Financing Plan (In Us$) s26

PROJECT IDENTIFICATION FORM (PIF) PROJECT TYPE: MEDIUM-SIZED PROJECT THE GEF TRUST FUND

Submission Date: 02/26/2009 PART I: PROJECT IDENTIFICATION GEF PROJECT ID1: 3676 PROJECT DURATION:35months INDICATIVE CALENDAR* GEF AGENCY PROJECT ID: 91659 Milestones Expected Dates mm/dd/yyyy COUNTRY(IES): Argentina Work Program (for FSP) April 2009 PROJECT TITLE: Grasslands and Savannas of the Southern Cone of CEO Endorsement/Approval June 2009 South America: Initiatives for their conservation in Argentina and other MERCOSUR countries Agency Approval Date July 2009 Implementation Start August 2009 GEF AGENCY(IES): World Bank, (select), (select) (if OTHER EXECUTING PARTNER(S): Aves Argentinas (local partner of Mid-term Evaluation February BirdLife International) and Fundación Vida Silvestre Argentina planned) 2011 GEF FOCAL AREA (S)2: Medium-sized ProjectMedium-sized Project Closing Date June 2012 ProjectBiodiversity * See guidelines for definition of milestones. GEF-4 STRATEGIC PROGRAM(s): SP4 (see preparation guidelines section on exactly what to write) NAME OF PARENT PROGRAM/UMBRELLA PROJECT (if applicable):

A. PROJECT FRAMEWORK Project Objective: Assist the Government of Argentina in its efforts to develop, disseminate, and promote biodiversity conservation by mainstreaming it with livestock grazing systems in Argentina's highly valuable grassland areas. Indicate Indicative GEF Indicative Co- Project whether Expected Expected Financin Financinga Total ($) Investment, Outcomes Out a c =a + b Components b g TA, or STA puts ($) a % ($) b % 1. Development of TA 1.1. A 1.1.1. Updated 90,000 19 382,104 81 472,104 a sustainable program of grassland's threats and management model sustainable conservation management assessment for grasslands established 1.1.2. Relationship models involving stakeholders, government, markets and grassland ecosystems

1.1.3. Assessment of economic and market incentives with a focus on natural grassland beef

1.1.4. Design of agronomic sustainable management

1 Project ID number will be assigned by GEFSEC. 2 Select only those focal areas from which GEF financing is requested. 1 PIF-December 08 06/02/2018 10:17:24 AM practices

1.1.5. Design of methodology tools for knowledge transfer and participation 2. Validation and TA 2.1. 2.1.1. A group 450,000 42.00% 611,366 58 1,061,366 demonstration of Sustainable of at least 6 ranchers sustainable land use involved in the management model management pgoram of in grasslands is sustainable implemented grasslands by at least 30 management established in livestock each pilot site producers in five pilot sites 2.1.2. Technical assistance provided to producers and technical workshops organized (i.e., farm management plans, rotation models, etc.)

2.1.3. Set of sustainable management practices and incentive mechanisms improved and adapted for each pilot site

2.1.4. Monitoring system for biodiversity conservation in key grassland areas

2.2.1. Network 2.2. of key Certification stakeholders process to established and aiming to differentiate develop a traditional "natural beef from grassland beef" natural market grassland beef 2.2.2. Develop initiated preliminary standard to certify "natural grassland beef" 2 PIF-December 08 06/02/2018 10:17:24 AM 2.3.1. Develop and maintain database on learning experiences 2.3. Demonstration 2.3.2. Center of Reference in and training grasslands activities sustainable installed in management each pilot site 2.3.3. Training workshops for producers and technicians at regional level 3. Communication Investment 3.1. Key 3.1.1. 180,000 25 534,945 75 714,945 Strategy decision Handbooks on grasslands makers and conservation in producers are livestock aware of activities grasslands targeted to conservation advisors and producers (one and its per each pilot benefits site)

3.1.2. At least 4 communication tools on grassland values targeted to rural stakeholders and broader audiences

3.1.3. Educational "road show" on grassland values and grasslands conservation in livestock activities

3.1.4. International seminar for sustainable management in MERCOSUR grasslands 4. Advocacy for TA 4.1. Private 4.1.1. Position 90,000 32 191,200 68 281,200 grassland sector and paper for the Argentine sustainable decision Strategy on management makers adopt Grasslands elements of a Conservation strategy for developed in a multi- 3 PIF-December 08 06/02/2018 10:17:24 AM grasslands stakeholder conservation process 4.1.2. Grasslands conservation chapter in the Provincial Livestock Plans in at least two provinces where the pilot sites will be located 5. Project 90,000 32 191,052 68 281,052 management Total project costs A900,000 B1,910,667 2,810,667 a List the $ by project components. The percentage is the share of GEF and Co-financing respectively of the total amount for the component. b TA = Technical Assistance; STA = Scientific & Technical Analysis.

B. INDICATIVE CO-FINANCING FOR THE PROJECT BY SOURCE and by NAME (in parenthesis) if available, ($) Sources of Co-financing Type of Co-financing Project Project Government Contribution In-kind 341,826 (INTA) GEF Agency(ies) (IBRD) Hard Loan 500,000 Bilateral Aid Agency(ies) (select) Multilateral Agency(ies) (select) Private Sector (select) NGO (Aves Argentinas) In-kind 1,068,841 Others (select) Total Co-financing B1,910,667

C. INDICATIVE FINANCING PLAN SUMMARY FOR THE PROJECT ($) Previous Project Total Project (b) Agency Fee Preparation Amount (a)3 c = a + b GEF financing 25,000 A900,000 925,000 92,500 Co-financing 75,000 B1,910,667 1,985,667 Total 100,000 2,810,667 2,910,667 92,500

D. GEF RESOURCES REQUESTED BY AGENCY (IES), FOCAL AREA(S) AND COUNTRY(IES)1 Country Name/ (in $) GEF Agency Focal Area Global Project (a) Agency Fee (b)2 Total c=a+b World Bank Biodiversity Argentina 900,000 92,500 992,500 Total GEF Resources 900,000 92,500 992,500 1 No need to provide information for this table if it is a single focal area, single country and single GEF Agency project. 2 Relates to the project and any previous project preparation funding that have been provided and for which no Agency fee has been requested from Trustee.

3 Include project preparation funds that were previously approved but exclude PPGs that are awaiting for approval. 4 PIF-December 08 06/02/2018 10:17:24 AM PART II: PROJECT JUSTIFICATION A. STATE THE ISSUE, HOW THE PROJECT SEEKS TO ADDRESS IT, AND THE EXPECTED GLOBAL ENVIRONMENTAL BENEFITS TO BE DELIVERED: The Grasslands of the Southern Cone of South America, commonly known as Pampas, are spread over an area of approximately 1 million square kilometers and constitute one of the world’s few temperate prairie and savanna ecosystems. The biome is currently recognized as an ecosystem of very high priority for conservation in the Neotropical Region. The agricultural, livestock, forestry, and agro-industrial activities carried out in the biome are strategic for one of the most important commercial blocks: MERCOSUR. However, these activities have led to the transformation and fragmentation of the grassland territory, consequently causing a severe impact on its biodiversity. Public and private protected areas account for no more than 2% of the biome’s land area, and the creation of new conservation units is urgently needed. In the Province of Buenos Aires, Argentina, nearly 30% of native grasslands have been converted to crop lands, and 65% of the remaining grasslands have been profoundly changed by grazing. Meanwhile, in the Provinces of Entre Ríos and Corrientes in Argentina, over 400,000 hectares (ha) of grasslands have been converted into planted forests, with severe changes to the structure and function of the landscape. The current status of wild birds in Argentina’s grasslands clearly illustrates the problem. Numerous species have lost their habitats and, consequently, have disappeared or are decreasing; a total of 17 bird species are endangered and one is considered extinct. The outlook for wild mammals is even more discouraging: Pampas deer today occupy less than 0.5% of their original range. Direct threats to grassland biodiversity include: i) agricultural expansion, ii) increased forestation, iii) intensification of cattle ranching, iv) biological invasions, v) excessive use of agrochemicals, and vi) unplanned burning of grasslands. Due to the adverse impact of these threats as well as their worldwide economic importance, the Grasslands of the Southern Cone of South America are now recognized as a biome of high conservation priority. Recently, in its 4th Session in Barcelona, the World Conservation Conference called on the MERCOSUR countries to develop integrated management and conservation policies, particularly for threatened species in the temperate grasslands, to include in their agendas actions for the conservation and sustainable use of natural grasslands, and to raise public awareness about their importance (IUCN, Reference).

The Global Environmental objectives of the project are to conserve grassland biodiversity of global and national importance, protect vital ecosystem services, and develop and implement a strategy for sustainable management that combines conservation with production. Through improved collaboration with stakeholders in the conservation community, especially producers and landowners, the project will coordinate efforts and execute the conservation and sustainable use of biodiversity of global importance in selected sites of the Argentinean Pampas. The global importance of the Pampas ecosystem is recognized given that it harbors many endemic and globally threatened species of plants and animals. Its significant biodiversity includes 1,600 species of vascular plants that grow in Argentina’s Pampas, with 2,500 in Uruguay’s grasslands, and 3,000 in Brazil’s Campos Sulinos. Of these, native grasses—the most abundant plant group —total about 400 species. The diversity of vertebrate species is also high: the Pampas provide habitat for 69 species of mammals, 211 species of birds, 31 species of reptiles, 23 species of amphibians, and 40 species of fish. Endemic species of plants and vertebrates include several small reptiles and rodents, and three species of birds restricted to the Endemic Area for Birds (AEA 077), also known as the “Grasslands of the Argentine Mesopotamia.”

Among other strategies to address the challenges above is the need to develop and disseminate economically and environmentally compatible land use models. Large-scale sustainable cattle ranching on native grasslands, sustainable agriculture, forestation with biological corridors, and nature and scientific tourism are all promising economic activities in the region. However, there is currently a lack of information or experience regarding these activities specifically for grassland systems. The present proposal draws from available technical information on grassland management in livestock activities and involves conservation efforts at various territorial scales in key areas in order to contribute to the conservation of grasslands in Argentina. The proposed objectives will be carried out through the implementation of four components described below. The project will be executed by Aves Argentinas (AA) and the components described will be co-implemented with the Fundación Vida Silvestre Argentina (FVSA) according to the Memorandum of Understanding (MoU) already signed by both institutions. Both partner NGOs have strong experience in the assessment of grassland biodiversity and conservation on private lands. In addition, they maintain working relationships with local farmers and ranchers.

5 PIF-December 08 06/02/2018 10:17:24 AM Component 1: Development of a sustainable management model (USD 472,104 of which USD 90,000 will be co-financed by the GEF). The objective of this component is to establish a grasslands sustainable development model that includes specific environmental, social, economic and market dimensions. To achieve this model, 4 main outputs to be co-financed with GEF resources are proposed: (i) an updated assessment of the threats and conservation status of the grasslands (including recommended actions to ensure their viability); (ii) a relationship model between stakeholders (government, market, producers, etc.) and grassland ecosystems; (iii) an assessment of economic and market incentives with a focus on natural grassland beef; and (iv) a set of good agronomic practices for productive grassland ecosystems. In addition, using a participatory approach, this component will support the design of a program to easily transfer good practices of grassland management between users of grassland landscapes. To this end, GEF resources will be invested in identifying methodologies and adequate instruments for knowledge transfer and promoting the participation of specific actors.

Component 2: Validation and demonstration of the sustainable management model in grasslands, pilot certification of sustainable management practices and national-level dissemination of results (USD 1,061,366 of which USD 450,000 will be co-financed by the GEF). The objective of this component is to implement and adapt the sustainable management model to the field. To this end, the grassland sustainable management program will be implemented in 5 pilot sites. Thirty livestock producers are expected to adopt the program and contribute to the development of good agronomic and sustainable practices for livestock in the first stage of the pilot. Selected pilot sites are: (1) Bahía de Samborombón’s coastal grasslands, in the province of Buenos Aires; (2) the savannas in the buffer zone of Gualeguaychú, Entre Ríos; (3) the savannas of San Javier and Alejandra in the province of Santa Fe; (4) the savannas of the Arroyo Aguapey basin in the province of Corrientes; and (5) the savannas in eastern Formosa. These areas have traditionally been used by grassland livestock, but at present they suffer from pressures of intensive cattle ranching activities as well as impacts from the expanding agricultural frontier and forestry activities using non-native species. All 5 pilot sites have been identified as key biodiversity areas (TOP 20), and are increasingly recognized as tourist destinations. Moreover, Aves Argentinas and Fundación Vida Silvestre Argentina have already carried out different extension works in the selected sites, including identifying interested actors and compiling a significant amount of biological information that will allow for the model’s adjustment. GEF resources will be invested in technical assistance, implementation of demonstration activities in the field (both in production and commercialization), promotion activities of the program and participatory workshops to adjust sustainable management practices to each of the selected pilot sites. Additionally, the strategy aims to establish pilot experience for the certification of natural grassland beef. With respect to this aim, GEF resources will be assigned to create producer and marketer networks, and to develop certification standards adapted to the local reality and which are acceptable to the International market. The third aspect of this strategy is to disseminate, at the national level, the experiences learned at the pilot sites. To this end, GEF resources will enable: (i) the creation of a database of experiences learned in each pilot site; (ii) the establishment of “Centers of Reference” to ensure the dissemination of the information; and (iii) the establishment of a system to monitor and adjust practices implemented in and the conservation status of the pilot sites, which will also reflect each practice’s contribution to biodiversity conservation.

Component 3: Large-scale, regional communication strategy (USD 714,945 of which USD 180,000 will be co-financed by the GEF). The objective of this component is to disseminate and implement grassland sustainable management models on a large scale, to promote responsible consumption, and to allow for knowledge sharing with relevant actors in grassland areas of other MERCOSUR countries. To this end, the GEF grant will co-finance the publication of handbooks on grassland conservation in livestock activities. The handbooks will be targeted to producers, technicians and decision- makers. Additionally, communication tools will be generated for a broader audience and informative meetings will be planned in different areas of the region, as well as an International Seminar at the MERCOSUR level. The project also proposes to strengthen regional efforts promoting the Grasslands of the Southern Cone, in order to consolidate a vision shared by Argentina’s provinces and MERCOSUR countries. Such management and communication will strengthen the collaboration of a group of NGOs that are currently carrying out conservation efforts at a regional scale. For example, BirdLife International is carrying out the Alliances for the Grasslands project ( HYPERLINK "http://www.pastizalesdelconosur.org" http://www.pastizalesdelconosur.org) with key participation from AA, and IUCN is carrying out the Temperate Grasslands Conservation Initiative ( HYPERLINK "http://www.iucn.org/where/america/sudamerica/projects.cfm" http://www.iucn.org/where/america/sudamerica/projects.cfm) in which FVSA plays a key role.

Component 4: Advocacy for and institutionalization of grasslands sustainable management (USD 281,052 of which USD 6 PIF-December 08 06/02/2018 10:17:24 AM 90,000 will be co-financed by the GEF). The objective of this component is to sensitize decision-makers and the private sector to a natural grassland conservation strategy based on the good management practices documented by the Project. To achieve this objective, GEF funds will support the incorporation of project findings into a national grasslands conservation strategy, as well as the drafting of a section of grassland conservation guidelines to be included in the Livestock Plans in at least two of the provinces in which the Project will be implemented (Buenos Aires and Formosa). At the same time, there would be a strong outreach campaign based on two main ideas: i) biodiversity conservation as a sign of social responsibility in agribusiness, and ii) environmental health as a condition to human health in order to warn society about the disadvantages of pollution derived from feedlots. This campaign will include a series of meetings and workshops supported by GEF resources. B. DESCRIBE THE CONSISTENCY OF THE PROJECT WITH NATIONAL/REGIONAL PRIORITIES/PLANS: The objectives, results, and actions planned under the project are highly consistent with the National Biodiversity Strategy and the Action Plan of the Argentine Republic, developed by the Secretariat of Natural Resources and Sustainable Development, jointly with other institutions under the National Biodiversity Strategy project funded by GEF/UNDP. These efforts have placed emphasis on various points that are considered for this proposal: i) addressing the ultimate causes of biodiversity loss; ii) strengthening the linkage between biodiversity conservation and the economy; and iii) obtaining financing for long-term conservation efforts (sustainability). The project is also consistent with Article 6 (b) of the Convention on Biological Diversity (CBD, ratified by the Argentine Republic on October 6, 1994).

At the same time, the Project will strengthen the motion on Actions to conserve the pampas and campos of South America which was recently approved by the International Union for the Conservation of the Nature (IUCN), during the 4th IUCN World Conservation Congress (of which Argentina is a member). This motion, proposed by FVSA, calls on the governments of Argentina, Brazil and Uruguay to “develop and promote natural grassland utilization and management practices that aim to establish agroecological systems capable of providing and sustaining the diverse environmental services and wildlife of the temperate grasslands of the plains and open lands of South America”. In addition, it urges the governments to develop integrated management and conservation policies, particularly for threatened species in the temperate grasslands of the plains and open lands of South America and to include in their agendas the development of actions for the conservation and sustainable use of natural grasslands while raising public awareness of their importance.

Specifically, the objectives of this project are in line with the National Plan of Conservation of the Venado de las Pampas, one of the most threatened and most representative mammal species of the temperate grasslands of South America. This plan is under development and is promoted by the Secretary of Environment and Sustainable Development of Argentina. Among its main objectives, the plan seeks to “integrate pampas deer into sustainable productive systems compatible with their conservation, inside private lands, ensuring habitat connectivity”. Fundación Vida Silvestre’s donation of the “Campos del Tuyú” Reserve for the creation of the first national park dedicated to conserving Pampas grasslands and their most representative species, the Pampas deer, is highly relevant for this proposal.

Finally, the project is in line with the Memorandum of Understanding on the Conservation of Southern South American Migratory Grassland Bird Species and Their Habitats, signed by Argentina, Bolivia, Paraguay and Uruguay together with the UNEP/CMS. The project aims to protect populations of grassland birds mentioned in the MoU as well as the habitats upon which their survival depends. The project will also promote international cooperation for the conservation of these species in a broader regional context.

C. DESCRIBE THE CONSISTENCY OF THE PROJECT WITH GEF STRATEGIES AND STRATEGIC PROGRAMS: The proposed project is consistent with the GEF Biodiversity Program. Specifically, it addresses Strategic Objective 2: “To Mainstream Biodiversity Conservation in Production Landscapes/Seascapes and Sectors” in its support for country efforts to integrate biodiversity considerations into the rural production sector.

In particular, the project will contribute to Strategic Program 4: Strengthening the Policy and Regulatory Framework for Mainstreaming Biodiversity and to Strategic Program 5: Fostering Markets for Biodiversity Goods and Services. The proposed project will support efforts to remove barriers that prevent public and private sector actors in grasslands from mainstreaming biodiversity in the rural sector. Thus, the project will support the development of the policy and regulatory frameworks that promote and reward mainstreaming while seeking to catalyze markets for biodiversity goods and services. Activities will also promote voluntary environmental certification to generate biodiversity gains through market 7 PIF-December 08 06/02/2018 10:17:24 AM mechanisms. In this sense, the project will help test cost-effective, market-based instruments for conservation and sustainable use of biodiversity in grasslands.

D. JUSTIFY THE TYPE OF FINANCING SUPPORT PROVIDED WITH THE GEF RESOURCES: The project identification process has mobilized a strategic alignment of financing support from the Government of Argentina, NGOs and the IBRD. Government financing has been secured through the participation of the National Institute of Agricultural Technology (INTA), which has already started an initiative on conservation, sustainable use and monitoring of biodiversity in agro-ecosystems; many of the key activities of this initiative constitute a vital contribution for this GEF proposal. AA and FVSA have active programs for grassland conservation with corresponding budgets to co- finance the GEF’s TA and investments in the target areas of these projects. Finally, the IBRD (IBRD loan “Argentina Sustainable Natural Resource Management”) will carry out complementary activities to support the GEF MSP objective and will provide important co-financing for activities in a key target area for the project (Campos del Tuyú).

E. OUTLINE THE COORDINATION WITH OTHER RELATED INITIATIVES: At a regional scale, the project will contribute significantly to the conservation of the Grasslands of the Southern Cone. In particular, the proposed project will coordinate with the Alliances initiative for the conservation of the South American Southern Cone grasslands. This initiative was launched by the family of organizations dedicated to the conservation and study of wild birds in the four South American countries which share the great biome of the Pampas or grasslands of the Southern Cone of the continent. These organizations are Aves Argentinas, Aves Uruguay, SAVE Brazil, and Guyra Paraguay, and they are associates of the worldwide federation of BirdLife International. As a multi-stakeholder initiative, Alliances facilitates the assessment of migrant bird populations, allows for the interchange of experiences among their partners, and improves international awareness with regards to conservation of the Pampas ecoregion. This initiative would be the platform to magnify the local outcomes of this project and reach the MERCOSUR regional scale.

In line with the regional approach, the project will maintain strong ties with the Temperate Grasslands Conservation Initiative (TGCI), through FVSA (focal point of the TGCI in the regions of Pampas y Campos). The TGCI is a project implemented by the Grasslands Protected Areas Task Force of the IUCN’s World Commission on Protected Areas, and supported by the Asia Regional Office (ARO) and South America (SUR). It has established the temperate grasslands of South America as a priority pilot region. More information on the TGCI is available at http://www.uicn.org/es/sobre/union/secretaria/oficinas/sudamerica/sur_proyectos/index.cfm?uNewsID=1455

The project will seek to complement efforts with other projects financed by the GEF, such as Argentina’s “Biodiversity Conservation in Productive Forestry Landscapes Project” (carried out by the Secretary of Agriculture, Cattle, Fisheries and Food—SAGPyA—at the national level). Although the productive activity of each project is different (cattle ranching versus forestry), both initiatives will coordinate activities such as workshops and meetings where the exchange of project experiences will enrich perspectives and facilitate greater integration of biodiversity-responsible practices and policies into the rural and forestry sectors at both the national level and in selected pilot sites. In addition, the project will benefit from the Argentina-IBRD Government Program Sustainable Natural Resource Management, executed by the National Parks Administration (APN) together with the Secretary of Environment and Sustainable Development (SAyDS) and SAGPyA, which includes investments for protected areas. The program began implementation in 2008. The component under APN includes financing for investments in several protected areas such as the future National Park Campos del Tuyú. Among the activities foreseen by the APN for this future national park is the development and implementation of a natural grasslands management program (jointly with the FVSA). This program aims to reestablish the diversity of the natural grasslands and ensure suitable habitat conditions for fauna through the combination of disturbances such as “herbivoría” and fire. In this context, the proposed project will coordinate with the activities developed by the future National Park Campos del Tuyú; these activities will link nicely with those planned under the project in the pilot site Bahía Samborombón, especially with neighbors who live in the buffer zone of the protected area. Through the consolidation of the buffer area in Bahía Samborombón pilot site, the project will contribute to the consolidation of the future national park.

The coordination of the project with INTA will take place in all project components, aiming at fostering work synergies with the governmental agency. Currently, INTA is developing a project on conservation, sustainable use and monitoring

8 PIF-December 08 06/02/2018 10:17:24 AM of biodiversity in agroecosystems that includes different activities compatible with the strategy presented in this proposal. Particularly, the impact of agriculture on biodiversity is assessed through drafting maps of regional bird abundance (which includes 17 species from the Pampas region) and bird mortality risk for various crops (which will capture the impact of crop agrochemical use on bird species). The active integration of all INTA technicians into project activities will be promoted, as well as the implementation of specific techniques for grasslands management at representative Experiment Stations. Anticipated opportunities for collaboration also include the joint promotion of publications and dissemination of activities and experiences (such as “INTA Expone” which presents project activities in the marketplace).

F. DISCUSS THE VALUE-ADDED OF GEF INVOLVEMENT IN THE PROJECT DEMONSTRATED THROUGH INCREMENTAL REASONING : Baseline Scenario: BirdLife International, through its national partner in Argentina (Aves Argentinas) together with FVSA, are carrying out initiatives with the aim of identifying and conserving key sites for the biodiversity of Grasslands of the Southern Cone in Argentina. A directory of key grassland areas has been published for the region, and other co- financed activities should begin soon, such as the preparation of a regional strategy for conservation areas and the development of conservation activities focused on specific sites (i.e., pressure, dissemination, land acquisition, habitat recovery, establishment of Local Support Groups, monitoring, etc.). In the absence of the GEF Alternative, the Baseline Scenario (mainly an inventory of highly valuable grassland areas) will provide primarily technical information on key areas of biodiversity in the grasslands without addressing the causes of long-term threats to this unique ecosystem. Due to the current institutional weaknesses of government agencies, state action will differ greatly from one jurisdiction to the next. In spite of recent efforts, neither APN nor the provincial organizations are themselves capable of developing far- reaching conservation strategies and establishing necessary changes in the provinces and other areas to achieve a systemic change for conserving globally important biodiversity in grasslands. The estimates of ecosystem protection (both quantitative and qualitative) included in the project are below the international levels suggested by the IUCN and most conservation professionals. Without the incremental investments to stimulate conservation and connectivity through concerted national efforts, grassland habitats will continue to be reduced along with the viable populations of threatened grassland species.

GEF Alternative: During the course of the three-year project, GEF co-financing will be used not only to develop activities needed for biodiversity conservation in a rural production environment, but to also implement and evaluate these activities through pilot projects. GEF co-financing will also serve as a catalyst to connect regional efforts and to develop mechanisms to coordinate project management with other on-going initiatives. Without concerted efforts to overcome the barriers involved in working across landscapes and multiple levels of government, the private sector, and local communities, activities in these key grassland areas will remain mere inventories for conservation efforts. GEF funds will be vital to strengthening sustainable productive practices as a counterproposal to the mono-cropping agriculture business- as-usual. The GEF-provided incremental investment is important to support this necessary multi-stakeholder and multi- level approach.

G. INDICATE RISKS, INCLUDING CLIMATE CHANGE RISKS, THAT MIGHT PREVENT THE PROJECT OBJECTIVE(S) FROM BEING ACHIEVED, AND IF POSSIBLE INCLUDING RISK MITIGATION MEASURES THAT WILL BE TAKEN: The various risks that the project could be exposed to and their mitigation measures are detailed below:

 Practices currently used by producers are not aligned with agronomic good practices. As a mitigation measure, parameters, carrying-capacity thresholds, etc. that satisfy the objectives of conservation and production will be set, tested and implemented by means of technical assistance provided by the project. In this sense, the project will demonstrate—at a pilot stage and with a group of producers—that adopting new standards to produce grass-fed beef under conservation-oriented management is feasible.  Certification process costs. The Pampas ecoregion is one of the best places worldwide to produce high quality beef, in accordance with the new international market standards. At a global scale, the price of grass-fed beef in developed countries is at least twice that of traditionally produced beef. At a local scale, there is a growing market for grass-fed beef even without intensive marketing. Although the local market for such certified products is less developed than the international market, there are successful experiences that can be used to engage the government in facilitating the certification process. In this sense, the project will help a group of producers in the Pampas ecoregion to adopt these 9 PIF-December 08 06/02/2018 10:17:24 AM certification standards. Once achieved, the project proponents will have the tools to clearly demonstrate the benefits of certification and to involve the Government in facilitating next steps in the certification process; next steps would include removing potential certification obstacles and/or receiving benefits from government. The project has envisaged a block of activities in component 4 to advocate for these outcomes.  Traditional agriculture remains an attractive and profitable productive activity, discouraging local producers from adopting more biodiversity-friendly practices. Product prices and other external pressures for the establishment of productive systems may lead to the plowing of soils and replacement of grasslands. Market pressures, under the framework of weak or absent state policies, may signify a strong impact on remnants of wild grasslands. As a mitigation measure, the project foresees including traditional livestock producers in the pilot program. The project will seek: i) to establish a formal linkage between the executing agencies and producers; ii) to obtain from government comprehensive support for the creation of models for the sustainable use of grasslands; and iii) to promote the regional dissemination of the results achieved, with emphasis on the private sector’s environmental and social commitment. At the same time, and as the project’s first tangible benefit, the project will aim to promote the existence of a “price premium” for the meat of cattle raised on natural grasslands and under minimum standards that respect biodiversity.  Climate variability could, to a lesser extent, affect project development in the case of extreme weather patterns that might have socioeconomic and environmental consequences and which could potentially be exacerbated by global warming and associated climate change. Currently, there are no alarming or abnormal signals related to climate change in the project area, particularly with regard to rainfall, temperatures, water volumes, or extreme events that could endanger the project’s objectives. As a mitigation measure, the project will be observing projections of future climate conditions, especially under the framework of the BirdLife International alliance which is already working on these forecasts in its studies of possible scenarios. These projections will identify corrective and adaptation measures if needed.  Crisis in the rural sector in Argentina. Although the main issues of a recent national conflict regarding export taxes for grain products in the rural sector in Argentina remain, these also affect other production activities such as livestock. At the project level, mitigation of this risk is included in efforts to build trust between the producers and the project, which, among other aspects, can be achieved by keeping commitments for the development of the pilot experiences in due time and manner.

H. DESCRIBE, IF POSSIBLE, THE EXPECTED COST-EFFECTIVENESS OF THE PROJECT: Sustainable economic activities and pilot projects led by an alliance of NGOs is considered to be the most cost-effective way to preserve biodiversity in key grassland hot spots.

Project design will seek to effectively engage several stakeholders (such as ranchers and farmers) located in key grassland areas. This approach is considerably more efficient and cost effective than the alternative of purchasing lands and managing them under a single authority (as would be the case for protected areas). For example, sustainable livestock management promotes the conservation of grassland biodiversity and at the same time improves the profitability of this economic activity. Operating with the goal to adjust large-scale cattle ranching practices makes it possible to achieve positive results and avoid costly land purchase schemes (including the maintenance costs and controls they would require). Such an alternative would exclude those people living in the productive landscape whose cooperation is required to achieve the effective conservation of biodiversity. In this respect, strengthening demonstration and dissemination mechanisms in the proposed project are essential and would further support an efficient and cost-effective means of implementation.

The project will also increase cost-effectiveness by building on an innovative NGO initiative: the recognition of key biodiversity areas, such as those named as Important Bird Areas (IBAS) and Valuable Areas for Grassland Conservation (AVPs). Aves Argentinas and Fundación Vida Silvestre Argentina have worked with provinces, the federal government and local landowners to identify these IBAS and AVPs. The proposed project has a good opportunity to engage this network. An alternative that does not build on the existence of IBAS, AVPs and the conservation track record and expertise of Aves Argentinas and Fundación Vida Silvestre would have to carry out a much broader, more costly and more time-consuming identification and implementation effort. Cost-effectiveness is also ensured by incorporating into the wider IBAS and AVPs system the conservation experience of Aves Argentinas and Fundación Vida Silvestre Argentina working in private lands. In this way, each pilot area will benefit from the unique cumulative experience, 10 PIF-December 08 06/02/2018 10:17:24 AM management and technical expertise offered by both national NGOs. An incremental cost analysis will be carried out during project preparation to provide additional quantitative and qualitative information on project cost-effectiveness. This analysis will be presented at the time of Project Brief approval.

I. JUSTIFY THE COMPARATIVE ADVANTAGE OF GEF AGENCY: The World Bank’s experience in biodiversity conservation projects in MERCOSUR countries makes it a key partner for the implementation of this project. In particular, this GEF project will benefit from the IBRD loan “Argentina Sustainable Natural Resource Management”, which will carry out complementary activities to support the project objectives and provide important co-financing for activities in a key target area for the project. The World Bank has a wealth of experience in conservation and sustainable production projects, including two recently closed projects in Argentina with APN, the GEF Biodiversity Conservation Project and the Native Forests and Protected Areas Project, as well as two recent GEF projects in Chile, “Public Private Mechanisms for Biodiversity Conservation” and “Conservation of Biodiversity in the Santiago Foothills”. In Uruguay, the Bank has approved the “Integrated Management of Natural Resources and Biological Diversity” project to provide technical and financial assistance to improve natural resources management in cattle production, focusing especially on native grasslands and biodiversity conservation and establishment of demonstration areas of grasslands and rangelands for sustainable management. In addition, the GEF “Conservation of Biodiversity as a Factor Contributing to the Development of the State of Rio Grande do Sul” project will finance activities to conserve and restore biodiversity in the area’s grassland ecosystem through integrated conservation of biodiversity in productive landscapes.

11 PIF-December 08 06/02/2018 10:17:24 AM PART III: APPROVAL/ENDORSEMENT BY GEF OPERATIONAL FOCAL POINT(S) AND GEF AGENCY(IES)

A. RECORD OF ENDORSEMENT OF GEF OPERATIONAL FOCAL POINT (S) ON BEHALF OF THE GOVERNMENT(S): (Please attach the country endorsement letter(s) or regional endorsement letter(s) with this template).

NAME POSITION MINISTRY DATE (Month, day, year) Miguel Enrique Pellerano Under-Secretary of SECRETARY OF 12/27/2007 Planning and ENVIRONMENT AND Environmental Policy, SUSTAINABLE GEF Focal Point DEVELOPMENT

B. GEF AGENCY(IES) CERTIFICATION This request has been prepared in accordance with GEF policies and procedures and meets the GEF criteria for project identification and preparation.

Agency Date Project Contact Person Coordinator, Signature (Month, day, Telephone Email Address Agency name year) Steve Gorman 02/26/2009 Jocelyne Albert (202) 473- [email protected] Sr. Regional 3458 Coordinator, World Bank

12 PIF-December 08 06/02/2018 10:17:24 AM