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FAO/GLOBAL ENVIRONMENT FACILITY PROJECT DOCUMENT PROJECT TITLE: Mainstreaming conservation and valuation of critically endangered species and ecosystems in development-frontier production landscapes in the regions of Arica y Parinacota and Biobío PROJECT SYMBOL: GCP/CHI/033/GFF COUNTRY: CHILE FINANCING PARTNER: Global Environment Facility GEF FAO PROJECT ID: 623646 GEF PROJECT ID: 5429 EXECUTING PARTNER(s): Ministry of Environment - MMA, Ministry of Agriculture – MINAGRI (National Forest Corporation- CONAF, Livestock and Agriculture Service – SAG) EXPECTED EOD (STARTING DATE): JULY 2016 EXPECTED NTE (END DATE): JUNE 2019 Contribution to FAO’s a. Strategic objective/Organizational Result: Strategic Objective 2 (SO 2) Strategic Framework Increase supply of goods and services from agriculture, stockfarming, forestry and fishery in a sustainable manner b. Regional Outcome/Priority Area: Regional Initiative 3 Climate change and natural resources c. Country Programme Framework Outcome: Pillar 2: Governance of natural resources and farming, forest and cattle and fishery systems under climate change scenarios. Outcome 3: Protection of biodiversity, natural and genetic resources conservation for food security. GEF FOCAL AREA: BIODIVERSITY GEF STRATEGIC OBJECTIVES: BD 2 (outcomes 2.1 and 2.2, outputs 2.1 and 2.2) SOCIAL AND ENVIRONMENTAL ASSESSMENT CATEGORY: Moderate Financing Plan: GEF Allocation: USD 2,411,416 Co-financing: MMA USD 1,640,921 CONAF USD 1.623,447 SAG USD 200,319 Etica en los Bosques (NGO) USD 301,000 Fundación Keule (NGO) USD 28,000 AUMEN (NGO) USD 221,400 Aves Chile (NGO) USD 1,451,272 Private contribution USD 813,252 FAO USD 331,000 Subtotal co-financing: USD 6,610,611 Total budget: USD 9,022,027 1 EXECUTIVE SUMMARY Chile's biodiversity is characterized by a relatively high species endemism in varied and small ecosystems, which are a source of abundant marine, coastal, terrestrial and insular environments that house about 30,000 species among plants, animals, mushrooms and bacteria. The economic development of Chile depends heavily on its natural resources, so unsustainable practices and extractive mentality, together with high immediate productivity has speeded up habitats degradation and soil erosion in productive territories. Loss, degradation and fragmentation of ecosystems remain a major threat. Change in land-use is the main anthropic factor affecting Chilean natural terrestrial ecosystems. This includes the forest industry, through illegal logging of forests and plantations of alien species; the agricultural industry, through release cutting for the establishment of grassland and crops and urbanization, all of which represent major threats to these changes in the central and south-central zones. These poor productive practices and unawareness of the importance of biodiversity have a negative impact. The ability of the territories to provide agro-ecosystem services to sustain local livelihoods, has declined over the last decades, especially in regions of "development border", meaning that the border is a space that separates the “developed” productive areas (agriculture) from “undeveloped” non- productive areas (native forests) in the country1, such as Arica y Parinacota and Biobío regions. Three of the four demonstrative areas identified for this project are located in the Biobio region, in the transition zone between the Mediterranean ecoregion and the Valdivian temperate forest. The last area is located in the northern valleys of Arica y Parinacota, transverse valleys (from east to west) with very special characteristics, an oasis in the middle of a desert landscape. Due to all of the above, various types of unique species and their habitats are critically endangered in Arica y Parinacota and Biobio regions. In particular, the "emblematic landscape species", those whose needs are being considered in the protected landscape and have been selected for this project, at least one of each selected area is endangered species, namely: the Chilean woodstar (Eulidia yarrellii) found in the desert valleys of Arica y Parinacota region, the Darwin’s Fox (Pseudalopex fulvipes2) found in Cordillera de Nahuelbuta, the Chilean huemul (Hippocamelus bisulcus) found in the Biosphere Reserve “Biological Corridor Nevados de Chillán – Laguna del Laja” (RBNCHLL), and Keule (Gomortega keule). Despite national efforts, it has not been possible to reduce pressures affecting the species under consideration because these species have very extensive habitat requirements. Limited sectoral approaches of public agencies responsible for land management in these areas have made it difficult to implement effective actions, including the valuation of biodiversity and incentives to production. No conservation effort in one region and sector could ensure the stabilization of the population of these species. Public policies and regulations concerning the production and conservation of biodiversity are scattered and even contradictory. On the other hand, the value of these species is not incorporated into the social and cultural levels and agents living and producing in the development border areas are not sufficiently aware of its importance. The objective of the project is to integrate conservation criteria of four critically endangered species (Darwin's fox, Chilean huemul, keule and Chilean woodstar) into the management of main "development border" territories in Arica y Parinacota and Biobio regions, through the implementation of best production practices for sustainable forestry, farming and cattle and forest production and 1http://eial.tau.ac.il/index.php/eial/issue/view/85 “Cross-breeding" and "Border" as Iberoamerican cultural categories. The European concept of border always referred to, as noted, to a line, the place to meet and conflict with the "other”, which represented the “barbarian”, and the border was the line that separated the "civilization" from "barbarism." In line between "civilization from barbarism" 2 Scientific name Pseudalopex fulvipes. Synonyms: Canis fulvipes; Dusicyon fulvipes; Lycalopex fulvipes Source: National Inventory of Endangered Species http://especies.mma.gob.cl/CNMWeb/Web/WebCiudadana/ficha_indepen.aspx?EspecieId=16 2 conservation of biodiversity, through the development of local capacities and awareness and inclusion of conservation into local policies and regulatory frameworks, in order to avoid extinction and reduce pressure on the ecosystems they inhabit. From the definition of their habitat and distribution of each endangered species, intervention areas were selected based on (1) its potential to generate biological corridors, (2) distribution within areas of influence of protected areas, and (3) production practices implemented with negative impact on the species. The areas selected for the project intervention areas are: Darwin’s fox in Cordillera de Nahuelbuta, including Contulmo, Los Álamos, Curanilahue and Cañete communities (Biobio Region) Chilean huemul in the Biosphere Reserve Nevados de Chillán that includes Antuco, Pinto and San Fabián communities (Biobio Region) Keule in Talcahuano, Tomé and Curanipe communities (Biobio Region) Chilean woodstar, in Camarones, Vitor, Azapa Valleys (Arica y Parinacota Region) To achieve this objective, the Project is structured in three components: 1 Awareness and development of capacities to support the protection of four endangered species in Arica y Parinacota and Biobío Regions; 2 Integrated territorial management based on best forestry, farming and cattle and forest practices aimed at the recovery of four endangered species habitats in Arica y Parinacota and Biobio regions; and 3 Mainstreaming conservation criteria of endangered species in public policies and municipal regulatory frameworks in Biobio and Arica y Parinacota regions. Project expected outcomes are: (i) strengthened capacity of local actors to implement best forestry, farming and cattle and forest practices including the conservation of the endangered species habitat (Chilean woodstar, Chilean huemul, Darwin's fox and keule); (ii) populations of the four endangered species are stabilized by reducing pressure on their habitats, on account of planning and management of the territory with due consideration to biodiversity conservation, and (iii) public policies and regional regulatory frameworks incorporate conservation criteria of the four endangered species from territorial management experiences. 3 Table of contents SECTION 1- RELEVANCE OF THE PROJECT ............................................................................................. 8 1.1 PROJECT CONTEXT ........................................................................................................................... 8 1.2 CURRENT STATUS ................................................................................................................................. 16 1.3. THE GEF ALTERNATIVE ..................................................................................................................... 35 1.4 LESSONS LEARNED......................................................................................................................... 59 1.5 STRATEGIC ALIGNMENT ............................................................................................................... 59 SECTION 2 – FEASIBILITY ......................................................................................................................... 62 2.1 ENVIRONMENTAL IMPACT ASSESSMENT .....................................................................................