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Project Document UNITED NATIONS DEVELOPMENT PROGRAMME Project title: Economic instruments and tools to support the conservation of biodiversity, the payment for ecosystem services and sustainable development. Country(ies): Chile Implementing Partner (GEF Executing Execution Modality: UNDP Partial Support to Entity): National Implementation (NIM) Environment Ministry Contributing Outcome (UNDAF/CPD, RPD, GPD): In 2022, State institutionality on the national, regional and local levels will be strengthened for mitigating and adapting to climate change, sustainable management and the preservation of natural resources, ecosystems and their biodiversity, as well as socio-environmental threats and conflict management (CPD/UNDAF 2019-2022). Outcome 2.4.1: Legal and regulatory systems sensitive to the gender dimension (gender-responsive), policies and institutions strengthened, and solutions adopted for addressing conservation, sustainable use and equitable distribution of the benefits of natural resources, in line with international conventions and the national legislation. UNDP Social and Environmental Screening Category: UNDP Gender Marker: GEN 2 Moderate Atlas Award ID: 94408 Atlas Project/Output ID: 98518 UNDP-GEF PIMS ID number: 5794 GEF Project ID number: 10213 LPAC meeting date: TBD Latest possible date to submit to GEF: December 12, 2020. Latest possible CEO endorsement date: June, 2021. Planned start date: August 2021 Planned end date: August 2026 Expected date of posting of Mid-Term Review to ERC: Expected date of posting Terminal evaluation report to ERC: January 2024 January 2026. 1 Brief project description: This Project proposes to improve national financing of biodiversity through the design, implementation and optimization of market-based economic instruments for biodiversity conservation (IECB, for their abbreviation in Spanish) and of ecosystem services (Retribution for Ecosystem Services, Biodiversity Offsets, Conservation Easements and Certifications), that strengthen public financing and facilitate economic contributions by the private sector to maintaining Chile’s natural capital. The Project will contribute to overcoming institutional, technical and market barriers, as well as underlying threats that impact the state of biodiversity and ecosystem services conservation. It proposes to achieve this through establishing an institutional system of governance, and creating and strengthening technical capabilities for the development, application, monitoring and evaluation of IECB’s. Toward this end, a mechanism for governance and the participation of multiple stakeholders and sectors, on the national and regional – local levels, will accompany the execution of Project activities. This will be the means by which capabilities will be strengthened; outputs and outcomes will be institutionalized; the inclusion of biodiversity and ecosystem services conservation will have been reinforced in sectorial targets and in IECB application, and the sustainability, replicability and upscaling of the experience will have been ensured. A strategic communication plan focused on knowledge management and strengthening capabilities of multiple stakeholders will contribute to achieving this. The development, application and validation of Technical Guidelines for IECB mechanisms in Demonstration Experiences implemented in priority land, continental aquatic and marine-coastal productive landscapes; project models with eligible green expenditures founded in Nature-based Solutions achieved; biometric studies, as well as studies on ecosystem services and return on investment carried out; a system for IECB information, monitoring and evaluation included in an internet platform annexed to the national biodiversity information system; an IECB financing strategy developed and applied; together with an IECB governance mechanism, these achievements will have improved institutional capabilities and those of other stakeholders, IECB application, the inclusion of a focus on sustainability, increasing public and private financing for sustainable management, and the conservation of biodiversity and ecosystem services. FINANCING PLAN GEF Trust Fund USD $2,300,000 1. Total Budget administered by UNDP USD $2,300,000 CO-FINANCERS THAT WILL DELIVER PROJECT RESULTS INCLUDED IN THE PROJECT RESULTS FRAMEWORK (FUNDS NOT ADMINISTERED THROUGH UNDP ACCOUNTS) Environment Ministry USD $7,309,600 Sanitary Services Superintendency (SISS) USD $26,150 Service for Environmental Evaluation (SEA) USD $43,885 Agriculture and Livestock Service (SAG) USD $4,194 Institute for the Development of Agriculture and USD $200,000 Livestock (INDAP) National Corporation for Indigenous Development USD $15,657 (CONADI) Ancud Municipality USD $5,856 National Fisheries and Aquiculture Service (SERNAPESCA) USD $35,653 Ministry for Social and Family Development (MDSF) USD $10,400 Bureau of Agrarian Studies and Policies (ODEPA) USD $279,576 2 Forest Stewardship Council (FSC) USD $45,750 Environment Superintendency USD $1,207,720 Puchuncavi Municipality USD $3,183 La Unión Municipality USD $22,386 CMPC - Mininco Forestry Company SpA USD $71,875 AngloAmerican Mining Company USD $122,500 Department of Water Works (DOH) USD $18,720 Association of Municipalities, Corral-La Unión Coastal USD $ 7,887 Mountain Range Arauco Forestry Company USD $63,422 National Forestry Corporation (CONAF) UDS $ 27,843 National Assets Ministry (MBN) USD $ 64,075 Caleta Maitencillo Artisanal Fishermen's Union USD $50,417 Caleta Las Ventanas Artisanal Fishermen's Union USD $50,417 Panguipulli Municipality USD $ 12,125 National Tourism Service (SERNATUR) USD $ 9,441 2. Total confirmed co-financing USD $ 9,708,732 3. Grand-Total Project Financing (1)+(2) USD $ 12,008,732 SIGNATURES Signature: Agreed by Date/Month/Year: within 25 days of GEF CEO Government endorsement Foreign Relations Ministry of Chile Development Coordination Authority Signature: Agreed by Date/Month/Year: within 25 days of GEF CEO Implementing endorsement Partner Signature: Agreed by UNDP Date/Month/Year: within 25 days of GEF CEO endorsement Resident Representative United Nations Development Programme Key GEF Project Cycle Milestones: Project document signature: within 25 days of GEF CEO endorsement First disbursement date: within 40 days of GEF CEO endorsement Inception workshop date: within 60 days of GEF CEO endorsement Operational closure: within 3 months of posting of TE to UNDP ERC Financial closure: within 6 months of operational closure 3 Table of Contents II. ABREVIATIONS ...................................................................................................................................... 5 III. DEVELOPMENT CHALLENGES .............................................................................................................. 7 IV. STRATEGY .......................................................................................................................................... 13 V. OUTCOMES AND ASSOCIATIONS ....................................................................................................... 18 VI. PROJECT RESULTS FRAMEWORK ...................................................................................................... 39 VII. MONITORING AND EVALUATION (M&E) PLAN ................................................................................ 50 VIII. GOVERNANCE AND MANAGEMENT ARRANGEMENTS ................................................................... 54 IX. FINANCIAL PLANNING AND MANAGEMENT ..................................................................................... 61 X. TOTAL BUDGET AND WORKPLAN ....................................................................................................... 67 XI. LEGAL CONTEXT ................................................................................................................................ 78 XII. RISK MANAGEMENT ......................................................................................................................... 78 XIII. MANDATORY ANNEXES ................................................................................................................... 82 ANNEX 1. PROJECT MAP AND GPS LOCATION OF THE PROJECT SITES ................................................. 82 ANNEX 2. MULTI YEAR WORK PLAN ....................................................................................................... 93 ANNEX 3. MONITORING PLAN ............................................................................................................... 99 ANNEX 4. SOCIAL AND ENVIRONMENTAL SCREENING PROCEDURE (SESP) ....................................... 139 ANNEX 5. UNDP RISK REGISTER ........................................................................................................... 155 ANNEX 6. OVERVIEW OF TECHNICAL CONSULTANCIES ....................................................................... 168 ANNEX 7. STAKEHOLDER ENGAGEMENT PLAN .................................................................................... 201 ANNEX 8. GENDER ANALYSIS AND GENDER ACTION PLAN .................................................................. 239 ANNEX 9. PROCUREMENT PLAN FOR FIRST YEAR OF IMPLEMENTATION ........................................... 257 ANNEX 10. SIGNED LETTER FROM THE IMPLEMENTING PARTNER ..................................................... 261 ANNEX 11. SIGNED LETTER OF AGREEMENT FROM THE IMPLEMENTING PARTNER .......................... 263 ANNEX 12. PROFILE OF TARGET LANDSCAPE AND VIABILITY STUDIES ...............................................
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