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Central African Republic Public Disclosure Authorized Country Environmental Analysis: Environmental Management for Sustainable Growth (In Two Volumes) Volume I: Main Report November, 2010 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized CURRENCY EQUIVALENTS US $1.00 = 480 CFA (XAF) ACRONYMS AND ABBREVIATIONS ACEDD Central African Agency for Environment and IMF International Monetary Fund Sustainable Development AFD Agence Française de Développement IPCC International Panel on Climate Change AMGP African Mineral Governance Program ITCZ Inter-Tropical Convergence Zone APFC Association for the Protection of Central African LULCF Land Use, Land Use Change and Forestry Republic‘s Wildlife APL Adaptable Policy Loan MDGs Millennium Development Goals BEAC Bank of Central African States MDRA Ministère de Développement Rural et Agriculture BECDOR Bureau d‘Evaluation et de Contrôle de Diamant et MDTA Ministry for the Development of Tourism and d‘Or Handicrafts CAPE Commission for Public Hearings on the MEE Ministry of Environment and Ecology Environment CAR Central African Republic MEFCP Ministry of Water, Forestry, Hunting and Fisheries CAS-CFT Special Allocation Account for Forestry and MoM Ministry of Mines Tourism Development CDM Clean Development Mechanism MPs Management Plans CEA Country Environmental Analysis MPECI Ministère du Plan, de l'Economie et de la Coopération International CFD Centre for Forest Data NAPA National Adaptation Programme of Action CNEDD National Commission of Environment and NCEP National Centre for Atmospheric Prediction Sustainable Development COMIFAC Central African Forest Commission NGO Non-Governmental Organization COMIGEM Mineral and Gem Agency NTFP Non Timber Forest Products DDR Disarmament, Demobilization and Reintegration NTFR Non-Timber Forest Resources CEMAC Economic and Monetary Community of Central ORGEM Geological Survey and Mining Development Office Africa DFAP Wildlife Exploitation Division PANA National Climate Adaptation Action Program ECOWAS Economic Community Of West African States PARPAF Project for the Support to the Implementation of Forest Management Plans EIA Environmental Impact Assessment PEAs Forest Operation and Management Permits EIAPCU Environmental Evaluation, Impact Assessment, PIM Perpetual Inventory Method Public Consultations and Environmental Audit Unit EITI Extractives Industry Transparency Initiative PRADD Property Rights and Artisanal Diamond Development project EMP Environmental Management Plan PRSP Poverty Reduction Strategy Plan EPI Environmental Performance Indicator REDD Reducing Emissions from Deforestation and forest Degradation ESIA Environmental & Social Impact Assessment SADC Southern African Development Community FCFA Central African Franc SEA Strategic Environmental Assessment FIEO Forest Economic Observatory SSA Sub-Saharan Africa FNE National Environment Fund UNDP United Nations Development Programme GDP Gross Domestic Product UNHCR United Nations High Commission for Refugees GIS Geographic Information System WHO World Health Organization IDP Internally Displaced People ZCV Village Hunting Zones Central African Republic-Country Environmental Analysis (CAR-CEA) i TABLE OF CONTENTS Chapter 1: Context and Objectives ............................................................................................ 1 I. Introduction to Country Environmental Analysis ....................................................... 1 II. Context: Laying the Foundations for Sustainable Growth ......................................... 1 III. Objectives of the Country Environmental Analysis ................................................... 4 IV. Scope, Methodology and Structure of the Report ...................................................... 5 Chapter 2: The Sustainability of CAR’s Development Path .................................................... 6 I. The True Wealth of CAR ........................................................................................... 6 II. Costs of Environmental Degradation: Equivalent to 8 percent of GDP ..................... 8 III. Genuine Saving: Declining Total Wealth ................................................................... 9 IV. Ecological Footprint vs. Biocapacity: a Significant Ecological Reserve ................. 12 V. Conclusion: Human Capital Threatened, but Natural Wealth Underexploited ........ 13 Chapter 3: Assessment of Institutional Capacity for Environmental Management ............ 14 I. Introduction to the Institutional Framework in CAR ............................................... 14 II. Legal and Regulatory Framework for Environmental Management ........................ 14 III. Environmental Management at the National Level .................................................. 15 IV. The EIA and Licensing Process ................................................................................ 18 V. Roles of NGOs and the Judiciary in Environmental Management ........................... 19 VI. Recommendations: New Ministry Needs Urgent Assistance ................................... 20 Chapter 4: Environmental Management in the Mining Sector ............................................. 21 I. Stakeholder Analysis and Political Economy ........................................................... 24 II. Environmental and Social Issues Associated with Mining in CAR ......................... 25 III. Assessment of Mining-related Environmental Policies and Regulations ................. 27 IV. Institutional Capacity for Environmental and Social Management in Mining ......... 27 V. Strengthening Management of Mining Sector Environmental Impacts ................... 28 Chapter 5: Managing Forests, Woodlands and Wildlife Resources ...................................... 31 I. Management of Commercial Forest Resources ........................................................ 32 II. Hunting and the Bushmeat Trade ............................................................................. 36 III. Non- Timber Forest Products ................................................................................... 39 IV. Protected Areas and Wildlife .................................................................................... 42 V. Tourism and Trophy Hunting ................................................................................... 45 VI. Combined Management of Natural Resources ......................................................... 47 Chapter 6: Growth that is Resilient to Climate Change ......................................................... 48 I. Recent Climate Trends: Gradual Warming and Less Predictable Rainfall .............. 48 II. Sensitivity of Society to Climate Change ................................................................. 49 III. Climate Change Projections for CAR ....................................................................... 50 IV. Impacts of Climate Variability and Change ............................................................. 53 V. Conclusions and Recommendations ......................................................................... 56 Chapter 7: Environmental Constraints to Growth: Priorities and Recommendations ....... 57 I. Policy Recommendations ......................................................................................... 58 II. Investment Recommendations .................................................................................. 61 III. Summary of Recommendations ................................................................................ 63 References .................................................................................................................................. 65 Central African Republic-Country Environmental Analysis (CAR-CEA) ii LIST OF TABLES AND FIGURES Figure 1: Map of the Central African Republic .................................................................................. 2 Figure 2: Composition of Central African Republic Natural Capital ............................................... 7 Figure 3: Costs of Environmental Degradation ................................................................................... 9 Figure 4: Steps in Calculating Genuine Saving ................................................................................. 10 Figure 5: Decomposition of Adjusted Net Saving (ANS), or Genuine Saving ................................ 11 Figure 6: Diamond and Gold Deposits in CAR .................................................................................. 22 Figure 7: CAR – Ecological Zones ...................................................................................................... 31 Figure 8: Bushmeat for sale in Bangui and Berberati Markets ....................................................... 37 Figure 9: Sources of Protein Consumption in Urban and Rural Settings in CAR ......................... 38 Figure 10: NTFPs in Bangui and Berberati Markets ........................................................................ 40 Figure 11: The Protected Areas of the Central African Republic ................................................... 43 Figure 12: Natural Disasters in CAR from 1981 – 2007: Number of Occurrences ........................ 50 Figure 13: Quantifiable Costs of Environmental & Natural Capital Depletion in CAR ............... 57 Table 1: Composition of per capita Wealth for CAR and the SSA average ...................................... 6 Table 2: Composition of the Natural Capital of CAR compared with the SSA average ................