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Environment and natural POLICY

Resilient livelihoods through the sustainable use of natural assets

Enabling poor rural people to overcome poverty IFAD ENRM core principles 10 Reduce Productive and IFAD’s environmental resilient livelihoods footprint Increase and smallholder access to Promote role 9 green 8 of women and indigenous peoples

Promote livelihood 7 diversification Improve 6 governance of natural assets Engage in value chains 5 that drive green growth Build 4 smallholder resilience to risk Promote climate-smart 3 rural Recognize development 2 values of natural assets

Scaled-up 1 investment in sustainable

Scaled-up investment in Improved governance of natural assets multiple-benefit approaches for for poor rural people by strengthening tenure sustainable agricultural intensification and -led empowerment

Recognition and greater awareness Livelihood diversification to reduce of the economic, social and cultural and build resilience for sustainable value of natural assets management

‘Climate-smart’ approaches Equality and empowerment for women to rural development and indigenous peoples in managing natural

Greater attention to risk and resilience Increased access in order to manage environment- and by poor rural natural-resource-related shocks to environment and climate finance

Engagement in value chains Environmental commitment through to drive green growth changing its own behaviour

A full description of the core principles begins on page 28. Environment and natural

Policy

Resilient livelihoods through the sustainable use of natural assets

Enabling poor rural people to overcome poverty Minor amendments have been included in this document to reflect comments received during Board deliberations and to incorporate the latest data available. IFAD does not guarantee the accuracy of the data included in this work. The designations employed and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of IFAD concerning the legal status of any country, territory, city or area or its authorities, or concerning the delimitation of its frontiers or boundaries. The designations ‘developed’ and ‘developing’ countries are intended for statistical convenience and do not necessarily express a judgement about the stage reached by a particular country or area in the development process.

All rights reserved.

ISBN 978-92-9072-267-0

Cover photo: © IFAD/Susan Beccio

© 2012 by the International Fund for Agricultural Development (IFAD) August 2012 Contents

Abbreviations and acronyms 4 Acknowledgements 5 Executive summary 7 Background 12

I. The context: accelerating environmental degradation is eroding the natural asset base of poor rural people 13 Poor rural people and natural resources 13 What needs to change? 21 Assessing IFAD’s experience 23

II. The ENRM policy: 10 core principles 28 IFAD ENRM core guiding principles 28

III. ENRM policy implementation: scaling up through systematic integration 33 Operations 33 Promoting knowledge, advocacy and partnerships 35 Resource mobilization 38 Internal organization 39 Measuring success 41

Annexes I. ENRM best-practice statements 42 II. ENRM policy results and implementation framework (2011-2016) 44

Case Studies Student farmers triple yields with integrated pest management in Rwanda cover flap Participatory management in the Syrian Arab Republic 11 Sustainable management in Mexico 16 Rewards for environmental services in Asia and Africa 20 Green growth through value chains in West Africa 27 from waste in China 32 Abbreviations and acronyms

ARRI Annual Report on Results and Impact of IFAD Operations CCAFS Climate Change Agriculture and (CGIAR) CBD Convention on Biological Diversity CGIAR Consultative Group on International Agricultural Research COP Conference of the Parties (UNCCD) ECD Environment and Climate Division ENRM environment and natural resource management ESAP Environmental and Social Assessment Procedures FAO Food and Agriculture Organization of the United Nations GEF Global Environment Facility GHG greenhouse gas IBRD International for Reconstruction and Development (World Bank Group) ICRAF World Agroforestry Centre IFAD International Fund for Agricultural Development IFI international financial institution IFPRI International Food Policy Research Institute ILC International Land Coalition IPM integrated pest management LDCF Least Developed Countries Fund LEED in Energy and NRM natural resource management PES payment for environmental services QE quality enhancement RB-COSOP results-based country strategic opportunities programme REDD+ Reducing Emissions from and Forest Degradation in Developing Countries RES reward for environmental services RIMS Results and Impact SCCF Special Climate Change Fund TEEB The of Ecosystems and UNCCD United Nations Convention to Combat Desertification UNCSD United Nations Conference on Sustainable Development UNDP United Nations Development Programme UNEP United Nations Environment Programme UNFCCC United Nations Framework Convention on Climate Change WFP World Food Programme

4 Acknowledgements

The development of this policy was led by Matthias Meyerhans, Director (Administrative Elwyn Grainger-Jones, Director, Environment Services Division [ADM]); Tamara Nicodeme, and Climate Division (ECD), with support Marketing and Value Chain Development from a core ECD team comprised of: Sheila Specialist (PTA); Sabine Pallas, Programme Mwanundu, Senior Technical Advisor; Officer (International Land Coalition [ILC]); Kit Vaughan, Lead Consultant; Jeffrey A. Jesús Quintana, Regional Climate and Brez, Knowledge and Advocacy Manager; Environment Specialist, (ECD/Latin America Ilaria Firmian, Technical Advisor; Wietse and the Caribbean Division [LAC]); Francesco Michiels, Environment Quality Enhancement Ranalletta, Loans and Grants Officer (CFS); Support Junior Consultant; Aisha Nazario, Vineet Raswant, Senior Technical Advisor Administrative Assistant; Roland Sundström, (PTA); Antonio Rota, Senior Technical Advisor Intern; and Waltteri Katajamäki, Intern. (PTA); Naoufel Telahigue, Programme Manager (ECD); Ganesh Thapa, Regional Major contributions from IFAD staff were Economist (APR); Gelsomina Vigliotti, provided by members of the Policy Reference Resource Mobilization Officer (Resource Group (PRG) and others, including: Rami Abu Mobilization and Partnership Unit [RMP]); Salman, Regional Climate and Environment Douglas Wholey, Senior Technical Advisor Specialist (ECD/Near East and North Africa (PTA); and the PMD management team under [NEN]); Rima Alcadi, Grants Portfolio Advisor the leadership of Kevin Cleaver, Associate (Policy and Technical Advisory Division [PTA]); Vice-President (PMD). Tom Anyonge, Senior Technical Advisor (PTA); Tim Balint, Junior Strategic Planning Further inputs were received from Jean- Officer (Strategic Planning Unit [SPB]); Marian Philippe Audinet, Senior Technical Advisor Bradley, Country Programme Manager (East (PTA); Thierry Benoit, Country Programme and Southern Africa Division [ESA]); Rudolph Manager (ESA); Hubert Boirard, Country Cleveringa, Technical Advisor (PTA); Roshan Programme Manager (WCA); Nigel Brett, Cooke, Regional Climate and Environment Country Programme Manager (APR); Frank Specialist (ECD/Asia and the Pacific Division Butcher, Senior Technical Advisor (PTA); [APR]); Antonella Cordone, Coordinator for Federica Cerulli, Supplementary Funds Indigenous and Tribal Issues (PTA); Constanza Officer (RMP); Jeanette Cooke, , Di Nucci, Portfolio Management Officer (ECD); and Hygiene Consultant (PTA); Silvia Donato, Climate Change Officer (ECD); Michael Hamp, Senior Technical Advisor, Tawfiq El-Zabri, Results-Based Management Rural Finance (PTA); Maria Hartl, Technical Officer (APR); Elizabeth Farmosi-Maga, Advisor, Gender and Social Equity (PTA); Operations Advisor (Programme Management Edward Heinemann, Senior Research Department [PMD]); Charles Forrest, Counsel Coordinator (Office of Strategy and (Office of the General Counsel [LEG]); [SKM]; Gary Howe, Bernardino Fortuna, Loans and Grants Director, (SPB); Sean Kennedy, Technical Officer (Controller’s and Financial Services Advisor, , & Nutrition; Division [CFS]); Vincenzo Galastro, Country Monitoring & Evaluation (PTA); Matteo Programme Manager (West and Central Marchisio, Country Programme Manager Africa Division [WCA]); Shyam Khadka, (APR); Siv Oystese, Financial Strategy and Senior Portfolio Manager (PMD); Annina Private Sector Officer (Global Mechanism Lubbock, Senior Technical Advisor (PTA); [UGM-GM]); Bettina Prato, Research

5 Coordinator, (SKM); Claus Reiner, Country meeting in Vienna, Austria; at the Food and Programme Manager (ESA); Theresa Rice, Agriculture Organization of the United Nations Operational Systems Advisor (PMD); Ladislao and World Food Programme, in Rome; at the Rubio, Country Programme Manager (LAC); World Bank and a meeting of the Multilateral Rutsel Martha, General Counsel (LEG); Financial Institutions Working Group on Steven Schonberger, Regional Economist Environment, in Washington, DC; and at (WCA); Cristiana Sparacino, Country a workshop establishing an Indigenous Programme Manager (WCA); Michael John Peoples Forum at IFAD. The team wishes Taylor, Programme Manager (ILC); Teresa to thank all those who contributed in these Tirabassi, Accounting Officer (CFS); Laura workshops and events. Puletti, Programme Assistant (APR); Aimable Ntukanyagwe, Country Officer (ESA); Sana Gratitude is extended to Susan Beccio, Photo Jatta, Country Programme Manager (APR); Editor (Communication Division [COM]); Thomas Rath, Country Programme Manager Mark Forrest, Graphic Design Manager (APR); Andrea Serpagli, Country Programme (COM); Birgit Plöckinger, Graphic Designer Manager (WCA); Abdelhamid Abdouli, (COM) and Andrea Wöhr (design consultant) Country Programme Manager (NEN). for supporting the graphic presentation of the policy document, and to Roxanna Samii, The team greatly benefited from written Manager, Web, Knowledge and feedback on an early draft from: the World Services (COM) for facilitating outreach Bank (Environment, and Agriculture and internally within IFAD, as well as Lynn Ball Rural Development Departments); Global (Editor) and the translators. Environment Facility; International Food Policy Research Institute (IFPRI); Fiorello The team also gratefully acknowledges H. LaGuardia Foundation; EcoAgriculture; sharing of best practices by Agence Française Conservation International; National de Développement and the generous financial Smallholder Association of Malawi support of the Government of Finland, which (NASFAM); WWF-UK; Agence Française de contributed to the preparation of background Développement; Ecosoluzioni; World Food papers, including a review of IFAD and Programme (WFP); International Institute for partners’ experiences. Environment and Development (IIED – United Kingdom); and CGIAR Research Programme on Climate Change Agriculture and Food Security (CCAFS).

In addition, verbal comments were received at informal consultations with a range of stakeholders during two regional workshops in Nairobi, Kenya, and Nanning, China; at the Poverty and Environment Partnership

6 Executive summary

Accelerating environmental degradation changing consumption patterns lie at the is eroding the natural asset base of heart of this environmental degradation: poor rural people. About one billion poor rural people, including smallholders, extremely poor people, out of 1.4 billion, are often disempowered and thus unable live in rural areas and about three quarters to sustainably manage natural resources; a of them are dependent on agriculture and lack of clear land access and tenure rights its related activities for their livelihoods. removes incentives to maintain natural Sustainable environment and natural assets; distorting trade policies and fossil-fuel resource management (ENRM) lies at the and other subsidies are key drivers; and the heart of delivering poverty reduction for global population is growing rapidly. Further, these people. Poor rural people face a there is increasing pressure on land, with a series of interconnected natural resource switch to meat diets (less efficient per calorie) management challenges. They are in the and increasing use of land for biofuel rather front line of climate change impacts; the than food production. ecosystems and biodiversity on which they rely are increasingly degraded; their access The knowledge and technology exist to to suitable agricultural land is declining tackle these challenges. The response in both quantity and quality; their forest requires an ‘evergreen revolution’, powered resources are increasingly restricted and by that balances crop/ degraded; they produce on typically marginal livestock, and agroforestry systems, rainfed land, with increased water scarcity; so that surplus inputs are avoided and energy and agricultural input prices are on a fertility and services are not rising long-term trend; and declining fish and compromised, while production and income marine resources threaten essential sources are increased. Building on a growing body of income and nutrition. of evidence of the success of sustainable agriculture investments, there is a huge Environmentally damaging agricultural opportunity to further scale up ‘multiple- practices are a major driver of these benefit’1 approaches that reduce challenges. Major gains in food production poverty, build resilience, increase food have been achieved through widespread security, mitigate greenhouse gas emissions adoption of technology packages and and promote sustainable agricultural policies associated with the green intensification. Climate change provides the revolution. But there is growing concern imperative for urgent action. over inappropriate approaches that drive excessive use of fertilizers and pesticides, IFAD has years of experience helping of waterways and , build- poor rural communities manage their up of salt in the soil, water scarcity in major natural resources, but it has the potential 1 Multiple-benefit approaches to sustainable river basins, declining levels of to do a lot more. While some projects agriculture seek to reduce and loss of crop biodiversity. Large parts of specifically target ENRM, it is fundamental risk and build climate resilience through more Africa face a different problem, relying on to all IFAD projects. ENRM is at the core diversified , rainfed agriculture with little or non-existent of delivering IFAD’s poverty reduction and while at the same time reducing poverty, use of organic or inorganic fertilizers, soil sustainable agriculture mandate because enhancing ecosystems erosion and poor access to seed varieties. its target groups rely directly and indirectly and biodiversity, increasing yields and reducing Weak governance, damaging policies and on the environment and natural resources greenhouse gas emissions.

7 for their livelihoods, and client demand for The policy sets out 10 core principles to support for ENRM is increasing. Yet there guide IFAD’s support for clients in ENRM. is significant scope for further systematic The principles include both the core issues to integration of ENRM and climate change be addressed and suggested approaches. In into IFAD’s portfolio. There is also scope summary, IFAD will promote: for further refinements to procedures and greater attention to ENRM issues in country strategies and project design. IFAD has made Scaled-up investment in multiple- limited use of earmarked environmental benefit approaches forsustainable cofinancing, and has the potential to have agricultural intensification; a bigger impact on ensuring that climate Recognition and greater awareness adaptation and ecosystem/biodiversity of the economic, social and cultural finance reach poor rural people. In almost value of natural assets; half the loan projects presented to the Executive Board in 2009, value chains were ‘Climate-smart’ approaches to either a separate component or the main rural development; focus. Thus IFAD has an opportunity to maximize the positive environmental impact Greater attention to risk and of value chains and assess the downside resilience in order to manage risks. It can build on its comparative environment- and natural-resource- advantage of working through community- related shocks; based approaches. Implementation of Engagement in value chains to ENRM is knowledge intensive and requires drive green growth; additional efforts by IFAD in ENRM knowledge management, partnerships Improved governance of natural and advocacy. assets for poor rural people by strengthening and Section II outlines the goal, purpose and community-led empowerment; 10 core principles: Livelihood diversification to reduce vulnerability and build The goal of this ENRM policy is: resilience for sustainable natural To enable poor rural people to escape from and resource management; remain out of poverty through more-productive Equality and empowerment for and resilient livelihoods and ecosystems. women and indigenous peoples in managing natural resources; The purpose is: To integrate the sustainable management of Increased access by poor rural natural assets across the activities of IFAD and communities to environment and climate finance; and its partners. Environmental commitment through changing its own behaviour.

8 Section III of the ENRM policy provides through South-South exchanges and a detailed implementation strategy. The farmer-to-farmer learning. objective is the scaling up of ENRM and its systematic integration into IFAD’s portfolio: (c) In resource mobilization, the strategic objective is to support the (a) In operations, the strategic objective integration of environmentally sound is to scale up ENRM and systematically and ‘climate-smart’ practices across integrate it throughout the project cycle. IFAD’s lending portfolio. The use of Building on wider improvements in additional supplementary funding to IFAD programme management, this bolster systematic integration of ENRM will be achieved through respecting into IFAD-supported programmes will the 10 ENRM core principles, working be key to increasing incentives for its towards the ENRM policy’s best-practice integration into upstream project design statements (annex I), the participation of and implementation. IFAD faces a relevant climate and environment experts major opportunity to help smallholders in country programme management benefit from increasing international teams, additional cofinancing incentives, public and private finance earmarked for significantly enhanced knowledge environmental objectives – in particular on management and training, updating smallholder adaptation to climate change. of IFAD’s Environmental and Social In this sense, resources from international Assessment Procedures, strengthened funds, such as the Global Environment Results and Impact Management System Facility and the Adaptation Fund, will measures for ENRM, and new tools for continue to be sought. In addition, IFAD both project design and implementation. will aim to leverage climate finance, including fast-track climate funding. (b) In promoting knowledge, advocacy and partnerships – (d) In internal organization, staff skills and because environmental, climatic and capacity and internal procedures must social conditions across countries create incentives for ENRM integration and communities are so varied, into the portfolio. IFAD has the structure implementation of the policy needs to be and most of the capacity it needs to knowledge intensive. Key deliverables step up its work on ENRM issues. include: increasing global support for Policy implementation will be a shared sustainable intensification techniques, responsibility across the organization, greater climate change advocacy for including demonstrating the values of poor rural people, new training and tools environmental awareness internally for IFAD staff on ENRM, increased IFAD – a plan of action for greening IFAD will engagement in environment networks, be developed in 2011 and will build on improving ENRM knowledge-sharing existing achievements. and learning mechanisms and greater attention to systematic measurement of environmental and social impacts. IFAD cannot achieve this policy by acting alone, and (as with the 2010 IFAD Climate Change Strategy) the theme of partnerships runs throughout the document. The policy aims to promote knowledge integration across communities of practice, including

9 (e) In measuring success, a time-bound results and implementation framework for the ENRM policy is presented in annex II. It embeds ENRM-related issues appropriately across IFAD’s results-based measurement system. As a theme that runs throughout our work, the success of the strategy will be assessed through a number of proxy measurements largely related to portfolio performance and activity implementation.

Best-practice statements are presented on a range of issues. These illustrate application of the 10 ENRM core principles to areas of common engagement for rural development investments.

10 © IFAD/Sarah Morgan

8 8 9 8 9 7 6 6 6 CASE STUDY 4 4 3 Participatory3 rangeland management3 in the Syrian Arab Republic 2 2

In the Syrian steppe of resting, reseeding and planting, first aid, food processing and sewing. (or Badia), IFAD is birds, insects and animals returned to With better off, there is less working on participatory the area. The rehabilitated ecosystems pressure on young girls to marry early, rangeland management with local offered further potential for income and as women gain more economic communities to reduce herders’ generation, as truffles grow in some autonomy, they are finding that gender vulnerability to climate change and areas of the Badia, and women could relations are shifting. restore the long-term productivity gather them to boost their family of . After years of severe incomes. In 2010, a community with drought and intensive grazing, a 100,000-ha grazing area could earn rangelands in the Badia were up to US$1 million through the sale severely degraded. By reintroducing of truffles. native that help meet fodder requirements, fix the soil and stop Higher incomes provided sand encroachment, ecosystems were a basis for the project to diversify restored and the local population’s income-earning opportunities for vulnerability to the effects8 of climatic women through8 literacy classes and instability was reduced. After two7 years training courses7 in new skills such as 6 5 4 3 1 1 1 Background

At the Consultation on the Eighth Procedures (2009), numerous recent IFAD Replenishment of IFAD’s Resources in evaluation papers, over nine months of 2008, the Executive Board requested that a consultations by Environment and Climate policy on environment and natural resource Division staff, internally and externally, and management be presented for approval. thematic studies and portfolio reviews.

The present policy is based on extensive Annex I presents the best-practice in-house and targeted external consultations. statements that illustrate application of It is the work of an internal IFAD policy the 10 ENRM policy principles to areas of reference group on environment and natural common engagement for rural development resource management, in which all key investments. Annex II provides a results and IFAD divisions played an active role. It builds implementation framework for the policy. on the broad range of existing IFAD policy and strategy papers2 – especially the 2010 IFAD Climate Change Strategy – and IFAD’s Environmental and Social Assessment

2 A list of IFAD policy documents is available at www.ifad.org/operations/ policy/policydocs.htm. A list of IFAD strategy documents is available at http://www. ifad.org/pub/strategy/ index.htm. Consultations were conducted in Nairobi (September 2010); China (October 2010); partner agencies in Washington, DC (Multilateral Financial Institutions/Working Group on Environment, November 2010); Rome (FAO, WFP, United Nations Permanent Forum on Indigenous Issues, February 2011); and Vienna (Poverty Environment Partnership, February 2011).

12 I. The context: accelerating environmental degradation is eroding the natural asset base of poor rural people

Poor rural people and (IFPRI) indicates that in low-income countries, natural resources under an optimistic scenario, climate change could increase the number of malnourished About one billion of the world’s 1.4 billion children by 9.8 per cent by 2050.4 extremely poor people live in rural areas and depend on agriculture and related The world’s poor rural people and activities for their livelihoods. As the most especially farmers of the 500 million vulnerable and marginalized people in rural smallholdings5 are both victims and societies, IFAD’s target group – poor rural drivers of environmental degradation, and people, including smallholder farmers, fishers, account for a major share of the world’s pastoralists, agroforesters and indigenous poor. They account for one third of the global peoples – are central to both the causes of population and constitute the largest share of and solutions for sustainable environment the developing world’s undernourished. They 3 For the purposes and natural resource management (ENRM).3 also provide up to 80 per cent of the food of this policy, the term ‘environment and natural Agriculture and other rural livelihood consumed in a large part of the developing resource management’ activities are in essence a series of complex world. Smallholder farmers manage vast (ENRM) focuses on the use and management of interactions with the and areas of land and natural resources – the natural environment, including natural resources are inherently natural resource dependent, representing more than 80 per cent of farms defined as raw materials shaping the rural economy and thus IFAD’s in Africa and Asia. They are the backbone used for socio-economic and cultural purposes, and focus on tackling rural poverty. Poor rural of the rural economy and are in the front line ecosystems and biodiversity people are directly and indirectly dependent of managing natural resources and climate – together with the and services they provide. on natural resources for their livelihoods, impacts, relying directly on climate-affected 4 IFPRI, Food Security, relying on a suite of key natural assets from natural resources for their livelihoods and Farming, and Climate Change to 2050: ecosystem and biodiversity goods and being especially vulnerable to health and Scenarios, results, policy services to provide food, fuel and fibre. nutrition challenges. options (Washington, DC: International Food Policy Research Institute, 2010), Food insecurity and malnutrition remain Poor rural people – including poor chap. 2, p. 47. among the world’s most serious health smallholders – are facing a series 5 For the purposes of this policy, ‘smallholding’ is used problems. In low- and middle-income of interconnected natural-resource in a broad sense to include not only farms of less than countries, nearly one third of children are management challenges, which risk 2 hectares – primarily underweight or stunted. Environmental reversing impressive gains made over the dependent on household labour and rainfed – but also degradation and especially climate change past century in reducing poverty: pastoralists, agroforesters are increasingly affecting nutrition through and artisanal fishers. their impact on food security, sanitation, (a) Poor rural people are in the forefront 6 IPCC, “Impacts, Adaptation and Vulnerability,” water and food , health, maternal of climate change impacts. They rely in Fourth Assessment and child health-care practices and socio- directly on climate-impacted natural Report: Climate change 2007, eds. M. Parry et economic factors. A recent study by the resources for their livelihoods. These al., Intergovernmental International Food Policy Research Institute impacts are already occurring,6 and future Panel on Climate Change, contribution of Working projections for climate change indicate Group II (Cambridge, UK: enormous potential disruption. In the Cambridge University Press, 2007), www.ipcc-wg2.gov/ absence of a profound step-change in publications/AR4/index.html.

13 The problem today is that no matter how hard you work, are predicted to increase by 50 per cent it’s never enough to feed the family... For about a year, by 2025 in developing countries, and perhaps more, there have been no ... The men have by 18 per cent in developed countries. left to work outside the village. The main labour force Over 1.4 billion people currently live in river here is women... The biggest problem is that of water… basins where the use of water exceeds We work day and night on ... Those that are minimum recharge levels – leading to landless…are the poorest… We are not using the the shrinking of rivers and a reduction in an adequate and proper way; we cut down trees and of groundwater resources.10 Agriculture burn our every day, we are destroying nature. accounts for 70 per cent of global 11 Summary of the voices of poor rural people, freshwater use, and some 15 to 35 per Rural Poverty Report 20117 cent of agricultural water use is considered unsustainable.12 Many poor rural people face severe constraints on accessing good local and global action on climate change, quality and quantities of potable water for it is increasingly likely that poor rural domestic and agricultural use. people would need to contend with an average global warming of 4 degrees (c) Ecosystems, biodiversity and the above pre-industrial levels by 2100, if associated goods and services on not sooner.8 Such substantial climatic which poor rural people rely are under 7 IFAD, Rural Poverty Report 2011 (Rome: change will further increase increasing pressure. The Millennium International Fund for 13 Agricultural Development, and exacerbate weather-related disasters, Ecosystem Assessment reports that 2010), www.ifad.org/ drought, biodiversity loss, and land and approximately 60 per cent (15 of 24) of rpr2011/index.htm. water scarcity. Perhaps most significantly key ecosystem services are degraded 8 Richard A. Betts et al., “When could global for farmers, they can no longer rely on and used unsustainably, with the warming reach 4°C?” in historical averages, making it harder for natural resources critical to agricultural Four degrees and beyond: the potential for a global them to plan and manage production production and livelihood security for the temperature increase when planting seasons and weather world’s poorest people in rapid decline. of four degrees and its implications, eds. M. New patterns are shifting. Global agriculture is the most significant et al. (London: The Royal driver of biodiversity loss, through land Society, A: Mathematical, Physical & Engineering (b) Typically producing on marginal conversion, monoculture and excessive Sciences, 2011), http://rsta. royalsocietypublishing.org/ rainfed land, poor rural people are use of pesticides. Twenty-two per cent content/369/1934/67.full. facing increased water scarcity. Water of all species face , with 9 ‘Water stress’ is scarcity is compounded by population 75 per cent of crop diversity lost from defined as less than 1,700 cubic metres available growth, increasing demand for agricultural 1900 to 2000.14 Today, just some 15 crop per person per year, and products and climate change. About plants provide 90 per cent of the world’s ‘water scarcity’ is less than 1,000 cubic metres. 40 per cent of the world’s population food energy intake, rendering the global 10 UNDP, Human in moderately to highly water-stressed food system highly vulnerable to shocks. Development Report 2006: 9 Beyond scarcity – power, countries. According to the Global Rapid biodiversity loss, coupled with poverty and the global water Environment Outlook – Environment for impacts on ecosystem functions and on crisis (New York: United Nations Development Development (GEO-4), water withdrawals the goods and services they provide, are Programme, 2006). undermining poor rural people’s resilience 11 Cosgrove, W.J. & Rijsberman, F.R., World and their ability to escape from and Water Vision: Making remain out of poverty. Water Everybody’s 13 United Nations 14 FAO, The State of (London, UK: Millennium Assessment the World’s Plant Genetic Board, Millennium Ecosystem Resources for Food Earthscan, 2000), http:// (d) The availability of suitable agricultural www.worldwatercouncil. Assessment: Ecosystems and Agriculture, second org/fileadmin/wwc/Library/ and human well-being – report (Rome: Food and land accessible to poor rural people is current state and trends Agriculture Organization of Publications_and_reports/ declining in both quantity and quality. Visions/Commission assessment (Washington, the United Nations, 2010). Report.pdf. DC: Island Press, 2005), About 1.2 billion ha (almost 11 per cent of vol. 1, www.maweb.org/en/ 12 Ibid. Condition.aspx. the Earth’s vegetated surface) has been degraded by human activity over the past

14 45 years. An estimated 5 to 12 million ha Many systems of food production are are lost annually to severe degradation unsustainable. Without change, the global in developing countries.15 The United food system will continue to degrade the Nations Environment Programme (UNEP) environment and compromise the world’s estimates that erosion and chemical capacity to produce food in the future, as and physical damage have degraded well as contributing to climate change and about 65 per cent of agricultural the destruction of biodiversity. 16 in Africa. Demand for land for food, The Future of Food and Farming21 fuel, fibre, , carbon sequestration 15 IFPRI, Soil Degradation: and tourism is sharply increasing. This is A threat to developing- country food security by leading to increased incidence of large- 2020?, Food, Agriculture and the Environment scale land investments. The World Bank Discussion Paper 27 reports17 that 56.6 million ha of land in tropical areas.22 Unsustainable farming (Washington, DC: International Food Policy in 2008-2009 were under negotiation methods continue to be the greatest Research Institute, 1999). for large-scale investment, prompting threat to forests, and climate change will 16 UNEP, Africa: Atlas of our changing environment concern for the risks and opportunities for increase pressure to convert forests (Nairobi: United Nations smallholder agriculture. Without adequate to agricultural land. Inequitable land Environment Programme, 2008). governance, these rapid changes may distribution and insecure land tenure are 17 World Bank, Rising impact negatively on poor rural livelihoods also underlying causes of deforestation. Global in Farmland: by reducing security of tenure and access Swidden agriculture has sustained human Can it sustainable and equitable benefits? to natural resources. in most rainforest areas for thousands (Washington, DC, 2009), p. 51, http://siteresources. of years, with no obvious adverse impact worldbank.org/INTARD/ (e) Access of poor rural people to forest on forests. However, in recent times, a Resources/ESW_Sept7_ final_final.pdf. resources is being undermined by combination of growing populations, 18 www.unep.org/ continued forest degradation. Some shrinking forest areas and production for billiontreecampaign/ 1.6 billion people – and especially the poorest markets has resulted in unsustainable FactsFigures/QandA/index. asp. and indigenous peoples – rely directly on cycles, with insufficient time for regrowth of 19 www.iucn.org/about/ forest products for their livelihoods.18 Forest the native vegetation. work/programmes/forest/ fp_our_work/fp_our_work_ resources provide a range of natural thematic/fp_our_work_fpr/ assets critical to livelihoods, for example (f) Energy and agriculture input prices fp_forests_poverty_our_ work/fp_forests_poverty_ food, fuel, timber, medical and pollination are on a rising long-term trend. This our_work_non_timber/. services and other non-timber forest is raising agricultural production costs, 20 FAO, Global Forest Resources Assessment products. These should be managed especially for fertilizer and . 2010, Paper sustainably, as their While increased energy demand can 163 (Rome: Food and Agriculture Organization of can lead to local extinction of certain create new market opportunities (and the United Nations, 2010). products.19 In addition, forests provide risks) – especially for production of 21 Foresight, The Future of Food and Farming, final important ecosystem services, such as biofuels – overall, the trend is increasingly project report (London: regulating and flow, and constraining agricultural production and Government Office for Science) www.bis.gov.uk/ acting as carbon sinks. While there have livelihood security. Higher prices for assets/foresight/docs/food- been encouraging recent improvements in key agricultural inputs such as fertilizer, and-farming/11-546-future- of-food-and-farming-report. reducing forest loss, rates of deforestation seed and energy make it harder for pdf. and forest degradation remain high, with many farmers to increase production. 22 UNEP, Towards a : Pathways to an average annual decline in forest area of Particularly hard hit are poor subsistence Sustainable Development 5.2 million ha between 2000 and 2010.20 producers, who are confronted with and Poverty Eradication, (Nairobi: United Nations Over the past two decades, agricultural higher input prices, without the security Environment Programme, expansion combined with timber extraction of a marketable surplus that could 2011), p. 163, www. unep.org/greeneconomy/ and expansion of have been earn them higher revenues as food Portals/88/documents/ the main proximate causes of deforestation prices increase. ger/ger_final_dec_2011/ Green%20EconomyReport_ Final_Dec2011.pdf.

15 © CONAFOR

8 8 9 8 9 7 6 6 6 CASE STUDY 4 4 3 3 Sustainable3 in Mexico 2 2

IFAD is beginning comunidades, two communal forms increase carbon sequestration through implementation of of land ownership, and will help improved forest management and a sustainable forest consolidate the organizational and production techniques, while generating management project in Mexico that will planning capacities of the beneficiary subsistence alternatives and other benefit 18,000 rural families dependent population for participatory management benefits. Sustainable forest management on forest resources. The Community- of their common natural resources. pilot activities are expected to generate

based Forestry Development Project in nearly 18 tons C02 (e.g. through carbon Southern States (Campeche, Chiapas With support from the GEF, the project sequestration of emissions avoided). and Oaxaca) will strengthen the capacity will also pilot ways for the government The project will also assist the of indigenous peoples, who represent and communities to contribute to climate government in testing communal 76 per cent of the target population, and change mitigation through better land measurement, reporting and verification other local foresters in these states to and forest use, and to access carbon activities, contributing in this way to better manage their natural resources, finance as part of the new Mexican strengthening national capacities on enhancing conservation practices and Reducing Emissions from Deforestation climate change at the local level. providing sustainable income options and Forest Degradation in Developing 8 for the most disadvantaged8 groups. Countries (REDD+) strategy. The The7 project is based on ejidos and7 project will reduce GHG emissions and 6 5 4 3 1 1 1 (g) Declining fish and marine resources including nutrient , gas exchange, threaten an essential source of biodegradation of pollutants, a hydrological nutrition for over one billion people. cycle and carbon sinks. Over 500 million people in developing countries depend directly on marine and Environmentally damaging agricultural freshwater fisheries and aquaculture practices are a major driver of the for their livelihoods; women make up above challenges: 50 per cent of those working in small-scale and inland fisheries.23 Developing countries (a) Major gains in food production over the account for some 80 per cent of global fish past half-century have been achieved production and about half of the global fish through widespread adoption of trade,24 thus making fish essential to food technology packages and policies security as a source of both food and associated with the green revolution. income. However, over 80 per cent of fish These included the introduction of semi- stocks are now fully exploited or worse,25 dwarf high-yielding varieties of wheat and and most are at risk from pollution, rice, associated with irrigation and higher invasive species, biodiversity loss and levels of inputs such as inorganic fertilizers increasing temperatures caused by global and pesticides. Governments put in place warming. Despite this, just 1 per cent supportive policies and investments that of the world’s oceans are protected, provided small farmers with a secure, compared with over 12 per cent of the remunerative and low-risk environment. earth’s land surface.26 Inland freshwater They invested in infrastructure and ensured fisheries represent up to 11 per cent of all that farm got to farmers, and they fish trade and help maintain biodiversity, subsidized and, in some cases, distributed while providing essential and irreplaceable inputs (i.e. fertilizer and water). They elements in the diets of both urban and also invested substantially in agricultural 23 FAO, The State of World rural people – especially in developing research, provided farmer extension Fisheries and Aquaculture countries.27 Aquaculture now provides over services and intervened in markets to 2010 (SOFIA) (Rome: Food and Agriculture Organization 50 per cent of all fish consumed and is stabilize farm-gate prices. of the United Nations, the world’s fastest growing form of animal 2010). food production. It will become increasingly (b) But concern is increasing 24 World Bank, Turning the Tide: Saving fish and fishers important for food security and as a source over inappropriate agricultural – building sustainable and equitable fisheries of income and employment in developing intensification using green-revolution governance (Washington, countries, which already account for more approaches. Excessive and inappropriate DC: International Bank for Reconstruction and than 90 per cent of aquaculture production use of fertilizers and pesticides and the Development (IBRD)/World by volume. 28 However, this growth must pollution of waterways and aquifers has Bank, 2005). be managed responsibly to avoid negative led to beneficial insects and other forms of 25 FAO, SOFIA 2010. 26 www.iucn.org/about/ social and environmental impacts, being killed along with pests. There work/programmes/pa/ including pollution, damage to aquatic have also been negative consequences pa_what/?4646/Marine- Protected-Areas--Why- biodiversity and conflict over resource for human health, such as pesticide have-them. rights. Coastal communities are in the front poisoning29 and rising rates of cancer. 27 FAO, The State of World Fisheries and Aquaculture line of climate change and are vulnerable to Poor irrigation management has resulted in 2008 (Rome: Food and sea-level rise, extreme weather, changing the build-up of salt in the soil (salinization). Agriculture Organization of the United Nations, 2009), fish stock distribution, eroding coastlines, Excessive irrigation has also resulted in p. 8. loss in biodiversity, tourism amenity values, water scarcity in major river basins and 28 FAO, SOFIA 2010. and the impact of ocean acidification on in declining levels of groundwater, as a 29 Unintentional pesticide poisoning kills food security and coastal defence. The result of more water being pumped than 355,000 people per year, world’s oceans provide essential but two thirds of them in developing countries (World deteriorating global environmental services, Development Report, 2008).

17 can be naturally replenished. The rate Weak governance, damaging policies at which global groundwater stocks are and changing consumption and shrinking has more than doubled from production patterns lie at the heart 1960 to 2000, increasing the amount of these environmentally damaging lost from 126 to 283 cubic kilometres agricultural practices: (30 to 68 cubic miles) of water per year.30 The planting of new crop varieties in the (a) Poor rural people are often place of traditional ones has resulted in disempowered and thus unable to a loss of crop biodiversity where there manage natural resources sustainably. is no system to conserve germplasm. “The root of smallholder vulnerability

30 Marc F.P. Bierkens Rural income disparities were heightened lies in the marginalisation of farmers, et al., “A worldwide in some countries, as larger producers pastoralists and other rural groups in view of groundwater depletion,” in Geophysical were more easily able to adopt the new power and decision-making over their Research Letters (DOI technologies, while poorer farmers were land and other natural resources. This is 10.1029/2010GL044571). 31 www.unccd.int/regional/ often left behind. New technology is a fundamental problem for smallholders africa/menu.php. important, but the value of traditional everywhere, and a consequence of 32 J. Henao and C. knowledge and seed varieties held by their large numbers, weak and costly Baanante, Agricultural Production and Soil Nutrient farmers was often overlooked. organisation and consequent very limited Mining in Africa: Implications 34 for resource conservation political power.” Some poor rural and policy development, (c) In many parts of Africa, there is a people are particularly disadvantaged: Technical Bulletin IFDC T-72 (Muscle Shoals, AL, USA: different challenge. Desertification has women because of their roles as primary International Center for Soil its greatest impact in Africa. Two thirds producers of food and collectors of water, Fertility and Agricultural Development, 2006). of the continent is desert or dryland. fuel and non-timber forest products; 33 Statement by UNCCD There are extensive agricultural drylands, indigenous peoples because of their high Executive Secretary Luc Gnacadja, prepared for almost three quarters of which are dependence on the natural resource the Second International already degraded to some degree.31 The base; youth through limited employment Conference: Climate, Sustainability and International Centre for and prospects; and the elderly because of Development in Semi- Agricultural Development estimates that their social marginalization. arid Regions (ICID 2010), Fortaleza, Brazil, Africa loses 8 million tons of soil nutrients 16 August 2010. per year, and over 95 million ha of land (b) Inappropriate policies are driving 34 Camilla Toulmin, 35 Prospering Despite Climate have been degraded to the point of greatly environmental degradation. Distorting Change, paper presented reduced productivity. About 85 per cent of trade policies and fossil-fuel and other at the IFAD Conference on New Directions for African farmland had yearly nutrient mining subsidies, together with a lack of effective Smallholder Agriculture, rates of more than 30 kilograms (kg) per ha policies, are key 24-25 January 2011, Rome, www.ifad.org/events/ during the cropping seasons 2002/04, and constraints, restricting the access of poor agriculture/index.htm. about 40 per cent of farmland exceeded rural people to secure, varied markets 35 World Bank, World 32 Development Report 60 kg/ha yearly. Large parts of Africa and diversification of the non-farm rural 2008 (Washington, DC, were bypassed by the green revolution, economy. Domestic subsidies in high- 2007), chap. 4, http:// siteresources.worldbank. continuing to rely on rainfed agriculture income countries often diminish the org/INTWDR2008/ with little or non-existent use of organic comparative advantages that developing Resources/2795087- 1192112387976/ or inorganic fertilizers and poor access to countries may have in agricultural trade, WDR08_08_ch04.pdf. seed varieties. Climate change will affect making it unviable for smallholders in 36 UNEP, Towards a Green Economy: Pathways to drylands, and to fulfil their agricultural the developing world to produce certain Sustainable Development potential, improvement of vegetation products and thus negatively affecting and Poverty Eradication 36 (Nairobi: United Nations cover and must be at their poverty reduction efforts. In Environment Programme, the centre of adaptation work.33 addition, there have been consistent 2011), www.unep. org/greeneconomy/ failures to recognize the diversity of GreenEconomyReport/ social, cultural, economic and financial tabid/29846/Default.aspx, p. 61. values associated with the natural

18 environment. A root cause of such failures (d) Consumption patterns are increasing is often the segmentation of issues at and changing, intensifying the local, national and international levels, pressure on existing land. While where some ministries are tasked with the world currently produces enough maximizing agricultural production and food to feed everyone,37 increasing others with protecting the environment, demands on land will have significant often without a coherent overall plan repercussions for , that reconciles various policy objectives. and health implications, These governance failures increase risk, damage to ecosystems and increased promote environmental degradation and competition for agricultural land. undermine poor rural people’s resilience Population growth will have an impact to sustainably manage their own natural as well. From 1980 to 2000, total world assets to withstand a range of shocks. population grew from 4.4 to 6 billion. By 2015, at least another billion people (c) A lack of clear land access and tenure will be added, to total more than rights reduces incentives to maintain 7 billion, and 9.2 billion will be reached natural assets. An estimated 1 to 2 billion by 2050.38 Global demand for livestock people globally live on and use commonly products is expected to double over held land, over which they have no legal the next 20 years;39 in developing title. This land is crucial to the livelihoods countries, demand will grow faster of the poorest people and provides than production. Diets in developing important ecosystem services, but it is countries are changing, and more meat often particularly vulnerable to improper is eaten as incomes rise. The share land acquisition and fragmentation. Poor of staples, such as cereals, roots and

rural people often have poorly defined tubers, is declining, while that of meat, 37 World agriculture rights and limited income and dairy products and oil crops is rising. produces 17 per cent more calories per person access to credit and markets. Demand for meat products is expected today than it did 30 years ago, despite a 70 per cent They operate within weak institutional and to rise steeply, from 1.2 million tons a population increase. This policy frameworks, which prevent them year in 1997-1999 to 5.9 million tons is enough to provide everyone in the world with from investing as much as they should in 2030. By that year, per capita at least 2,720 kilocalories in improved environmental sustainability consumption of livestock products (kcal) per person per day, www.worldhunger.org/ 40 and natural resource management could rise by a further 44 per cent. articles/Learn/world%20 (NRM). Frequently the land and natural While there are new opportunities for hunger%20facts%202002. htm; and FAO, Reducing resources that poor rural people depend energy production, there are also new Poverty and Hunger: The on are common-pool resources, forming risks – increased demand for biofuels critical role of financing for food, agriculture and rural an important safety net for the poorest is often cited as driving up food prices development, 2002, p. 9, www.fao.org/docrep/003/ people, but suffering limited legal and taking up agricultural land. Food Y6265e/y6265e00.htm. recognition for community tenure and wastage remains high – according to 38 www.un.org/popin/. customary management systems, which U N EP, 41 only an estimated 43 per cent 39 FAO, World agriculture towards 2015/2030 (Rome: makes them vulnerable to degradation. of cereal production is available for Food and Agriculture These governance failures lead to both a human consumption, as a result of Organization of the United Nations, 2002), www.fao. consistent lack of incentives to maintain harvest and post-harvest distribution org/docrep/004/y3557e/ natural assets and insufficient accounting losses, among others. y3557e03.htm. to reflect the true economic values of 40 Ibid. 41 UNEP, The resource use – instrumental for better and environmental food crisis: fairer decision-making. The environment’s role in averting future food crises (Nairobi: United Nations Environment Programme, 2009), www.unep.org/pdf/ FoodCrisis_lores.pdf.

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8 8 9 8 9 8 8 7 7 7 6 6 6 5 CASE STUDY 4 4 4 3 3 3 Rewards for3 environmental services in Asia and Africa 2 2 1 1 1 Payments for Centre (ICRAF) – Pro-poor Rewards a private dam operator to reduce silt environmental services for Environmental Services in Africa in the river by applying soil protection (PES), including (PRESA) – which is linked to IFAD- techniques on their plots in return for a watershed restoration and maintenance, supported investment projects in microhydroelectric machine for energy are potential sources of substantial Guinea, Kenya, Uganda and the United supply. The company then engaged in financing to support rural communities’ Republic of Tanzania. negotiations with communities upstream management of their natural assets, and of other dams. The activities also benefit to provide benefits to downstream water Similar work with ICRAF is ongoing in lowland communities by protecting the users or other communities. But while it Asia, where the programme Rewards watersheds, and they shore up carbon may be simple enough to identify those for, Use of and Shared Investment in sinks. These activities are providing who provide environmental services Pro-poor Environmental Services (RUPES) further evidence that PES incentives and the beneficiaries of those services, is currently active in 12 sites in China, do not necessarily need to be financial, creating contractual relationships Indonesia, the Lao People’s Democratic but can be provided in the form of between them has proved thorny. Republic, Nepal, the Philippines and secure land rights. Viet Nam. In Indonesia alone, over 8 8 Recent work in Africa tested innovative 6,000 farmers in 18 communities Because of this, ICRAF prefers the 7 techniques7 for promoting PES through received permits to grow coffee while phrase ‘reward for environmental 6 5 negotiated environmental service protecting the forests. Providing services’ (RES) instead of ‘payment’. 4 contracts with poor communities communities with clear land tenure rights Rewards can include a range of 3 based on the principles of ‘willingness gave them the incentive to maintain or incentives, including cash payments, 1 1 to provide1 services’ and ‘willingness restore environmental services, such low-cost information, marketing, input to pay’. This work was funded by an as replanting and managing forest and credit services, and conditional IFAD grant to the World Agroforestry areas. One community negotiated with property rights. What needs to change?

A perception of a universal trade-off The goal of the agricultural sector is no between food production and the longer simply to maximize productivity, environment has for too long dominated but to optimize it across a far more policy thinking. A juxtaposition of reducing complex landscape of production, rural poverty, tackling climate change, feeding the development, environmental and social world and protecting the environment as any justice outcomes. one singular is a false choice. Some Professor Jules Pretty, University of Essex, trade-offs do exist in the run and these United Kingdom43 should be properly costed and reduced. In the long run, though, these are often false trade-offs, as continued agricultural production cannot be sustained if it is at the There is a huge opportunity to further cost of undermining natural assets. scale up ‘multiple-benefit’ approaches that promote sustainable agricultural What is needed is an ‘evergreen intensification.44 IFAD’s Rural Poverty revolution’ in agriculture42 that reduces Report 201145 highlights a toolkit of poverty and maximizes productivity, integrated multiple-benefit approaches. while at the same time ensuring Examples (often overlapping) include: environmental sustainability. Such an balanced-input agriculture, sustainable land evergreen revolution must redefine the management, conservation agriculture, relationship between agriculture and the agroforestry, forest management, landscape environment, and reverse the declining approaches, watershed management, investment in agriculture over the past integrated pest management, integrated decades. It must recognize the often plant nutrient management, organic unsustainable, heavy reliance of the agriculture, rangeland management and, green revolution on non-organic external more broadly, integrated food energy inputs, recognize ecosystem-based land- systems. They are described as ‘multiple- use planning as a tool for improving land benefit’ because they typically have positive management, and include smallholders as impacts on climate resilience, biodiversity, important custodians of natural resources yields and reduction of GHG emissions – and as entrepreneurs with the capacity to a range of local and global public goods. invest in natural assets and contribute to national and global production systems. Such approaches promote the efficient Climate change now provides the imperative use of seed, fertilizer, land, water, for us to do this and to deliver a new green energy and labour and are grounded in agroecological revolution. Fortunately, strengthening good governance through as set out below, there is an array of community empowerment, including sustainable agriculture approaches, ready clear land access rights. This wide for scaling up, that increase yields and food range of approaches typically includes the 42 www.ifad.org/media/ security, increase resilience to climate following elements: press/2010/52.htm. and other risks and shocks, reduce 43 J. Pretty et al., “The top 100 questions of greenhouse gas (GHG) emissions and (a) Maximum use of natural processes such importance to the future do not degrade the environment. as nutrient cycling, nitrogen fixation and of global agriculture,” International Journal of integrated pest management – with Agricultural Sustainability 8, greater productive use of the biological no. 4 (2010): 219-236. 44 IFAD, Rural Poverty and genetic potential of micro-organisms, Report 2011, chap. 5, p. 156. plant and animal species; 45 Ibid., chap. 5, p. 145.

21 (b) Reduction in the use of external inputs we know that today’s knowledge and with the greatest potential to harm the technologies will no longer be reliable and environment or the health of farmers suitable. There is a long list of promising and consumers; technologies, some of which are new to the market, that require promotion, piloting (c) Improvement in the match between and scaling up – including the use of global cropping patterns and productive information systems for landscape mapping, potential to ensure long-term sustainability local climate technologies, of current production levels; innovative use of communications technologies for smallholder communities, (d) Efficient production – with emphasis new and improved seed varieties and on improved land management and improved water management technologies. conservation of soil, water, energy and biodiversity through coordinated Climate change provides the necessary landscape-based approaches; and imperative for scaling up such multiple- benefit approaches. Agriculture needs (e) A focus beyond increasing production, to simultaneously increase yields, adapt for example through reducing food to climate change and reduce emissions. wastage due to post-harvest and post- Culture and land-use changes are a major marketing losses. source of GHGs (methane, nitrous oxide and carbon dioxide), accounting for 14 and Such approaches are typically knowledge 17 per cent of global emissions respectively.46 intensive and heterogeneous, and need Chapter 3 of the Rural Poverty Report 201147 to be tailored to local circumstances. highlights climate change and extreme Local knowledge (including that of women) weather events as ‘risk multipliers’, as they must be linked with modern science and exacerbate the fragility of the natural resource key institutions that impact NRM. It is by base, especially in vulnerable environments. now well known that local knowledge of This increases the scale of and risk, the management of natural assets is often requiring a better understanding of long-term quite robust. It is also well documented trends and new types of risk. that disempowering those who hold local knowledge may result in degradation Climate uncertainty is no reason for of natural assets that undermine local inaction. First, there are new opportunities to livelihoods. In addition, women are often the reduce uncertainty (using downscaled climate holders and conveyors of key knowledge modelling) that are grounded on concurrence 46 FAO, Coping with a Changing Climate: of local species, seeds and medicinal among global climate models, combined Considerations for plants, and have a more-vested interest with refinement of existing best practices adaptation and mitigation in agriculture, Environment in management of water and marginal for reducing vulnerability and strengthening and Natural Resources Management Series household land. In the face of long-term resilience. Second, to cope with remaining 15 (Rome: Food and climate and environmental challenges, uncertainty, there are many actions that have Agriculture Organization of the United Nations, 2009), significant development benefits under a range www.fao.org/docrep/012/ of climate and environment scenarios. These i1315e/i1315e00.htm. are often described as ‘no-regret’ options.48 47 IFAD, Rural Poverty Report 2011, p. 83. They help communities build resilience to 48 The ‘no-regret’ aspect withstand a range of potential shocks while of adaptation means taking climate-related decisions adjusting to longer-term environment and or actions that make sense in development terms, climatic trends, where these are clear. The whether or not a specific integrated multiple-benefit examples listed climate threat actually materializes in the future. above typically lead to more resilient farming

22 systems and local economies owing to: better there are some 100 to 200 million pastoralist crop diversity and biodiversity, nutrient-rich households covering 5,000 million ha of soil with higher rates of water retention, and a rangelands – in which are stored 30 per cent greater ability to withstand weather extremes of global carbon stocks.49 and climate volatility. A diversified production system and a diet focused on nutrition can also help both households and rural Assessing IFAD’s experience communities build their resilience. Sustainable NRM is fundamental in The global public good of climate delivering IFAD’s poverty reduction mitigation is one of the major benefits and sustainable agriculture mandate. of such multiple-benefit approaches. IFAD’s strategic framework recognizes this These approaches typically contribute interdependence and stresses that, in order the following: enhanced soil fertility and to reduce poverty and enhance food security, improved retention; increased IFAD must “ensure that poor rural people vegetation, especially through more tree have better access to, and the skills and cover; reduced nitrous oxide (N20) and organization they need to take advantage methane (CH4) emissions, respectively, of, natural resources, especially secure through improved nutrient, livestock and access to land and water, and improved manure management; and reduced carbon natural resource management (NRM) and 50 dioxide (C02) emissions through alternatives conservation practices.” Historically, IFAD to the unsustainable use of slash-and-burn has recognized ENRM in a wide range of practices and elimination of burning crop policy documents.51 The present ENRM residues. In the absence of carbon markets policy builds on field experience, lessons that include smallholders, this poverty- learned, policy implementation experience, a and yield-driven approach, with strong long history of ENRM – for example, in IFAD’s mitigation co-benefits, is the most effective policies on land and indigenous peoples – way of achieving emission reductions from and the 2010 IFAD Climate Change Strategy smallholder farming. Take the example of (hereafter Climate Change Strategy).52 agroforestry: planting acacia trees in maize fields in Africa has led often to a doubling While some projects specifically target of yields, while increasing the resilience of ENRM, it is relevant to all projects. Some the soil to by improving 70 per cent of IFAD-supported projects its organic and nitrogen content, water- are located in ecologically fragile, marginal retention capacity and moderation of the environments. The poorest people are 49 IFAD, Livestock and microclimate. At the same time, it is reducing often those most dependent on the natural Climate Change, Livestock soil carbon emissions by maintaining environment for their well-being and as a Thematic Paper, prepared for the Workshop on greenery and through tree growth, and means of livelihood diversification. They also Communities of Practice increasing biodiversity through provision of inhabit some of the most vulnerable and (CoP) for Pro-Poor Livestock and Fisheries/ diversified habitat and offering a source of fragile ecological landscapes such as Aquaculture Development, food to both wild and domesticated animals. plains, uplands and areas of marginal rainfall. 12-13 January 2009, Rome, www.ifad.org/lrkm/events/ Another example is aiding pastoralists in cops/papers/climate.pdf. managing the land better, which can have a 50 A summary of the IFAD Strategic Framework 2007- great impact on their livelihoods, but also on 2010 is available at: www. GHG emission reductions. Considering the ifad.org/governance/sf/. 51 A full list of IFAD policy importance of rangelands in (about documents is available at: 40 per cent of the total land surface), herders www.ifad.org/operations/ policy/policydocs.htm. and pastoralists could play a crucial role in 52 www.ifad.org/climate/ soil carbon sequestration. All over the world, strategy/e.pdf.

23 associated with ENRM have been Realizing agriculture’s full potential overlooked or inadequately addressed; poor for food security, environmental performance has also been attributed to sustainability and economic opportunity weak implementation. requires fundamentally shifting the are sometimes perceived as separate from way the systems operate. core project activities or included as stand-

World Economic Forum53 alone components without influencing the wider project. Because of its complexity and cross-cutting nature, the statistical base for IFAD has years of experience helping measuring the overall volume or impact of poor rural communities manage their IFAD’s support of ENRM is weak. natural resources. Its comparative advantage is in empowerment and in There is significant scope for more establishing or strengthening community- systematic integration of climate change based NRM. IFAD’s wide range of ENRM- into IFAD’s portfolio. The governments specific investments has typically used of developing countries are increasingly these community-based approaches in the requesting support from IFAD in addressing sustainable intensification of agriculture – environment and climate challenges. a key focus of the Rural Poverty Report The Climate Change Strategy seeks to 2011. The principal areas of IFAD’s address this challenge: its key purpose is to involvement include improved rangeland support innovative approaches to helping management, conservation agriculture, poor rural people – women and men – sand dune stabilization, agroforestry build their resilience to climate change. and afforestation, sustainable forest It recognizes the benefits of integrating management (including non-timber forest adaptation and mitigation. Its output is a products), watershed management and more ‘climate-smart’ IFAD, where climate rehabilitation, marine resource management, change is systematically integrated into practices, integrated pest core programmes, policies and activities. management, soil and , There is scope for further refinement and development of of procedures and greater attention to alternative rural energy sources. upstream inclusion of ENRM issues in country programme management. IFAD’s IFAD can potentially do a lot more – Environmental and Social Assessment through a further shift from perceiving Procedures (ESAP)55 and their use in quality the environment as a safeguard issue enhancement (QE) and quality assurance to seeing it as an area where IFAD can processes can become proactive tools for 53 World Economic Forum, Realizing a New Vision for maximize opportunities for enhanced integrating ENRM more systematically into Agriculture: A roadmap for results and impact. Historically, and even the Fund’s portfolio. stakeholders, prepared in with McKinsey with solid procedures in place, ENRM has and Company (Geneva, 2010), www3.weforum. consistently been rated the weakest impact IFAD has made limited use of earmarked org/docs/IP/AM11/CO/ domain in IFAD-supported projects since environmental cofinancing, and has the WEF_AgricultureNewVision_ 54 Roadmap_2011.pdf. 2002 by successive ARRI evaluations. potential to ensure that greater volumes 54 IFAD Office of In some cases, risks and opportunities of climate adaptation and biodiversity Evaluation, Annual Report finance benefit poor rural people. The on Results and Impact of IFAD Operations Evaluated Fund’s existing environmental cofinancing in 2008 (ARRI) (Rome, 2009), www.ifad.org/ comes principally through its valuable evaluation/arri/2009/arri.pdf. partnership with the Global Environment 55 www.ifad.org/gbdocs/ Facility (GEF), which has helped leverage eb/96/e/EB-2009-96-R- 7.pdf. approximately US$20 million per year in

24 grant cofinancing. Climate change is making IFAD should build on its comparative development more expensive,56 and poor advantage of participatory and rural people currently have limited access community-based approaches. to climate finance. They do not benefit from Sustainable community-driven development existing formal carbon finance mechanisms approaches are essential to effective NRM. and have limited access to the voluntary Continued promotion of participatory carbon and other existing ecosystem approaches and local programming markets. In terms of public finance, various processes that respond to the needs, global funds have been established to priorities, opportunities and constraints mobilize public finance for climate change identified by poor rural people – and based mitigation and adaptation, although on their local knowledge, customs and agriculture for poor rural people does not priorities – is essential. Community- and feature highly. Typically, only a very small ecosystem-based adaptation to climate share of official development assistance and change will be an increasingly core national budgets in developing countries element in project design. IFAD-supported is targeted at environmentally sustainable programmes will aim to build partners’ approaches. However, there is enormous understanding of the underlying causes of potential. The recent report of The vulnerability, including the incorporation of Economics of Ecosystems and Biodiversity ecosystem, biodiversity and climate-risk 56 The cost of climate (TEEB)57 estimates that by 2020 the annual information into vulnerability assessments. change adaptation in developing-world agriculture market size for certified agricultural products is estimated by IFPRI at US$7-8 billion annually, will be US$210 billion, payments for water- There is much scope for strengthening and the United Nations related ecosystem services US$6 billion, and the knowledge base underpinning ENRM Framework Convention on Climate Change (UNFCCC) voluntary biodiversity offsets in the region of in IFAD’s operations. The Fund’s often estimates that the cost will US$100 million a year. positive experiences of ‘what works’ have be US$11.3-12.6 billion in 2030. While estimates not been systematically documented and vary, most consider a With an increasing number of value- shared. Work is needed to capture these, highly ambitious 2-degree stabilization scenario and chain projects in IFAD’s portfolio introduce state-of-the-art knowledge and often do not factor in soft (45.5 per cent in 2009),58 there is an information, support dialogue and exchange, costs such as ecosystem degradation and the loss opportunity to maximize the positive and provide user-friendly and demand- of associated goods and services critical to environmental impact of value chains and driven tools to support the integration agricultural production. avoid downside risks. There is increasing of environmentally sound and climate- 57 www.teebweb.org/ scope to develop certification to ensure smart practices throughout the project LinkClick.aspx?fileticket= bYhDohL_TuM%3d& that supply chains are environmentally cycle – with an eye to demonstrating their tabid=924&mid=1813. compliant and to promote green purchasing economic and social benefits. Landscape 58 The projects for which value chains were either and green procurement. Major corporations and sustainable agriculture approaches, a separate component or are increasingly setting out detailed for example, are typically more knowledge the main focus increased from 3.3 per cent in 1999 to environmental standards for purchase intensive than more-traditional, standardized 45.5 per cent of the projects requirements for sourcing raw materials. green-revolution approaches. Climate approved by the Executive Board in December 2009. There are significant downside risks to be impacts, data and information tend to be The number of value- considered where market entry comes chain projects presented very location-specific, as are the economic, to the Board peaked at at the cost of widespread conversion social and cultural values of natural assets. 17 in 2007, represent- ing 48.6 per cent of the of landscapes to monocropping, which The lack of baselines and benchmarking total number of projects reduces resilience through an over-reliance of environmental impacts has contributed presented that year. Of the total US$2.6 billion invested on one species. In addition, as poor rural to poor understanding of the poverty/ through the 78 projects, communities increasingly become involved some US$925 million (or 35 per cent of the total) in the processing of agricultural products, was allocated to value- they should be prepared to properly dispose chain projects or projects in which value chains were a of waste. component.

25 environment nexus, including associated many factors, including environmentally risks and opportunities. The health of natural damaging existing policy frameworks such assets such as biodiversity or soil fertility can as water-use subsidies or unsupportive be difficult or costly to measure. However, the land tenure policies and a lack of historical, use of baseline studies, indicators, resource political and institutional support for ENRM. accounting studies and impact measurement Given the typically knowledge-intensive of natural assets, together with innovative nature of ENRM interventions and the need partnerships with data and information for up-front feasibility studies, the limited providers (e.g. satellite companies), could availability of grants to cover such costs is help policy dialogue support governments sometimes a constraint in prioritizing demand and communities alike in investing in ENRM for ENRM support and impedes uptake in the and building resilience to risks and shocks. core lending portfolio.

Direct sharing of local knowledge IFAD has a sound base from which to among farmers and intensify and leverage its engagement policymakers is an effective pathway for and advocacy in international scaling up. IFAD’s experience shows that environment and climate processes and learning between and among poor rural forums. IFAD participates actively in the communities is often the most effective United Nations Framework Convention on way to foster adoption and adaptation Climate Change (UNFCCC) processes and is of improved practices that can lead to engaging more closely with the Convention innovation and provide momentum for on Biological Diversity (CBD). Moving scaling up. Farmer field schools and similar forward, and in view of the Rio+20 Summit activities that support South-South learning of 2012 and beyond, IFAD will endeavour among developing country partners will be to inform and support these processes at a target for knowledge dissemination and global, regional and country levels, so that learning activities for improved management they adequately respond to the needs of of natural assets. poor rural people. IFAD also houses the Global Mechanism of the United Nations Demand by IFAD’s government partners Convention to Combat Desertification for support for ENRM is increasing, but (UNCCD) and is a traditionally strong partner many policy and institutional constraints in combating desertification worldwide. remain. Climate change and the rapid deterioration of some physical environments are driving an increase in country demand for ENRM assistance. However, demand remains highly varied. This may be due to

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8 8 7 7 6 5 CASE STUDY 4 Green growth3 through value chains in West Africa 1 1 1 In Sao Tome and by one of the buyers, the National Bio United, both certified ‘organic’ Principe, IFAD helped Agricultural Research Institute, and and exporting cocoa under the fair turn around the dying project staff have all been providing trade label. Activities include training smallholder cocoa sector, which had training for farmers in organic and of staff and farmers and support been suffering following the collapse conservation agriculture, solar drying, to the rehabilitation and improved of world market prices. Rather than integrated pest management and other management of plantations. Prices for focusing on conventional cocoa, environmentally sustainable practices, good quality, certified cocoa are less which in economic terms continues as well as in cooperative management, susceptible to market fluctuations and to remain relatively unattractive for cooperative-led extension and other this encourages further investment smaller producers, the Participatory services, and the principles of fair trade. and assures sustainability. In addition Smallholder Agriculture and Artisanal to the extra income provided by Fisheries Development Programme In Sierra Leone, a new initiative, the intercropped plants, cocoa agroforestry set up public-private partnerships Rehabilitation and Community-Based systems support greater biodiversity with overseas buyers of organic, fair Poverty Reduction Project Plus, is and avoid the land degradation and trade cocoa of high quality. Within a aiming to build on the Sao Tome and erosion caused by slash-and-burn short time, these arrangements helped Principe experience and exploit the farming. A Least Developed Countries farmers establish export cooperatives potential of growing markets for high- Fund grant from the GEF will support and achieve stable and much improved quality organic, fair trade cocoa. The the project through community-based incomes. Participating farmers need project will rehabilitate a 5,000-ha climate change adaptation planning – two years for their plots to be declared cocoa plantation abandoned during in the form of direct investments free of chemical fertilizer residues the war, and has already identified as in soil and water conservation, and to qualify for Ecocert© organic implementing partners the Millennium sustainable land management and certification. Technicians employed Cocoa Growers Cooperative and erosion . II. The ENRM policy: 10 core principles

The goal of this ENRM policy is: IFAD ENRM policy: summary To enable poor rural people to escape from and of core principles IFAD will promote: remain out of poverty through more-productive and resilient livelihoods and ecosystems. Scaled-up investment in multiple- The purpose is: benefit approaches forsustainable To integrate the sustainable management of agricultural intensification; natural assets across the activities of IFAD and Recognition and greater awareness its partners. of the economic, social and cultural value of natural assets;

‘Climate-smart’ approaches to This ENRM policy does not start from rural development; a zero base. It builds on and strengthens commitments made in other IFAD policies,59 in Greater attention to risk and particular, the Climate Change Strategy (2010), resilience in order to manage ESAP (2009), Policy on Improving Access to environment- and natural-resource- Land and Tenure Security (2008), Policy on related shocks; Engagement with Indigenous Peoples (2009) Engagement in value chains to and Rural Poverty Report 2011, which all drive green growth; acknowledge the key role natural assets play in the livelihoods of poor rural people. The Improved governance of natural present policy also owes much to learning assets for poor rural people by from best-practice ENRM experiences strengthening land tenure and at other major development institutions community-led empowerment; and organizations (see annex I). This is Livelihood diversification to complemented by literature reviews on food reduce vulnerability and build security and sustainable development and a resilience for sustainable natural range of regional consultations and comments resource management; received within IFAD and from partners. Equality and empowerment for women and indigenous peoples IFAD ENRM core in managing natural resources; guiding principles Increased access by poor rural The following section sets out 10 ENRM core communities to environment and principles. They provide the basis for shaping climate finance; and IFAD’s programmes and investments, and Environmental commitment strengthening ENRM across IFAD activities. through changing its own behaviour. The practical application and interaction of the principles is illustrated by case study

59 A full list of IFAD policies examples of IFAD’s ENRM experience. is available at: www.ifad. org/operations/policy/ policydocs.htm.

28 Principle 1. IFAD will promote people. This can be done implicitly in project scaled-up investment and policy design through recognizing the in multiple-benefit importance of maintaining the health of approaches for sustainable natural assets – or where possible explicitly agricultural intensification. This means measured, so that management of the locally adapted, pro-poor, sustainable natural environment and its well-being are agricultural intensification techniques appropriately costed over time. that recognize the complexity of people’s interaction with landscapes. An important Principle 3. IFAD will promote feature of such approaches is that they climate-smart approaches provide multiple benefits for production, to rural development. As poverty reduction and the environment, set out in the Climate Change including maintaining ecosystem services Strategy, this involves the systematic and biodiversity, reducing emissions and integration of climate change – along with building climate resilience. Landscape other risks, opportunities and themes – into approaches supported by spatial analysis development programmes, policies and can identify how investments or management activities. It requires innovative approaches practices in different parts of a landscape or to enabling poor rural producers to adapt – watershed can produce benefits or reduce especially women and indigenous peoples negative impacts on other parts, to provide – by reducing risk and building resilience to ‘connectivity’ of hydrological systems or climate change; helping poor rural farmers wildlife habitat, etc. There may also be take advantage of available adaptation landscape-scale relationships through and mitigation incentives and funding; farmer organizations (economies of scale in and informing a more coherent dialogue marketing, providing inputs to one another on climate change, rural development, or collective action, including political action); agriculture and food security. or for greening value chains across a whole landscape. As energy costs rise, such Principle 4. IFAD will promote approaches present sustainable non-energy- greater attention to risk and intensive alternatives for production. resilience in order to manage environment and natural- Principle 2. IFAD will resource-related shocks. To enhance promote recognition and the resilience of poor rural people, IFAD will greater awareness of the step up its efforts to manage: risk exposure; economic, social and cultural risk and vulnerability analysis; knowledge value of natural assets. Global recognition and weather information services; linkages is increasing the need to understand the between ecosystem health and disaster range of environmental values, the costs preparedness/risk-reduction activities; and benefits of environmental impacts, and locally adapted and robust production the value of ecosystems and biodiversity60 systems – and to promote livelihood and and the goods and services they provide. income diversification and social safety nets. Values can include both direct and indirect Ecosystem health, income diversification 60 TEEB, Climate Issues costs, but especially social and cultural and participatory management are critical Update (Bonn: TEEB/UNEP, values relevant to local communities and to withstanding increasing shocks and 2009); IBRD/World Bank, Where is the of indigenous peoples. A higher valuation is decreasing nutrition. IFAD will strengthen Nations? (Washington, DC: critically important to increasing production, IBRD, 2006); United Nations Millennium Assessment measuring change in environmental well- Board, Millennium being, ensuring sustainability and providing Ecosystems Assessment (Washington, DC: Island better health and nutrition for poor rural Press, 2005).

29 linkages with agencies and stakeholders and individuals to manage and drive their engaged in disaster risk reduction and own development processes, and to resilience-building efforts and build poor provide legal recognition and protection of rural people’s resilience through the forging their rights to access, control and use of of concrete field-rooted partnerships with natural resources is fundamental to good United Nations agencies, international governance and effective programme design. financial institutions (IFIs) and other partners. Building resilience for users of extensive common-pool resources requires the explicit Principle 5. IFAD will promote support and recognition of local management engagement in value chains systems and tenure. IFAD recognizes the to drive green growth. The importance of improving access to land growing integration of local and tenure security64 and is supporting and international value chains61 represents ongoing international initiatives promoting an important potential driver for scaling good land governance and responsible up environmentally sound practices and and equitable investments in agriculture. promoting inclusive green growth, but with These are: (i) the Food and Agriculture significant downside risks if market entry Organization of the United Nations (FAO)- comes at the cost of widespread conversion initiated process of developing voluntary of landscapes to monocropping. A number of guidelines for responsible governance of major global food purchasers are announcing tenure of land and other natural resources;

61 A value-chain sustainable-agriculture purchasing standards and (ii) a process for developing principles intervention is one that – these represent an opportunity for poor for responsible agricultural investment the necessary activities to address rural people, who in many cases are already facilitated by the World Bank, FAO, IFAD and constraints on the practising low-input production techniques the United Nations Conference on Trade and development of a particular agricultural product (e.g. (see best-practice statement (iii) in annex I). Development (UNCTAD).65 input supply, market- oriented technology development and its Principle 6. IFAD will promote Principle 7. IFAD will transfer, infrastructure development, credit improved governance of promote livelihood and capacity-building) natural assets for poor rural diversification to reduce to facilitate access to markets for sale at the people by strengthening vulnerability and build appropriate point – either land tenure and community-led resilience for sustainable natural in raw, semi-processed 62 or fully processed form. empowerment. Environmental degradation resource management. Livelihood diversity A pro-poor value-chain is often fundamentally due to governance is an essential prerequisite for reducing intervention develops approaches to include failures.63 These failures need rectifying risk, building resilience and providing food poor people in the chains, locally, nationally and internationally, for security. Off-farm sources of income and with a view to increasing their incomes, primarily example by: promoting the rule of law, access to varied, secure natural assets, through improvement in farm-gate prices and appropriate environmental policies and income opportunities and markets can addressing constraints in a legislation, and an international valuation reduce pressure on ecosystems and avoid coordinated manner. IFAD, Pro-poor Rural Value-Chain of emissions; improving security of tenure; poverty-driven depletion of natural assets. Development Report (Rome: and avoiding environmentally damaging IFAD will strengthen its ongoing support International Fund for Agricultural Development, subsidies. Empowering local communities and complement this with proposed forthcoming 2011). NRM-focused approaches to promote 62 The IFAD Policy on Improving Access to Land livelihood diversification opportunities and Tenure Security is and improved access to markets and available at: www.ifad.org/ pub/policy/land/e.pdf. income opportunities. 63 IFAD, Rural Poverty Report 2011. 64 See note 62. 65 http://www.ifad.org/ pub/land/land_grab.pdf .

30 Principle 8. IFAD will promote integrates environmentally conscious lending equality and empowerment for channelling international flows to for women and indigenous loan projects, and that these commercial peoples in managing natural institutions promote internationally resources.66 IFAD has long recognized the recognized environmental standards, importance of investing in women. Risks including the screening of investments associated with climate change magnify through appropriate environmental existing inequalities between women and assessment procedures. men and differences in their capacity to cope. IFAD’s focus on and Principle 10. IFAD will women’s empowerment will continue to be promote environmental a valuable strategy for responding to climate commitment through change. Indigenous peoples are among changing its own behaviour. those least responsible for climate change, While integrating ENRM across its yet are often the most vulnerable to it, operations and advocating that partners especially because their livelihoods invariably adopt more-sustainable practices, IFAD depend on access to healthy natural must also set an example of efficiency and resources and biodiversity.67 Respecting the sustainability in its own operations. This principle of free, prior and informed consent, requires ongoing investment to green its IFAD will support indigenous peoples in operations, focusing especially on travel, enhancing the resilience of the ecosystems in procurement and buildings. which they live and in developing innovative adaptation measures and emerging opportunities for indigenous peoples’ engagement in carbon sequestration and the provision of other environmental services. IFAD will be guided by its policy on Engagement with Indigenous Peoples, including its contribution to the realization of the United Nations Declaration on the Rights of Indigenous Peoples.

Principle 9. IFAD will promote increased access by poor rural communities to environment and climate finance. It will seek new opportunities for poor rural people and smallholders to 66 The IFAD indigenous peoples and gender policies benefit from new and existing climate finance are available at: www.ifad. from public and private sources. It will also org/operations/policy/ policydocs.htm. promote measures to ensure that private 67 The IFAD Strategic financing through commercial partners Framework 2007-2010 identified indigenous peoples as an important target group because they face economic, social, political and cultural marginalization in the societies in which they live, resulting in extreme poverty and vulnerability for a disproportionate number of them.

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8 8 7 7 6 5 CASE STUDY 4 3 Energy from waste in China 1 1 1 Methane, which is Each household involved in the project Families, especially women, save released from animal built its own plant to channel waste from 60 work days by not having to collect manure, is 22 times the domestic toilet and nearby shelters and tend cooking fires. This more damaging than carbon dioxide. for animals, usually pigs, into a sealed additional time is invested in raising pigs By turning human and animal waste tank. The waste ferments and is naturally and producing crops. With more time to into methane for lighting and cooking, converted into gas and compost. As a spend improving crops, farmers in Fada, an IFAD-funded project in China’s result of the project, living conditions a village in the project area, increased Guangxi Province is reducing poverty and the environment have improved. tea production from 400 to 2,500 and also helping reduce methane’s Forests are protected, reducing GHG kilograms a day over a five-year period. more damaging global warming effects. emissions from deforestation. A large Average income in the village has “We used to cook with wood,” says amount of straw, previously burned, is quadrupled to just over a dollar per day. Liu Chun Xian, a farmer involved in the now put into biogas tanks to ferment. This is significant in a country where the project. “The smoke made my eyes tear This further reduces from poverty line is 26 cents per day. And and burn and I always coughed. The smoke and helps produce high-quality as a result of the project, 56,600 tons children, too, were often sick... Now that organic fertilizer. In addition, the project of firewood can be saved in the project we’re cooking with biogas, things are has resulted in better sanitary conditions area every year, which is equivalent to much better.” in the home. the recovery of 7,470 ha of forest. III. ENRM policy implementation: scaling up through systematic integration

Implementation of the present Country strategies. RB-COSOPs are a ENRM policy will be guided by the key entry point for upstream analysis and five-year strategy set out below. assessment of how IFAD can help partners The strategy is summarized in the manage natural resources sustainably results and implementation framework and respond to climate change. They are provided in annex II. It builds on and increasingly reflecting new thinking on incorporates relevant actions taken in the these issues, but IFAD can go further in implementation of the Climate Change ensuring that expertise is available to do this Strategy and on IFAD’s forthcoming systematically. A priority of RB-COSOPs will Strategic Framework 2011-2015 and be to support national priorities on ENRM Medium-term Plan 2010-2012, which will (such as ecosystem-based approaches) emphasize sustainable use of natural as reflected in poverty reduction strategy resources, risk and climate change. papers, relevant international guidelines, codes of conduct and relevant national strategic frameworks (e.g. national adaptation Operations programmes of action, national action plans/programmes, etc.). The latter include Strategic objective: ENRM scaled up sustainable national development strategies, and systematically integrated into climate change strategies, civil society country strategies and programmes activities and the encouraging of policy dialogue among all stakeholders. Efforts will IFAD will build the capacity of country be made to increase the number of strategic programmes to respond more environmental assessments to inform country systematically to increasing demands policies and strategies. from clients for help and innovations in climate change and sustainable NRM. Project design and implementation. IFAD will ensure that financing fosters Here, there is an opportunity to provide supportive national and regional policy more support on ENRM scaling up and environments, creating enabling conditions integration. Systematic integration does not for the delivery of sustainable ENRM imply that every project has to be focused policies. In common with IFAD’s approach on NRM. It means, rather, that projects to climate change, this means ensuring the understand and manage impacts on natural right toolkit for the early stages of country assets. IFAD’s priority is to ensure that programme and project design, rather than project identification, design (including as an overly compliance-driven approach in quality assurance) and implementation the final approval stages for results-based are based on an understanding of country strategic opportunities programmes sustainable NRM in a local context, how (RB-COSOPs) and for programmes and it affects different categories of poor rural projects. In some cases it also means more people, and women as compared with engagement – with others – in efforts by men. It is also important to understand partner governments to improve their local how an ecosystem-based approach can and national policies. build resilience and underpin adaptation planning for rural communities, agriculture

33 and ecosystems – and their service flows. (f) Increased engagement in the quality Reforms to strengthen IFAD’s programme enhancement process so that: management present new opportunities (i) projects are assessed in the context to improve systematic ENRM integration of a number of key ENRM success into the portfolio. The quality enhancement factors, which include a question on the system and direct supervision provide vulnerability to climatic shocks of poor more scope for technical engagement, rural people whose livelihoods depend and increased field presence will enable on agriculture and NRM; (ii) sensitivity greater engagement with ENRM networks of the design to ENRM issues will be in-country. regularly tracked in the QE and quality assurance processes; (iii) selected QE How will IFAD achieve this? Through: guidance notes and guidelines for the project design report will be updated (a) Applying the 10 ENRM policy principles to reflect the ENRM best-practice and the best-practice statements; statements and to include ENRM sustainability issues and the scope of (b) Systematic and enhanced participation their treatment throughout the project of relevant environment and climate cycle. The QE process also informs expertise in country programme knowledge and training efforts; management teams and missions throughout the project cycle; (g) Piloting a more concrete and systematic environment and climate- (c) Additional grant support for and monitoring and evaluation framework, awareness-raising on encouraging and including development of additional integrating ENRM into IFAD operations; 2nd-level Results and Impact Management System (RIMS) indicators; (d) Significantly enhancedknowledge management and training effort for (h) Appropriate integration of ENRM-related country programme managers and issues into RB-COSOP mid-term and managers – including sharing new project supervision and mid-term knowledge on climate change and reviews, project status reports and developing new ENRM and climate tools; knowledge management systems. This will be facilitated by the inclusion of such (e) Updating of ESAP to include revised elements where appropriate in the original operational procedures and the ENRM project design; and best-practice statements (see annex I). This will aid assessment of high- and (i) Integration/revision of ENRM-related medium-risk projects within Category questions in the next updates of the rural- B projects, which form the majority of sector performance assessment section classified projects, as well as maximize of the IFAD performance-based allocation opportunities for enhanced ENRM impact; system (PBAS).

34 Promoting knowledge, advocacy and partnerships

Strategic objective: ENRM-related Farmer field schools have been shown knowledge and learning to drive to significantly reduce the amounts increased: (i) project design and of pesticide use, as inputs are being implementation support; and replaced by knowledge.

(ii) innovation that informs enhanced Olivier de Schutter, United Nations Special global and national advocacy Rapporteur on the Right to Food68

Environmental conditions, indigenous knowledge and institutional, social and cultural arrangements are interlinked New and existing partnerships will and highly location-specific. The impact support ENRM knowledge activities. of this policy on the ground will thus hinge IFAD will engage in new or strengthened on how well IFAD improves its ability to partnerships with specialized entities and generate, identify and share ENRM best networks. It will also work through its practices and innovation across its global existing regional and community networks to grant and lending, GEF grant and research integrate this learning into core programming grant portfolios. Based on this information, across sectors. Examples of platforms that IFAD will create and hone tools that serve may be used include IFAD’s regional Learning IFAD staff and partners in replicating and Routes, TerrAfrica, the Poverty Environment adapting those best practices, and in Partnership and the Multilateral Financial measuring and communicating the costs Institutions Working Group on Environment. and benefits to poor rural communities and their governments in terms that are IFAD will deepen participation in global understandable and compelling. dialogue on development, environment and climate change. In addition to Key themes for knowledge generation will improving the performance of IFAD’s be based on emerging demand. Grants will portfolio, knowledge activities will strengthen boost research and knowledge generation its ongoing advocacy efforts. based on increasingly green demand from IFAD partners and staff. Overall, knowledge In implementing the Climate Change Strategy, activities will focus on areas where demand IFAD is already working to raise the profile and implementation potential are already of smallholder agriculture in international strong or growing quickly. These include policy discussions on climate change, and landscape approaches, ecosystem-based to highlight the importance of understanding NRM and adaptation, crop and livestock climate impacts on poor rural people within resilience-building technology, greening value agriculture discussions. This has included chains, environment, natural resource and success in helping shift the debate on climate information, data provision to target agriculture and climate change from a narrow communities, and opportunities for poor focus on carbon markets to a wider one rural people to benefit from public-private embedded in core agriculture debates on partnerships, including through PES/RES and the scope for a change in approach – that carbon markets. is, through an evergreen revolution. This 68 Olivier de Schutter, communication and engagement is tightly Report to the Human Rights Council on focused, given the staff capacity needed and the Right to Food to manage IFAD’s operational task on the (2010), www2.ohchr.org/ english/issues/food/docs/A- ground. IFAD will continue to work closely HRC-16-49.pdf.

35 with FAO, the World Food Programme to environmental and social impact (WFP), centres of the Consultative Group measurement – through greater use of on International Agricultural Research baseline studies and benchmark data to (CGIAR), the Global Donor Platform for support design, implementation, learning, Rural Development, farmers’ organizations, impact measurement and knowledge- the International Land Coalition, NGOs and sharing for the scaling up of multiple- others in this task, and will join forces with benefit approaches. new specialized partners to enhance and broaden these efforts. Key knowledge, innovation and advocacy partnerships Key deliverables will include: Farmers’ organizations, indigenous peoples, international civil society and (a) Increasing support for – and interest the private sector. Rural producers’ and in – sustainable intensification civil society organizations are important techniques as part of an evergreen partners, particularly in piloting new revolution in agriculture, including approaches at the community level, sharing increased engagement and representation ideas and advocating for improved practices. of the concerns of poor rural people in Building on ongoing relationships with environment networks such as the CBD organizations such as the United Nations and the United Nations Conference on Permanent Forum on Indigenous Issues, Sustainable Development (UNCSD); organizations involved in the indigenous peoples’ forum at IFAD and producers’ (b) Increased advocacy and learning centred organizations involved in the Farmers’ on environment and climate-related Forum, IFAD will increase its collaboration issues through traditional and social with relevant groups, including NGOs with media, and IFAD publications; specific expertise, to address the challenges poor rural people face in managing their (c) New staff training and a platform of natural assets. Partnership will also be resources and tools to address ENRM sought with the private sector as a key and climate change – a climate risk tool player in unleashing smallholder potential for screening RB-COSOPs and projects, to participate in national and international strategic environmental assessments for markets. This would also include support to RB-COSOPs rolled out, plus support to the transfer and scaling up of climate-resilient a range of tools, including participatory and low-carbon technologies. and Geographic Information System (GIS) mapping and to help United Nations family and Rome-based community engagement and decision- agencies. IFAD will continue to engage making on natural resource assets; and in concerted efforts with other United Nations agencies: (d) ENRM database and tracking system in place, including measuring the (a) Through collaboration among the volume of the portfolio that addresses three Rome-based agencies, which ENRM, along with greater attention will continue to be a priority, as identified at the Rome heads of agencies meeting 69 IFAD, Directions for 69 Collaboration among the in September 2009. Given FAO’s Rome-based Agencies, long history of technical work on the document prepared for review by the ninety-seventh sustainable intensification of agriculture, session of the Executive this will be a key technical partnership for Board, 14-15 September 2009. this strategy. In addition, the Rome-based

36 agencies are pursuing a collaborative (d) Through IFAD’s work with the United partnership on disaster . Nations Environmental Management IFAD will continue to deepen these Group, particularly on a possible United collaborative efforts, making more use of Nations system-wide approach to FAO’s analytical capacity and – given the biodiversity, land and environmental and impact of climate change on disasters social sustainability. IFAD will explore and vulnerability – working with WFP opportunities to engage with the recently on disaster preparedness, resilience- developed United Nations High-level building after relief and early recovery, and Panel on Global Sustainability. social protection. As host of the Global Mechanism and the International Land The Consultative Group on International Coalition, efforts are ongoing to exploit Agricultural Research is one of IFAD’s main opportunities to harness the potential research partners. The recently launched for addressing land degradation and 10-year CGIAR Programme on Climate promoting equitable access to land. Change, Agriculture and Food Security These efforts include building IFAD’s (CCAFS) offers new opportunities to engage capacity for addressing desertification with CGIAR on climate change research and and , and pursuing innovative advocacy. Other opportunities exist through approaches to ecosystem management ongoing and possible future collaboration and participatory approaches – such with Bioversity International, ICRAF, IFPRI, as payment of environmental services the Center for International Forestry Research and use of participatory mapping for (CIFOR) and other CGIAR centres. enhanced community ownership of natural assets; International financial institutions. IFAD, as both an IFI and a United Nations specialized (b) Through the climate change working agency, will increase its engagement and group of the High-level Committee on knowledge-sharing with other IFIs. It is Programmes, Chief Executives Board, in already an active member of the Multilateral support of the UNFCCC process, as well Financial Institutions (MFIs) Working Group as in the delivery of common products;70 on Environment, which has made significant progress towards harmonizing the approach (c) Through our work with the UNFCCC MFIs take to climate and environment issues, secretariat, particularly on technical particularly in relation to environmental 70 In 2009, the United matters related to adaptation and impact assessment. Nations system engaged in mitigation in agriculture and on initiatives a number of joint initiatives and tools, such as the such as the Nairobi Work Programme Donor community. Membership in the joint paper on adaptation presented at COP15 and on impacts, vulnerability, adaptation Global Donor Platform for Rural Development the UNCCD: Learn Platform, to and mitigation of climate change.71 offers a space for coordinated action on to which IFAD contributed through its internal climate IFAD’s main objective will be to increase climate change and ENRM within the donor change training (i.e. the attention to the needs and concerns community. Building on its current and CLIMTRAIN project). 71 IFAD joined the of poor rural people and smallholder ongoing engagement with and material UNFCCC Nairobi Work farmers in the post-Kyoto global climate support to the platform, IFAD will continue to Programme on impacts, vulnerability and adaptation agreement, to ensure that benefits from take part in the development of a coherent to climate change in climate finance flow to smallholders approach among donors to agricultural October 2007. The aim of this programme is to and poor rural people, and to continue mitigation and adaptation. help countries improve supporting implementation of the their understanding and assessment of the impacts Convention by delivering the programmes of climate change and to identified in the national adaptation make informed decisions on practical adaptation actions programmes of action; and and measures.

37 Resource mobilization providing income to farmers from the farm to the national scale. IFAD will continue to Strategic objective: Systematic leverage resources from international funds, integration of ENRM and climate risks such as the GEF and the Adaptation Fund. and opportunities into the overall In addition, as requested by the Board of investment portfolio through strategic Directors at the Eighth Replenishment of use of grants and the mobilization of IFAD’s Resources, while maintaining its additional supplementary funding focus on its mandate and comparative advantage, IFAD will seek to complement its IFAD’s comparative advantage in core resources by being open to additional reducing rural poverty lies in its ability funding that would enable it to scale up its to inform investment decisions in engagement in climate change issues and developing countries through its lending to meet the additional costs that climate- portfolio. Sustainable NRM has a high related challenges impose on investments economic rate of return, hence it can be in development.72 For example, cofinancing considered a valid potential investment for can be used to promote ecosystem pure loan-funded operations. However, conservation through setting up PES in some cases, additional grants can tip mechanisms, and can also be directed the balance in favour of more sustainable towards adaptation efforts such as access investments. Advocacy and research grants to technology, improved farming practices can also be used to provide knowledge and ecosystem restoration imperatives. and tools that shape IFAD’s portfolio and influence policy at international and national Key sources include: levels by demonstrating the high rate of return of environmentally sound and (a) Global Environment Facility. The climate-smart approaches. GEF represents an important strategic partner, going beyond resource In addition to its core resources, IFAD mobilization and including knowledge will continue to leverage its traditional management. Through the GEF supplementary funding sources and partnership, IFAD has deepened its seek new ones to bolster systematic engagement and cooperation with integration of ENRM. IFAD faces a major other GEF agencies.73 Of relevance to opportunity to help poor rural people IFAD, the GEF manages the GEF Trust benefit from increasing international Fund, the Least Developed Countries public and private finance earmarked for Fund (LDCF) and the Special Climate environmental objectives – in particular Change Fund (SCCF). IFAD’s GEF related to climate change. In the longer portfolio is approximately US$100 million, run, facilitating access to carbon funds with cofinancing of approximately 72 IFAD, Report of the Consultation on the Eighth offers an opportunity to enhance NRM US$370 million from IFAD-supported Replenishment of IFAD’s for the benefit of the poor and can be a projects. IFAD will continue to build on its Resources, 21 January 2009 (Rome, 2009). driver of improved landscape management, cofinancing arrangements with the GEF, 73 African Development including through the GEF-5 Trust Fund, Bank (AfDB), Asian Development Bank and UNFCCC’s GEF-managed LDCF and (AsDB), European Bank SCCF trust funds. for Reconstruction and Development (EBRD), FAO, Inter-American Development (b) Private sector and foundations. Further Bank (IDB), World Bank, UNDP, UNEP and possibilities may exist to fund ENRM United Nations Industrial activities to benefit poor rural people Development Organization (UNIDO). through the corporate private sector,

38 private foundations and private funds Internal organization such as sovereign wealth funds. In the first year of implementation, IFAD will Strategic objective: the right capacity commission a study to map potential and internal procedures to create climate and ENRM financing sources incentives for ENRM integration in to IFAD’s financial, administrative and the portfolio institutional comparative advantages. In addition, private-sector and public utilities Organizational structure will be key partners in replicating and IFAD has the right structure in place scaling up PES schemes. A recent UNEP to step up its work on ENRM issues, report highlights that “Green agriculture including on climate change. During can contribute to poverty alleviation implementation of the Climate Change through wise management of natural Strategy, a new Environment and Climate resources and ecosystems, where benefit Division (ECD) was established in the flows from are received Programme Management Department. directly by the poor.”74 The division is now almost fully staffed and operational, with regional climate (c) Adaptation Fund.75 IFAD was accredited and environment specialists recruited in 2010 to serve as a multilateral and in place in three regional divisions. implementing entity of the Adaptation Capacity will be further increased through Fund, which will finance concrete a modest staff increase and training, adaptation projects and programmes in together with deeper partnerships to developing countries that are parties to source external expertise on climate the Kyoto Protocol. change. Implementation of this policy will be a shared responsibility across (d) Green Climate Fund. IFAD will the organization – IFAD’s next strategic remain engaged in the design of new framework will see climate, environment international environment and climate and sustainable NRM fully integrated into funds in order to encourage their inclusion analysis and objectives. IFAD will: make of poor rural people and specifically greater use of existing in-house skills and

smallholder agriculture. In particular, IFAD people through identifying dedicated in- 74 UNEP, Towards a Green will closely monitor the setting up of the house capacity to deliver high-quality Economy. Green Climate Fund, to try to ensure that: programmes and further staff training. 75 The Adaptation Fund was established by the (i) IFAD is established as an implementing Parties to the Kyoto organization; and (ii) the Fund is designed Protocol of the UNFCCC and is hosted by the GEF. in a way that encourages rather than 76 “Countries have penalizes multiple-benefit sectors such recognized the critical role of forests in mitigating climate as agriculture. change. To advance this issue, a group of developed and developing countries (e) Linking poor rural people and with a commitment for international cooperation smallholder agriculture to forest are taking efforts to enable financing (REDD+ initiatives).76 IFAD effective, transparent and coordinated fast action will explore opportunities to link with on reducing greenhouse REDD+ initiatives to ensure that: (i) links to gas emissions from deforestation and forest smallholder agriculture, climate adaptation degradation (REDD+) in and wider environment issues are well developing countries. This new collaboration is called incorporated; and (ii) IFAD is recognized the REDD+ Partnership.” and engaged as a strategic partner in UNFCCC, http://unfccc. int/methods_science/redd/ implementation and collaboration. items/5607.php.

39 Greening IFAD (d) Power consumption in the IFAD data IFAD is working together with other United centre unchanged since 2008, despite Nations agencies to go green and become growing demand for computing climate neutral through establishing systems resources. Moreover, new ‘blade’ and procedures to measure and reduce technology is being introduced in the its environmental impact, as requested data centre to decrease future power by the Secretary-General in 2007. The consumption; ‘Greening the Blue’ initiative was launched in 2010 to communicate with all United (e) Installing fountains to Nations staff and external stakeholders. reduce usage of plastic water bottles The initiative to create a more sustainable in 2010; United Nations, which IFAD participates in, is now coordinated through the IFAD (f) IFAD’s external contractor for cleaning Issue Management Group on Sustainability services selected on the basis of Management, which is serviced by guarantees to use cleaning products the Sustainable United Nations facility that are biodegradable, phosphate-free, and reports to the Environment ammonia-free and non-toxic; Management Group. (g) Provision of shuttle bus to metro station to IFAD also recognizes that to deliver its reduce car usage by staff; core mission it needs to ‘walk the talk’ by reducing its environmental footprint – this (h) Measures to assess and monitor the sends an important signal to staff and our number and total emissions of flights; and external partners of the importance we place on environmental issues. IFAD is (i) Implementation of parking fees to focusing on the adoption and promotion encourage use of public transport. of best practices and measures to reduce this footprint and to pursue sustainable The organization will continue to move and climate-neutral facilities. Recent forward, exploring new ways to achieve an achievements include: even greener workplace and further reduce its carbon imprint. In 2011 IFAD will develop (a) LEED77 certification by the U.S. a Plan of Action for Greening IFAD. This Green Building Council in 2009. This will be shared externally and will include internationally recognized green building resources and time lines to achieve further certification was awarded at the gold advances in the following areas: level, in recognition of IFAD’s state- of-the-art headquarters design and (a) Better measurement and monitoring environmental management practices; of emissions and environmental footprint – with clear and monitorable goals for (b) A 12 per cent reduction in consumption improvement. of electricity between 2008 and 2009, and an additional 3.2 per cent reduction (b) Further reductions in emissions from in 2010; travel, including measures to further reduce the carbon imprint of duty travel (c) All electricity purchased in 2009 and – to be introduced by the new travel 2010 certified as green energy by the guidelines in 2011 – such as available Renewable Energy Certificate System; alternative technologies, including videoconferencing and the use of 77 Leadership in Energy and Environmental Design. offsetting schemes. More broadly,

40 IFAD will explore ways to further Measuring success encourage green ways of travelling to work. Together with UNEP, IFAD is A time-bound results and implementation developing green ratings to guide our framework for the ENRM policy is choice of hotels. presented as annex II. In line with the overall approach of the Climate Change (c) New sustainable corporate Strategy, the policy framework seeks to procurement policies. In close embed ENRM issues appropriately across cooperation with FAO and WFP, IFAD IFAD’s results-based measurement system. will introduce a sustainable procurement As a theme that runs throughout our work, policy in 2011, selecting products the success of the strategy will be assessed and services on the basis not only through a number of proxy measurements of their technical and economical largely related to portfolio performance and characteristics, but also of their greater activity implementation. The results and or lesser impact on the environment implementation framework incorporates throughout their life cycle (raw materials, implementation items remaining from the production process, use, reuse/ Climate Change Strategy. recycling and waste disposal).

(d) Greener facilities. IFAD will explore the feasibility of achieving platinum LEED standard certification of its headquarters to further reduce its carbon imprint and enhance headquarters sustainability. This will require analysis and additional investments, for example in energy performance, selection of material and resources, and water efficiency. Other measures will be explored, such as the use of solar panels, as will new technology solutions to further reduce the overall power consumption of computer workstations. IFAD will explore means to provide sustainable food services with its current catering service provider – in order to serve a variety of healthy and sustainable dishes with minimal or positive impacts on the environment. In future re-tendering for catering services, IFAD will emphasize sustainability requirements in the solicitation and evaluation criteria.

41 ANNEXES

Annex 1: ENRM best-practice statements

As part of the ENRM policy, the following best-practice statements were developed. These will be refined in the policy implementation process and will feed into revising IFAD’s ESAP. They apply the 10 ENRM core principles to areas of common engagement for rural development investments. The best-practice statements embody an integrated approach in which gains under one objective (e.g. crop production) are not achieved at the cost of losses in another (e.g. biodiversity). As such, the statements guide interventions in rising above any specific ‘sector’ or ‘subsector’ objectives and maximizing synergies within and among landscapes.

(i) Crop production. To support and promote: (i) improved soil fertility through integrated farming systems, conservation agriculture techniques, rotation with legumes, agroforestry with fertilizer trees, composting, contour planting and terracing to reduce ; and judicious use of fertilizers and agrochemicals; (ii) integrated pest and weed management to avoid overuse or unnecessary use of pesticides and herbicides; (iii) water-efficient irrigation systems with users involved in management; (iv) enhancement, maintenance and preservation of crop diversity; (v) research on biotechnologies in tandem with investments in biosafety; (vi) research on and introduction of seed and crop varieties that reduce the energy, water and fertilizer inputs needed; and (vii) appropriate location-specific seed varieties.

(ii) Livestock. To support and promote: (i) integrated crop/livestock systems; (ii) introduction of improved livestock genetics and avoidance of erosion of animal genetic resources; (iii) the role of pastoral institutions and recognition of tenure rights and customary grazing lands; (iv) strengthened local governance capacity and national governance policy and institutional coherence; (v) increased livestock diversity; and (vi) recycling of livestock manures as organic nutrients for soil.

(iii) Value chains. To support and promote: (i) eco-efficiencies in agricultural value chains, including water and energy use; (ii) harmonization with national and international standards for sustainable agriculture and consumption; (iii) continuation of diversified production within a given landscape; (iv) where possible, priority market access for purchasers of organic and sustainable niche environmental products; (v) creation of green jobs throughout the value chain, including in local food systems and organic production; (vi) facilitation of local and regional market access for sustainable production systems through public-private partnerships that link poor rural people to payment for environmental services (PES); (vii) national certification processes; and (viii) strengthened capacity for good practices, including enforcement of waste management.

(iv) Biodiversity. To support and promote: (i) reduction in agricultural land conversion and negative environmental externalities associated with agricultural production; (ii) complementarities with national and international initiatives for biodiversity conservation; (iii) introduction of an ecosystem approach; (iv) restoration and development of protected areas; (v) incentives for conservation and use of local agrobiodiversity through value chains; (vi) agriculture more resilient to extreme and changing climatic events; and (vii) avoidance of depletion of micro-organism, animal and .

42 (v) Land. To support and promote: (i) continued strengthening of diverse and overlapping tenure/access systems; (ii) measures to decrease land-use impacts, including deforestation and biodiversity loss; (iii) introduction of an ecosystem approach; (iv) community land-use plans linked to higher-level landscape development plans; (v) sustainable, pro-poor land- based investments; and (vi) integrated land management at scale to manage trade-offs and improve or maintain flows.

(vi) Water. To support and promote: (i) integrated water-resource management approaches at different levels within watersheds; (ii) water-use efficiency and sustainability in production and good practices in sanitation and wastewater management; and (iii) stronger rural water institutions and integrated, pro-poor governance of land and water.

(vii) Fisheries and aquaculture. To support and promote: (i) strengthened and tenure rights of fishing communities to common-pool resources; (ii) introduction of an ecosystem approach; (iii) restoration and development of protected areas; (iv) integrated coastal and marine resource management for sustainable fishing practices; (v) investment in retraining and education for fishers to create alternative employment opportunities; and (vi) encouragement of sustainable forms of aquaculture.

(viii) Forestry. To support and promote: (i) secure access to and sustainable management of forests, with a particular focus on incentives and participatory forest management; (ii) introduction of an ecosystem approach; (iii) restoration and development of protected areas; (iv) development of value chains for sustainable and renewable natural products and development of certification schemes for sustainable forest management; (v) strengthening of tenure rights to forest resources and governance systems of local communities; (vi) further investment in diversified agroforestry systems; (vii) development of wild and non-timber forest products; and (viii) building of the capacity of local institutions to participate in and benefit from existing and emerging carbon and ecosystem markets.

(ix) Energy. To support and promote: (i) sustainable practices in developing rural energy resources to expand markets and ensure a steady supply; (ii) development and dissemination of bioenergy and renewable energy-efficient technologies that do not compete with food crop production; (iii) development of institutional approaches to managing local-level energy production and associated distribution systems; (iv) scaling up of the use of clean and renewable energy; and (v) targeting of sustainable energy access at poor people, giving appropriate consideration to gender roles in sourcing energy.

(x) Infrastructure. To support and promote: (i) synergies between rural infrastructure construction and sustainable NRM; (ii) incorporation of social and environmental mitigation measures; (iii) community-driven approaches and local employment, especially creation of green jobs; (iv) adoption of context-specific and climate-resilient technologies; and v) ensuring that all new infrastructure investment is climate-smart.

(xi) Rural financing. To support and promote: (i) increased access of poor rural people to existing and new sources of green finance; (ii) principles of environmental sustainability integrated into all lending policies, rural finance programmes and rural finance institutions that serve poor rural households; and (iii) awareness-raising through IFAD cofinanced projects, rural finance institutions, financial institutions participating in projects, and finance networks on the merging of rural finance and environmental sustainability.

43 Annex 2: ENRM policy results and implementation framework (2011-2016)

Goal: Enable poor rural people to escape and remain out of poverty through more-productive and resilient livelihoods and ecosystems

Purpose: To integrate the sustainable management of natural assets across the activities of IFAD and its partners

Output: ENRM scaled up and integrated into IFAD’s portfolio

Strategic Strategy Outcome indicators Implementation milestones themes objectives

1. IFAD’s ENRM scaled up ••All new RB-COSOPs submitted to the Executive IFAD’s next strategic framework will see climate, By mid-2011 operations and systematically Board and new programme documents environment and sustainable NRM fully integrated into integrated into systematically and appropriately reflect climate its analysis and objectives RB-COSOPs and and environment risks and opportunities programmes Environment and climate-change expert participation enhanced Ongoing ••Project completion reports: increased in country programme management teams, Operational percentage of projects rated 4 or more for Strategy and Policy Guidance Committee reviews and design environment over baseline of 77 per cent and implementation support missions (2008 to 2009 two-year average) for 2015 to 2016 cohort IFAD’s Environmental and Social Assessment By mid-2012 ••Results and Impact Management System Procedures updated (RIMS): by 2016, average rating increased nd to 4.25 in 2 -level indicators (effectiveness/ Quality enhancement and project design report guidelines By end-2012 sustainability) for natural resource interventions and project cycle templates updated to reflect best-practice over baseline of 3.75 for 2009 statements and ENRM sustainability issues, and the scope ••Increased satisfactory ratings under the natural of their treatment throughout the project cycle resources and environment domain for projects evaluated in the ARRI report ENRM sensitivity of design regularly tracked throughout Ongoing the project cycle ••QE panel report highlights ENRM and climate change concerns and records key success Environment and climate monitoring and evaluation By end-2016 factor ratings for ENRM-related issues framework designed and implemented, including strengthening ••Increased use of ENRM baseline studies in or addition of indicators in RIMS IFAD projects Environment- and climate-specific tools piloted Ongoing ••Development of coherent framework of tools (e.g. Geographic Information System, weather information and methods for integrating ENRM/climate into or participatory mapping tool of the Initiative for IFAD operations Mainstreaming Innovation)

Integration/revision of ENRM-related questions in updates By end-2016 of the rural-sector performance assessment of the IFAD performance-based allocation system (PBAS)

44 Annex 2: ENRM policy results and implementation framework (2011-2016)

Goal: Enable poor rural people to escape and remain out of poverty through more-productive and resilient livelihoods and ecosystems

Purpose: To integrate the sustainable management of natural assets across the activities of IFAD and its partners

Output: ENRM scaled up and integrated into IFAD’s portfolio

Strategic Strategy Outcome indicators Implementation milestones themes objectives

1. IFAD’s ENRM scaled up ••All new RB-COSOPs submitted to the Executive IFAD’s next strategic framework will see climate, By mid-2011 operations and systematically Board and new programme documents environment and sustainable NRM fully integrated into integrated into systematically and appropriately reflect climate its analysis and objectives RB-COSOPs and and environment risks and opportunities programmes Environment and climate-change expert participation enhanced Ongoing ••Project completion reports: increased in country programme management teams, Operational percentage of projects rated 4 or more for Strategy and Policy Guidance Committee reviews and design environment over baseline of 77 per cent and implementation support missions (2008 to 2009 two-year average) for 2015 to 2016 cohort IFAD’s Environmental and Social Assessment By mid-2012 ••Results and Impact Management System Procedures updated (RIMS): by 2016, average rating increased nd to 4.25 in 2 -level indicators (effectiveness/ Quality enhancement and project design report guidelines By end-2012 sustainability) for natural resource interventions and project cycle templates updated to reflect best-practice over baseline of 3.75 for 2009 statements and ENRM sustainability issues, and the scope ••Increased satisfactory ratings under the natural of their treatment throughout the project cycle resources and environment domain for projects evaluated in the ARRI report ENRM sensitivity of design regularly tracked throughout Ongoing the project cycle ••QE panel report highlights ENRM and climate change concerns and records key success Environment and climate monitoring and evaluation By end-2016 factor ratings for ENRM-related issues framework designed and implemented, including strengthening ••Increased use of ENRM baseline studies in or addition of indicators in RIMS IFAD projects Environment- and climate-specific tools piloted Ongoing ••Development of coherent framework of tools (e.g. Geographic Information System, weather information and methods for integrating ENRM/climate into or participatory mapping tool of the Initiative for IFAD operations Mainstreaming Innovation)

Integration/revision of ENRM-related questions in updates By end-2016 of the rural-sector performance assessment of the IFAD performance-based allocation system (PBAS)

(cont.)

45 Strategic Strategy Outcome indicators Implementation milestones themes objectives

2. Knowledge, ENRM-related ••Increased sharing of sustainable intensification Increased engagement in multilateral environment agreements Ongoing innovation knowledge options as part of an evergreen revolution such as CBD, UNCCD and UNFCCC, and in networks and advocacy and learning to in agriculture such as UNCSD on Rio+20, Multilateral Financial Institutions/ drive increased: Working Group on Environment, United Nations environment ••Increased attention to the situation, (i) groups and Poverty Environment Partnership perspectives and needs of poor rural people design and in global processes and policies relating to implementation Number and scope of in-house and regional ENRM By December 2012 climate, agriculture and food support; and awareness-building and training programmes developed (ii) innovation that ••Increased awareness among and capacity of and carried out informs enhanced staff and partners to integrate state-of-the-art global and national ENRM and climate tools and approaches Environment/climate knowledge and ideas platform created By end-2011 advocacy ••More-accurate ENRM tracking system in place for staff and partners

Enhanced collaboration with the United Nations family and Ongoing Rome-based agencies on ENRM

Annual Green Award for staff instituted By end-2012

ENRM portfolio monitoring system set up By end-2012

3. Resource Additional ••Continued use of GEF and, potentially, Study on financing opportunities completed From June-2011 to June-2014 mobilization supplementary Adaptation Fund cofinancing Resource mobilization plan completed and presented funding secured to ••New international climate funds (e.g. Green to assist in systematic Fund) influenced to include agriculture as integration of GEF-5 grant financing secured to scale up innovative necessary area for investment ENRM risks and practices on ENRM opportunities into ••Untapped potential fully explored to leverage overall portfolio climate finance and fast-track funding UNFCCC LDCF/SCCF grant financing secured to support From June-2011 commitments for ENRM for poor rural people IFAD operations in next LDCR/SCCF replenishments to June-2014

IFAD access to Adaptation Fund established, From mid-2011 with pilot project initiated

4. Internal The appropriate ••Environment and Climate Division (ECD) fully ECD capacity increased and staff shared with regions Ongoing organization capacity and staffed and operational, with climate and internal procedures environment experts recruited to IFAD and IFAD receiving LEED platinum certification for building By end-2012 to create incentives in place for ENRM IFAD policies and strategies mapped to identify constraints By end-2012 ••IFAD headquarters’ environmental management integration in IFAD on and opportunities to catalyse ENRM integration practices further improved – environmental footprint reduced for travel, water, carbon, IFAD travel manual revised and assessment of carbon By mid-2012 purchasing, etc. offsetting addressed ••IFAD’s air travel emissions reduced by 2016 Develop a plan of action for greening IFAD By end-2011

46 Strategic Strategy Outcome indicators Implementation milestones themes objectives

2. Knowledge, ENRM-related ••Increased sharing of sustainable intensification Increased engagement in multilateral environment agreements Ongoing innovation knowledge options as part of an evergreen revolution such as CBD, UNCCD and UNFCCC, and in networks and advocacy and learning to in agriculture such as UNCSD on Rio+20, Multilateral Financial Institutions/ drive increased: Working Group on Environment, United Nations environment ••Increased attention to the situation, (i) project management groups and Poverty Environment Partnership perspectives and needs of poor rural people design and in global processes and policies relating to implementation Number and scope of in-house and regional ENRM By December 2012 climate, agriculture and food support; and awareness-building and training programmes developed (ii) innovation that ••Increased awareness among and capacity of and carried out informs enhanced staff and partners to integrate state of the art global and national ENRM and climate tools and approaches Environment/climate knowledge and ideas platform created By end-2011 advocacy ••More-accurate ENRM tracking system in place for staff and partners

Enhanced collaboration with the United Nations family and Ongoing Rome-based agencies on ENRM

Annual Green Award for staff instituted By end-2012

ENRM portfolio monitoring system set up By end-2012

3. Resource Additional ••Continued use of GEF and, potentially, Study on financing opportunities completed From June 2011 to June 2014 mobilization supplementary Adaptation Fund cofinancing Resource mobilization plan completed and presented funding secured to ••New international climate funds (e.g. Green to Senior Management assist in systematic Fund) influenced to include agriculture as integration of GEF-5 grant financing secured to scale up innovative necessary area for investment ENRM risks and practices on ENRM opportunities into ••Untapped potential fully explored to leverage overall portfolio climate finance and fast-track funding UNFCCC LDCF/SCCF grant financing secured to support From June 2011 commitments for ENRM for poor rural people IFAD operations in next LDCR/SCCF replenishments to June 2014

IFAD access to Adaptation Fund established, From mid-2011 with pilot project initiated

4. Internal The appropriate ••Environment and Climate Division (ECD) fully ECD capacity increased and staff shared with regions Ongoing organization capacity and staffed and operational, with climate and internal procedures environment experts recruited to IFAD and IFAD receiving LEED platinum certification for building By end-2012 to create incentives in place for ENRM IFAD policies and strategies mapped to identify constraints By end-2012 ••IFAD headquarter’s environmental management integration in IFAD on and opportunities to catalyse ENRM integration practices further improved – environmental footprint reduced for travel, water, carbon, IFAD travel manual revised and assessment of carbon By mid-2012 purchasing, etc. offsetting addressed ••IFAD’s air travel emissions reduced by 2016 Develop a plan of action for greening IFAD By end-2011

47 8 8 7 6 CASE STUDY 5 Student farmers triple yields with integrated 4 pest management in Rwanda (cover photo) 1 1 1 The farmer field school are now ready to scale up their use of in Nyange village, IPM to larger plots and thus sustainably Ngororero, Rwanda, increase their incomes. is made up of 25 students and 5 peer trainers working experimental plots Sylvestre Rwamahina, a peer trainer high in the mountains. Farmers learn growing Irish potatoes, bananas and the value of applying integrated pest beans, says, “I have left the traditional management (IPM) and of testing method of farming for the more modern various varieties of maize adapted to IPM method in my own farm work.” different weather and soil conditions. He adds that effective IPM not only In five groups of five students each, saves farmers money on pesticide use, the students cultivate two test plots but also reduces negative impacts of maize of 6 ares (1 are = 100 square on the environment and human health. metres). On one plot, the farmers apply fertilizer according to actual need, and These activities are part of the use pesticides taking into account the IFAD-cofinanced Support Project life cycles of pests and their interaction for the Strategic Plan for the with the environment. On the other, Transformation of Agriculture control plot, they use traditional low- (PAPSTA). Through the project, input/low-output methods of cultivation. over 110,000 households have been mobilized to engage in soil protection The yield on the traditional plot was and conservation practices, with over 12.4 kilograms (kg)/are, while the IPM 30,000 hectares of degraded land plot produced 39.5 kg/are. Farmers hedged and protected against erosion. EnablingInternational poor Fund rural for people toAgricultural overcome Development poverty Via Paolo di Dono, 44 00142 Rome, Italy Telephone: +39 06 54591 Fax: +39 06 5043463 E-mail: [email protected] www.ifad.org www.ruralpovertyportal.org