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Project Document United Nations Development Programme Country: Azerbaijan PROJECT DOCUMENT1 Project Title: Sustainable land and forest management in the Greater Caucasus landscape Outcome 1: By 2015, non-oil development policies result in better economic status, decent work opportunities and a healthier environment in all regions and across all social groups. UNDAF Outcome(s): Component 3: Reducing the vulnerability of the environment to the effects of economic growth, while reducing the vulnerability of the economy and the population to the effects of climate change and natural disasters through climate risk management. UNDP Strategic Plan Environment and Sustainable Development Primary Outcome: Mobilizing environmental financing UNDP Strategic Plan Secondary Outcome: Promoting Adaptation to Climate Change Expected CP Outcome (s): Outcome 1.3: Relevant national strategies, policies, and capacities strengthened to address environmental degradation, promote the green economy, and reduce vulnerability to climate change. Output 1.3.5: Pasture degradation in mountainous areas reduced through improved land management practices. (Those linked to the project and extracted from the country programme document) Expected CPAP Output (s) n/a Executing Entity/Implementing Partner: Ministry of Ecology and Natural Resources. Implementing Entity/Responsible Partners: Ministry of Ecology and Natural Resources Brief Description The objective of the project is the sustainable land and forest management in the Greater Caucasus Landscape secures the flow of multiple ecosystem services, including carbon storage and sequestration and water provisioning services, while ensuring ecosystem resilience to climate change. The project will engineer a paradigm shift from the current unsustainable practices to sustainable land and forest management practice. The project will address barriers to sustainable pasture and forest management. In doing so it will support measures to mitigate CC such as managing natural forests to emphasize natural regeneration through improved grazing and wood collecting in forests. It will avoid GHG emissions caused by degradation, increase sequestration through enhanced biomass and improve the productivity of forests and pasturelands. This would result in short and long-term global benefits. Programme Period: 2011-2015 Total allocated resources: $18,532,595* Regular Atlas Award ID: 00063140 o UNDP $383,895 GEF Project ID: 00080444 Other: EC component Atlas Award ID 00072191 o GEF $5,680,000 EC component Project ID: 00085357 o EC €1,000,000 PIMS # 4418 o Government $4,500,000 Start date: January 2013 In-kind contributions End Date December 2017 o FAO $500,000 Management Arrangements NEX o Government $6,170,000 PAC Meeting Date Agreed* EC contribution by (Government): included in the total was converted with the rate 1.2987 1 For UNDP supported GEF funded projects as this includes GEF-specific requirements UNDP Environmental Finance Services Page 1 Date/Month/Year Agreed by (Executing Entity/Implementing Partner): Date/Month/Year Agreed by (UNDP): Date/Month/Year UNDP Environmental Finance Services Page 2 Table of Contents LIST OF ACRONYMS .................................................................................................................... 4 SITUATION ANALYSIS ................................................................................................................. 5 STRATEGY ................................................................................................................................ 21 PROJECT RESULTS FRAMEWORK: .............................................................................................. 55 TOTAL BUDGET AND WORKPLAN ................................................................................ 59 MANAGEMENT ARRANGEMENTS ............................................................................................. 68 MONITORING FRAMEWORK AND EVALUATION ........................................................................ 70 LEGAL CONTEXT ....................................................................................................................... 76 AUDIT CLAUSE: ......................................................................................................................... 76 ANNEXES .................................................................................................................................. 77 SIGNATURE PAGE ..................................................................................................................... 83 ADDITIONAL ANNEXES: ............................................................................................................ 84 UNDP Environmental Finance Services Page 3 List of acronyms AFLD Azeri Forum on Land Degradation AZ Azerbaijan C Carbon CC Climate Change DFD Department of Forest Development FAO Food and Agriculture Organization FUA Forest User Association GC Greater Caucasus GEF Global Environment Facility IPCC Inter-Governmental Panel on Climate Change IPFMP Integrated pasture and forest management plan LC Land Code LFL Land Fertility Law LLL Land Lease Law LULUCF Land-use, Land-use Change and Forestry LWG legal working group MoA Ministry of Agriculture MoENR Ministry of Ecology and Natural Resources MoES Ministry of Emergency Situations MRV means of reporting and verification NAS National Academy of Sciences NLA Normative Legal Act NAPCD National Action Plan to Combat Desertification NTFP non-timber forest products PES Payment for ecosystem services PUA Pasture User Association REDD reduced emissions from deforestation and degradation REA Rayon Executive Authority RSC Rayon Stakeholder Committee SLM Sustainable Land Management SCLC State Committee on Land and Cartography SFM Sustainable Forest Management tCO2eq tonnes CO2 equivalent TSPF Ten-year Strategic Plan and Framework, UNCCD UNCCD United Nations Convention to Combat Desertification UNFCCC UN Framework Convention on Climate Change UNDP United Nations Development Programme UNECE UN Economic Commission for Europe SPPRSD State Programme for Poverty Reduction and Sustainable Development UNDP Environmental Finance Services Page 4 SITUATION ANALYSIS 1. Azerbaijan (AZ) is a mountainous country on the western coast of the Caspian Sea of 86,600 km2 and a population of approximately eight million people. Forests cover 1,178,500 hectares, or 11.6% of the country’s land area. The Greater Caucasus Mountains of northwestern Azerbaijan contain the country’s highest peaks, most extensive forests and 50% of the country’s pasturelands. The variety of microclimates, soil and vegetative conditions has led to a broad range of landscapes and unusually high levels of species diversity in the temperate zone. Of the six land-use categories defined for the LULUCF sector, forests and pasturelands represent two of the most important sinks for Carbon (C) in AZ. Critical ecosystem services sustained by forests and pastures include: supporting (nutrient cycling, soil formation); provisioning (food, fresh water, wood, fuel); regulating (climate & flood regulation), and cultural (aesthetic, educational, recreational). 2. Pastures: Approximately 591,100 hectares of pasture can be found in the GC: 247,300 ha of summer pastures and 343,800 ha of winter pastures. Although C emission and sequestration figures for grasslands have not yet been developed in AZ, a significant body of work worldwide makes it possible to estimate the potential (an average value under sustainable management) for C sequestration in AZ’s pasturelands2. Carbon stocks vary associated with climate zone, vegetation type, soils, and management. The potential Carbon is estimated at 4,939,374 t C and 33,492,098 t C for the project rayons and GC, respectively. Critical ecosystem services sustained by forests and pastures include: supporting (nutrient cycling, soil formation); provisioning (food, fresh water, wood, fuel); regulating (climate & flood regulation), and cultural (aesthetic, educational, recreational). 3. Forests: The GC’s 483,800 ha of forests are comprised of three main types: coniferous (1.5%), broadleaved (92.6%) and other deciduous trees (5.9% ha). Approximately 15% of these are considered to be “closed forest” with a canopy cover of greater than 40% and the remaining 85% are considered to be “open and fragmented” with 10% - 40% canopy cover and a height of less than 5 meters. These figures demonstrate the significant potential to increase the C stocks and to enhance Azerbaijan’s global role as a Carbon sink. Project area: 4. The project area encompasses the region of Azerbaijan known as the Greater Caucasus Mountains, encompassing 11 rayons or districts of northwestern Azerbaijan. It includes two rayon’s in the southeast of this region, Ismayilli and Shamakhi, which will serve as pilot areas for demonstrating improved pasture and forest management (see the figure to the right).This covers an area of just over 22,000 km2. Their characteristics include: (i) their forest and pasturelands are representative of forest and pastureland across the GC region, which will facilitate replication; (ii) they are prone to degradation largely from over-grazing, with steep upper catchments and upper river beds and have a history of increasing problems related to erosion; (iii) there are many communities within them, who are users of the pasturelands and forest resources; (iv) the economy of the basins and the human activities associated with them are typical of the 2 C. Neeely et. al. 2009. Review of Evidence
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