(Research Institute of Forest Ecology, Environment and Protection, China Academy of Forestry) EIB (European Investment Bank) CDM AFFORESTATION PROJECT IMAR (Inner Mongolia Autonomous Region) ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT September, 2008 2 # Dongxiaofu, Haidian Distinct Beijing, P.R. China EIB Loan CDM Afforestation Project ESIA report Project Name: European Investment Bank Loan Clean Development Mechanism Afforestation Project Commission Unit: Inner Mongolia Forestry Administration, PRC (IMFA) Project Director: Fu Yaping ESIA Team Members: Fu Yaping Research Institute of Forest Ecology, Environment and Protection, CAF Li Yu Research Institute of Forest Ecology, Environment and Protection, CAF Li Xingchun Research Institute of Forest Ecology, Environment and Protection, CAF Xiao Wenfa Research Institute of Forest Ecology, Environment and Protection, CAF Zhang Yongan Research Institute of Forest Ecology, Environment and Protection, CAF Ma Zuoli Research Institute of Forest Ecology, Environment and Protection, CAF Bai Liping Research Institute of Forest Ecology, Environment and Protection, CAF Wang Jiangling North China Electric Power University Xin Jing North China Electric Power University Du Xianyuan North China Electric Power University Liu Jianlin North China Electric Power University Gao Qian North China Electric Power University Wang Lili Beijing Normal University Chen Jie Forestry Survey and Design Academy of IMAR Lv Xin Forestry Survey and Design Academy of IMAR RIFFEEP September, 2008 EIB Loan CDM Afforestation Project ESIA report List of Abbreviations and Acronyms ADB Asian Development Bank ARPMO Autonomous Regional Project Management Office CAF Chinese Academy of Forestry CDM AP Clean Development Mechanism Afforestation Project CNEIB Context Note of European Investment Bank CSA Carbon Sequestration Afforestation EFI Environmental Field Inspector EIA Environmental Impact Assessment EIB European Investment Bank EIBPCO European Investment Bank Project Coordinating Office EMS Environmental Monitoring Station EPB Environmental Protection Bureau ESD Environmental and Social Department (of PMOs) ESIA Environmental and Social Impact Assessment ESMaP Environmental and Social Management Plan ESMoP Environmental and Social Monitoring plan ESMMP Environmental and Social Management and Monitoring plan ESPH Environmental and Social Practices Handbook FMPA Forestry Monitoring and Planning Academy of IMAR FSDA Forestry Survey and Design Academy of IMAR IMAR Inner Mongolia Autonomous Region IMEPB Inner Mongolia Environmental Protection Bureau, PRC IMFA Inner Mongolia Forestry Administration, PRC IMPG Inner Mongolia People's Government, PRC MEP Ministry of Environmental Protection, PRC （Original NEPA） NDRC National Development and Reform Commission NEPA National Environmental Protection Agency RIFFEEP September, 2008 EIB Loan CDM Afforestation Project ESIA report NPC National People’s Congress OPIPM Organizations of Plantation Integrated Pest Management PEO Project Executive Office PIPM Plantation Integrated Pest Management PIU Project Implementation Unit PLG Project Leading Group PMO Project Management Office PRC People’s Republic of China Research Institute of Forest Ecology, Environment and RIFEEP Protection, CAF SFA State Forestry Administration, PRC SIA Social Impact Assessment SFI Social Field Inspector SS Suspended Solids Terms of Reference (TOR) of the Environmental and Social TOR Impact Assessment, EIB TSP Total Suspended Particles WB World Bank WBLM World Bank Loan Management Centre of SFA, PRC CURRENCIES Y Chinese Yuan (RMB) EURO Eurodollar Conversion rate 1 EURO = 10.6 Y RIFFEEP September, 2008 EIB Loan CDM Afforestation Project ESIA report CONTENT EXECUTIVE SUMMARY.............................................................................................................1 1 INTRODUCTION........................................................................................................................6 1.1 PURPOSE OF THE ESIA ..................................................................................................6 1.2 RELATIONSHIP TO FEASIBILITY STUDY ...................................................................7 1.3 ESIA METHODOLOGY....................................................................................................9 1.3.1 METHODOLOGY OF ESIA...................................................................................9 1.3.2 SCHEDULE OF ESIA...........................................................................................10 1.3.3 ESIA CONSULTING TEAM.................................................................................11 2 POLICY, LEGISLATION AND ADMINISTRATION FRAMEWORK ..............................13 2.1 PROJECT ORGANIZATIONS AND ADMINISTRATIVE FRAMEWORK ..................13 2.1.1 ORGANIZATION FRAMEWORK OF ENVIRONMENTAL ADMINISTRATION IN CHINA............................................................................13 2.1.2 ORGANIZATION AND ADMINISTRATIVE FRAMEWORK OF THE PROJECT................................................................................................................13 2.2 RELEVANT POLICY, STRATEGY, AND LEGISLATION ............................................17 2.2.1 RELEVANT POLICY AND STRATEGIC GUIDELINE......................................17 2.2.2 RELEVANT LAWS ...............................................................................................17 2.2.3 RELEVANT ADMINISTRATIVE REGULATIONS ............................................18 2.2.4 RELEVANT GOVERNMENT DEPARTMENT RULES......................................19 2.2.5 RELEVANT TECHNICAL GUIDELINES AND STANDARDS .........................20 2.2.6 RELEVANT INTERNATIONAL CONVENTIONS AND PROTOCOLS............20 2.2.7 OTHER RELEVANT DATA..................................................................................21 2.3 RELEVANT TECHNIQUE PROVISIONS OF THE EIB................................................21 3 PROJECT DESCRIPTION ......................................................................................................22 3.1 PROJECT DESCRIPTION...............................................................................................22 3.1.1 PROJECT NAME ..................................................................................................22 3.1.2 PROJECT BUSINESS AND TECHNICAL GUIDANCE UNIT ..........................22 3.1.3 PROJECT ORGANIZATION AND IMPLEMENTATION UNIT ........................22 3.1.4 PROJECT CONSTRUCTION UNITS AND LEGAL REPRESENTATIVE.........22 3.1.5 PROJECT PROPERTY..........................................................................................22 3.1.6 PROJECT SCOPE AND AREA ............................................................................23 3.1.7 PROJECT IMPLEMENTATION DURATION AND SCHEDULE.......................23 3.2 PROJECT OBJECTIVES .................................................................................................24 3.3 PROJECT COMPONENTS..............................................................................................24 3.3.1 PROJECT CONTENTS AND SCALE ..................................................................24 3.3.2 PROJECT INVESTMENT ....................................................................................26 3.4 INDICATORS OF PROJECT SUCCESS.........................................................................26 3.4.1 ECOLOGICAL BENEFITS...................................................................................26 3.4.2 ECONOMIC BENEFITS.......................................................................................27 3.4.3 SOCIAL BENEFITS..............................................................................................29 3.5 REGIONAL DISTRIBUTION..........................................................................................29 RIFFEEP September, 2008 I EIB Loan CDM Afforestation Project ESIA report 4 DESCRIPTION OF EXISTING ENVIRONMENT ...............................................................33 4.1 THE MAJOR GEOGRAPHIC REGIONS........................................................................33 4.1.1 HOHHOT CITY.....................................................................................................33 4.1.2 BAOTOU CITY.....................................................................................................34 4.1.3 TONGLIAO CITY.................................................................................................34 4.1.4 BAYANNAOER CITY ..........................................................................................35 4.2 ECOLOGICAL ENVIRONMENT ...................................................................................36 4.2.1 THE MAJOR NATURAL VEGETATION ZONES...............................................36 4.2.2 ANIMALS..............................................................................................................38 4.2.3 PLANTATION RESOURCES ...............................................................................39 4.2.4 NATURAL RESERVE...........................................................................................40 4.3 PHYSICAL ENVIRONMENT .........................................................................................40 4.3.1 TOPOGRAPHY AND GEOLOGY........................................................................40 4.3.2 CLIMATE ..............................................................................................................42 4.3.3 SOILS.....................................................................................................................44