Environmental and Social Management Plan (ESMP) For

ANNEX G: ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN Environmental and Social Management Plan (ESMP) for “Reducing Argentina’s greenhouse gas emissions from the energy sector through the utilization of organic waste for energy generation in agriculture and agroindustries” The purpose of the ESMP is to ensure that social and environmental impacts, risks and liabilities identified are effectively managed during the phase of procurement of selected bioenergy pilot projects and during the implementation of the technical assistance components of the proposed project. The ESMP specifies the mitigation, adaptation, prevention and management measures and shows how the project will mobilize organizational capacity and resources to account for the factors evaluated in order to implement the compiled measures. The ESMP also shows how mitigation and management measures will be scheduled. The key objectives of the ESMP are: To outline mitigation measures against the possible degradation of the areas; To enhance positive aspects brought by the project; To ensure that the project will comply with relevant environmental legislation of Argentina; To identify roles and responsibilities and the cost involved; To propose mechanisms for monitoring compliance; To provide adequate channels of input for the different stakeholders throughout the project activity; and To establish proven mechanisms to correct/adjust the findings resulting from the monitoring activity and to include the input received throughout the project activity. The ESMP is a live document for project activities that will be updated as and when required. The ESMP acts as a quick guide for contractors and project implementers to enhance positive impacts and eliminate or minimize the occurrence of negative impacts through proposed mitigations measures. The ESMP relies on the following key principles: Compliance with local, national and international laws The project will empower individuals and groups, particularly the most marginalized, to realize their rights and interests, and to ensure that they fully participate throughout the development and implementation of projects. Transparency and inclusivity The project development team will engage in meaningful and transparent consultation with affected communities, particularly with vulnerable groups, to ensure that they can participate in a free, prior and informed manner in decisions about avoiding or managing environmental or social impacts. The inclusivity will be achieved inter alia via face‐to‐face open stakeholder consultations in the local GEF6 CEO Endorsement /Approval Template-August2016 92 communities, door‐to‐door invitations through the local social networks etc. The project will also aim at achieving at least 40% female representation within capacity building and awareness raising activities. Systematic assessment and tracking of environmental and social impacts and risks The project will aim at providing clear and constructive responses to individuals, groups, and communities potentially affected by projects on potential grievances related to the social and environmental performance of the projects, corrects non‐compliance where it has occurred, and shares the results of its review and any actions taken. During project implementation, any changes likely to have negative social and environmental impacts must be communicated to UNIDO prior to implementation. The key risks to be considered and tracked in a systematic way are described in Section 3 and in Section 4 of this ESMP. Information will be collected on a real‐time and quarterly basis by the project team and will be treated as confidential within the project, to be kept in computerized form and backed‐up by the central UNIDO office. It will be kept for a minimum of 10 years after project completion. Harmonisation with other projects and programs The project will aim at maximizing efficiency and minimizing costs in complying with environmental and social safeguards. The project development team will lead discussions at country level to decide on the use of the most appropriate environmental and social safeguards procedures. Gender equality The project will identify and integrate the different needs, constraints, contributions and priorities of women and men and where possible, it will aim at enhancing the positive gender impacts of projects by undertaking to develop mitigating measures to reduce any potential gender specific and disproportionate adverse gender impact. Climate resilience The project will ensure that supported activities enhance climate resiliency and avoid unwarranted increases in greenhouse gas emissions. 1. Project Description The project falls under Category B for UNIDO projects and is likely to have less adverse impacts, which will be few in number, site‐specific, and few if any will be irreversible. In most cases impacts can be readily minimized by applying appropriate management and mitigation measures or incorporating internationally recognized design criteria and standards. The project is expected to deliver tangible socio‐economic benefits for Argentina’s energy and agroindustry sectors, as well as for individual businesses and the men, women and their families GEF6 CEO Endorsement /Approval Template-August2016 93 involved. Socio‐economic benefits at national level (country) are achieved as a result of avoided imports of fossil fuels for electricity generation and heat applications. Distributed bioenergy systems, as well as other grid‐connected renewable energy plants can displace thermal power and improve the utilization rate of the transmission network, thereby postponing public investments in infrastructure. The direct replacement of diesel‐based electricity represents very substantial savings of public expenditures given its high marginal costs during peak hours. Moreover, diversification of Argentina’s energy mix enables a more economical operation of the national electricity system in function of fuel market prices and improves the country’s position for negotiating long‐term contracts with foreign suppliers. The proposed project builds upon on‐going biomass related activities in Argentina and makes a contribution to the use of agricultural (including plantation forestry) and agro‐industrial biomass waste utilization for energy generation within the industry – a field in which UNIDO holds a comparative advantage – while promoting innovative business models and up‐stream uses of biomass. A range of barriers have been found in place impeding the efficient development and implementation of energy projects based on agricultural and agro‐industrial waste in Argentina. These barriers extend to the policy and institutional framework, and knowledge and technical capacities, and inadequate access to investment capital. The identified weaknesses in the biomass energy value chain give rise to increased project risks, including perceived risks, which can be addressed by demonstration and promotion of best practices and benefits. At the present stage of market development, there is a great need to mobilize investment capital enabling the industries to benefit from energy generation from agricultural and agro‐industrial organic waste and biomass residues. The utilization of biomass waste by national industries contributes to increasing the reliability of electricity and heat supply for energy consumers and diversification of the national energy matrix. Moreover, by incorporating biomass waste and residues into the industry's value chain, biomass energy generation is supportive to the competitiveness and financial viability of the agro‐ industrial sector and the national economy. The component 1 of the project will support the adoption of policy, regulation and financial incentives to accelerate the market penetration of bioenergy systems based on agroindustrial residues. The component 2 aims to strengthen knowledge management mechanisms and delivery skills for project development, through the operationalization of a national Bioenergy Network under the Ministry of Agroindustry. The component 3 will demonstrate technical and economic feasibility of bioenergy projects based on agroindustrial residues and will also develop a project portfolio for upscaling of investment. The selected demonstration pilots will be ranked in terms of technical and economic feasibility, socio‐ economic and environmental criteria, and shall be representative for the bioenergy portfolio in terms of size, geographical coverage and technology, applied business models and energy end‐use. These demonstration projects will involve technologies for organic waste collection, technologies for biogas productions (covered lagoons, biodigesters), technologies for electricity generation (internal combustion GEF6 CEO Endorsement /Approval Template-August2016 94 engines, gas turbines), technologies for thermal energy production (biomass boilers), technologies for cogeneration of heat and power, technologies for energy storage. During the completion process of the portfolio of pilot projects, it will be the responsibility of the selected executing partners to ensure compliance with national environmental and social standards. For each identified demonstration project, an analysis and mitigation plan shall be prepared. The identified sectors are geographically concentrated in two regions of Argentina (Northeast and Center) comprising the following six provinces: Corrientes, Misiones, Entre Rios, Province of Buenos Aires, Santa Fe, and Cordoba. The potential negative environmental

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