELIHOODS - NORTHERN LAOS Public Disclosure Authorized SESA Strategic Environmental and Social Assessment Public Disclosure Authorized Public Disclosure Authorized October 2019 REDD+ Division, Department of Forestry Ministry of Agriculture and Forestry Vientiane, Lao PDR EXECUTIVE SUMMARY Emission Reduction Programme Area of Lao PDR and Key Drivers of Deforestation Lao PDR’s ER Programme (ER-P) area includes six of the Northern provinces of the country, constituting approximately 35 per cent of the national territory. The proposed Accounting Area (ER Programme area) is a contiguous landscape, covering the entire administrative areas of Bokeo, Huaphan, Luang Namtha, Luang Prabang, Oudomxay and Sayabouri provinces. The ER Programme area has important functions as critical watersheds feeding the major tributaries including the Mekong river. The hilly landscape is particularly prone to natural disasters including landslides and flooding caused by monsoonal rainfall. This supports the underlying rationale for forest management in the ER Programme area other than the climate change mitigation objectives. Recent expansion of labour-intensive industries (agriculture, manufacturing and services) and robust remittances in flows are expected to continue to support poverty reduction. Growth in agriculture exports in recent years-the sector that engages two-thirds of the labour force has been due to increased participation of traditionally small-scale farming households in the production of export linked commodities, such as rice, fruits, vegetables, rubber, etc. Lao PDR’s comparative advantage over the medium-term will clearly lie in resource sectors; however, their sustainable expansion will also require sector-specific interventions. Forestry has strong potential in Lao PDR, reflecting the availability of land and favorable climatic conditions. The authorities have recently been able to effectively control illegal logging; however, stronger expansion of the sector will also depend on putting in place adequate systems for certification and ensuring timber legality, which are increasingly being required by high-end markets. Successful development of production forests will also provide opportunities for moving up the value added, into industries like wood processing. The ER-P is designed as a strong, strategic and scalable foundation for addressing the key drivers of deforestation and forest degradation and reduce greenhouse gas emissions beyond business as usual. The ER Programme is formulated based on strong analysis and understanding of the main direct and underlying drivers of forest loss. Direct drivers include permanent agriculture expansion (including rubber) into forest areas, shifting cultivation in its different dimensions encroaching into forest areas and preventing forests to regenerate, and illegal and unsustainable timber harvesting. Hydropower, mining and other infrastructure related developments also play a part. These direct drivers interplay with a set of complex underlying drivers. Overall design of the ER Programme The proposed interventions of the ER-P correspond to each of the four main drivers and are organised into four components, including: i) interventions for an enabling environment for REDD+, ii) agriculture sector interventions, iii) forestry sector interventions, and iv) a program management and monitoring component. GFLL – Northern Laos Project has been categorized as Category B, considering the following justifications. “Activities with potential mild adverse environmental and /or social risks and or impacts that are few in number, generally site specific, largely reversible, and readily addressed through mitigation measures”. SESA framework and objectives Although REDD+ may provide significant long-term benefits, there is also a potential for causing negative impacts on the environment and to the livelihoods of forest dependent communities, including ethnic groups, who are fully or partially dependent on the forests. The Strategic Environmental and Social Assessment (SESA) is a strategic tool, which is designed to ensure that environmental, social, and gender concerns are integrated into the development and implementation processes of the REDD+ strategy and key interventions in the ER Programme i offer a platform for consultation with and the participation of relevant stakeholders to integrate social and environmental concerns into the decision-making process related to REDD+; and, to enhance the ER Programme and Provincial REDD+ Action Plans (PRAPs) by making recommendations to address gaps in relevant policy and legal frameworks, and institutional capacity to manage environmental and social impacts/risks associated with REDD+. The main output from the SESA is the ESMF. Social and environmental concerns and safeguards Based on consultations during the period 2016-2019 a safeguards and implementation package has been prepared that will provide guidance to the implementation of the GFLL with regards to safeguards, community participation, identification of risks and mitigation, tested technical prescriptions, and finance and procurement standards. This Strategic Environmental and Social Assessment (SESA) provides an analysis of the social, economic, and institutional context of the six provinces that constitute the project area. The SESA identifies risks and offers mitigation measures that aim to enhance positive benefits from the project, and avoid or reduce any likely negative impacts. An ESMF, a Process Framework (PF), a Resettlement Policy Framework (RPF), and an Ethnic Group Policy Framework (EGPF) that is equivalent to the Indigenous Peoples Plan (IPP) as defined in OP/BP4.12 have been prepared to address environmental and social safeguards. The ESMF provides a framework that: 1) set out the principles, rules, guidelines and procedures to assess the environmental and social impacts of emission reductions program; and 2) helps reduce, mitigate, and/or offset such adverse potential environmental and social impacts and enhance any positive environmental and social impacts associated with the implementation ERPD. It should also contain provisions for estimating and budgeting costs of such measures to address impacts, and information on the relevant institutions for implementing them. Both the SESA the ESMF build on Lao’s existing legal and institutional frameworks as far as possible and the ESMF should be compliant with applicable World Bank safeguard policies. This safeguards package responds to the seven World Bank safeguard policies that has been triggered for GFLL. These include environmental policies on Environmental Assessment (OP/BP 4.01), Natural Habitats (OP/BP 4.04), Forests (OP/BP 4.36), Pest Management (BP/OP 4.09), and social policies on Indigenous Peoples (OP/BP 4.10), Physical and Cultural Resources (OP/BP 4.11), and Process Framework (OP/BP 4.12). Potential environmental and social issues and mitigation measures Annex 2 provides a summary of environmental and social issues identified by stakeholders and Annex 3 shows the assessment of the impact of the different strategic interventions on the environmental and social variables. Some strategic interventions may subsequently result in either positive or negative impact depending on how they are implemented in practice. Improved forest management will reduce or stop deforestation and degradation, biomass reduction, loss of biodiversity and habitat, and carbon emission. On the other hand, poor management would result in deforestation and degradation, biomass reduction, loss of biodiversity and habitat, and an increase in carbon emissions. Some interventions are expected to have only positive impacts on all of the indicated environmental variables. Land use planning and land tenure The National Master Plan for Land Allocation (NMPLA) was approved by the National Assembly in June 2018 and its summary of land allocation by sector is as follows: Land areas to be conserved and reserved to achieve 70 per cent forest cover across the country (including water areas) are as follows: ii - Conservation forest area: 4.7 million hectares or equal to 20 per cent. - Protection forest area: 8.2 million hectares or equal to 35 per cent. - Production forest area: 3.1 million hectares or equal to 13 per cent. - Industrial plantation area: 0.5 million hectares or equal to 2 per cent. Land areas for utilization and development will comprise 30 per cent of the country’s total land area (including water areas). The Land Law (2003) is the principle legislative instrument governing the management, protection and use of land in Lao PDR. Article 3 of the Land Law reaffirms article 17 of the Lao Constitution, stating that land belongs to the national community and the State, as representative of the people, is charged with the management of land, including allocation. The GoL recognises state, communal land, and private rights over ownership (for ownership, use, benefit and collateral) and transference, or allocation, of land rights among individuals, entities, and organisations in accordance with Lao laws. Ethnic groups in the project area Lao PDR has endorsed the International Labour Organization Convention 169 on Indigenous and Tribal Peoples (ILO 169, 1989) and ratified United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) but the GoL does not recognise the concept of indigenous peoples in its policies and legislation. Instead, the term “ethnic group” is officially
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