FAO-GEF PROJECT DOCUMENT

Project Title: Innovative transformation of ’s food production systems and agro- ecological landscapes towards sustainability (FAO-MARA sub-project)

GEF ID: 10246 FAO Entity Number: 658820 FAO Project Symbol: GCP/CPR/065/GFF Countries: People’s Republic of China EOD (Implementation start): 30 Sep 2020 NTE (Implementation end): 30 Jun 2026 Environmental and Social Risk low risk moderate risk x high risk Classification: Gender Marker: G0 G1 x G2a G2b Contribution to FAO’s Strategic § Strategic Objective/Organizational Outcome: Strategic Objective 2: Make Framework: agriculture, forestry and fisheries more productive and sustainable (Output (Indicate as appropriate) 2.1.1: Practices piloted, tested or scaled up by producers, to sustainably increase productivity, address climate change and environmental degradation and Output 2.1.2: Capacities of institutions are strengthened to promote the adoption of more integrated and cross-sectoral practices that sustainably increase production, address climate change and environmental degradation); and Strategic Objective 4: Enable more inclusive and efficient agriculture and food production systems (Output 4.3.1: Value chain actors equipped with technical and managerial capacities to develop inclusive, efficient and sustainable agrifood value chains). § Country Outcomes: Outcome 1: China aims to ensure early positive results in sustainable agriculture development by 2020 and notable progress in sustainable agriculture development by 2030; and Outcome 2: Lifting all Chinese rural poor people out of poverty and eliminate malnutrition by 2020. § Country Programming Framework Outputs: Output 1.1: Introduction and adoption of innovative approaches and best practices in global agriculture development, such as agro-ecology, nutrition-sensitive agriculture, ICT, facilitated and strengthened to contribute to sustainable agricultural development in China; Output 1.2: Biodiversity conservation and development interventions supported to revitalize key forest, water and wetland agro- ecosystems in the country; and Output 1.3: Agriculture climate adaptation and mitigation measures implemented to improve agriculture resilience to climate change. Output 2.1: Decision-making, partnership-building and rural livelihoods improved and enhanced through provision of policy advice, engagement of private sector, support to rural organizations, and empowerment of poor and vulnerable smallholders to support inclusive pro-poor development in rural and peri-urban areas of China. § FAO Strategy on Mainstreaming Biodiversity across Agricultural Sectors: Goal 3: Promote sustainable agriculture and food systems that integrate the conservation, recognition and promotion of biodiversity throughout value chains. § Regional Initiative/Priority Area: (i) Regional Initiative on Zero Hunger through promotion of sustainable transformation of food and agriculture systems to end poverty and malnutrition, sub-area 1. Inclusive and sustainable transformation of agricultural and food systems and 4. Inclusive value chains and food loss and waste; and (ii) Regional Initiative on Climate Change and enhancement of sustainable management and use of natural resources, sub-area 8. Land restoration, including sustainable forest management, sustainable land and soil management, and biodiversity conservation.

1 Project Budget (GEF): $7,179,450 Co-financing: $56,500,000 Total Project Budget: $63,679,450 Executive Summary

This project is one of two sub-projects of the GEF-7 Food Systems, Land Use and Restoration Impact Program (FOLUR IP) child project in China, entitled “Innovative transformation of China’s food production systems and agro-ecological landscapes towards sustainability”. The other sub-project is a World Bank project in Hubei Province, “Hubei Smart and Sustainable Agriculture Project”. FAO is the Lead Agency and World Bank the Co-Implementing Agency of the GEF- 7 child project in China. This project document covers the FAO-MARA sub-project; a separate Project Appraisal Document (PAD) has been prepared for the World Bank-Hubei sub-project. A joint CEO Endorsement Request has also been prepared. The coordination mechanisms between the two sub-projects are outlined in section 61 of this project document, and in the joint CEO Endorsement Request.

The project aims to support the innovative transformation of China’s agro-landscapes and agri-food value chains towards environmental and ecological sustainability at scale in support of the 2030 Sustainable Development Goals (SDGs), Rural Revitalization, and climate resilience.

The project is divided into four components as follows: Component 1. Development of integrated landscape management (ILM) systems in agricultural landscapes. Component 2. Promotion of sustainable food production practices and responsible agri-food value chains for the staple crops of rice, wheat and maize. Component 3. Conservation and restoration of agroecosystems and biodiversity. Component 4. Project coordination, knowledge management and monitoring & evaluation (M&E).

This FAO-MARA sub-project will aim to achieve improved practices in 450,000 ha and restore 80,000 ha of ecosystems in agricultural landscapes in , , and Provinces, with a focus on the major staple crops of rice, wheat, and maize. This will lead to benefits in the areas of biodiversity, climate change, and land degradation; and will also generate important socio-economic benefits. As such, the project directly contributes to China’s National Plan for Sustainable Development of Agriculture and its Strategy for Rural Revitalization. The project will also aim to support provincial and national upscaling and replication.

In line with the FOLUR Impact Program’s strategy, the project will strengthen capacity for cross-sectoral, integrated landscape-level planning, innovative technologies, financing and market mechanisms that support a shift towards more sustainable agricultural value chains. The project is expected to have a large-scale transformational impact on food systems in the target landscapes and beyond, by targeting a transformation of the intensified agriculture sector (notably rice, wheat, and maize), and by supporting integrated production systems and restoration of degraded land, and value chains. This will result in reduced GHG emissions and nutrient runoff, and improved biodiversity and ecosystem services. The project will also have positive impacts on rural livelihoods, in particular for women.

The project will be executed by MARA in close collaboration with the Provincial Departments of Agriculture and Rural Affairs and County Agriculture Bureaus, and will engage stakeholders from government, academia, private sector, civil society, and local communities.

1 Section 6. Institutional Arrangements and Coordination, sub-section on Technical Advisory and Coordination Committee.

2 Table of Contents

PART I: PROJECT INFORMATION ...... 7 A. Focal/Non-Focal Area Elements ...... 7 B. Project description summary ...... 7 C. Confirmed sources of Co-financing for the project by name and by type ...... 10 D. Trust Fund Resources Requested by Agency(ies), Country(ies), Focal Area and the Programming of Funds ...... 11 E. Does the project include a “non-grant” instrument? ...... 11 F. Project’s Target Contributions to GEF 7 Core Indicators ...... 12

PART II: PROJECT JUSTIFICATION ...... 13 1.a Project Description ...... 13 1) Global environmental and/or adaptation problems, root causes and barriers that need to be addressed (systems description) ...... 13 2) Baseline scenario and any associated baseline projects ...... 27 3) Proposed alternative scenario with a brief description of expected outcomes and components of the project and the project’s Theory of Change ...... 41 4) Alignment with GEF focal area and/or Impact Program strategies ...... 54 5) Incremental/additional cost reasoning and expected contributions from the baseline, the GEFTF, and co- financing ...... 55 6) Global environmental benefits (GEFTF) ...... 58 7) Innovativeness, sustainability, potential for scaling up and capacity development ...... 61 8) Summary of changes in alignment with the project design with the original project concept at PFD stage ...... 63 1.b Project Map and Geo-Coordinates...... 66 1c. Child Project ...... 67 2. Stakeholders ...... 68 3. Gender Equality and Women’s Empowerment...... 69 4. Private Sector Engagement...... 70 5. Risks...... 73 Section A: Risks to the project ...... 74 Section B: Environmental and Social risks from the project – ESM Plan ...... 81 6. Institutional Arrangements and Coordination...... 83 6.a Institutional arrangements for project implementation...... 83 6.b Coordination with other relevant GEF-financed projects and other initiatives...... 87 7. Consistency with National Priorities ...... 91 8. Knowledge Management ...... 94 9. Monitoring and Evaluation ...... 96 10. Benefits ...... 99

PART III: ANNEXES ...... 101 Annex A1: Project Results Framework ...... 101 Annex A2: Project Budget ...... 109

3 Annex B: Response to Project Reviews ...... 110 Annex C: Status of Utilization of Project Preparation Grant (PPG) ...... 112 Annex D: Calendar of Expected Reflows (if non-grant instrument is used) ...... 112 Annex E: Project Map(s) and Coordinates ...... 113 Annex F: GEF TF Core Indicator Worksheet ...... 121 Annex G: GEF Project Taxonomy Worksheet ...... 123 Annex H: Work Plan ...... 124 Annex I1: Environmental and Social Risk Certification ...... 133 Annex I2: Stakeholder Engagement Matrix and Grievance Redress Mechanism ...... 135 Grievance Redress Mechanism ...... 143 Annex J: Ethnic Minorities ...... 146 Annex K: FAO’s Roles in Internal Organization ...... 146 Annex L: FAO and Government Obligations ...... 150 Annex L1: Terms of Reference of PMU staff ...... 151

PART IV: ADDITIONAL ANNEXES ...... 156 Annex M: Co-financing letters ...... 156 Annex N: Gender Analysis and Action Plan ...... 156 Annex O: Integrated Pest Management Plan ...... 156 Annex P: Capacity Development Report ...... 156 Annex Q: EX-ACT calculation sheet ...... 156

4 Acronyms

Acronym Description ADB Asian Development Bank AFOLU Agriculture, forestry, and other land use AWP/B Annual Work Plan and Budget BH Budget Holder (FAO) CAAS Chinese Academy of Agricultural Sciences CAS Chinese Academy of Sciences CNY Chinese yuan CTA Chief Technical Advisor CWR Crop Wild Relatives DARA Department of Agriculture and Rural Affairs (provincial level) DIC Department of International Cooperation (of MARA) DSTE Department of Science, Technology and Education (of MARA) FAO Food and Agriculture Organization of the United Nations FE Final Evaluation FFS Farmer Field School FLO Funding Liaison Officer (FAO-GEF Coordination Unit) FPIC Free, Prior and Informed Consent GAP Good Agricultural Practices GCF Green Climate Fund GEF Global Environment Facility GIZ German Agency for International Cooperation GIAHS Globally Important Agricultural Heritage System Ha Hectare IFAD International Fund for Agricultural Development IPM Integrated Pest Management IRRI International Rice Research Institute KM Knowledge Management LOA Letter of Agreement LTO Lead Technical Officer (FAO) M&E Monitoring and Evaluation MARA Ministry of Agriculture and Rural Affairs MEE Ministry of Ecology and Environment MNR Ministry of Natural Resources MTR Mid-term Review NBSAP National Biodiversity Strategy and Action Plan NGO Non-Governmental Organization NIAHS Nationally Important Agricultural Heritage System NPD National Project Director NPM National Project Manager NPMO National Project Management Office OP Operational Partner OPIM Operational Partners Implementation Modality PFD Program Framework Document PIR Project Implementation Report POP Persistent Organic Pollutants PPG Project Preparation Grant

5 PPR Project Progress Report PRC People’s Republic of China PSC Project Steering Committee REEA Rural Energy and Environment Agency (MARA) SDG Sustainable Development Goal SME Small and Medium Enterprise STAP Scientific Technical Advisory Panel (GEF) TACC Technical Advisory and Coordination Committee TE Terminal Evaluation TOR Terms of Reference TOT Training of Trainers UNCCD United Nations Convention to Combat Desertification UNDP United Nations Development Program UNFCCC United Nations Framework Convention on Climate Change USD United States Dollar WB World Bank WRI World Resources Institute

6 PART I: PROJECT INFORMATION

Note: This project document, including the following section, covers only the information relevant to the FAO-MARA sub-project. Information related to both sub-projects (FAO-MARA and World Bank-Hubei) is included in the joint CEO Endorsement Request.

Project Title: Innovative transformation of China’s food production systems and agro-ecological landscapes towards sustainability (FAO-MARA sub-project) Country(ies): China GEF Project ID: 10246 GEF Agency(ies): FAO GEF Agency Project ID: 658820 Project Executing Ministry of Agriculture and Rural Submission Date Entity(s): Affairs (MARA) GEF Focal Area (s): Multi-focal Areas Expected Implementation Start 30 Sep 2020 Expected Completion Date 30 Jun 2026 Name of Parent Food Systems, Land Use and Parent Program ID: 10201 Program Restoration (FOLUR) Impact Program

A. FOCAL/NON-FOCAL AREA ELEMENTS (in $) Programming Trust GEF Confirmed Focal Area Objective Directions Fund Project Co- Financing financing FOLU IP Transformation of food systems through sustainable GEFTF 7,179,450 56,500,000 production, reduced deforestation from commodity supply chains, and increased landscape restoration. Total project costs 7,179,450 56,500,000

B. PROJECT DESCRIPTION SUMMARY Project Objective: To support the innovative transformation of China’s agro-landscapes and agri-food value chains towards environmental and ecological sustainability at scale in support of the 2030 Sustainable Development Goals (SDGs), Rural Revitalization, and climate resilience. Com (in $) Project pone Trust Co- Components/ Project Outcomes Project Outputs GEF nt Fund financing Programs Project Type Financing 1. Development TA Outcome 1.1: Output 1.1.1 GEFTF 1,320,875 10,000,000 of integrated Strengthened ILM Food and land use landscape policies, plans and collaboration mechanisms management capacities that promote established or existing (ILM) systems participatory planning mechanisms strengthened in agricultural and enable national and at national and provincial landscapes provincial institutions level. across agricultural landscapes to meet Output 1.1.2 their relevant County-level ILM and sustainable agriculture, restoration plans rural revitalization, developed and land restoration and implemented in a related climate and participatory process biodiversity targets. bringing together public and private sectors and Indicators: supporting cross-sectoral • Number of county- planning and scaling up, level ILM and ensuring participation of restoration plans in women. place • Area under improved Output 1.1.3 management plans Gender-sensitive capacity building implemented for

7 • Number of decision- decision makers and makers and technical technical staff of the local staff of national, government on sustainable provincial and local integrated land and water governments with resources management, increased capacity to sustainable agriculture, apply ILM biodiversity conservation • Number of new or and restoration. improved monitoring systems in place and Output 1.1.4 operational beyond Monitoring systems for project sustainable food systems • Number of improved and land use established policies drafted and (or existing systems recommended for improved) and adoption implemented.

Output 1.1.5 Innovative national and provincial policies drafted and recommended for Outcome 1.2: adoption to support Innovative payment for sustainable food systems agro-ecological and land use. services incentive mechanisms in place Output 1.2.1 for sustainable, safe, Analysis of payment for and smart agri-food agro-ecological services systems. mechanisms conducted and national/provincial Indicators: policy reform on payment • Number of for agriculture supported, improved/newly in order to strengthen established payment biodiversity in agro- for agro-ecological production system and services incentive sustainability of land and mechanisms soil resources. 2. Promotion of INV Outcome 2.1: Output 2.1.1 GEFTF 2,862,125 27,840,000 sustainable food Sustainable agricultural Sustainable and Climate production practices deployed and Smart Agriculture (CSA) practices and scaled up that enhance implemented and scaled responsible agri- ecological functions, up to promote carbon food value improve soil quality sequestration and emission chains for the and fertility, mitigate reduction; demonstrate staple crops of GHG emissions and effective soil and water rice, wheat and establish resilient management; and maize agricultural production optimize the agricultural models. environment.3

Indicators: Output 2.1.3 • Number of newly Innovations to reduce the developed or use and discharge of improved standards chemical fertilizers and • Area under improved pesticides implemented, practices/GAP such as precision • Number of newly agriculture, soil testing, developed or integrated pest improved standards management (IPM), • Carbon sequestered ecological interception or emissions avoided

3 Note: Output 2.1.2 (on climate-smart livestock) applies to World Bank-Hubei sub-project only.

8 • Chemical fertilizer systems, and digital and pesticide technologies. reduction • Soil organic matter Output 2.1.4 content Strengthened high- • Average yield per standard ecological hectare farmland construction implemented according to national standards (such as land levelling, improved irrigation and drainage, and improved field road accessibility).

Output 2.2.1 Outcome 2.2: Capacity and awareness Responsible, market- developed among farmers oriented agricultural (especially women), value chains extension service implemented and providers, enterprises and scaled up, including cooperatives on through government- sustainable production and private enterprise- agricultural value chains. farmer cooperative partnerships and Output 2.2.2 capacity building. Innovative market linkages and access to Indicators: finance developed (in • Number of person- particular, for women time (women and farmers) in support of men) trained sustainable agricultural • Increased farmer value chains. incomes from project supported agri-food Output 2.2.3 value chains2 Government-private (disaggregated by enterprise-farmer gender) cooperative partnerships • Number of green/ established (or existing organic agri-food partnerships strengthened) brands certified and investments made to • Number of farmer support scaling up of cooperatives with sustainable value chains increased capacity to and financing from input support responsible supply, to production, to value chains processing and marketing. 3. Conservation TA / Outcome 3.1: Output 3.1.1 GEFTF 1,107,125 10,500,000 and restoration INV Enhanced conservation Interventions implemented of and restoration of and scaled up to maintain agroecosystems agroecosystems and and increase biodiversity and biodiversity biodiversity. in production systems.

Indicators: Output 3.1.2 • Species and Ecological restoration/ ecosystems rehabilitation implemented indicators and scaled up (e.g., • Carbon sequestered through revegetation of or emissions avoided slopes, ecological • Area of upland and corridors, trees on farm, farmland surrounding vegetation buffers, ecosystems under hedgerows, nutrient

2 Such as from yield increase, crop diversification, and agri-food value chain development.

9 ecological interception) to enhance restoration/ ecological functions of rehabilitation farmland boundaries and surrounding ecosystems.4 4. Project TA Outcome 4.1: Output 4.1.1 GEFTF 1,566,140 5,494,000 coordination, Effective project Project coordination, knowledge coordination, monitoring and evaluation, management knowledge and reporting, as well as and M&E management/informati coordination with and on exchange and M&E. participation in global Impact Program (IP) Indicators: events and activities, • Number of conducted. information dissemination Output 4.1.2 platforms established Establish diversified (or existing platforms information dissemination improved) and platforms/mechanisms to operational share project • Number of people achievements, knowledge, reached by experiences, and expand information environmental and social dissemination and influence to support knowledge exchange scaling and replication.

Output 4.1.3 Knowledge effectively created and shared through national and provincial platforms, exchange visits, and global platforms such as the One Planet Network Sustainable Food Systems Programme to support replication at the global, regional, national and provincial levels. Subtotal 6,856,265 53,834,000 Project Management Cost (PMC) GEFTF 323,185 2,666,000 Total project costs 7,179,450 56,500,000 For multi-trust fund projects, provide the total amount of PMC in Table B, and indicate the split of PMC among the different trust funds here: ( )

C. CONFIRMED SOURCES OF CO-FINANCING FOR THE PROJECT BY NAME AND BY TYPE Please include evidence for co-financing for the project with this form. Sources of Co- Type of Co- Investment Name of Co-financier Amount ($) financing financing Mobilized Recipient Country Ministry of Agriculture and Rural Affairs In-kind Recurrent 6,000,000 Government expenditures Recipient Country Shandong Provincial and In-kind Recurrent 10,000,000 Government Governments expenditures Recipient Country Jiangsu Provincial and District Governments In-kind Recurrent 10,000,000 Government expenditures Recipient Country Jiangxi Provincial and District Governments In-kind Recurrent 10,000,000 Government expenditures Recipient Country Guizhou Provincial and District Governments In-kind Recurrent 10,000,000 Government expenditures GEF Agency Food and Agriculture Organization (FAO) In-kind Recurrent 300,000 expenditures

4 Note: Output 3.1.3 (on agroforestry) applies to World Bank-Hubei sub-project only.

10 Private Sector Hengcheng Agricultural Grant Investment 400,000 Development Co., Ltd. mobilized Private Sector Nanjing Junsheng Ecological Agriculture Co., Grant Investment 400,000 Ltd. mobilized Private Sector Nanjing Tianwei Agricultural Technology Grant Investment 400,000 Co., Ltd. mobilized Private Sector Taicang City Donglin Village Farm Grant Investment 1,200,000 Professional Cooperative mobilized Private Sector Fenyi Huayong Agricultural Machinery Grant Investment 200,000 Specialized Cooperative mobilized Private Sector Fenyi Qunyuan Agriculture and Animal Grant Investment 200,000 Husbandry Development Co., Ltd. mobilized Private Sector Fenyi Quanfeng Breeding Professional Grant Investment 200,000 Cooperative mobilized Private Sector Fenyi Guigen Grain Planting Professional Grant Investment 200,000 Cooperative mobilized Private Sector Jiangxi Jiafu Agricultural Technology Co., Grant Investment 400,000 Ltd. mobilized Private Sector Jiangxi Zhenghe Ecological Agriculture Co., Grant Investment 1,200,000 Ltd. mobilized Private Sector Chenggang Road Weisong Plant Grant Investment 1,200,000 Protection Professional Cooperative mobilized Private Sector Shandong Changrun Ecological Agriculture Grant Investment 1,200,000 Co., Ltd. mobilized Private Sector Guizhou Rongjiangshan Agricultural Grant Investment 1,000,000 Development Co., Ltd mobilized Private Sector Guizhou Yueliangshan Agriculture Co., Ltd. Grant Investment 1,000,000 mobilized Private Sector Guizhou Liping Dongxiang Rice Production Grant Investment 1,000,000 Co., Ltd. mobilized Total Co-financing 56,500,000

Describe how any “Investment Mobilized” was identified. The investment mobilized was identified during the project formulation (September 2019-May 2020) through consultations with partners and key stakeholders. It includes, namely, USD 10.2 million in financing from local agricultural producers and agri-food enterprises in the four provinces. This amount does not include any recurrent expenditures.

D. TRUST FUND RESOURCES REQUESTED BY AGENCY(IES), COUNTRY(IES), FOCAL AREA AND THE PROGRAMMING OF FUNDS (in $) Country GEF Trust Programming of GEF Name/ Focal Area Agency Fund Funds Project Agency Total Global Financing Fee (b) (c)=a+b (a) FAO GEF TF China Biodiversity (select as applicable) 1,914,520 172,307 2,086,827 FAO GEF TF China Climate Change (select as applicable) 2,393,150 215,383 2,608,533 FAO GEF TF China Land Degradation (select as applicable) 478,630 43,077 521,707 FAO GEF TF China Multifocal Area IP FOLU 2,393,150 215,383 2,608,533 Total GEF Resources 7,179,450 646,150 7,825,600

E. DOES THE PROJECT INCLUDE A “NON-GRANT” INSTRUMENT? No (If non-grant instruments are used, provide in Annex D an indicative calendar of expected reflows to your Agency and to the GEF/LDCF/SCCF Trust Fund). N/A

11 F. PROJECT’S TARGET CONTRIBUTIONS TO GEF 7 CORE INDICATORS Update the relevant sub-indicator values for this project using the methodologies indicated in the Core Indicator Worksheet provided in Annex F and aggregating them in the table below. Progress in programming against these targets is updated at mid-term evaluation and at terminal evaluation. Achieved targets will be aggregated and reported any time during the replenishment period. There is no need to complete this table for climate adaptation projects financed solely through LDCF and SCCF. Project Core Indicators Expected at CEO Endorsement 3 Area of land restored (Hectares) 80,000 4 Area of landscapes under improved practices (excluding protected 450,000 areas) (Hectares) Total area under improved management (Hectares) 530,000 6 Greenhouse Gas Emissions Mitigated (metric tons of CO2e) 6,020,000 (4.82 million direct, 1.2 million indirect) 9 Reduction, disposal/destruction, phase out, elimination and avoidance (see footnote)5 of chemicals of global concern and their waste in the environment and in processes, materials and products (metric tons of toxic chemicals reduced) 11 Number of direct beneficiaries disaggregated by gender as co-benefit 250,000 (50% women) of GEF investment Provide additional explanation on targets, other methodologies used, and other focal area specifics (i.e., Aichi targets in BD) including justification where core indicator targets are not provided.

5 Through the implementation of the Integrated Pest Management Plan, it is expected that the project will result in a reduction in the use of highly hazardous pesticides (HHPs), namely Isocarbophos, Omethoate and Carbosulfan, in particular in of Jiangxi. The project will also support a reduction in the use of chemical pesticides more generally, as well as improved management of discarded pesticides and pesticide containers. These chemicals do not classify as persistent organic pollutants (POPs) and are, thus, not captured under Sub-Indicator 9.1 of Core Indicator 9. The project will, however, contribute to Sub-Indicator 9.5, Number of low-chemical/non- chemical systems implemented particularly in food production, manufacturing and cities (see Core Indicator worksheet).

12 PART II: PROJECT JUSTIFICATION

1.a Project Description

1) Global environmental and/or adaptation problems, root causes and barriers that need to be addressed (systems description)

Global environmental problem China’s agriculture has undergone rapid transformation over the past four decades. Through institutional and market reforms as well as technological advances, China has been able to meet almost all of its own food demand primarily through increased domestic agricultural production in recent decades. China’s agricultural production has grown by nearly 5% per year since the late 1970s, and total factor productivity growth has accounted for around half of this expansion. This has enabled China to feed nearly 20% of the world’s population with only 5% of the world’s freshwater and 8% of global arable land. China is the world’s largest producer of rice and wheat, accounting for 30% of the world’s rice and 17.5% of the world’s wheat production. China is also the world’s second largest producer of maize.

Growing agricultural outputs and off-farm employment have led to a sharp decline in rural poverty.6 Despite this transformation, small-scale farms are still largely dominant in Chinese agriculture. Over 250 million households with an average land size of 0.6 hectares contribute the majority of crop output. Nevertheless, some land consolidation has taken place and several forms of larger-scale farming operations have emerged, such as large-scale family farms, farmer cooperatives and agribusinesses.7 Current agricultural production in China is highly commercialized.

China, one of the 17 megadiverse countries in the world, has rich genetic resources and is recognised as one of the centres of origin of many important agricultural crops such as rice and soybean, as well as a key centre of origin of wild and cultivated fruit trees. There are at least 1,339 cultivated crops and 1,930 wild relatives in China, as well as 567 species of domesticated animals. 8 Eleven globally important crops, including rice, wheat, soybean, millet, yam, buckwheat, tea, apple and pear, have native wild relatives in China. Southern and southwest China in particular have been identified as areas of high diversity in both crop wild relatives and local landraces.9

China’s agricultural regions are highly diverse. Historically, the area south of the River has been dominated by rice farming, while the area north of the Yangtze has cultivated wheat. The National Sustainable Agricultural Development Plan (2015-2030) divides China into three distinct zones: 1) the Optimized Developing Area, which includes the Northeast, the Huang-Huai-Hai region, the Yangtze River area and South China, the main area for agricultural production; 2) the Moderate Developing Area, which includes the northwest, southwest and regions along with the Great Wall, an area with distinctive features of agricultural production but limited resources and environmental capacity; and 3) the Protected Developing Area, which includes the Qinghai Tibet region, Tibet, and marine fishery areas, with special strategic importance in ecological protection.

The total area of cultivated land in China was maintained at about 137-139 million ha between 2011-2015. The reduction of cultivated land area due to urban development, disaster damage, and ecological restoration of

6 Huang, J. and Rozelle, S. (2018). China’s 40 years of agricultural development and reform. 7 Wilkes, A. and Zhang, L. (2016). Stepping stones towards sustainable agriculture in China: an overview of challenges, policies and responses. IIED, London. 8 China National Biodiversity Conservation Strategy and Action Plan (NBSAP) (2011-2030). 9 Wilkes and Zhang (2016).

13 farmland has been mostly offset by measures to increase cultivated land, such as land treatment and agricultural structure adjustment.10

As in other parts of the world, however, the rapid development of China’s modern agriculture, especially the development of intensive agriculture and its focus on high input and high yield, has led to a number of environmental challenges.

GHG emissions. China’s agriculture is a major emitter of greenhouse gases, accounting for about 14% of global agriculture related GHG emissions. The nitrogen fertilization emissions accounts for 30% of the total agriculture GHG emissions, followed by livestock production (27%), energy use (20%), and rice production (13%). The excessive use of synthetic fertilizers with low nitrogen use efficiency and the rapid expansion of livestock production with inadequate livestock waste management are the two key sources of China’s agricultural greenhouse gas emissions. Farm sector energy inefficiencies and the use of carbon-intensive fuels have exacerbated the problem of significant greenhouse gas emissions in the food supply chain. Total GHG emissions from the food system, from production to consumption, are estimated to represent about 20-25% of China’s total national emissions or 4-5% of total global emissions. 11 According to China’s Third National Communication to the UNFCCC in December 2018, the agriculture sector emits an estimated 828 million tons of CO2 equivalent (CO2e), or 7.9% of China’s total emissions. This includes emissions of methane and nitrous oxide from agricultural soils, livestock enteric fermentation, rice cultivation, manure management, and field burning of agricultural residues.12 Synthetic fertilizers, enteric fermentation and rice cultivation are the three leading sources of agricultural GHG emissions in China. Additionally, soil organic carbon (SOC) in the typical cropland of China is about 30% lower than the world average (World Bank, 2019). Overall, nutrient use efficiencies in China for wheat, rice and maize are significantly lower than in developed countries.13

Figure 1: GHG emissions by sector (Source: FAOSTAT)

Land and environmental degradation. The high-yield-oriented intensive agricultural production results in high and wasteful resource consumption, environmental degradation, serious land degradation, and poor ecological service functions. Unsustainable agricultural practices in China have led to the degradation of soils, including soil erosion, compaction, acidification and salinization, and a decline in organic matter. Rapid

10 China’s Final National Report of the Voluntary Land Degradation Neutrality (LDN) Target Setting Programme, 2017. 11 Garnett and Wilkes (2014). 12 The People’s Republic of China, Third National Communication on Climate Change, 2018. 13 Garnett and Wilkes (2014).

14 urbanization and industrialization have led to the changes in land use, the disappearing of relatively fertile farmland and the reclamation of ecologically fragile marginal land including the reclamation of lakes and wetlands. The excessive use of chemical fertilizers and pesticides have caused soil and water pollution and adverse impacts on human health. Over 1.8 million tons of agricultural pesticides are used every year in China, with an effective utilization rate of only about 37%, compared to up to 60-70% in developed countries.14 This has not only resulted in soil and water pollution, but is also impacting surrounding and downstream ecosystems, in particular rivers, lakes and the Pacific Ocean, affecting water quality and food safety. Improper disposal of pesticide packaging waste and plastic film further leads to environmental pollution. In addition, cropland is affected by heavy metal pollution from mining and other industries. As the largest user of water resources in China, agriculture has also led to the depletion of groundwater and falling water tables, further aggravating trends of land degradation and desertification.

Decline in farmland biodiversity and ecosystem services. High-intensity fertilizer and pesticide inputs, single planting, and industrialized farmland construction have resulted in the loss of farmland natural habitat, a decline in farmland biodiversity (such as plants, birds, arthropods, soil microbes, natural enemies, and buffer vegetation), and the weakening of agricultural system stability and buffer capacity. This has led to more frequent floods and droughts, soil erosion, and increased occurrence of crop diseases and pests’ outbreaks. A number of wildlife species, including globally significant avian species, have become dependent on farmland habitats, and the heavy use of pesticides puts their habitat at risk both within and downstream of agricultural land. 15 Agrobiodiversity is being eroded due to the rapid adoption of commercial crop varieties. As highlighted in China’s NBSAP (2011), the habitats of some wild crop relatives have been lost, and up to 70% of the original distribution sites of wild rice have disappeared or diminished.

Climate change impacts. China’s agricultural production systems are highly vulnerable to climate change impacts. According to China’s Third National Communication to the UNFCCC (2018), climate change is already significantly impacting agricultural production in China, most notably through the occurrence, development and damage caused by disease and pests, and by affecting the growth, development and yield of crops. In terms of anticipated future climate change impacts, the report notes:

Future climate change will further shorten crop growing periods. (…) Future climate warming will increase the frequency, affected area and damage caused by most types of disease and insect pests in China. According to projections, pest insects will migrate northward in spring earlier and southward later, and reach a larger spatial extent. Occurrence of pests will be more frequent. (…) If temperature increased by 1.5°C, wheat and rice yield would increase by 1.2% and 0.7% respectively. If temperature increases by 2.0°C, wheat and rice will experience adverse impacts and yields will decrease by 0.9% and 2.4%, respectively.16

Summer and autumn droughts, extreme temperatures, as well as floods, are becoming more frequent, leading to reduced output of major food crops by negatively affecting germination, flowering and pollination. Studies predict that due to climate change, the rice sowing period will be starting later while the growth period will be shortened. 17 During the 12th Five-Year Plan period, China invested 0.3 trillion yuan for climate change adaptation measures in the agricultural sector, such as water-saving irrigation, dry farming, soil moisture conservation, and conservation tillage.18 Nonetheless, capacity among farmers and local institutions to prepare

14 PAN, Xing-lu et al. (2019). Progress of the discovery, application, and control technologies of chemical pesticides in China. Journal of Integrative Agriculture. 18. 840-853. https://doi.org/10.1016/S2095-3119(18)61929-X. 15 Li et al. (2020). A farmland biodiversity strategy is needed for China. Nature Ecology and Evolution. https://doi.org/10.1038/s41559- 020-1161-2. 16 Third National Communication on Climate Change, 2018. 17 Jun Ma et al. (2019). Impact of Climate Change on the Growth of Typical Crops in Karst Areas: A Case Study of Guizhou Province. https://doi.org/10.1155/2019/1401402. 18 Third National Communication on Climate Change, 2018.

15 for and adapt to these changes, such as through drought- or flood-tolerant varieties, water management, or diversification of production systems, is still low.

Rising incomes and food consumption. Rapid urbanization in China has led to the loss of arable land. The migration of rural labour force to cities, in particular young men, has resulted in labour shortages, high labour cost, and abandonment of cultivated land in rural areas.19 Farmers generate more income from non-agricultural wages and land transfers than from the agricultural business itself.20 China’s population is estimated to peak at 1.44 billion in 2029, which represents an increase by 40 million by 2029. Demand for food is, thus, also expected to increase. With a rapidly rising middle class, meat and dairy consumption will rise further, likely resulting in increased resource use and GHG emissions from agriculture and livestock sectors. On the other hand, increasing consumer awareness has led to growing demand for “cleaner and greener” quality food, and food safety has become an issue of public concern in China in recent years.21 Agriculture in China has witnessed a general trend towards larger-scale production and land consolidation. As a result, there has been a sharp increase in various types of business entities such as cooperatives, households operating in scale, and family farms over the past few years.

Target provinces and counties The FAO-MARA sub-project will be implemented in four key agricultural , as well as at the national level. The target provinces include Shandong and Jiangsu in eastern-coastal China, Jiangxi in the southeast and Guizhou in the southwest. Two to four counties were selected in each province for implementation of project activities. The target provinces and counties were selected during project identification and preparation based on a set of criteria agreed by the key project partners. In line with the FOLUR Impact Program strategy, the selected target provinces are major areas for staple crops (rice, wheat and maize), with important negative externalities of the agricultural production system. They also present high potential and capacity to address these negative externalities and, thereby, generate global environmental benefits. They are important strategic areas for the country’s rural revitalization, green agriculture development and innovation goals in line with China’s national priorities. Furthermore, the leadership of the provinces, and presence of co-financing from the public and private sector, were also taken into account. The four provinces represent different agro- ecological systems within China, thereby allowing to generate lessons for different agro-ecological regions in the country. Additional counties may be added during implementation. The target areas are summarized below.

Province / County Core Indicator 4 target area – Core Indicator 3 target area – improved practices restoration Shandong 145,000 hectares 20,000 hectares 1. Qihe City 2. Laizhou City 3. City 4. Qingyun City Jiangsu 115,000 hectares 20,000 hectares 5. Taicang City 6. Liuhe City 7. Jiangning District 8. Huaiyin District Jiangxi 80,000 hectares 20,000 hectares 9. Fenyi County 10. Yushui County Guizhou 110,000 hectares 20,000 hectares 11.

19 Although, based on the socio-economic analysis in the target provinces, more recent trends show that, due to the slowing of economic development in urban areas, some young people choose to return to rural areas and resume farming activities. 20 Wang, H. et al. (2019). “Research on Farmers’ Willingness of Land Transfer Behavior Based on Food Security”, Sustainability 2019, 11(8), 2338. https://doi.org/10.3390/su11082338 21 Garnett and Wilkes (2014).

16 12. 13. Total area 450,000 hectares 80,000 hectares

Figure 2: Agro-ecological regions of GEF-7 target provinces (including Hubei)

As major staple crop producing areas, the four provinces have long been pursuing high agricultural productivity at the expense of biodiversity, the farmland environment and quality. Intensive agriculture and the overuse of chemical inputs have led to a decline in soil fertility, degradation of productive landscapes, and contamination of soil and water, the depletion of groundwater and falling water tables, loss of biodiversity and habitats, and decrease in agrobiodiversity. Agriculture is an important source of pollution of rivers and lakes, and GHG emissions. Representing different agro-ecological regions, the four provinces face similar threats and drivers and are representative of the main challenges that China needs to address in order to achieve a sustainable food production system and sustainable rural livelihoods. A holistic approach involving integrated planning, incentive systems, implementation of innovative, sustainable production practices, restoration and conservation is required in order to address the challenges that these provinces face.

The Huang-Huai- Basin, the midstream and downstream of the Yangtze River, and the source basin of Zhujiang River upstream, of which the four target provinces are part, have important strategic significance in the construction of ecological civilization and the sustainable protection of agricultural products in China.

Shandong. The main issue of intensive agriculture in Shandong is that long-term large-area single wheat-maize rotation has resulted in reduced biodiversity, frequent occurrence of pests and diseases increasing year by year, and increasing use of chemical pesticides, soil erosion, soil quality degradation, salinization and drought, as well as water shortages. The severe shortage of water resources is a key issue that constrains agricultural development in the region. The per capita water volume in the North China Plain is only 29% of the national average. Moreover, 5% of the land area in Shandong is affected by desertification; and 5.45% is affected by soil and water erosion.

Jiangsu. In recent years, the environmental problems of excessive application of chemical fertilizers such as nitrogen and phosphorus in this area have attracted many concerns, such as eutrophication of water bodies,

17 greenhouse gas emissions and soil acidification, biodiversity loss, and deterioration of farmland ecology. In addition, due to monocropping, winter rice fields are inundated for a long period of time, causing the soil layer to become hardened and shallow. Soil organic matter content is reduced, and physical and chemical properties are deteriorated. This has become a limiting factor for improving rice yields and enhancing the ecological service function of rice fields, which has seriously restricted the sustainable development of agriculture in the region.

Jiangxi. The province is affected by soil erosion, with almost 16% of the total land area affected. This is in part due to heavy rainfall leading to surface runoff. The problems of soil acidification, hardening, nutrient disequilibrium, and soil biodiversity decline, microbial diversity reduction, occur locally. In addition to crop farming, livestock and aquaculture are a source of agricultural non-point source pollution. Most forest areas in Jiangxi are secondary or artificial forests that are low in biodiversity.

Guizhou. The major issues of land and environmental degradation in Guizhou are biodiversity decline, soil fertility decrease, and nutrient losses of crop land, as well as water soil erosion of hill land (economic trees and/or fruit orchards). The province also experiences drought and abrupt drought-flood alternations in summer.22 The farmland is very small in size and spatially fragmented, leading to small operation scale of farmer households and low market competitiveness. Due to the modern intensive rice production system development for higher-yield, the landraces conservation and global important agricultural heritage face serious challenges.

Shandong has a total cropland area of 7.6 million hectares, of which around 4 million hectares of winter wheat- summer maize planting area. Jiangsu’s total cropland area is 4.6 million hectares, with 2.2 million hectares of winter wheat-summer rice rotation. Jiangxi, in turn, has 3 million hectares of cropland; with rice planting area of 3.5 million hectares23, mostly double-season rice or rice-rapeseed rotation. Guizhou has a total cultivated land area of 4.5 million hectares; its rice planting area is 700,000 hectares, and its maize planting area 1 million hectares. A description of the target provinces and selected counties, and the specific challenges they face with regard to the degradation of the natural environment as a result of targeted commodities production, can be found below.

Province Basic information Shandong Shandong lies within the North China Plain, also known as the Huang-Huai-Hai Plain. The area of cultivated land in the North China Plain is 23 million hectares and accounts for 18.9% cultivated land of the country. The area is semi-arid and semi-humid, and the thermal resources can meet the requirements of two-year planting. The main planting mode is the winter wheat-summer maize rotation, and peanuts, cotton, soybeans and rice are also widely planted in this area. The North China Plain has a long history of farming.

Shandong Province is located in the lower reaches of the (Huang He), and represents an important commodity grain base of China. Shandong has a population of 100.9 million and is the second most populous province in the country. It is among the most developed provinces in China. Shandong is the second largest wheat-producing province (after neighbouring Henan Province), accounting for 19% of national production. Shandong is also the second largest maize-producing province, with 10.4% of the total national maize production.

The territory of Shandong includes two parts: peninsula and inland. The mountains in the central part, the low-lying areas in the southwest and northwest, and the gentle hills in the East form a terrain of mountains and hills interlaced with plains. The climate of the province is warm temperate monsoon climate. Shandong has rich diversity of plant species, in

22 Jun Ma et al. (2019). 23 This number double-counts the area when several crops are grown each year (cropping area).

18 particular wild fungi and medicinal plants. It also hosts the rich estuarine wetland ecosystem of the Yellow River Delta, offering important habitat for migratory birds such as the vulnerable Swan Goose, White-naped Crane, as well as hawks and falcons. Shandong has a forest cover rate of 17.95%.

Laizhou City is a county-level city in Prefecture, located to the northwest of Jiaodong Peninsula24. The city covers an area of 192,700 hectares, of which 66,700 hectares are cultivated land, accounting for 34.6% of the total area. Laizhou has 43,000 hectares of wheat-maize rotation sections. The main challenges with regard to land and environmental degradation associated with wheat-maize rotation in Laizhou City are the large-scale use of chemical fertilizers and pesticides leading to soil and water pollution, inadequate agricultural practices causing soil compaction, and water shortages due to overexploitation of water resources. In addition, the single planting structure (monoculture) has led to poor agro-biodiversity and landscape diversity of farmland. Sustainable agriculture practices that have the potential to be scaled up are soil fertility cultivation, high standard farmland construction, fallow and crop rotation and reduced fertilizer and pesticide use.

Qihe County is located to the south end of Prefecture, facing across the Yellow River. The county covers an area of 141,100 hectares, including 84,000 hectares of cultivated land, accounting for 59.5% of the total area. The annual grain planting area of is 77,300 hectares, of which 74,900 hectares of wheat-maize rotation area. Similar to Laizhou City above, the main challenges in Qihe include overuse of fertilizers and pesticides, single planting structure leading to a decline in biodiversity, unsustainable use of water resources, and a lack of more sustainable technologies due to the small scale of farmer households and the lack of incentives for technological upgrading. Jiangsu Jiangsu is located in the lower reaches of the Yangtze River, on the east coast of China. The province has a population of 80.3 million and, like Shandong, ranks among the most developed provinces in China. The middle and lower reaches of the Yangtze River is one of the three major plains in China, with dense river networks, and numerous lakes. It is also the most developed area of China’s economy. The area is not only a region with the most abundant water resources in China, but also one that faces serious water pollution. The main planting modes are rice-rape, rice-wheat, single-season rice, wheat-maize, etc. It is known as the “land of fish and rice”.

Jiangsu Province is a typical region with two harvests each year for rice and wheat in China. It is the largest japonica rice production province in the south, and also the national high- quality weak gluten wheat production advantage area. Maize, peanut, rapeseed and a variety of miscellaneous grains as well as other special grain and economic crops are grown all over the province. The terrain is mainly plain, covering an area of 70,000 km2, accounting for 70% of the total area of the province, and the low mountains and hills account for 14.3%. The province has a transitional climate from temperate zone to subtropical zone.

Jiangsu has rich biodiversity, including 20 species of rare and endangered plants or key national protected plants. Jiangsu marine and coastal wetlands, in particular Yancheng Wetland, are a migration channel between East Asia and Australia. They provide an important breeding or wintering place for endangered birds such as Red-crowned Crane and Black-faced Spoonbill. Jiangsu has a forest cover rate of 22.9%.

Liuhe, the northernmost district of Nanjing City, is located in the lower reaches of the north shore of the Yangtze River. The district covers an area of 129,500 hectares, including 59,400 hectares of cultivated land, accounting for 45.9% of the total area. Around 22.46% of the agricultural land is affected by reduced soil quality and fertility. The main challenges

24 Between the Bohai Sea to the north and the Yellow Sea to the south.

19 with regard to land and environmental degradation associated with rice-wheat production in Liuhe include (1) excessive use of chemical fertilizers and pesticides leading to soil and water pollution and declining soil fertility; (2) single planting structure causing biodiversity decline; and (3) lack of suitable production techniques. In addition, the ageing of farmers and small, fragmented farmland pose challenges to the introduction of new technologies.

Taicang, a county-level city under the jurisdiction of Suzhou, is located on the South shore of the Yangtze River Estuary, bordering Shanghai to the south. The city covers an area of 81,000 hectares, including 25,300 hectares of cultivated land, accounting for 31.2% of the total area. The main challenges with regard to land and environmental degradation associated with rice-wheat production in Taicang are (1) the area of cultivated land is decreasing; (2) the fertility of farmland soil continues to decline; (3) excessive use of chemical fertilizers and pesticides. Jiangxi Jiangxi Province is an important water source in the Yangtze River and Zhujiang River Basins. Most of the province is located in the subtropical region, and the double-season rice cultivation is the main model. The province has a population of 46.5 million and ranks among the less developed provinces of China in terms of GDP.

The province is located in the southeast of China, to the South shore of the middle and lower reaches of the Yangtze River. The total area of the province is 166,900 km2. The province is surrounded by mountains on the southeast and west sides, with wide hills on the inner side and flat plain in the middle and north part. From the south to the north, it gradually inclines to Poyang Lake, forming a huge basin opening to the north. The province has a subtropical monsoon climate.

Jiangxi has rich biodiversity and forest resources, with a forest cover rate of 65%. It has numerous rare and threatened plant and animal species, including the black bear, white necked pheasant, yellow bellied pheasant, etc. The wetland of Poyang Lake, the largest freshwater lake in China (where FAO is implementing a GEF-5 project in collaboration with the Forestry Department of Jiangxi Province25), provides important wetland habitat for biodiversity, including migratory birds such as Swan and wild goose, and white crane.

Yushui District is one of two county-level divisions of City and is located to the west of the central section of Jiangxi Province, along the . It is part of the low mountain and hilly area. The district covers an area of 117,400 hectares, of which 28,800 hectares are the cultivated land, accounting for 24.5% of the total area. The main challenges with regard to land and environmental degradation associated with rice production in Yushui are the excessive use of chemical fertilizers and pesticides and soil erosion, acidification and compaction. Low yields and the low degree of mechanization pose challenges for farmers. In addition, the single planting structure leads to reduced agricultural biodiversity and increased occurrence of plant pests and diseases.

Fenyi County, the other division of Xinyu City, is located in the middle reaches of the Yuanhe River. It is a low mountain and hilly area. The county covers an area of 138,900 hectares, including 19,300 hectares of cultivated land, accounting for 13.9% of the total area. The main challenges with regard to land and environmental degradation associated with rice production in Fenyi include: (1) the cultivated land is seriously polluted and the quality is low due to overuse of chemicals and single planting; (2) the degree of agricultural scale management is low; (3) the frequency of extreme weather events is increasing; (4) the agricultural production is low. Guizhou Guizhou Province is a typical mountainous province of China rich in biodiversity, and it is also a region of ethnic cultural diversity. It has a population of 36 million; its GDP per

25 The “Piloting Provincial-level Wetland PA System in Jiangxi Province” project.

20 capita is among the lowest in China. Guizhou Province is very diverse in minority groups, with ethnic minority people representing approximately 30.7% of the total population. Guizhou is home to some of the largest primary forests remaining in Central China and provide habitat for many rare animal species. 61.9% of the area of Guizhou is karst landscape. The Guizhou Plateau has abundant mountainous areas, and is known as “eight mountains, one water and one field”. The landforms of the province can be summarized into four basic types of plateau, mountains, hills and basins, in which 92.5% of the area is mountains and hills. The climate in most parts of the province is mild, with no severe cold in winter, no extreme heat in summer, and four distinct seasons.

The project will involve the three counties of Liping, Rongjiang and Congjiang, located in Qiandongnan Miao and Dong . The counties are home to the Dong, Miao as well as other ethnic minority groups. Liping County has a total land area of 444,100 ha and a cultivated land area of 44,800 ha, of which 20,300 ha of single-cropping rice.

Rongjiang County has a total area of 329,600 ha, a cultivated land area of 23,100 ha, of which 10,793 ha of rice. Rongjiang county is a “national key ecological functional zone transfer payment county” and a “national ecological civilization demonstration county”.

The percentage of poor farmers is 1.26% in Guizhou Province, 14.26% in Rongjiang County, and as high as 77.12% in Liping County. Nevertheless, in recent years, Liping County has achieved significant results in poverty alleviation.

The main challenges with regard to land and environmental degradation associated with rice in the three target counties of Guizhou are farmland biodiversity decline, soil fertility decrease, and nutrient loss of cropland. Improper/excessive use of pesticides and herbicides is common due to a lack of knowledge and awareness among farmers of viable alternatives. Furthermore, due to a lack of technologies, land fragmentation and lack of knowledge and capacity to optimize water management, flooded rice production leads to significant GHG emissions. The rate of rice straw reutilization or incorporation into the soil is very low in the three counties compared to the provincial and national average (20% or lower). In addition, the counties face serious water and soil erosion of hill land where economic trees and/or orchards are planted. There is a need to reduce the use of chemical inputs in the cropland and increase vegetation cover of hilly land to conserve and restore land and biodiversity.

Target commodities Wheat. Wheat is the second most important food grain crop in China after rice. In Shandong and Jiangsu, wheat is grown as double cropping of winter wheat-summer maize and winter wheat-rice. Wheat production has been traditionally focused on increasing yields and reducing costs of production, and less on resources and environmental issues. The main environmental problems associated with wheat production in China are soil degradation, non-point source pollution and greenhouse gas emissions (GHGs) from high chemicals inputs, and unsustainable use of water resources. Additionally, intensive agricultural practices have led to a decline in farmland biodiversity, such as buffer vegetation that provides habitat for pollinators and natural enemies to pests, and a decline in diversity of crop varieties. In order to maintain or increase wheat yields in the future and curb environmental impacts, it is critical to improve crop management practices to enhance soil fertility and preserve soil and water resources.

China is virtually self-sufficient in the production of wheat, although overall being a net importer. The minimum purchase price of wheat is set by the Government on an annual basis. China Grain Reserves Group is responsible for the purchase of grain nationwide at minimum guaranteed prices, but farmers can also sell their grain directly to enterprises if the price is higher. Farmers do not have wheat processing capacity; they sell wheat to enterprises

21 by raw grain for flour processing and food processing. Certification agencies have standards for green/organic wheat and wheat flour. About 10-15% of wheat flour is green/organic certified, with green certification more common than organic. On the other hand, Good Agricultural Practices (GAP) standards for wheat production are not commonly applied by farmers. There is significant potential to introduce GAP and increase green/organic certification ratio in wheat production to address the environmental problems above. Wheat value can be improved by optimizing production management and processing, circulation and trade after harvest. As the value chain actors, the government, enterprises, cooperatives and farmers play an important role in building sustainable value chains.

Maize. Most of maize in China is produced for livestock feed, and maize represents the most important crop in China by total production. The consumption of maize as food has decreased sharply (representing about 10% of maize production), while utilization of maize as feed has risen rapidly.26 Maize has played an important role in the rapid development of the poultry and livestock industries in China. In Shandong and Jiangsu, maize is grown as double cropping of winter wheat-summer maize. In addition to its own production, China is the world’s largest importer of maize. The environmental impacts of maize production are similar to those mentioned above for wheat. Maize represents an important source of income for farmers due to the rapid increase in yield and market demand. Although the Chinese government ended the minimum price policy for maize in 2015, the scale of maize production is not expected to be affected. For maize value chain improvements, the project can promote new varieties and GAP to improve quality and efficiency. Fresh maize, in particular, has great development potential for GAP and green/organic certification, and the market price and benefits are high. Government technical extension organizations, enterprises, cooperatives and farmers play an important role as value chain actors.

Rice. Rice is the main food grain crop in China, and the major emitter of greenhouse gases in the cropping sector. In Jiangsu, Jiangxi and Guizhou, rice is grown as double-season rice, rice-wheat or rice-rapeseed, or single season rice with winter green manure or fallow. In rural areas of Guizhou, the rate of rice straw reutilization or incorporation into the soil is still low. Also, farmers often lack knowledge of improved management practices that would enable them to reduce the use of synthetic agricultural inputs, enhance the quality of soil and rice grain, increase yields, and reduce GHG emissions. The high use of chemicals and reduced vegetation in farmland and its boundaries lead to the pollution of streams and water bodies, a decline in farmland biodiversity and crop diversity, as well as degraded habitat and feeding place of wildlife such as birds and pollinators. Rice cultivation is one of the largest contributors to anthropogenic emissions of methane (CH4), the second most important greenhouse gas in the world. However, rice farmers have limited knowledge and awareness of CH4 mitigation. In some areas, in particular areas of rice-wheat cropping, the compaction of soil represents a serious challenge. Labour costs in rural areas are high, and despite the Government’s minimum price policy, farmers’ income from rice is low. Due to the high market demand, the potential to develop organic and high quality rice brands for the Chinese internal market is very high. Like for wheat and maize, China is a net importer of rice, but is also nearly self-sufficient in rice production.

Together, wheat, maize and rice represent the main food crops by total production, as shown in the graph below. Generally, wheat and maize are consumed more in the northern part of China, while rice is consumed more in the South.

26 Meng, et al. (2006). Maize in China: Production Systems, Constraints, and Research Priorities. CIMMYT.

22

Figure 3: Top 10 Commodities Production in China (FAOSTAT, 2018)

While there are also environmental impacts during processing and distribution of these staple crops, in particular GHG emissions from transportation, the production aspect is most relevant to the FOLUR objectives of reducing land degradation, mitigating GHG emissions, sequestering carbon, while protecting and restoring biodiversity and ecosystems.

Overview of target commodities in the GEF-7 target counties

Shandong Province The wheat and maize production in Qihe County is between 520,000-550,000 metric tons annually. About 30% of the production is consumed locally, about 40% is consumed in other regions of Shandong Province, and the other 30% is exported to other provinces. So far, there is no direct export to other countries. Individual farmers account for about 65% of agricultural production, and cooperatives or agricultural enterprises account for 35% (of which cooperative farmers account for about 75%). The average annual planting area of wheat in Laizhou County is about 43,000 hectares, and the yield is about 270,000 tons annually. About 40% is currently used for local consumption, about 10% is consumed in other places of Shandong Province, and the remaining 50% is processed into flour and sold to Heilongjiang, Jilin, Liaoning, Henan, , and . Laizhou wheat is currently not directly exported to other countries and regions. In Laizhou, individual farmers account for about 80% of production, and cooperatives, family farms and agricultural enterprises account for about 20%. (The total area of large grain farms in Laizhou is approx. 3,300 hectares). Wheat and maize are generally purchased by the grain purchase and storage centre, or purchased by flour processing enterprises. Most of the maize is used as feed.

Jiangsu Province The rice yield in Taicang County generally reaches about 100,000 tons annually. The rice production in this county is mainly self-sufficient, and most is consumed locally. Some is sold to Shanghai, Suzhou etc., and purchased from other provinces and cities if production is insufficient. Taicang rice is not currently exported directly to other countries. The total scale of rice production in Taicang is 9,400 hectares, and the full scale operation is basically achieved. 91 cooperative farms have been registered and established, with planting area of 6,907 hectares; 207 large grain-growers with more than 3.3 hectares operate 2,467 hectares among them; and the area operated by family farms is only 26.7 hectares. A large-scale operation and management system has been established, mainly based on the independent cooperative farms and supplemented by large-scale individual farmers. The yield of rice in Liuhe District is about 280,000 tons, and rice consumption is roughly evaluated as follows: about 50% is used for local consumption, about 30% is consumed in other regions of Jiangsu Province, and about 20% is sold to other provinces. Liuhe rice is not currently exported directly to other countries. Individual farmers account for about 20% of production in Liuhe district, and cooperatives or agricultural enterprises account for about 80%.

Jiangxi Province The total rice yield in Fenyi County is about 147,500 tons annually, approx. 45% of which is consumed locally, 5% consumed in other regions of the province, and 50% is exported to Guangdong and other provinces. The rice in Fenyi county is currently not directly exported to other countries. Individual farmers account for about 35% of production, and cooperatives or agricultural enterprises account for about 65% (of which contracted farmers account for about 35%).

23 In 2016, the state-owned grain sector purchased 62,784 tons of rice, which accounted for 41.92% of rice yield. In 2017, it purchased 35,613 tons, accounting for 24.06%. In 2018, it purchased 28,824 tons of rice, accounting for 19.69%. The purchasing by non-state-owned grain sectors is the main channel. The rice yield in Yushui County is approx. 300,000 tons, approx. 40% of which is consumed locally, 10% consumed in other regions of the province, and 50% is exported to Guangdong and other provinces. The rice in Yushui county is currently not directly exported to other countries. Individual farmers account for about 40%, and cooperatives or agricultural enterprises account for about 60% (of which contracted farmers account for about 35%). In 2016, the state-owned grain sector purchased 19,160 tons of rice, which accounted for 8% of rice yield. In 2017, it purchased 18,570 tons and accounting for 7%. In 2018, it purchased 38,330 tons of rice, accounting for 13%. The purchasing by non-state-owned grain sectors is the main channel.

Guizhou Province Rice is the most important food crop in Guizhou Province, with the total output and per hectare output ranking first and the planting area ranking second (after maize). The total output of rice in Rongjiang County is 76,900 tons, with 230 kilograms per person; the per capita net income and share of grain of farmers are lower than the average level of the country and Guizhou Province. Individual farmers are still the main force for the cultivation of rice in the county; over 80% of the county’s rice cultivation area is less than 0.67 hectare (10 mu). In Liping County, the proportion of cash crops planted is higher than that of rice. There are 41 representative enterprises of agricultural industrialization at or above the county level and 158 specialized farmer cooperatives. More than 75% of the rice cultivation area in the county is less than 0.67 hectare. Both Rongjiang and Liping counties implement the policy of supporting the market with the minimum purchase price of rice. The main entity for the circulation of rice is the state-owned grain department, mainly the direct storage, entrusted storage and local grain purchase and storage enterprises. Brokers after the acquisition also mainly sell to various government reserve enterprises. About 40% of the rice produced in Rongjiang and 42% of the rice produced in Liping is consumed locally; about 45% (for Rongjiang) and 40% (for Liping) is sold nationwide through acquisition, wholesale, trade and e-commerce by state-owned enterprises. The purchase volume of grain brokers accounts for about 70% (in Rongjiang) and 80% (in Liping) of the total purchase volume of rice, and the cooperative, order-oriented agriculture, farmers’ market and other modes account for about 30% (in Rongjiang) and 20% (in Liping) of the purchase volume.

Root causes and barriers Among the main root causes of unsustainable production of the grain crops wheat, maize and rice in China is the over four-decade long focus on high inputs/high yields, which is driven by the national policy of food self- sufficiency and the increase of food demand as population and incomes grow. Since the late 1970s, China’s efforts in agricultural production have been primarily centred on productivity at the expense of environmental sustainability. Moreover, the dominance of highly fragmented, small landholdings contributes to the inefficient or inadequate use of chemical inputs, with individual farmers lacking the skills and technologies to support more efficient application. The rapid urbanization and industrialization has absorbed over 100 million rural labours who are younger in age with middle- or high-school education, resulting in farmers of older ages with little or no education remaining in agricultural production. These farmers lack the skills and ability to adopt more efficient agricultural technology applications. Since the mid-2000s, the increase of agricultural labour cost driven by both the higher off-farm wages and the shortage of agricultural labour supply have emerged to become an important constraint for the growth of agricultural productivity. This further results in the inefficient use of chemicals over manual work such as weeding and the improper fertilization with the combination and overuse of base fertilizer and top dressing, one of the major reasons for the low nitrogen use efficiency and nutrient leaching and runoff. On the other hand, the dominance of highly fragmented, small landholdings contributes to the inefficient or inadequate use of chemical inputs. The fragmented landholdings prevent environmentally sustainable technology applications from being adopted by smallholder farmers due to low, sometimes negative, marginal benefit. Land abandonment becomes a widespread phenomenon in many regions. In some of the provinces with lower industrialization and lower levels of income per capita (such as Guizhou and, to a lesser extent, Jiangxi), the degree of agricultural mechanization is still low. Related to these challenges is the fact that current value chains do not adequately internalize environmental costs, as existing market and government incentives are aimed at achieving high productivity and low consumer price for staple crops.

24 The following barriers to a transformation towards sustainable food production systems have been identified.

Barrier 1: Gaps in the enabling policies and planning frameworks at the national and sub-national level (addressed by Component 1)

While there is a high-level commitment to the transformation towards sustainable agriculture, this is yet to be fully translated into national and sub-national level policies. Sub-national policies and plans are still primarily focused on economic development, agricultural productivity and poverty reduction. There is a need for integrating these goals with improvement of ecological services and environmental sustainability. Current policies that link grain production subsidies with sustainable practices are still limited. For example, subsidy policies for the promotion and application of alternative fertilizers such as slow-release fertilizers, water-soluble fertilizers and microbial fertilizers are generally lacking. And although several policies and plans have been issued promoting sustainable agriculture at central and provincial levels, they still lack the scale and ambition required for a system transformation. Additionally, policies need to be adapted to the diverse socio-economic and agro-ecological conditions at the local level, and investment plans need to be developed. Also, while there are ongoing efforts to promote integrated landscape-level planning in China (including through the “Lake Chief” and “River Chief” mechanisms for integrated watershed management), this is not yet fully implemented at the local level. Downstream effects of agricultural production as well as impacts on surrounding ecosystems are not yet addressed and managed in an integrated manner. Although most local governments have issued comprehensive conservation policies, there are almost no policies specifically for the conservation of farmland biodiversity and landscape diversity. Local institutions have limited capacity to incorporate biodiversity considerations into agricultural landscapes planning and management. In addition, data to assess biodiversity in China’s farmlands is very limited.27

Also, China has undertaken reforms to allow farmers to transfer their land contracting rights in favour of more efficient, large-scale production. However, the expansion of farm scales through land transfers does not naturally transform the agricultural practices from unsustainable high inputs/high yields model to sustainable practices such as the model of higher efficiency and sustainable productivity with lower inputs. While China’s land tenure policies have evolved to support land transfers through the “three-right separations”, i.e., the separation of the collective land ownership right of villages from land contracting right of farmer households, and the separation of land operating right of large family farms and agribusinesses from land contracting right of farmer households, an effective legal arbitration system over land dispute is yet to be established. Moreover, policy incentives to support environmentally friendly technology transfers and adoption by larger family farms and agribusinesses is still a key factor to the development of sustainable agricultural production systems. While the GEF FOLUR IP China child project does not intend to address the land related institutional issues, the expansion of farm scale does provide an important foundation for the project to pilot and demonstrate innovative, sustainable and high-efficient technologies which conserve natural resources and biodiversity with larger scale farms, farmer cooperatives and agribusinesses, and along the selected agricultural value chains.

Finally, there is also a lack of integrated monitoring systems to assess and monitor impacts from land use planning, sustainable agriculture and restoration activities at the local and central levels.

Barrier 2: Limited capacity and mechanisms at the local level to scale up innovative approaches for sustainable agriculture and restoration (addressed by Components 2 and 3)

While a wide array of technologies have been developed and tested in China to reduce fertilizer use and GHG emissions, optimize the use of land and water resources and address negative impacts of agriculture on biodiversity, there are limited mechanisms at the local level to adopt and scale up these practices. In particular,

27 Li et al. (2020).

25 integrated systems have been developed that address environmental issues while enhancing productivity, such as integrated rice-fish farming systems, conservation agriculture, and crop rotation. Government extension services, public and private sector efforts as well as Farmer Field Schools have had some success in promoting sustainable agricultural practices in staple crop production. Nevertheless, there is still limited capacity among local government and farmers to support the uptake of innovative practices, and to support low-risk alternatives to chemical fertilizers and pesticides. Funds allocated to sustainable agriculture programmes are insufficient and mainly used for conducting pilot demonstrations, without adequate technical support and sufficient coverage. In some of the more remote rural areas, mechanization levels for rice production are still low; small- scale mechanization would be a viable strategy to reduce the intense manual labour required for agricultural production. The farmers or farmer cooperatives also lack adequate equipment for new technologies such as smart fertilization. Although there are numerous existing technical standards for the production of wheat, maize and rice, these do not yet fully incorporate best practices that would allow the country to generate significant benefits for the environment and local livelihoods. There is also a lack of effective knowledge management platforms to share sustainable low input technologies.

There is still limited application of alternative pest management strategies that can reduce costs and enhance yields. Importantly also, there is limited knowledge at the local level of the role that agrobiodiversity and the selection of cultivars can play in reducing GHG emissions, enhancing resistance to pests and diseases, increasing yields, and increasing adaptability to climate change. Knowledge of traditional varieties, which are often better adapted to local growing conditions and can fetch higher prices in markets if a Geographical Indication certification scheme can be developed, is inadequate.

Furthermore, there is limited capacity among local government, private sector, farmers and farmer cooperatives to implement innovative approaches to restore the productivity of degraded agricultural land and increase biodiversity in agricultural landscapes. Systematic understanding of sustainable agriculture is insufficient.

Barrier 3: Limited market incentives and engagement of smallholder farmers in value chains supportive of sustainable production and land management (addressed by Component 2)

Most importantly perhaps, without adequate market incentives, the farmers especially smallholder farmers lack the motivation to adopt new practices. Due to the small production units and the limited role played by farmer cooperatives in organizing grain value chains, farmers do not benefit from access to value chains that would support environmental sustainability. There are insufficient pre- and post-production linkages of agricultural production, leading to suboptimal value chains. There is a large number of traders and agri-processors in China, 98% of which are small and medium enterprises (SMEs), which poses challenges for vertical coordination and integration of agricultural value chains. Most of these enterprises suffer from low profitability and low capacity to comply with environmental standards. Farmers and agricultural enterprises often lack access to affordable credit and financing required to modernize and improve their operations. Farmers, therefore, mostly rely on local government to organize their supply chains and purchase the grain at the minimum price set by government.

Local SMEs and cooperatives could play a key role in supporting family farms’ and smallholder farmers’ (and in particular women’s) access to green technologies, inputs, as well as processing and marketing of their products. For this, however, institutional arrangements for profit-sharing need to be established, and farmers’ capacity needs to be strengthened. Large e-commerce companies such as Alibaba have recently entered the agriculture sector and support farmers in marketing and distribution of agricultural products. However, local institutions lack the capacity to fully develop and benefit from these opportunities. Financing costs are high. Further efforts need, thus, to be undertaken to increase capacity and access to market mechanisms and financing that incentivize sustainable production of wheat, maize and rice. In particular, there is an opportunity to engage

26 and create benefits for women, who are increasingly left in charge of agricultural production as men seek employment in urban areas, by building their skills and access to value chains.

Barrier 4: Limited platforms and knowledge sharing and exchange mechanisms to support replication and scaling (addressed by Component 4)

One important barrier to scaling up successful approaches of sustainable and climate-smart agriculture is the absence of national and provincial collaboration mechanisms or platforms to promote knowledge sharing and exchange, including exchange with and between private sector entities. In addition, there is limited exchange with other countries in the region on sustainable production of staple grain crops. Improved information and knowledge exchange would allow to harness additional public and private investment to scale up priority actions in the agriculture and land-use sectors. Furthermore, there is still limited awareness among consumers of the negative externalities associated with cheap food production and the benefits of ecological agriculture and green certifications.28

In conclusion, there is a need to transform the food production system in China to a system that sustainably increases productivity and incomes, contributing to economic development while protecting biodiversity and ecosystems and reducing GHG emissions, in line with the country’s vision of “ecological civilization”. This will require interventions across the entire food value chain, from policies, incentives and investments for sustainable food systems and land restoration, to promoting sustainable production systems, to developing value chains and market access that support environmental sustainability.

COVID-19 impacts As of September 22, 2020, a total of 85,307 confirmed COVID-19 cases have been reported in 31 provinces (autonomous regions and municipalities) in Mainland China. In the last month, only 20 new confirmed cases have been newly diagnosed every day, all of which were imported from abroad. China’s COVID-19 prevention and control work has achieved important results. Industries have been resuming work and production; schools and universities have reopened; and domestic tourism and hotel industries are also recovering. The impact of COVID-19 on the agricultural supply chain network is gradually diminishing, and the relevant suppliers of production materials, producers, processors and consumers are gradually returning to normal. Nevertheless, the impact of COVID-19 on China’s national and local economies has been significant. The epidemic has prompted national and local governments to pay more attention to agriculture, food security and environmental protection of natural resources, and corresponding financial support has been committed.

2) Baseline scenario and any associated baseline projects

National government policies and programmes China has an ambitious vision for an Ecological Civilization and the transformation of its food and land use system. The country has made it a top priority to shift towards a sustainable food production system. China’s 13th Five-Year Plan (2016-2020) and its No. 1 Central Document 2018 include clear commitments to sustainable agricultural development to enhance productivity while preserving important ecosystem functions. The National Plan for Sustainable Development of Agriculture (2015-2030) includes commitments to treat or use 90% of animal waste, to use all crop straw, to increase nitrogen fertilizer efficiency to 40%, and to equip 75% of all irrigated farmland with water saving technologies by 2030. The plan also supports agricultural mechanization, modernization, and the use of technologies and innovation. It further stresses the need for agro-ecological restoration to improve ecological functions.

28 Zhenzhong Si (2019). Shifting from Industrial Agriculture to Diversified Agroecological Systems in China. https://www.coventry.ac.uk/globalassets/media/documents/research-documents/coventry-china-agriculture-aw-new-style.pdf

27 China is also increasingly playing a global leadership role on these issues. In its Nationally Determined Contribution (NDC), China has committed to promoting low-carbon development in agriculture, aiming to achieve zero growth of fertilizer and pesticide use by 2020. Under the NDC, the country aims to control methane emissions from rice fields and nitrous oxide emissions from farmland. In its NBSAP (2011-2030), China sets as a priority to incorporate biodiversity conservation into sectoral and regional planning to promote sustainable use, and to reduce impacts of environment pollution on biodiversity. Most highly hazardous pesticides have been banned and are no longer in use.

Considerable government investments are targeted at alleviating poverty, and the Government of China has formulated a Strategy on Rural Vitalization in 2017 with the aim to eliminate poverty, promote the modernization of agriculture and increase prosperity in rural areas. In 2018, the Ministry of Agriculture and Rural Affairs issued the “Implementation Plan for Science and Technology Supporting Actions for Rural Revitalization”, focusing on solving the key factors of cost-effectiveness, quality and safety, and environmental protection in accordance with the concept of coordinated development of production, ecology and life.

In line with these plans, national and provincial government is investing in several programmes on sustainable agricultural development. The establishment of the Ministry of Agriculture and Rural Affairs in 2018 provided institutional guarantee for the overall promotion of the comprehensive development of agriculture and rural areas and the revitalization of the countryside and proposed the goal of sustainable development of China’s agriculture by 2030.

Based on the general objective of ecological progress promotion, the Chinese government has formulated a comprehensive management plan of “mountains, rivers, land, forest, grassland and lakes” by drawing ecological red lines, incorporating land degradation prevention and control into the overall strategy of national sustainable development, improving the safeguard mechanism of ecological security, and strengthening the ecological protection and restoration.29 An example of a provincial red line plan is shown in the figure below.

Figure 4: Distribution of ecological protection areas in the Red Line Plan of Jiangsu Province

29 China’s Final National Report of the Voluntary Land Degradation Neutrality (LDN) Target Setting Programme, 2017.

28 In the agricultural sector, a range of technical measures have been deployed, such as high-yield rice varieties with lower emissions, intermittent paddy field irrigation, improved ruminant animal breeds, intensive livestock management, and biogas from treatment of livestock and poultry manures. Moreover, soil test-based fertilization has been practiced across the country.30 The Chinese Academy of Agricultural Sciences is conducting applied research programmes adapted to the agro-ecological conditions of each province. The government has also established the Soil and Fertilizer Alliance of China under the Chinese Academy of Agricultural Sciences in order to promote efforts to improve soil quality and environmental protection. In 2017, the Ministry of Agriculture established a Farmland Quality Monitoring and Conservation Centre. Furthermore, the Ministry of Agriculture invests RMB 3.5 billion annually in agricultural biodiversity conservation, of which approximately RMB 15 million is used for the conservation of crop genetic resources.

The Chinese Government has taken effective action to combat soil erosion. In the middle reaches of the Yellow River, comprehensive control measures have been applied, such as building dams and turning slope land into terrace, with an annual reduction of about 400 million tons of sediment entering into the Yellow River. Key water and soil conservation control projects in the middle and upper reaches of the Yangtze River have controlled soil erosion area about 80,000 km2 and the soil water storage capacity has been increased by more than 2 billion m3. Land degradation trend assessment is carried out on a regular basis by the Ministry of Ecology and Environment (MEE). National land degradation macro-monitoring is carried out using remote sensing and in the light of annual trends of desertification across the country.

Furthermore, the Government of China has set important restoration goals. By 2020, it aims to return 2.8 million hectares of the slope farmland and seriously sandy farmland to forest and grassland. Simultaneously, it aims to maintain arable land at 122 million hectares, build high standard farmland of 80 million hectares, and improve the national average arable land quality by 1.0 grade (level) compared to that of 2015, by 2030.31

Investments have also been made in the conservation and development of Globally Important Agricultural Heritage Systems (GIAHS).32 Since most GIAHS sites in China are located in remote and poverty-stricken areas, the local governments have launched various agricultural poverty alleviation projects, such as promoting featured plantation and aquaculture/animal husbandry, ecological agriculture, partnerships with private sector on Internet cooperation, microfinance services etc., with a view of developing agricultural value chains and increasing farmers’ income.

Financial mechanisms to support sustainable agriculture Central and provincial government implement various agricultural funds and subsidies. In particular, the government has established subsidies for straw returning mechanization, green manure and pollution control to support implementation of the sustainable agricultural policies mentioned above. In some places, the government also subsidizes the application of organic fertilizer instead of chemical fertilizer for fruit, vegetable and tea, green fertilizer from the rotation and fallow cultivation, as well as formula fertilizer. A special fund for agro-ecological protection and resource utilization was established in 2019, in addition to the national and local agricultural industrialization funds and comprehensive agricultural comprehensive development funds. Moreover, agricultural enterprises enjoy various financial subsidies, such as interest rate subsidies and financial

30 The People’s Republic of China, Second National Communication, 2012. 31 China’s Final National Report of the Voluntary Land Degradation Neutrality (LDN) Target Setting Programme, 2017. 32 The Chinese government has prioritized the conservation and development of traditional farming systems through the promotion of GIAHS. The concept was initially introduced by the global GEF-5 project “Conservation and Adaptive Management of Globally Important Agricultural Heritage Systems (GIAHS)”, and China has played an important role in adopting and promoting the concept of GIAHS, with currently the largest number of GIAHS sites in the world (15 sites covering 13 provinces). In addition, in 2012 China introduced the concept of Nationally Important Agricultural Heritage Systems (NIAHS), and has designated 91 NIAHS sites so far, covering 28 provinces. Driven by China, the GIAHS work was written into the Declaration on APEC Food Security in 2014 and the G20 Agriculture Ministers Meeting Communiqué in 2016.

29 incentives, for investments such as technological transformations, construction of demonstration bases, purchase of seeds, purchase of agricultural machinery, as well as food production and marketing.

Nonetheless, the majority of government subsidies still goes to support agricultural production generally, not specifically to sustainable agriculture, including through grain target price subsidies and farmland protection subsidies, agricultural insurance, as well as subsidies for the supply of rice seeds, and agricultural machinery. Funding for green agriculture is insufficient, and mainly used for conducting pilot demonstration, while technical guidance is not in place. The coverage of support policies is small.

China has been one of the pioneering countries for eco-compensation mechanisms. The 2015 amendment of the Environmental Protection Law provides the legal basis for a national eco-compensation mechanism and the use of market mechanisms for eco-compensation. Eco-compensation in China is conceived as a public mechanism to promote environmental protection and restoration, including through the payment for ecological services.33 However, eco-compensation projects in China have so far been primarily focused on grasslands, forests, and watersheds. Agricultural ecosystems are not currently covered by these eco-compensation schemes.

China’s Conversion of Cropland to Forest Program (or Grain for Green Program) is one of the world’s largest Payment for Ecosystem Services (PES) programs, paying farmers to plant trees on their land and providing degraded land to rural families for restoration. The Government of China has also issued a series of incentives and policies to encourage and guide the financial and social capital to be involved in land degradation control and development.34

Standards and certifications Driven by the increasing consumer awareness and demand for “cleaner and greener” food, China has introduced several certification systems aiming at certifying safe and environmentally sound food production. The three most common certifications include Green Food, Organic, and Hazard-free. The Green Food certification was introduced in the 1990s and requires certified foods to meet certain standards for the use of pesticides, production methods and residue testing. According to Garnett and Wilkes (2014), Green Foods may achieve a price premium of around 12% compared to conventional produce. Organic certification began in China in the late 1980s. Designated agencies (private companies, NGOs and others) are authorised to certify organic products in China. Around 2 million hectares of farmland are certified organic in China, the sixth largest area in the world. Hazard-free certification was introduced in 2001, in response to concerns over health incidents and contaminated food. It focuses on controlling illegal use of highly toxic agricultural chemicals and violations of pesticide residue standards. Around 21 million hectares are certified hazard-free.35 Garnett and Wilkes (2014) note that “certifications are increasingly important for access to export markets. Around 90% of China’s agricultural exports carry some form of eco-food label, either hazard free, green or organic. However, trust in these certifications is a major issue both domestically and in international markets.” Moreover, the China Standard Conformity Assessment Co. LTD (CSCA), a leading certification, testing and standardization company in China, has developed a new national standard on organic rice. In addition to these certifications, various technical standards are issued at provincial level to promote sustainable agricultural practices, such as on pest management and pollution control. Furthermore, Community-Supported Agriculture (CSA) has been developing rapidly in recent years in China.36 This alternative production model applies principles of organic production and links producers to consumers to create trust in the safety of food products.

33 2016 ADB Report: Toward a national eco-compensation regulation in the People’s Republic of China. In 2014, with support from the Asian Development Bank (ADB), the Western Development Department of the National Development and Reform Commission (NDRC) and China Agricultural University (CAU), established a Knowledge Hub on Green Development and Eco-Compensation. 34 China’s Final National Report of the Voluntary Land Degradation Neutrality (LDN) Target Setting Programme, 2017. 35 Garnett and Wilkes (2014). 36 Tang, H. et al. Current Status and Development Strategy for Community-Supported Agriculture (CSA) in China. Sustainability 2019, 11, 3008.

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Provincial policies and programmes All four target provinces have piloted Provincial Ecological Cycle Agriculture and Integrated Utilization of Crop Residues and Green Manure programmes, and are implementing national and regional policies and strategies with regard to agricultural development. The provinces also apply integrated pest management (IPM) measures for the three target crops, including agricultural measures based on disease-resistant varieties, physical and chemical prevention and control measures, as well as biological and ecological control measures. Green or non-chemical pest prevention and control technologies are applied in approximately 30% of the target areas. Most of the project’s target counties are key counties of agricultural production and have a good foundation and technical capacity in green prevention and control. The provinces also have issued numerous technical regulations and standards, including green and hazard-free certifications.

The Provincial Departments of Agriculture and Rural Affairs, the County Agriculture and Rural Affairs Bureaus and Township Agriculture Stations are in charge of implementing agricultural policies and programs. Agriculture technology stations at county and township levels are in charge of promoting the use of technology and providing technical training and guidance to local farmers. The Provincial Departments of Natural Resources are responsible for the land use planning process. At the county level, the county Bureau of Land and Resources is in charge of formulating or revising the land use plans, generally every 3-5 years. Due to rapid urbanization and development, the protection of farmland has become a priority in provinces such as Shandong and Jiangsu, as urban or industrial developments have been encroaching into agricultural land. Also, based on the Government’s strict enforcement of red line policies and allocation of farmland, encroachment of agricultural land into wetlands and forests does not generally occur. On the contrary, as mentioned above, some cropland has been converted into forest areas or woodlots to protect watersheds and address land degradation. An example of a district land use plan is shown below.

31

Figure 5: Overall Land Use Plan of Liuhe District (2006-2020)

The main relevant policies and programmes in each province are summarized in the table below. More details on the target provinces and counties can be found in the baseline reports on sustainable agriculture and agro- ecosystems (available as separate reports).

Province Main policies and projects Shandong Provincial level policies and programmes The current policies and plans of the province include the 13th Five-Year Plan for Ecological Environment Protection of Shandong Province, the Implementation Plan for Rural Revitalization Strategy, the Strategy and Action Plan for Biodiversity Protection of Shandong Province (2011-2030), as well as the Cultivated Land Quality Improvement Plan of Shandong Province (2014-2020).

Additionally, Shandong Province has formulated the Collectivity Plan for Land Use of Shandong Province (2006-2020). According to the land use planning, the proposed land degradation restoration measures include: 1) soil improvement and restoration; 2) pesticide residue treatment; 3) plastic film pollution control; 4) straw comprehensive utilization; 5) livestock manure comprehensive utilization and pollution treatment; 6) heavy metal pollution restoration. According to the Ecological Protection and Construction Plan of Shandong Province (2014-2020), the proposed biodiversity protection measures include: 1) building vegetation buffer zone on slope land and nearby waters; 2) building ecological ditches; 3) building agroforestry composite system; 4) diversified planting in farmland; 5) building flower and grass belts by the boundary of farmland.

32

According to the plans, by 2020, the functional layout of agricultural main functions will be more optimized, green production capacity will be significantly improved, and the production environment will be cleaner. The province’s comprehensive grain production capacity will reach 50 million tons, and the coverage rate of soil testing and formula fertilization technology will reach more than 90%. The main crop fertilizers and pesticide utilization rates will reach more than 40%, and the green pest control coverage rate of crop pests and diseases will reach 30%. The comprehensive utilization rate will reach 92%, and the level of agricultural waste recycling and utilization will be further improved.

The key interventions of ecological restoration and reconstruction in the province are desertification, acidification and salinization control. There are 633,100 hectares of desertified land, 30,000 hectares of acidification control and 100,000 hectares of salinization control areas in Shandong.

Shandong Agricultural Environmental Protection and Rural Energy Station has a provincial, municipal and county coordinated agricultural ecological environment protection system, and has the equipment, conditions and capabilities to carry out related work. The census tasks of soil heavy metal pollution survey, agricultural non-point source pollution survey, and agricultural wild plant resources survey were carried out, and the National Agricultural Cleaner Production Demonstration County Project, the Ministry of Agriculture Ecological Environment Protection Project, and the Provincial Financial Support Agricultural Technology Promotion Project were continuously implemented. The provincial agricultural environmental protection and agricultural product quality and safety training program has been carried out. The agricultural clean production test demonstration, modern ecological agriculture test demonstration and soil heavy metal pollution repair demonstration of agricultural products has also been carried out.

The Ministry of Agriculture Environmental Testing and Analysis Center in Jinan (Shandong’s capital) is in charge of agricultural monitoring. The Center has undertaken more than 20 research projects and promotion projects such as the completion of the agricultural leapfrogging project “integration and demonstration of pollution-free agricultural production technology”, the “Science and Technology Integration and Demonstration of Pollution-free Vegetable Production in the Eastern Coastal Area” of the Ministry of Science and Technology, and the “Sino-German Cooperation Project – Research on Agricultural Environment Strategy in North China”.

There is an agricultural technology station in every township, and every village selects 5- 10 technology demonstration households. Agricultural technology training and demonstration include crop production management, pest control and cooperative training. The mechanism is mainly taught by agricultural technical experts and field observations.

Target counties The current planning of Laizhou City includes the 13th Five-Year Plan for Modern Agriculture Development and the Implementation Plan for Rural Revitalization Strategy. Current projects include high standard farmland projects and chemical fertilizer and pesticide reduction projects.

The current planning of Qihe County includes the 13th Five-Year Plan for Modern Agriculture Development and the Implementation Plan for Rural Revitalization Strategy. The Yellow River and Water Township National Wetland Park project, high standard farmland project, and chemical fertilizer and pesticide double reduction project will also be implemented. Jiangsu Provincial level policies and programmes

33 The main relevant policies and plans of the province include the Implementation Plan of Ecological Environment Protection in the Yangtze River Economic Belt of Jiangsu Province, the Implementation Plan of High Standard Farmland Construction of Comprehensive Agricultural Development of Jiangsu Province (2013-2020), the Strategy and Action Plan of Biodiversity Protection in Jiangsu Province (2013-2030), the Priority Regional Plan of Biodiversity Protection, and the Protection Plan of Aquatic Biodiversity in Key Basins. The province has also issued an Implementation Plan for Promoting the Rotation and Fallow of Cultivated Land to Promote the Green Development of Agriculture in Southern Jiangsu, the 13th Five-Year Plan of Water Conservancy Development in Jiangsu Province, and is implementing the Special Action of Livestock and Poultry Breeding Pollution as well as Agricultural Non-Point Source Pollution Control in Jiangsu Province.

In terms of ecological security, sustainable land use and degradation recovery, Jiangsu has formulated the Red Line Plan of National Ecological Protection of Jiangsu Province, the Plan of Ecological Civilization Construction of Jiangsu Province (2013-2022), the Regulations of Wetland Protection of Jiangsu Province, and the Interim Measures of Ecological Compensation Transfer Payment of Jiangsu Province. It also has a General Plan for Land Use of Jiangsu Province (2006-2020).

According to the land use planning, the proposed land degradation restoration measures include: 1) supporting the development of ecological and efficient agriculture in the plain area, reducing the investment of chemical fertilizer and pesticide, improving and restoring the farmland ecological environment; 2) building water resources protection zones and ecological isolation zones along the river basins, rivers and Lake; 3) strengthening wetland protection and restoration; 4) soil pollution treatment and restoration of agricultural land; 5) carrying out soil improvement and fertilization in agricultural areas of Taihu Lake. According to the Ecological Civilization Construction Plan of Jiangsu Province (2013- 2022), the proposed biodiversity protection measures include: 1) building vegetation buffer zone on slope land and nearby waters; 2) building ecological river, canal and dam; 3) building agroforestry composite system; 4) rotation planting; 5) symbiosis and co- cultivation.

Jiangsu Province is a national green agriculture development project area. For the first time, Jiangsu was listed as the pilot province of the National Green Cycle Quality, High- efficiency and Characteristic Agricultural Promotion Project in 2019 by the Ministry of Agriculture and Rural Affairs and the Ministry of Finance. It will conduct pilot projects in Liuhe District, Feng County and Hai’an City of Nanjing. In 2020, Jiangsu Province aims to accelerate the cultivation of 100 billion yuan of high-quality rice industry and strive to build Jiangsu into a high quality japonica rice centre in Southern China. Jiangsu has also been promoting integrated rice-fish farming and other co-cropping models under the green, organic and high-quality production standards to produce green and organic rice and greatly increase the output value of rice.

In the Jiangsu Province Rural Revitalization Strategy Implementation Plan (2018-2022), the following six major projects to promote green agriculture development were proposed: (1) Fertilizer reduction and efficiency increasing demonstration project; (2) Zero-increasing projects for pesticide use; (3) Modern ecological cycle agriculture pilot county project; (4) Livestock and poultry breeding pollution control project; (5) Straw comprehensive utilization of the county promotion project; and (6) Livestock and poultry manure resource utilization project. In 2017, the comprehensive utilization rate of Jiangsu Province reached 92%. Jiangsu has set up more than 5,000 straw acquisition points and strives to build a network of hierarchical storage systems.

34 Some areas in Jiangsu, including Nanjing, , and Suzhou, are pioneering innovations of digital agriculture such as intelligent agricultural machinery and big data applications. Crop precision management technologies are also being promoted. Data on chemical fertilizers, pesticides, and heavy metal pollution in cultivated soils are regularly monitored and reported to the 263 offices in Jiangsu Province. In addition, sampling inspections are conducted regularly for soil testing and analysis.

The cultivated land quality and agricultural environmental protection station in Jiangsu Province provides relevant technical guidance and promotion through on-site observation meetings, training, and new product and technology promotion.

Target counties Relevant plans of Liuhe District include the Wetland Protection Plan and Comprehensive Rice and Shrimp Breeding Development Plan. Ongoing projects include the establishment of chemical fertilizer reduction and efficiency demonstration county, the improvement of cultivated land quality (land levelling, ditch and road supporting, soil fertility cultivation, etc.), the pilot project of rotation and fallow, the promotion project of high-quality and efficient characteristic green cycle agriculture, and the pilot project of comprehensive utilization of crop straw. 13,000 hectares of agricultural land in Liuhe District are currently undergoing restoration of soil fertility through rotation and fallow, increasing application of organic fertilizer, and soil testing and formula fertilization.

Taicang City also has issued a Wetland Protection Plan. Ongoing projects include the project of replacing chemical fertilizer with organic fertilizer of vegetables, the project of reducing and increasing efficiency of chemical fertilizer, and a pilot project of comprehensive utilization of crop straw. Crop rotation is also practiced in some areas of Taicang City. Jiangxi Provincial level policies and programmes Main relevant plans and programme of the province include the Implementation Plan for Promoting the Construction of High Standard Farmland with the Overall Integration of Funds in Jiangxi Province, the 13th Five-Year Plan of Water Conservancy Development, and the Water and Soil Conservation Plan of Jiangxi Province (2016-2030). In terms of reducing pesticide and fertilizer application, Jiangxi Province has implemented the “four control and one reduction” project, the project of fruit-vegetable-tea organic fertilizer as alternative to chemical fertilizer, the project of improving the quality of cultivated land and increasing the efficiency of chemical fertilizer application. In addition, 12 counties of Jiangxi (not including the GEF-7 target counties) have implemented whole-county pilot projects of straw comprehensive utilization. In 2019, the province established 20 demonstration counties for reducing fertilizer and increasing efficiency. In terms of agrobiodiversity conservation, Dongxiang Wild Rice and Chongyi Wild Citrus in situ conservation sites have been established.

Jiangxi Province has also formulated a Red Line of Ecological Protection in Jiangxi Province Policy, and the General Plan for Land Use of Jiangxi Province (2006-2020). According to the land use planning, the proposed land degradation restoration measures are: 1) improve the farmland water conservancy infrastructure; 2) transform the medium and low yield fields, popularize the formula fertilization of soil testing and conservation tillage; 3) reclaim the abandoned and damaged land; 4) popularize the agroforestry complex ecological economic model in the plain agricultural area; 5) strengthen the transformation of the hills and gentle slopes in the low hilly area, improve the farming system, and vigorously implement the mode of “Ecological model of pig, biogas and fruit”. The proposed biodiversity protection measures include: 1) building vegetation buffer zone on slope land and nearby waters; 2) building ecological ditches; 3) building agroforestry composite system; 4) diversified planting in farmland; 5) symbiosis and co-cultivation. The

35 Agricultural Structure Adjustment Action Plan was launched to implement nine industrial development projects including high-quality rice, vegetables, fruit industry, tea industry, aquatic products, herbivores, Chinese herbal medicines, oil tea, leisure agriculture and rural tourism. Jiangxi also implements the “quality grain project”, and the “China Good Grain and Oil” action plan.

Jiangxi has established 13 plantation control monitoring points, 5 large-scale livestock and poultry breeding monitoring points, and 5 aquatic product breeding and drainage coefficient monitoring points. At the basin scale, Jiangxi is constructing five watershed-scale monitoring points in accordance with the layout of five rivers and one lake.

Target counties Relevant plans for and Fenyi County include the overall Planning of Agricultural Sustainable Development of Xinyu City (2017-2025), the 13th Five-Year Plan for Modern Agriculture Development and the Implementation Plan for Rural Revitalization Strategy. High standard farmland projects and chemical fertilizer and pesticide reduction projects are also being implemented.

Yushui District also implements the China Good Grain and Oil Construction Project, the Pilot Project of Agricultural Non-point Source Pollution Control in Nan’an River Basin, and the World Bank Sustainable Agriculture Development Project. Yushui has seven agricultural technology extension stations. The main technologies applied in the Sustainable Agriculture Development Project include water-saving irrigation, soil conservation and management, IPM , and new crop varieties. Through the project, significant improvements have been achieved in the agricultural infrastructure, soil quality, comprehensive agricultural production capacity, and farmers’ organization. However, capacity needs to be strengthened further for comprehensive, sustainable agricultural development. Guizhou Provincial level policies and programmes Main relevant policies and plans in Guizhou include the Development Plan of Featured Grain Industry in Guizhou Province (2016-2020) and the Crop Production and Development Plan of Guizhou Province during the 13th Five-Year Plan (2016-2020). Guizhou has developed several technical standards and specifications for rice disease and insect pests control, including the “technical specification for pollution-free and high quality rice production”. The Guizhou Province’s Regulations on the Promotion of Ecological Civilization Construction are aimed at promoting the construction of ecological civilization and advancing green, circular, and low-carbon economic and social development, ensuring the harmonious coexistence of human and nature, and maintaining ecological security.

Ongoing programmes on sustainable agriculture in Guizhou are primarily focused on rice field as well as economic plantations such as fruit orchards, oil tree camellia oleifera, and tea. The government is implementing some good practices, such as rice-fish integrated system, green manure crop (cover crop) planting, manure application, ecological agricultural technology, integrated management of nutrients, pests and diseases, and soil- tested fertilization to reduce chemical inputs. There are standards and certification systems of sustainable, green, hazard-free and organic, and the province aims to position itself for organic and green agricultural products. However, the good practices are not applied widely. In addition, while almost 100% of production is hazard-free, less than 5% of rice farmers own a green, organic or sustainable production certificate.

Guizhou also implements high-standard ecological farmland construction projects. Nevertheless, some villages, such as Wugong village in Rongjiang County, have not yet implemented any high-standard ecological farmland construction. Guizhou Province issued “the implementation of the comprehensive reform of agricultural water price” to promote

36 water-saving and sustainable development of agriculture by establishing and improving the formation mechanism of agricultural water price. Furthermore, the province promotes agrobiodiversity improvement in rice field (such as through the rice-fish cropping system) as well as economical forestry (vegetation cover rate increase). Agrotechnical extension is conducted by over 2,000 agricultural stations in the province. The methods used include science popularization, technical training and field technical guidance. The province also has a rice disaster insurance scheme.

Management of rice diseases and insect pests in Guizhou is based on pest early monitoring and warning, and integrated pest management (IPM). There are 30 national regional detection stations on disease and pests monitoring, and 33 provincial diseases and insects detection stations in the province. The National Agro-technical Extension Service Center of the Ministry of Agriculture organizes training courses of pest monitoring and prediction in Southwest University (in neighbouring Chongqing Municipality) annually, and provincial and municipal training courses are held according to the pest occurrence situation annually. Nevertheless, chemical control is still the main method, and the proportion of biological control is relatively low. In Rongjiang and Liping counties, most of IPM mainly relies on chemical control.

Target counties In Liping County, the straw incorporation rate is about 20%, significantly lower than the provincial average of 76%. The straw incorporation rate is 0% in Wugong village of Rongjiang County. According to the requirements of the rural industrial revolution of the province, Liping County will build some major industries and focus on the tea, oil tea, vegetables, edible fungi and Chinese medicinal herbs.

Because of the peculiar type of farmland in the three target counties in Qiandongnan Prefecture (i.e., terraced, hillside, rain-fed fields), the technique and application of water saving irrigation are poor.

Congjiang County hosts a GIAHS site, the Traditional Dong’s Rice-Fish-Duck Agroecosystem.

The project will build on the experiences and lessons learned of these numerous government plans and programmes at the national and local levels. It will aim to scale up good practices and technologies that have been tested, and go beyond demonstration areas to achieve sustainable production at scale.

FAO In line with the Country Programming Framework for China (2016-2020), FAO is supporting the Government of China in the following priority areas: 1) Fostering sustainable and climate resilient agricultural development; 2) Reducing rural poverty, food insecurity and malnutrition; 3) Promoting a one-health approach for sustainable agriculture trade, and improved Public Health; and 4) Facilitating China’s regional and international agricultural cooperation.

FAO is implementing a number of Technical Cooperation Programme (TCP) projects in China. In particular, FAO has supported MARA in improving agricultural extension services through Farmer Field Schools (FFSs). Over the past ten years, FAO has implemented more than 300 FFSs in eight provinces and autonomous regions in the fields of soil health, water resource management, crop/fruit/vegetable production, post-harvest, integrated pest management, and crop residue management. Featuring whole-season and highly participatory interactions, these FFSs have effectively extended agricultural technical packages and development concepts to over 8,500 farmers. Another 110,000 farmers also indirectly benefited from the related information and educational

37 campaigns. The FFS modality has great buy-in from not only the farming communities, but also government counterparts at all levels. In Guizhou, FAO has implemented two TCP projects on integrated pest management (IPM), one of which was implemented in Tianzhu County of Qiandongnan. FAO has also implemented the project “Agricultural Technology Integration and Demonstration for Green Rice Development in Chongming Island, Shanghai”, under which a Green Rice Standard was developed. The GEF-7 project will directly build on the approaches and innovations applied in the FFSs across China, and use the model as a key mechanism to promote sustainable, climate-smart practices and IPM.

FAO and MARA have been partnering with the private sector to bring solutions at scale and build on their innovation power to support poverty reduction. Among others, the project can build on existing partnerships with Alibaba and other e-commerce companies to enhance access to markets and rural finance for smallholder farmers while promoting sustainable agricultural practices. Moreover, FAO is partnering with Guangfa Securities to develop Sustainable Development Goals (SDG) villages in , , Hubei and Hainan Provinces. The objective is to help farmers in 16 poverty-stricken villages to grow good quality agro-products, better link them to markets and thereby increase their income. The project will pilot the ‘Internet + agriculture + finance’ model, building on FAO and MARA’s network of Farmer Field Business Schools. Furthermore, FAO supports China’s efforts to preserve GIAHS sites, and to promote South-South cooperation, a mechanism that can be used to disseminate lessons learned from this project to other countries.

Discussions are ongoing between FAO and Alibaba Group at the global level to form a Memorandum of Understanding (MOU) between the two organizations on the promotion of information and communications technologies (ICT) and digital innovation in agriculture. The collaboration with FAO would involve China as well as other countries. It is envisioned that some demonstration activities on digital agriculture and e-commerce will be conducted in the GEF-7 target counties under the proposed project. Among the four proposed collaboration areas of the MOU, one is dedicated to “Ecological conservation for sustainable agriculture development, contributing to climate change mitigation and adaptation”. It includes joint research and experience sharing of Ant Financial practices for forestry restoration, and collaboration through activities and projects to explore the impacts of ecological conservation through digital platforms on poverty reduction and greener lifestyle, and raise public awareness on ecological conservation.

Ongoing GEF projects of relevance As described in Section 6. Institutional Arrangement and Coordination, the China child project builds on important experiences and lessons learned from a number of GEF and other projects. In particular, the project will coordinate closely with the following ongoing GEF projects in the target provinces: • UNDP-led GEF-6 “PRC-GEF Partnership Program for Sustainable Agricultural Development” and its child project “Conservation and sustainable use of indigenous agricultural genetic diversity in Hubei”. The project will strengthen incentive mechanisms for agricultural biodiversity, and will demonstrate, in particular, incentive mechanisms for rouge rice in Yunyan County, wild kiwi in Wudang Mountain City, and Matou goat in Yunxi County of Hubei. The GEF-7 project will collaborate with this project to capture lessons learned and exchange knowledge on agricultural biodiversity conservation. • Furthermore, in Shandong, Hubei, Jiangsu and Jiangxi provinces, the GEF-7 project will exchange with the UNDP GEF-6 project “Phase out of Endosulfan in China”. Although the GEF-6 project is focused on cotton and tobacco, the GEF-7 project can benefit from the systems and IPM mechanisms and practices established by this project in the target provinces. • In Jiangxi Province, the GEF-7 project will exchange with FAO’s GEF-5 project “Piloting Provincial- level Wetland Protected Area System in Jiangxi Province (Poyang Lake)”. Although not implemented in the same counties, the two projects have indirect linkages as the GEF-7 project aims to reduce agricultural pollution in river systems upstream of Poyang Lake. When developing biodiversity indicators, the project will seek inputs from the GEF-5 project.

38 • In Jiangxi and Guizhou, linkages will be established with IUCN’s GEF-6 project “Building Climate Resilient Green Infrastructure: Enhancing Ecosystem Services of Planted Forests in China through Forest Landscape Restoration and Governance Innovation”, which is part of the global program The Restoration Initiative (TRI). Although not working in the same landscapes/counties, the two projects can exchange lessons learned in particular with regard to technologies and species selection for ecological restoration and agroforestry.

Private sector Local SMEs and cooperatives in the target landscapes support production, processing and marketing of the project’s target grain crops rice, wheat and maize. They support agricultural mechanization, supply of inputs, development of market linkages and supply chains. These local companies work closely with county and township governments and receive targeted support and subsidies from government to support agricultural production. Some companies help farmers to implement green policies such as green manure, crop straw reutilization, organic fertilizer production, and recycling of agricultural input waste. Others have established agricultural product supervision and traceability platforms to support information management on field, insects, seedlings, meteorology and farming operations. At the provincial and national level, private and state-owned enterprises support aggregation, distribution and wholesale. There is a great opportunity to expand these public- private partnerships and enhance capacity of these local companies to implement sustainable agricultural practices while linking farmers with value chains.

A detailed value chain analysis conducted during the project preparation phase (available as a separate report) shows that capacity for value addition and technological innovation is still low. High financing costs, lack of skilled human resources and lack of industry-wide organization is also a constraint for local companies. Similarly to other target counties, in Rongjiang County, about 40% of the rice produced is consumed locally, while about 45% is sold nationwide through acquisition, wholesale, trade and e-commerce by state-owned enterprises. About 15% of rice producer stocks are reserved for seed or self-use. There is significant potential to further develop certified (organic, green) rice, which fetches a market price that is 5-20 yuan/kg higher than ordinary rice.

As mentioned above, large e-commerce companies such as Alibaba and Jingdong Group have recently entered the agriculture sector. They provide access to affordable financing to farmers in rural areas, as well as marketing and distribution of agricultural products through their e-commerce channels. Alibaba has made it its mission to contribute to the Sustainable Development Goals (SDGs), and in particular to poverty reduction and sustainable agriculture development goals across China and globally. It has established a strategic partnership on poverty reduction with the government in line with the government’s ambitious goal on poverty alleviation. Among others, Alibaba provides digital solutions to smallholder farmers. Through its affiliate Ant Financial, Alibaba is working with local banks to provide access to rural finance for smallholder farmers. Alibaba has established Taobao Villages across China. Through its e-commerce platform Rural Taobao, Alibaba supports farmers in marketing of agricultural products. Moreover, Alibaba is developing digital tools aimed at boosting agricultural efficiency, crop yields and farmers’ income using big data. Alibaba also provides technical support to collect data on farmland (e.g., residues of chemicals and fertilizer in the soil) in order to ensure the quality of products. Alibaba aims to export some of these solutions to smallholder farmers in other countries in the region and globally. As mentioned above, an MOU is currently under preparation between Alibaba and FAO to promote innovations in digital agriculture and e-commerce, among others, which would also involve this GEF-7 project.

Alibaba Group is committed to environmental sustainability in their corporate strategy. Freshhema, Alibaba’s subsidiary in the fresh grocery sector, in 2019, announced to work closely with 500 agriculture bases in China to provide agricultural products with good quality, and transform the production of food systems. According to “A Letter Home 2019” published in Chinese, Alibaba Foundation established in 2011 is dedicated to water

39 environment conservation and nature education. Cainiao, Alibaba’s logistic platform, is promoting environmental sustainability through various green initiatives such as a package recycling programme and the use of biodegradable package materials and digital invoices. Ant Forest, a green initiative on the Alipay mobile platform, planted about 122 million trees in China, and provided employment to 330,000 famers with the total salary increase of 50 million yuan. Ant Forest received a 2019 Champions of the Earth award, the UN’s highest environmental honour, for turning the green good deeds of half a billion people into real trees planted in some of China’s most arid regions.

Universities and research institutions National and provincial universities and research institutions play a key role in agricultural research and the development and implementation of agricultural technologies in China. These include, but are not limited to, the Chinese Academy of Agricultural Sciences (CAAS), Chinese Academy of Sciences (CAS), China Agriculture University (Beijing), Huazhong Agricultural University (Hubei), Renmin University of China (Beijing), and Beijing Institute of Technology. The project will closely involve experts from these research institutions for technical guidance as well as development of the monitoring protocols.

The Integrated Soil-Crop System Management (ISSM) program, initiated by the Ministry of Agriculture and the Ministry of Science and Technology, and led by a group of scientists at the China Agricultural University, achieved an average 11% increase in crop yield between 2005 and 2015 for millions of small household farms in China. This was achieved through the ISSM technology, in particular the implementation of better nutrient management practices. The program involved stakeholders from various sectors including government, academia, private sector such as seed and fertilizer suppliers, and farmers (Cui et al., 2018).

FOLU Coalition The Food and Land Use (FOLU) Coalition is a global, public-private partnership dedicated to the transition toward a sustainable food and land-use system. In China, the FOLU Platform is coordinated by the World Resources Institute (WRI) China. It builds on the ongoing work of the Food, Agriculture, Biodiversity, Land Use and Energy (FABLE) Consortium, which is led by the Center for Agricultural Resources Research at the Chinese Academy of Sciences and brings together experts from Chinese Academy of Sciences, Nanjing Agricultural University, Peking University, China Agricultural University and Tsinghua University. The FABLE Consortium is a new knowledge network comprising research teams from 18 countries and that operates as part of the Food and Land-Use Coalition. It conducts research and modelling and analyses pathways towards sustainable land-use and food systems in China and globally.37 The GEF-7 project has formed a partnership and will collaborate closely with these two platforms for knowledge exchange and strategies for scaling. It will also involve them closely in the development of the national and provincial food and land use collaboration mechanisms (Output 1.1.1). Through exchange of lessons learned and best practices under these platforms and under the annual FOLU Coalition partners meetings, best practices and opportunities for large-scale transformation will be identified, based on most recent research and applications from the field.

Consultative Group for International Agricultural Research (CGIAR) CGIAR is a group of leading international agricultural research and training organizations, conducting interdisciplinary research on agriculture in the region and globally, from breeding to pest control to value chains. In particular, the International Rice Research Institute (IRRI) and the International Maize and Wheat Improvement Center (CIMMYT) have conducted research on rice, wheat and maize in China and globally. IRRI’s engagement with China, which began over 30 years ago, helped the country become a world leader in hybrid rice, which can yield 15-20% more than other rice. In the late 1970s, China was the first country to successfully produce hybrid rice for temperate-climate agriculture. 38 IRRI has offices in 17 rice-growing

37 https://www.foodandlandusecoalition.org/global-initiatives/fable/ 38 https://www.irri.org/

40 countries in Asia and Africa, including in China. IRRI is also one of the founding members of the Sustainable Rice Platform (SRP). IRRI is currently establishing three collaborative laboratories in China, notably in Beijing, (Guangdong) and Nanjing (Jiangsu). Similarly, CIMMYT has supported the development and extension of wheat and maize varieties and the training of Chinese scientists for over 30 years. The GEF-7 project will continue to exchange with CGIAR, in particular IRRI and CIMMYT, during project implementation, at both national and regional levels.

3) Proposed alternative scenario with a brief description of expected outcomes and components of the project and the project’s Theory of Change

Building on these baseline investments, the project will aim to tackle the important negative externalities in China’s food systems, addressing soil and water pollution, high GHG emissions, and fragmented, unsustainable land use in agriculture at scale by pursuing environmentally sustainable production approaches and value chains for the globally important staple crops of rice, wheat and maize. The project is expected to have a large-scale transformational impact on food systems in the target landscapes (around 530,000 ha) and beyond, aiming to transform the FOLUR target commodities/crops’ production and value chains at a scale that is significant at the global level. The project provinces Shandong, Jiangsu, Jiangxi, and Hubei are all major grain producing areas in China. The rice, wheat, and maize planting areas in the four provinces account for 29.2%, 31.5%, and 14.6% of the country, respectively39. China is the largest producer of the targeted FOLUR IP grain crops in the world, ranking first in rice and wheat production, and second in maize production. It produces 30% of the world’s rice, 17.5% of wheat, and 25% of the world’s maize. The transformation of China’s crop production systems has a huge impact globally. China represents 14% of global agriculture related GHG emissions. According to the project estimates, the reduction of greenhouse gas emissions in the project area can reach an average of 0.6 ton per year per hectare, or 12 tons for the scale of 20 years per hectare; thus, the potential for carbon sequestration and emission reduction based on the project outcomes, along with land degradation and biodiversity benefits, is huge.

As shown in the project’s Theory of Change (see Figure 6 below), which reflects the Program’s Theory of Change, the project will apply a holistic approach involving integrated planning, incentive systems, implementation of innovative, sustainable agricultural practices and value chains, restoration and conservation in order to address the barriers mentioned above and achieve a more sustainable food production system in the target landscapes and beyond. First, the project will address gaps in the enabling policies and planning frameworks for sustainable agricultural practices (Barrier 1). This will be done by putting in place adequate policy and incentive mechanisms for sustainable agricultural practices and land restoration, as well as integrated landscape management (ILM) plans that enable national and local institutions to meet their relevant sustainable agriculture, ecological civilization and rural revitalization goals while also enhancing overall productivity. Monitoring systems will be improved to enable county, provincial and national stakeholders to monitor progress in achieving sustainable food systems and land use. Multi-stakeholder platforms, bringing together representatives from public and private sectors, will be established to advance and foster collaboration towards achieving sustainable food systems and land use goals. Second, the project will address the gaps in capacities and mechanisms at the local level to scale up innovative approaches for sustainable agriculture and restoration (Barrier 2). This will be achieved by moving from demonstration to the scaling up of innovative models and technologies to address issues of unsustainable production systems, aiming to sustainably increase productivity and incomes while protecting biodiversity and ecosystems. This will contribute not only to reducing GHG emissions and chemical/nutrient pollution, but also to restoring degraded land and conserving natural resources including water. The uptake and scaling of sustainable and climate-smart agriculture practices will be promoted by working with farmers, government, enterprises and cooperatives at the local level, as well as provincial and

39 Guizhou is less significant in terms of production area and is, thus, not included here. Nevertheless, Guizhou is important for quality/ecological rice production and sustainable rice-based livelihoods.

41 national value chain actors. Third, the project will address gaps in market incentives and engagement of smallholder farmers in value chains supportive of sustainable production and land management (Barrier 3). It will help to build the capacity of farmer cooperatives and enterprises across the supply chain to support sustainable value chains from input supply, to production, to processing and marketing. Public and private actors across the value chain, such as producers, distributors, and traders will be engaged to bring solutions at scale for developing value chains and access to markets for sustainably produced staple crops. Finally, the project will tackle the lack of platforms and knowledge sharing and exchange mechanisms at provincial, national, but also regional and global levels (Barrier 4) by fostering exchange of knowledge, technical standards and approaches that support replication and scaling of sustainable staple crop production. The project will foster cross-learning and cross-dissemination of the project interventions, in particular those related to climate-smart agriculture and ecological restoration and agroforestry. Interventions applied in the MARA provinces, including policy and technical project interventions, may also be taken up by Hubei, and vice-versa.

Accordingly, transformation of the food production system will be realized through the following entry points: (i) Policy change, leading to a transformation of incentive systems in staple crop production (such as by revisiting agricultural subsidies with a focus on sustainability); (ii) Integrated, landscape-level planning enabling stakeholders to reconcile objectives of production and resource conservation; (iii) Capacity and knowledge, improved technical standards (national, province and industry-wide), and innovative technologies, enabling farmers and other local stakeholders to switch from practices that degrade soil and biodiversity to practices that enhance and restore soil fertility while sustaining productivity; (iv) Increased private sector support and commitment to sustainability across the target commodities’ value chains; and (v) Partnerships that support replication and scaling. These entry points will work together to generate capacities, policies/plans, industry-wide standards and partnerships that are important enabling conditions for further replication and scaling at provincial and national level.

The outcomes and outputs under the four components are interlinked and iterative. Outcomes under Components 2 and 3 will provide evidence and required experiences to inform the policy reform under Component 1. In turn, policy and planning outcomes as well as partnerships with private sector actors under Component 1 will support implementation and scaling of sustainable practices and restoration under Components 2 and 3. Knowledge sharing mechanisms and platforms under Component 4 will further enhance replication and scaling.

The project will have a significant impact on Chinese agricultural policy and private sector. This mainly includes: 1. Through the implementation of the project, a set of good agriculture practices will be elevated to industry standards by MARA or provincial DARA. These standards will promote technological transformation in the management of staple crop production, influence private sector production and business practices, and contribute to China’s capacity for sustainable agricultural development in the target landscapes and beyond. 2. Project implementation will result in a number of Integrated Landscape Management (ILM) plans for agricultural production at the provincial, municipal and county levels, which have the potential to become legal documents for local governments that result in a long-term impact. The project will also aim to further scale good practices by incorporating them into the local Five-Year Plans and/or land use plans. 3. The supporting policies of the project for private sectors are also reflected in the development of value chains: attract private enterprises to participate in green organic brand building, and provide financial support and market incentives.

42 The two sub-projects share the same goal, outcomes and components. Jointly, they contribute to the achievement of the global environmental benefits. The FAO-MARA sub-project primarily builds on a baseline of existing investments by public and private sectors in sustainable agriculture technologies, which it aims to scale up and out through the project interventions; the WB-Hubei sub-project additionally builds on an IBRD loan that will enable the target counties in Hubei to make even greater investments in innovative technologies. The two sub- projects have been joined with the aim of having a larger reach and impact, in order to support the project’s ambitious goal of transformation of the food production systems and agricultural landscapes in China through an integrated landscape and value chain approach. The FAO-MARA sub-project has a more national reach covering several provinces in different agro-ecological regions, starting from the national level down to the provincial and county level; the WB-Hubei sub-project has a county/provincial focus enabling it to reach a larger coverage and transformation within a single province while also generating lessons and standards that can be applied at national scale. The FAO-MARA sub-project primarily focuses on the staple crops wheat, maize and rice; while Hubei focuses on rice, livestock and agroforestry. Combined, the two sub-projects have the necessary reach and influence to contribute to national and provincial upscaling through the development of standards and policies, sustainable value chains, national capacities, and by generating and exchanging best practices and establishing partnerships towards sustainability.

The Theory of Change is based on a number of assumptions. First, it assumes buy-in and commitment of public and private stakeholders across the selected value chains to participate in mechanisms for integrated planning towards productivity and sustainability, and to invest in sustainable production models. It also assumes that innovative production methods that combine biodiversity, sustainable land management and climate change benefits while enhancing/maintaining yield, can be effectively deployed at scale through more efficient utilization of agricultural policies and effective technical guidance. These production methods have been applied intensively in demonstration areas, but have yet to reach the scale required for a transformational impact. Importantly also, the project assumes that ecological restoration can be utilized to restore and enhance sustainability and productivity of agricultural landscapes. By reducing soil erosion, enhancing soil fertility and increasing farmland biodiversity, productivity on existing and marginal land can be improved. Finally, the project assumes that the knowledge that is created and shared through the various mechanisms of the project is effectively used and applied for replication and scaling by the project’s main stakeholders, including MARA, the provincial DARA, farmers, and enterprises, during and beyond the project’s lifetime.

43

Figure 6: China FOLUR Theory of Change (including Hubei sub-project)

44 In line with the above, the project’s objective is to support the innovative transformation of China’s agro- landscapes and agri-food value chains towards environmental and ecological sustainability at scale in support of the 2030 Sustainable Development Goals (SDGs), rural revitalization, ecological civilization, and climate resilience. It thereby contributes directly to the FOLUR Program objective, which is to promote sustainable, integrated landscapes and efficient food value and supply chains at scale. The project will promote the integrated management of agricultural ecological systems and the enhancement of agricultural value chains, implement new technologies and modes of agricultural green development, and establish eco-compensation incentive mechanisms and stakeholder partnerships. Thereby, it will achieve positive impacts for biodiversity, soil and water conservation, climate change mitigation, food security, and sustainable rural livelihoods. The project will be implemented through the following four components.

1. Component 1: Development of integrated landscape management (ILM) systems in agricultural landscapes. 2. Component 2: Promotion of sustainable food production practices and responsible agri-food value chains for the staple crops of rice, wheat and maize. 3. Component 3: Conservation and restoration of agroecosystems and biodiversity. 4. Component 4: Project coordination, knowledge management and M&E.

The four components and respective outcomes are described below. A detailed description of the project outputs and activities is included in Annex H. The detailed project results framework and indicators can be found in Annex A1.

Component 1: Development of integrated landscape management (ILM) systems in agricultural landscapes (addressing Barrier 1)

Targets for Component 1, Outcome 1.1 include: • 5 improved policies (1 national and 4 provincial) and 12 county-level plans in place to support ILM. • 250,000 hectares of land under improved management plans (ILM). (Note: Other area targets have been deducted from this number to avoid double-counting.) • 300 decision-makers and technical staff of national, provincial and local governments with increased capacity to apply ILM (of which at least 50% women). • 8 new or improved monitoring systems in place and operational beyond project (2 per province). • 10 percentage points increase in capacity development scores as per Capacity Development Scorecards.

Targets for Component 1, Outcome 1.2 include: • 4 improved/newly established payment for agro-ecological services incentive mechanisms (1 per province).

Outcome 1.1: Strengthened ILM policies, plans and capacities that promote participatory planning and enable national and provincial institutions across agricultural landscapes to meet their relevant sustainable agriculture, rural revitalization, land restoration and related climate and biodiversity targets.

Under Outcome 1.1, the project will strengthen sustainable agriculture policies and integrated landscape management (ILM) plans as well as capacities for ILM at the national, province and county levels. First, the project will aim to establish (or strengthen existing) food and land use collaboration mechanisms at national and provincial level (Output 1.1.1). These mechanisms are aimed at bringing together public and private sectors to support cross-sectoral planning and scaling up of interventions aimed at optimizing land use and food systems in the target counties and beyond in view of enhancing environmental sustainability. The collaboration mechanisms will be involved in the subsequent development of ILM plans coupled with ILM investment plans, and will be convened regularly to discuss progress, opportunities for replication and scaling, and lessons learned.

45 While the primary focus will be on the staple grain crops, the mechanisms are expected in the long-term to also address other crops as well as livestock, as an integral part of the food system.

The project will then develop county-level ILM and restoration plans which are supported by public and private investments in a participatory process involving public and private stakeholders as well as civil society (Output 1.1.2). ILM and restoration plans will first be developed in 1-2 key target counties per province, and will be replicated in additional counties in the third year of project implementation. These ILM plans will be based on existing plans (such as land use plans, sustainable agriculture development and rural revitalization plans), and will incorporate expert assessments and geospatial analysis, as well as stakeholder inputs. In preparation of the plans, and building on the initial assessment of ecosystems and biodiversity conducted during the project preparation phase, the project will conduct field surveys and assessment of land degradation, biodiversity and ecosystems (including cultivated and wild plants and animals at ecosystem, species and genetic levels) in the target counties.

The primary goal of the ILM plans is to identify opportunities for optimizing land use in the target counties, in order to address land and environmental degradation and enhance local livelihoods. The plans will review current agricultural practices and identify priority areas for interventions of sustainable land management (SLM) and climate-smart/sustainable agriculture to be implemented under Component 2. They will also identify priority areas within the landscape that are important for biodiversity, areas where ecosystems should be restored, buffers established to enable ecological interception of nutrients, vegetation increased to stabilise slopes, and habitat enhanced for farmland biodiversity such as pollinators and natural enemies of crop pests (to be implemented under Component 3). Indicators to measure changes in biodiversity and land degradation will be identified, and targets for biodiversity (at the species, ecological community, or habitat/ecological system level) will be established for Output 3.1.1.

A particular focus of the ILM plans will be on reducing negative externalities of the target grain crops (rice, wheat, maize) and enhancing diversity and resilience of agro-ecosystems while maintaining crop production. Thus, while the primary focus of the plans will be on agricultural land and surrounding areas, integration or alignment with other sectors (forests, wetlands, etc.) will be sought. The process will ensure participation of women and representation of vulnerable groups. Furthermore, the planning process will aim to address trade- offs in the landscapes. For instance, local stakeholders (farmers, private sector, and to some extent local governments) may be primarily interested in intensifying production and increasing incomes, while environmental benefits are a secondary goal. The project interventions will enable stakeholders to sustain or increase productivity, increase quality and value of their crops, while enhancing soil quality, restoring degraded land, reducing agricultural pollution, and safeguarding important ecosystems and biodiversity. Generally, local companies’ interests in the target areas are closely aligned with government interests, and they directly contribute to the implementation of national and provincial policy. It is, thus, anticipated that trade-offs can be addressed through improved planning and policies that incorporate sustainability.

To support the implementation of the ILM/restoration plans, the project will organize (gender-sensitive) capacity building for decision makers and technical staff of the local government on sustainable integrated land and water resources management, sustainable agriculture, biodiversity conservation and ecosystem restoration (Output 1.1.3). This will lay the foundation for integrated planning as well as implementation of project activities under the four components. Furthermore, the project will assist in establishing (or improving existing) monitoring systems for sustainable food systems and land use, and support their implementation (Output 1.1.4). Indicators and guidelines for farm- and landscape-level monitoring in agricultural land and surrounding areas will be developed in order to be able to monitor and assess (i) land use/land degradation/soil quality; (ii) biodiversity and ecosystems; (iii) GHG emissions and carbon sequestration; (iv) economic and social impacts on beneficiaries such as income growth and poverty reduction, and (v) integrated pest management

46 measures. Links will be established with existing monitoring systems and reporting needs/requirements in the target counties, in order for the indicators to be relevant, realistic, and sustainable beyond the project period.

Lastly, the project will help to develop innovative national and provincial policies to support sustainable food systems and land use, based on the experiences and lessons learned from its different components in all project provinces (Output 1.1.5). Among others, the project will aim to strengthen/revise current subsidy policies in order to increase support for sustainable and biodiversity-friendly practices. It will also aim to further scale good practices by incorporating them into the local Five-Year Plans and/or land use plans. The project will, thus, help to mainstream sustainable land management, biodiversity conservation and climate change mitigation in China’s major agricultural production systems. The activities of this outcome, in particular at the national level, will be closely coordinated with the World Bank-Hubei sub-project. When elaborating policy options, considerations on women and youth empowerment will be analysed and taken into account.

Outcome 1.2: Innovative payment for agro-ecological services incentive mechanisms in place for sustainable, safe, and smart agri-food systems.

Under Outcome 1.2, the project will conduct an analysis of payment for agro-ecological services mechanisms. As highlighted above, current eco-compensation schemes do not cover agricultural ecosystems, and there is potential to extend successful approaches to agriculture, in order to strengthen biodiversity in agro-production system and sustainability of land and soil resources, as well as the preservation of water quality and quantity. Based on the analysis, the project will support national/provincial incentive mechanisms and policy reform on payment for agriculture (Output 1.2.1). The activities under this outcome will be closely coordinated with the World Bank-Hubei sub-project.

Component 2: Promotion of sustainable food production practices and responsible agri-food value chains for the staple crops of rice, wheat and maize (addressing Barrier 2 and 3)

Targets for Component 2, Outcome 2.1 include: • 200,000 ha of land under improved practices/GAP. • Number of newly developed or improved standards • 2.7 million metric tons of carbon sequestered or emissions avoided. • Chemical fertilizer and pesticide use reduced by 10% in the project intervention area. • Soil organic matter content increased by 6% in the project intervention area. • Average yield per hectare productivity increased by 6% in the project intervention area.

Targets for Component 2, Outcome 2.2 include: • 50,000 person-time (at least 50% women) trained. • 10% increase in income for an estimated 5,000 farmers (50% women) benefiting from project supported agri- food value chains40. • At least 15 green/organic agri-food brands certified. • At least 20 farmer cooperatives with increased capacity to support responsible value chains.

Note: The area target under Core Indicator 4 results both from interventions directly financed by the GEF grant (such as on-the-ground interventions, training, IPM, as well as changes in policy or GAP standards that influence current practices), and interventions financed through co-financing from national and local government and private sector (such as investments in high-standard ecological farmland construction, sustainable agriculture subsidies and standards, etc.).

40 Such as from yield increase, crop diversification, and agri-food value chain development.

47 Outcome 2.1: Sustainable agricultural practices deployed and scaled up that enhance ecological functions, improve soil quality and fertility, mitigate GHG emissions and establish resilient agricultural production models.41

In parallel and in line with the ILM plans developed under Component 1, Outcome 2.1 will aim to deploy and scale up sustainable agricultural practices in line with the specific agro-ecological context of each province and county, with the aim to enhance ecosystems and biodiversity, reduce GHG emissions, improve land quality, and livelihoods. Sustainable and Climate Smart Agriculture (CSA) practices that have previously been tested and demonstrated will now been introduced and adopted at a wider scale (Output 2.1.1; see box below for detailed interventions). The project will build on ongoing efforts in all four provinces to promote sustainable practices, such as reduced use of chemicals, rotation and fallow systems, and green agriculture pilots. In particular, the project team will exchange closely with the World Bank-Hubei sub-project, to compare different approaches and their global environmental benefits. Lessons learned on Conservation Agriculture (CA) from the World Bank GEF-5 “Climate Smart Staple Crop Production Project”, implemented by MARA in Anhui and Henan Provinces for the two major crop production systems wheat-rice and wheat-maize rotation, as well as other relevant projects, have been, and will continue to be taken into account in the design of the project interventions. An important focus will be on ensuring that current yields are maintained or increased, a key criterion for sustainability.

In Shandong, the project will focus primarily on the winter wheat-summer maize rotation system. In Jiangsu, it will focus on winter wheat-summer rice rotation. In Jiangxi, the project will support sustainable practices in early rice-mid/late rice and rice-rapeseed rotation. Finally, in Guizhou, the project will focus on single-rice or double-rice cropping, as well as integrated models such as rice-fish.

To deploy and scale up these innovations and sustainable practices, the project will first develop (or improve existing) technical guidelines and standards, including Good Agricultural Practices (GAP) standards. This will be closely linked to the certifications to be developed under Outcome 2.2. When developing standards, the project will seek inputs from the Hubei sub-project, as well as other FOLUR child projects such as India, Thailand, , Kazakhstan or Uzbekistan, in particular with regard to the sustainability standards developed under the Sustainable Rice Platform (SRP) as well as relevant international wheat and maize standards. Lessons learned from the Green Rice Standard developed under FAO’s project “Agricultural Technology Integration and Demonstration for Green Rice Development in Chongming Island, Shanghai” will also be taken into account. In parallel with the training and extension program to be carried out under Outcome 2.2, the project will then implement field activities to apply and replicate the new practices/technologies/standards. Community meetings will be held, involving consultations with vulnerable groups such as women, the poor, and ethnic minorities, to develop detailed implementation plans in each county and regularly assess progress. In Guizhou, this will also involve ensuring Free, Prior and Informed Consent (FPIC) for ethnic minority groups (see Annex J). Once deployed in the project’s core areas, the project will

41 FAO defines the following 5 key principles of Sustainable Food and Agriculture: Principle 1: Improving efficiency in the use of resources is crucial to sustainable agriculture; Principle 2: Sustainability requires direct action to conserve, protect and enhance natural resources; Principle 3: Agriculture that fails to protect and improve rural livelihoods and social well-being is unsustainable; Principle 4: Sustainable agriculture must enhance the resilience of people, communities and ecosystems, especially to climate change and market volatility; Principle 5: Good governance is essential for the sustainability of both the natural and human systems. Conservation Agriculture, in turn, is a farming system that promotes maintenance of a permanent soil cover, minimum soil disturbance (i.e. no tillage), and diversification of plant species. It enhances biodiversity and natural biological processes above and below the ground surface, which contribute to increased water and nutrient use efficiency and to improved and sustained crop production. Complemented by other known good practices, including the use of quality seeds, and integrated pest, nutrient, weed and water management, etc., CA is a base for sustainable agricultural production intensification. FAO describes Climate-Smart Agriculture (CSA) as an approach for developing agricultural strategies to secure sustainable food security under climate change. CSA aims to tackle three main objectives: (i) sustainably increasing agricultural productivity and incomes; (ii) adapting and building resilience to climate change; and (iii) reducing and/or removing greenhouse gas emissions, where possible.

48 support replication and adoption at scale through the wider application of standards, their elevation to industry or province wide standards, the investments/value chain linkages under Outcome 2.3, and the policies and incentive systems developed under Component 1.

In addition to implementing approaches that have already been tested, under this Output the project will experiment and demonstrate new technologies for farmland diversity planting and ecological landscape development, as well as for carbon sequestration and GHG reduction such as through farmland conservation and water management.

In parallel with these interventions, the project will deploy innovations to reduce the use and discharge of chemical fertilizers and pesticides, such as precision agriculture, soil testing, integrated pest management (IPM), ecological interception systems, and digital technologies (Output 2.1.342). Detailed integrated pest management plans (IPMPs) will be developed in a consultative process, based on existing IPM plans in the target provinces and on the project’s Integrated Pest Management Plan (Annex O), with the overall aim to reduce the use of chemical control and increase biological and other alternative control measures.

In the deployment of sustainable practices and innovative technologies, it is important that the project take into account the high costs of labour and/or labour shortages that are prevalent in some areas. Where relevant, the project will provide opportunities for mechanization, in particular for women farmers, and develop management and organizational skills. The project will also aim to involve youth.

The private sector will have a key role in the implementation of the activities under Component 2. In addition to smallholder farmers, the project will engage cooperatives and local agribusinesses that enable investments and scaling through local organization. As mentioned earlier, the number of farmer cooperatives and agribusinesses have been rapidly increasing over the past few years. However, their capacity to operate at scale and their access to green technologies and sustainable financing is still limited. In particular, the project will engage with local agricultural producers, cooperatives and agri-food enterprises involved in the production and distribution of agricultural products, processing, storage, utilization of agricultural wastes, organic fertilizer production, agricultural service and trainings, agricultural product marketing and sales, procurement of agricultural machinery, etc. as well as providers of agricultural services to rural areas. These local companies are instrumental in the implementation of government policies such as reutilization of straw and livestock waste (e.g., for organic fertilizer production), and will be instrumental in organizing farmers to implement and sustain improved practices. They will also be instrumental in providing training and services to the farmers during and after the project period.

Lastly, under Outcome 2.1, through provincial and county investments, the project will implement strengthened high-standard ecological farmland construction according to national standards promoting the six objectives of water conservation, mechanization, ecology, scenery, large-scale management and informatization (such as land consolidation, land levelling, improved irrigation and drainage, and improved field road accessibility) (Output 2.1.4). Where relevant, the project will aim to incorporate biodiversity considerations into the high-standard ecological farmland construction, such as for the preservation of biodiversity along canals and streams.

The sustainable and climate-smart practices are anticipated to include the following interventions.

Description of interventions (Core Indicator 4) Good Agricultural Practices/Climate-Smart Agriculture 1. Conservation Agriculture o Minimum tillage and mulching, crop straw incorporation and manure application

42 Note: Output 2.1.2 (on climate-smart livestock) applies to World Bank-Hubei sub-project only.

49 o Crop rotation, diversified cropping and cover crop planting 2. Contour farming to address soil and water erosion and improve soil fertility 3. Water-saving irrigation in paddy fields; Alternate Wetting and Drying (AWD) 4. Cultivar selection for climate-resilient, high-yield and low-emission varieties 5. Rice-fish integrated systems or other comprehensive eco-agriculture models 6. High-standard farmland building 7. Small-scale “green” mechanization and other labour-saving technologies, in particular for women farmers

Innovations for chemical reduction 1. IPM in line with the project’s Integrated Pest Management Plan, including pesticide discard 2. Soil testing and precision agriculture 3. Fertigation 4. Ecological interception 5. Organic fertilizer and green manure 6. Digital technologies, including improvement of digital monitoring facilities (e.g., for pest early warning)

Outcome 2.2: Responsible, market-oriented agricultural value chains implemented and scaled up, including through government-private enterprise-farmer cooperative partnerships and capacity building for high-quality, sustainable and affordable agricultural products.

Under Outcome 2.2, an estimated 50,000 farmers (of which at least 50% women) across the target landscapes will benefit from capacity building and enhanced access to value chains. A detailed capacity and awareness program will be developed and implemented to increase capacity among farmers (especially women), extension service providers, enterprises and cooperatives on sustainable production and agricultural value chains (Output 2.2.1). This will directly support implementation of activities under Outcome 2.1. The training may also incorporate aspects of farmland biodiversity and ecological restoration to support implementation of Component 3. Mechanisms for farmer education and training will be established (such as Farmer Field Schools), with close involvement of farmers, and farmer cooperatives.

Moreover, the project will work with farmers (women and men), farmer cooperatives, local/national private sector and Alibaba to develop access to markets and access to rural finance in support of sustainable agricultural value chains and farming systems (Output 2.2.2). The project will first conduct a detailed analysis, building on value chain analysis conducted during PPG, and assess the feasibility of developing market linkages/value chains and access to finance for farmers in the target counties, in particular women and youth. The analysis will be focused on the target grain crops, but may involve other crops as part of the integrated approach. The analysis will be conducted in close collaboration with farmer cooperatives and private enterprises, as well as relevant industry associations, state-owned enterprises or Chambers of Commerce. The analysis will include an ecological value assessment based on the intervention measures such as ILM and GAP, to evaluate the ecological value of products, in particular rice.

The project will then provide technical assistance to local businesses and cooperatives to develop and implement selected value chains for sustainably-produced crops, including certifications and traceability systems, digital technologies, and financial services. This may involve the use of existing certifications such as green/organic, as well as the establishment of an ecological product certification system based on the ecological value of agricultural products. Furthermore, the project will support the establishment (or strengthening of existing) government-private enterprise-farmer cooperative partnerships, and promote investments to support scaling up of sustainable value chains from input supply, to production, to processing and marketing (Output 2.2.3). The project will aim to involve critical actors across the value chain, from grain producers, input suppliers, processors, distributors, traders, state-owned enterprises, commercial banks, and rural credit cooperatives, to address both the demand and the supply side of staple grain crops for greener production.

50 The market linkages/value chains and access to finance will be developed with the aim to incentivize sustainable agricultural practices and enhance farmers’ incomes. Necessary market incentives will be established, such as through standards, ecological product certifications and traceability systems. The project will ensure that local stakeholders, including women and vulnerable groups, are consulted throughout the implementation, and that they have equal opportunities to benefit from the enhanced market linkages/value chains and access to finance.

For wheat and maize, the value chain interventions are expected to be primarily focused around GAP and green standards, certification and traceability, as well as access to financing. Awareness and technical standards on sustainable production will be enhanced among value chain actors, both public and private. For rice, the project additionally plans to focus on integrated rice-fish system, traditional rice culture and brand, Geographical Indication or ecological product certification schemes, organic certifications and potentially the Green Rice Standard and Sustainable Rice Platform (SRP) standard, made-to-order farming and access to markets through e-commerce. In Guizhou, these interventions are planned to be combined with rural eco-tourism and experiencing of traditional farming culture to further support rural livelihoods and conservation of traditional and diverse farming systems.

In Shandong, technical standards and traceability systems for sustainably produced wheat and maize will be introduced or improved. Value chain actors including producers, processors, and state-owned enterprises (such as aggregators and traders) will be engaged to raise their awareness on sustainability standards. Branding of sustainably produced wheat will also be used to raise awareness of consumers. This is expected to increase market incentive/demand for sustainably produced wheat. Combined with policy incentives and regulations, and payment for agro-ecological services incentive mechanisms, it is anticipated that this will lead to a large- scale shift in adoption of sustainable practices such as GAP, conservation agriculture, and restoration of soil fertility and farmland biodiversity.

In Jiangsu and other rice-producing provinces, in addition to the above, interventions under Outcome 2.2 will involve establishing local brands for sustainably produced local rice varieties through ecological product certification. The local government invests and organizes relevant public service agencies and the private sector to register regional agricultural product public brands, and establish corresponding agricultural product production specifications and brand quality standards, including environmental standards; private sectors engaged in the sale, production and marketing are encouraged to use the brand, and small subsidies are provided in the production and operation process. There is government funding to support private sectors to directly establish partnerships with individual farmers to help them produce and sell products in accordance with technical specifications and brand quality requirements. Once ecological product certification standards and related government incentives are in place, this model can be replicated by other private sector entities throughout the province.

Example: the “Nanjing Good Rice” public brand in Jiangsu Province. Nanjing Department of Agriculture and Rural Affairs established the “Nanjing Rice Industry Association” with the cooperation of more than 10 private sectors engaged in rice production, processing and sales, such as the government technology extension service department and the Nanliang Group, and jointly created the Nanjing rice regional public brand “Nanjing Good Rice”. The “Nanjing Rice Industry Association” is responsible for formulating standards for the environment of rice production bases, variety selection, planting management, harvesting, drying, and processing and other aspects to ensure green ecology and high quality. Farmers, farmer cooperatives, processing and sales companies willing to follow the standards of the association can apply to join. The government of Nanjing, Jiangsu Province provides financial subsidies for the operation of the association, construction of demonstration bases and brand marketing every year. This model helps “Nanjing Rice Industry Association” to effectively organize Nanjing rice companies, brands, bases and production companies, etc. through standardization, ordering, brand integration, and complementary advantages jointly create a regional brand of Nanjing rice to meet public consumption demand and environmental standards, promote high quality and increased prices, and drive the village collective economic organizations and farmers to increase income.

51 In its interventions, the project will also focus on strengthening the resilience of agricultural supply chains in the face of COVID-19 and potential future similar crises.

Component 3: Conservation and restoration of agroecosystems and biodiversity (addressing Barrier 2)

Targets for Component 3 include: • Species and ecosystems indicators o No reduction in plant and animal species in the target landscapes. o Crop varieties increased by 2%. • 3.3 million metric tons of carbon sequestered or emissions avoided. • 80,000 ha of upland and farmland surrounding ecosystems under ecological restoration/rehabilitation.

Note: The area target under Core Indicator 3 results both from interventions directly financed by the GEF grant (such as on-the-ground restoration intervention), as well as interventions financed through co-financing from national and local government and private sector (such as investments in restoration).

Outcome 3.1: Enhanced conservation and restoration of agroecosystems and biodiversity.

Outcome 3.1 of the project will implement and scale up conservation, restoration and rehabilitation interventions of farmland and surrounding ecosystems in and around the productive landscapes of Component 2. Interventions under Component 3 will be focused on the landscape level, while interventions under Component 2 are primarily focused on the farm level. The project will support interventions to maintain and increase biodiversity in production systems in line with the ILM/restoration plans developed under Component 1, in close collaboration with all relevant stakeholders (Output 3.1.1). This will include, in particular, interventions to maintain or increase crop diversity in the landscape, and conserving important habitat and feeding space for farmland biodiversity and wildlife such as vegetation along streams and at the edge of farmland. Priority interventions and sites will be identified in close collaboration with stakeholders including local government, farmers, farmer cooperatives and enterprises.

Furthermore, the project will implement and scale up ecological restoration/rehabilitation to enhance ecological functions of farmland boundaries and surrounding ecosystems (Output 3.1.2). This will include, among others, the establishment of ecological corridors, trees on farm, vegetation buffers, hedgerows, nutrient interception, and revegetation of slopes/restoration of upstream ecosystems affected by soil erosion. To make these interventions more sustainable, the project will help farmers, farmer enterprises and local governments to fully utilize existing incentive mechanisms and subsidies for restoration (such as for planting trees on farm); as well as incentives newly developed under the project.

Scaling under these two outputs will be achieved by (i) linking interventions from Component 3 to the policy outcomes under Component 1, such as by establishing payment for agro-ecological services incentive mechanisms and subsidy policies that incentivize restoration; (ii) the development of ILM and restoration plans under Component 1 which, coupled with the ILM investment plans, will lead to further investment in restoration; and (iii) the development of technical standards, best practices and guidelines for restoration that enable public and private stakeholders to realize environmental outcomes that also generate socio-economic benefits.

Throughout project implementation, the project will assess the effectiveness of interventions and provide recommendations for replication in the target counties and beyond, including on sustainable financing mechanisms for restoration.

52 The interventions under this outcome are described in more detail below. This will aim to scale up good practices and experiences from the Provincial Ecological Protection and Construction Plans (described in the baseline section).

Description of interventions (Core Indicator 3)

Interventions to maintain and increase diversity 1. Increased crop diversity/crop varieties 2. Integrated and diversified planting models (e.g., agroforestry for tea, oil tree, fruit trees) 3. Identifying and conserving important habitat for farmland biodiversity (while increasing productivity on adjacent farmland)

Ecological restoration/rehabilitation (for improved farmland biodiversity and ecological landscapes) 1. Revegetation of slopes to combat soil erosion and protect water sources upstream 2. Ecological corridors 3. Trees on farm 4. Vegetation buffers (on slopes and nearby waters) 5. Hedgerows/wind breaks to reduce wind erosion 6. Ecological ditches for nutrient interception (to reduce nitrogen loss), beetle dikes and three-dimensional ecological networks (arbor-shrub-grass compounds) 7. Soil and water conservation and ecosystem rebuilding

Component 4: Project coordination, knowledge management and M&E (addressing Barrier 4)

Targets for Component 4 include: • At least 2 information dissemination platforms (smart-phone based app, internet portal, etc.) established (or existing platforms improved) and operational. • 250,000 people reached by information dissemination and knowledge exchange.

Outcome 4.1: Effective project coordination, knowledge management/information exchange and M&E.

Outcome 4.1 will ensure effective project coordination, monitoring and evaluation, including adaptive planning and management, reporting (Output 4.1.1). In particular, the project will ensure regular coordination among participating provinces, and with the World Bank-Hubei sub-project. Technical Advisory and Coordination Committee meetings with the WB/Hubei sub-project will be organized twice a year, including technical field missions. The project will also coordinate closely with the FOLUR Global Coordination Project in order to catalyse actions and partnerships for greater impact at the regional and global levels. Output 4.1.1 will also support and monitor implementation of the Gender Action Plan, FPIC and Integrated Pest Management Plan.

Furthermore, this outcome will ensure effective knowledge management and information dissemination to support implementation and scaling of project activities. An information dissemination and communication strategy will be developed at the beginning of the project to support implementation and replication of project activities at the county, provincial and national levels (including awareness raising of producers and consumers). Diversified information dissemination platforms/mechanisms will be established (or existing platforms improved) to share project achievements, knowledge, experiences, and expand environmental and social influence to support scaling and replication (Output 4.1.2). A particular focus will be on knowledge dissemination among farmers, public and private enterprises, local government and academia to increase knowledge and awareness on global environmental issues, responses to climate change, models for enhancing productivity, and value chains.

53 Finally, knowledge will be created and shared through national and provincial platforms, exchange visits, the FOLUR Global Coordination Project and other platforms such as the One Planet Network Sustainable Food Systems Programme and the Global Soil Partnership to support replication at the global, regional, national and provincial levels (Output 4.1.3). In particular, the project will participate in activities coordinated under the Global Coordination Project with regard to capacity building, regional/global exchange with commodity and value chain actors, and sharing of knowledge, technical standards, innovations and good practices. Regional workshops and forums targeting regionally significant commodities could be jointly held by country child projects and the Global Coordination Project for effective knowledge exchange. Experiences and lessons learned with regard to the development of GAP and sustainability standards will be shared with other countries. Within China, the project will organize regular forums/seminars with other projects and institutions working on similar issues in the country (such as the FOLU Coalition, IRRI, FAO, WB, etc.). Through exchange of lessons learned and best practices under the food systems and land use collaboration platforms and under the annual FOLU Coalition partners meetings, best practices and opportunities for large-scale transformation will be identified, based on most recent research and applications from the field. In addition, the project will seek to engage with provincial and national private sector associations, state-owned enterprises and chambers of commerce, to share knowledge and seek opportunities for scaling through the private sector not just at local, but at provincial and national levels. It will seek to engage with the National Development and Reform Commission (NDRC), the China Development Bank (CDB) and other similar institutions to increase their awareness and knowledge on sustainable agriculture and support their widespread adoption in China and globally.

4) Alignment with GEF focal area and/or Impact Program strategies

First and foremost, the project is aligned with the GEF-7 Food Systems, Land Use, and Restoration Impact Program strategy and its Objectives 1 and 3, “Promoting sustainable food systems to meet growing global demand” and “Promoting restoration of degraded landscapes for sustainable production and to maintain ecosystem services”. In line with these objectives, the project will support farmers to maintain or enhance productivity of major staple food crops (rice, wheat and maize), and to benefit from enhanced value chains, while reducing negative impacts on the environment, including on globally important ecosystems and biodiversity (such as wetlands and associated globally important species). It will also support local actors to design and implement integrated landscape management and restoration plans aimed at supporting sustainable agricultural practices and restoring degraded agricultural landscapes, thereby enhancing biodiversity and ecosystem services that underpin agricultural production. In line with the Impact Program’s strategy, engagement of the private sector will be a key mechanism to achieving the project’s objectives and its transformational impact. The project will also seek to establish innovative financing mechanisms, such as through payments for agro-ecological services and access to rural/digital finance. Furthermore, it will coalesce action at provincial, national, regional and global levels by leveraging existing platforms for enhanced knowledge exchange, learning and M&E.

Through these interventions, the project is also aligned with the Biodiversity focal area and its Objective 1, “Mainstream biodiversity across sectors as well as landscapes and seascapes”. It will support biodiversity mainstreaming in the agriculture sector through improved land use planning and local capacity to incorporate biodiversity considerations in agricultural production and associated land and water management, including the implementation of ecological corridors for increased farmland biodiversity. Furthermore, improved agricultural practices will contribute to reducing the negative impacts of agricultural pollution on globally important ecosystems and habitats such as watersheds, rivers, lakes and coastal wetlands.

Furthermore, the project is aligned with the focal area of Climate Change and its Objective 2, “Demonstrate mitigation options with systemic impacts”. The project will introduce and scale up technologies and best

54 practices in agriculture that enhance soil carbon sequestration and reduce methane and nitrous oxide emissions from agriculture, such as through improved water management and reduced use of chemical inputs.

The project will also contribute to the Land Degradation focal area and its Objective 1, “Support on the ground implementation of SLM to achieve LDN”. Through its restoration interventions, the project will contribute to reversing soil degradation and enhancing ecosystem services from cropland and surrounding ecosystems. The project interventions will also prevent further degradation of farmland by promoting sustainable agriculture practices that reduce chemical use, reduce disturbance to soil, increase crop cover, and encourage rotation and fallow systems.

Finally, the project will generate co-benefits in the Chemicals and Waste focal area, namely its Program 2, “Agriculture Chemicals Program”. This will be achieved by promoting integrated pest management (IPM) and low-chemical systems in food production in the four target provinces and beyond; and in particular by supporting the elimination of highly hazardous pesticides and improved management of discarded pesticides and pesticide containers.

5) Incremental/additional cost reasoning and expected contributions from the baseline, the GEFTF, and co-financing

The GEF financing will build on and complement ongoing investments by government and private sector at the national and local level. It will specifically support the incremental costs of interventions aimed at achieving a large-scale, transformational shift of staple crop production leading to global environmental benefits. These interventions include: • Required innovative transformative policy and agricultural ecological system planning and incentive mechanisms. • National and provincial food and land use collaboration mechanisms/platforms and integrated landscape management. • Mainstreaming biodiversity conservation and climate change mitigation in the major intensive agricultural production systems. • Leveraging the private sector for investments and sustainable, inclusive value chains, including through certifications, made-to-order farming, and landrace and traditional culture conservation. • Capacity building, introducing technologies and innovations, and developing technical standards (including capacity building for farmers, local cooperatives and SMEs, and other value chain actors). • Creation and sharing of knowledge and monitoring systems. • Contributing to global knowledge creation and exchange.

As explained above, transformation of the food production system will be realized through the following entry points: (i) Policy change, leading to a transformation of incentive systems in staple crop production (such as by revisiting agricultural subsidies with a focus on sustainability); (ii) Integrated, landscape-level planning enabling stakeholders to reconcile objectives of production and resource conservation; (iii) Capacity and knowledge, improved technical standards (national, province and industry-wide), and innovative technologies, enabling farmers and other local stakeholders to switch from practices that degrade soil and biodiversity to practices that enhance and restore soil fertility while sustaining productivity; (iv) Increased private sector support and commitment to sustainability across the target commodities’ value chains; and (v) Partnerships that support replication and scaling. These entry points will work together to generate capacities, policies/plans, industry-wide standards and partnerships that are important enabling conditions for further replication and scaling at provincial and national level.

The incremental cost reasoning and the expected contributions from the baseline, the GEF financing and co- financing for each component is summarized below.

55

Project component Baseline scenario With-project scenario 1. Development of Policies that support sustainable agriculture GEF funds will be invested in strengthening integrated landscape and ecological restoration are in place at capacities for integrated landscape management (ILM) both national and local levels. National management (ILM) and restoration based on systems in targets have been set for GHG emission multi-stakeholder, science-based planning. agricultural reduction and land quality restoration in Monitoring systems, including for landscapes agriculture. County land use plans are biodiversity, land degradation and GHG developed to regulate land use based on emissions, will also be strengthened. national policy. Significant investments are Innovative policies, such as on payments for being made at local level in poverty agro-ecological services or land reduction and rural revitalization. The consolidation, will be introduced to support government provides certain subsidies for scaling up of sustainable agriculture practices. organic fertilizers, straw reutilization, and green manure. In the baseline, however, policies still have limited reach and scope, and there is a lack of holistic, integrated approach for landscape level planning. There are no payments for agro-ecological services mechanisms in place. 2. Promotion of Local government is investing in organic, First, GEF investments will support scaling of sustainable food low-chemical production, circular sustainable agriculture technologies that have production practices agriculture models, pest monitoring and been proven effective in addressing and responsible agri- management, and is supporting farmers environmental issues while also maintaining food value chains for through an extensive technical extension or enhancing productivity. The project will the staple crops of system. Private sector are investing in also introduce innovations that will help rice, wheat and maize making grain production more efficient, and reduce chemical use, thereby reducing some companies support marketing, impacts on biodiversity and ecosystems and processing and supply chain aspects of reducing input cost. Furthermore, biodiversity production. Cooperatives provide some considerations will be built into current support to farmers in organizing production strategies for high-quality farmland and supply chains. construction.

Nevertheless, in the baseline, sustainable The GEF financing will cover the incremental production practices are still mostly limited costs of building capacities among farmers to demonstrations, or to certain specific (women and men), cooperatives, local aspects such as crop straw reutilization. government and private sector to implement There is currently no holistic approach to and scale up improved practices while addressing global environmental issues in benefiting from enhanced value chains and farmland. In particular also, there is limited access to finance. Current standards will be capacity and knowledge on climate change improved and Good Agricultural Practices adaptation in agriculture, and the role that (GAP) developed, and necessary market biodiversity and ecological restoration can incentives established such as through play in strengthening resilience of farmland. certification and traceability systems. There is also no systematic effort to Government-private enterprise-farmer strengthen value chains and access to rural cooperative partnerships will be further finance, and strengthen local public-private developed to support investment in partnerships and private sector engagement, sustainable staple grain crop value chains. in support of environmental sustainability. It is anticipated that the improved practices will generate significant biodiversity benefits, through physical improvements in the environment as well as reduced impact on globally important ecosystems and habitats, in

56 particular rivers, lakes and coastal wetlands, and associated globally important species such as migratory birds and native animal species. 3. Conservation and In the baseline, there are ongoing restoration The GEF project will make targeted restoration of efforts in the target provinces, mainly investments in planning and implementing agroecosystems and focused on forests, along with targeted ecological restoration at scale, such as biodiversity interventions to address soil salinization, through diversified planting models, land quality, and desertification, as well as ecological corridors, trees on farm, vegetation heavy metal pollution remediation. buffers, hedgerows, nutrient interception. Provincial Ecological Protection and These interventions will help to strengthen Construction Plans make reference to farmland biodiversity and resilience of the agroforestry, vegetation buffers on slopes agricultural landscapes, while reducing soil and nearby waters, ecological ditches, and water erosion and land degradation. This diversified planting in farmland, and will generate benefits to farmland biodiversity increasing vegetation in farmland and agrobiodiversity, in particular. The GEF boundaries, and existing experiences and funding will ensure the integration of best practices can be used by the project. In restoration targets into the ILM the baseline, however, these interventions plans/investment plans, in order to be able to are only implemented at a demonstration reach the required scale. scale and knowledge and awareness of their benefits is limited. Also, there are limited Additionally, it is necessary to strengthen interventions and policies/plans that support policy and market incentives for preserving comprehensive eco-agriculture and farmland biodiversity and increasing ecological restoration that would enhance or vegetation in and near farmland, in order to restore ecological functions and diversity of make these interventions sustainable. The production systems at scale. Farmland GEF financing will put in place incentive biodiversity is being eroded rapidly. Due to systems such as payment for agro-ecological hard infrastructure development and lack of services and agro-ecological brand standards protection/maintenance, habitat for that provide incentives for farmers, local important insects and pollinators, as well as companies and government to promote and vegetation that provides a buffer along scale ecological restoration and farmland streams and canals, are in decline. biodiversity enhancement. Furthermore, through dissemination of innovative Without the proposed GEF intervention, the restoration models and best practices and by target counties will continue to implement increasing knowledge and awareness, the sub-optimal ecological farmland GEF project will help stakeholders to realize construction measures that do not opportunities for linking restoration, sufficiently take into account farmland biodiversity and GHG mitigation goals with biodiversity (such as vegetation along production objectives, helping to address streams and between fields). Restoration trade-offs in the landscape. interventions will continue to be ad hoc and not incorporated into an integrated landscape Experience, expertise and best practices from planning and management approach. similar agro-ecological regions will be Opportunities for linking restoration, disseminated through the leading role of biodiversity and GHG mitigation goals with MARA and the provincial DARA, to be production objectives will not be fully further taken up in future national and realized. Also, incentive systems such as provincial investments and plans. payment for agro-ecological services will continue to be lacking for comprehensive conservation and restoration of biodiversity in agricultural landscapes. 4. Project In the baseline, MARA, universities and GEF investments will fund the incremental coordination, research organizations, FAO, WB, the costs of systematic information and

57 knowledge FOLU Coalition, and other actors, are knowledge sharing at local, provincial, management and contributing to knowledge creation and national and global levels. Furthermore, GEF M&E exchange with regard to sustainable funds will support global knowledge and agriculture and food systems. There is, capacity development under the FOLUR however, no systematic, large-scale effort to Global Coordination Project. Regular share knowledge and coalesce action meetings and exchanges will be organized through national or provincial platforms that under the Technical Advisory and would bring together public and private Coordination Committee with the World sector. There are also no platforms for Bank-Hubei sub-project, to ensure that systematic dissemination of information and lessons learned are compiled, shared, and best practices on sustainable and climate- used to inform policies at the national and smart agriculture, in particular at the sub- provincial level. national level.

6) Global environmental benefits (GEFTF)

The project is expected to have a large-scale transformational impact on food systems in the target landscapes (around 530,000 ha) and beyond, by targeting a transformation of the intensified agriculture sector (notably rice, wheat, and maize), by supporting integrated production systems and restoration of degraded land, and value chains. In line with the Impact Program strategy, the project will generate global environmental benefits (GEBs) across multiple focal areas.

First, the project will bring approximately 450,000 ha of agricultural landscapes under improved practices through sustainable land management as well as improved agricultural practices and integrated landscape management that benefit biodiversity. This will lead to reduced nutrient runoff, and improved biodiversity and ecosystem services, such as soil quality and soil carbon, reduced GHG emissions, and enhance water quality.

Second, the project will bring 80,000 ha of farmland boundaries and surrounding ecosystems under restoration, leading to increased productivity of agricultural land, enhanced soil carbon stock, reduced soil erosion, and improved biodiversity and ecosystem services. Through its interventions, the project will enhance and restore agro-ecological services and contribute to land degradation neutrality (LDN) in the target landscapes by preventing and reversing land degradation.

It is anticipated that the improved practices and restoration interventions will generate significant biodiversity benefits. In line with the FOLUR IP programming, this involves benefits to farmland biodiversity through physical improvements in the environment such as soil biodiversity, soil carbon, nutrient recycling, diversity and functionality of vegetation cover, micro-climates, and water (GEF-7 Sub-Indicator 4.3, Area of landscapes under sustainable land management in production systems and Sub-Indicator 3.1 Area of degraded agricultural lands restored). Through interventions under Components 2 and 3, agricultural ecosystems that provide habitat for important wildlife such as insects, pollinators and bird species will be sustainably managed, conserved and restored. Since the project operates primarily in agricultural landscapes, these are the main biodiversity benefits of the project. As noted above, forests and wetlands in the target landscapes are generally well protected through the Government’s red line policies and national protected area system. Given its focus on food systems and agricultural landscapes, the project is not expected to have interventions directly in areas with globally significant biodiversity.

Nevertheless, the project is also expected to generate benefits for globally important ecosystems and habitats, in particular by reducing negative impacts of agriculture on watersheds, rivers, lakes and coastal wetlands, and associated globally important species (GEF-7 Sub-Indicator 4.1, Area of landscapes under improved management to benefit biodiversity). Non-point source pollution from agrochemical use is a major threat to biodiversity in wetlands downstream of the project’s target areas. For example, Jiangsu marine and coastal

58 wetlands are a migration channel between East Asia and Australia, and provide an important breeding or wintering place for endangered birds such as the endangered Red-crowned Crane (Grus japonensis) and Black- faced Spoonbill (Platalea minor). The wetland of Poyang Lake in Jiangxi Province provides important wetland habitat for migratory birds such as the vulnerable Swan Goose (Anser cygnoid) and White-naped Crane (Antigone vipio). Furthermore, the project will generate benefits in terms of agrobiodiversity by increasing the number of crop varieties and by avoiding further loss in plant and crop species. By protecting vegetation along rivers and streams and at the edge of farmland, the project will contribute to the conservation of crop wild relative (CWR) species of national importance such as wild buckwheat (also used for medicinal purposes) and wild soybean. A preliminary assessment of biodiversity and ecosystems was conducted during the project preparation phase. However, more detailed surveys are needed to assess farmland and associated biodiversity in more detail; these will be carried out under Output 1.1.2. Detailed biodiversity indicators for each county will be developed under Output 1.1.2.

An overview of the area targets is provided below. Note that the interventions under Output 3.1.1 (interventions to maintain and increase diversity of production systems and ecosystems) are not listed separately, as it is anticipated that they will overlap with the other areas listed below.

Intervention type Shandong Jiangsu Jiangxi Guizhou GEF Indicator (ha) (ha) (ha) (ha) ILM plans (Component 1) 1 Integrated landscape management a) Managed for sustainable land management 60,000 50,000 40,000 50,000 Sub-Indicator 4.3 b) Managed for conservation/biodiversity benefits 15,000 15,000 10,000 10,000 Sub-Indicator 4.1 On farmland (Component 2) 2 Good Agriculture Practices (GAP) / 70,000 50,000 30,000 50,000 Sub-Indicator 4.3 Climate-Smart Agriculture (CSA / Integrated Pest Management (IPM) Ecological restoration (Component 3) 3 Ecological restoration 20,000 20,000 20,000 20,000 Sub-Indicator 3.1 TOTAL 165,000 135,000 100,000 130,000

An overview of the main anticipated benefits for globally significant biodiversity is provided below. As explained above, these are mostly indirect benefits resulting from improved landscape management, reduced non-point source pollution and enhanced farmland ecosystems and biodiversity.

Province Anticipated benefits for globally significant ecosystems and biodiversity Shandong Qihe City is located along the Yellow River (stretching 62.5 km), which hosts rich aquatic biodiversity of national and global importance. There are two main rivers in the county – Yellow River and Tuhai River – and a total of 17 river courses. Qihe has a total wetland area of 6,446 ha, including Qihe Huanghe National Wetland Park. These wetlands provide important habitat, among others for globally threatened migratory birds such as the Relict Gull (Larus relictus) and Chinese Egret (Egretta eulophotes) (both vulnerable on the IUCN Red List).

Laizhou City is directly located on the Bohai Sea, which is characterized by high marine biodiversity. The city’s agricultural land is connected to Bohai Sea through a network of rivers and streams. Reduced non-point source pollution will, thus, have positive impacts on marine biodiversity, in particular the Ecological Protection Zone of Laizhou Shoal. Additionally, Laizhou has several traditional local crop varieties including wheat and millet.

59 Jiangsu Taicang City is located along the Yangtze River (12,012 ha), bordering Shanghai where the Yangtze River flows into the East China Sea. The area is rich in aquatic and bird biodiversity. Among others, the city’s wetlands provide important habitat for bird species including the Falcon, Oriental Scops Owl, Mandarin Duck, Lesser Coucal, and Common Buzzard.

Liuhe City and Jiangning District of Nanjing City (Jiangsu’s capital) are also located along the Yangtze River, but further upstream. They host several wetland parks, including the Longpao Yangtze River Provincial Wetland Park and Qinhuai River Wetland Park. The Lanbowan-Qilihe Wetland key biodiversity area (KBA)43 can be found in adjacent Pukou and Jianye districts. The districts’ river and wetland systems host globally important biodiversity, including the vulnerable Swan Goose (Anser cygnoid). The Ecological and Environment Departments have set up ecological and environmental quality monitoring points in corresponding areas.

Huaiyin District hosts important wetlands, including the Hongze Lake Nature Reserve. The district borders Baima Lake and Gaoyou Lake, and has a large network of rivers and canals. Bird species found in these wetlands include, among others, the vulnerable Great Bustard (Otis tarda), the endangered Red-crowned Crane (Grus japonensis), White Stork, Black Stork, Whooper Swan, Mandarin Duck, and Mute Swan. As in Shandong, reduced non-point source pollution and enhanced farmland ecosystems are expected to have positive impacts on aquatic and bird biodiversity of Jiangsu. Jiangxi Yushui and Fenyi Counties of Xinyu City are located along the Yuanshui River, a tributary of the Ganjiang River. The Ganjiang River flows into Poyang Lake in the northern part of the province and is, thus, a tributary of the Yangtze River. Yushui County hosts Kongmujiang National Wetland Park, covering an area of 1,125 ha. The wetlands of Fenyi County, including Yuanshui River and 115 wetland patches distributed in ten towns of the county, cover an area of 5,812 ha.

The Ecological and Environment Department has set up ecological and environmental quality monitoring points in relevant areas of the two counties. Reduced non-point source pollution is the main expected benefit for globally significant biodiversity in Jiangxi. Guizhou In Qiandongnan Miao and Dong Autonomous Prefecture of Guizhou Province, a total of 18 species of wild plants and wild animals were confirmed to be important and threatened species. Among of them, 10 plant species including Nuphar bornetii, Pinus kwangtungensis, and the rare and endangered deciduous tree Emmenopterys henryi, and 8 animal species including the endangered Forest Musk Deer (Moschus berezovskii), the Large Indian Civet (Viverra zibetha), and Silver Pheasant (Lophura nythemera) were listed in the “List of National Key Protected Wild Plants” and the “List of National Key Protected Wild Animals”.

Rongjiang County hosts Yueliangshan Forest KBA44, which among others provides habitat to the near-threatened Elliot's Pheasant (Syrmaticus ellioti). Rongjiang has national first-level protected plants including Ginkgo biloba and Chinese yew (Taxus chinensis var. mairei) as well as second-level protected plants including Alnus japonica, Cupressus chinensis, Camphor tree and Hibiscus. The county also has local crop varieties such as Siligong rice and local soybean.

Congjiang County hosts a globally important agricultural heritage (GIAHS) site, the Traditional Dong’s Rice-Fish-Duck Agroecosystem45 (7,685 ha). The site has rich agricultural biodiversity, and is also famous for its high forest biological diversity. Its plant biodiversity includes 122 medicinal plants, 105 food plants, 23 forage plants, 17 building material plants, 9 dye plants, 7 paper making plants, 6 knit material, which respectively

43 http://datazone.birdlife.org/site/factsheet/lanbowan%E2%80%93qilihe-wetland-iba-china-(mainland) 44 http://datazone.birdlife.org/site/factsheet/yueliangshan-forest-iba-china-(mainland) 45 http://www.fao.org/3/a-bp782e.pdf

60 provide food, medicine, timber, textile material for the local people. The site also hosts 24 rare and endangered species. Furthermore, Congjiang County hosts Jiabang Terraces National Wetland Park (2,916 ha).

Third, it is estimated that the project interventions will result in direct GHG emissions mitigated (carbon sequestered or emissions avoided) of 4.82 million tons of CO2eq. The indirect GHG emissions mitigated resulting from the project interventions are estimated at 1.2 million tons of CO2eq. An overview of the GHG targets is provided below.

Category GHG mitigated (tons CO2e) 1. Cropland – annual - Wheat-maize improved management (Shandong) -293,777 - Wheat-rice improved management (Jiangsu) -207,082 - Double-rice improved management (Jiangxi) -674,606 2. Cropland – perennial / LUC / grassland - Ecological restoration / agroforestry -3,301,429 3. Cropland – flooded rice systems - Rice with water conservation, green manure, straw -440,287 resource utilization (Guizhou) - Ecological cultivation (rice-fish) (Guizhou) +108,026 4. Inputs - Reduced fertilizer and chemical use -1,211,558 TOTAL -6,020,713 Of which direct -4,820,000 Of which indirect* -1,200,000 *20% of the GHG mitigated are considered indirect, i.e. attributable to the long-term outcomes of GEF activities that remove barriers, such as capacity building, innovation, and catalytic action for replication.

Fourth, the project will lead to a reduction in the use of GEF-relevant chemicals, namely highly hazardous pesticides (HHPs) including Isocarbophos, Omethoate and Carbosulfan, by promoting integrated pest management (IPM) and low-chemical systems in food production in the four target provinces and beyond.

Furthermore, the project will have significant adaptation co-benefits. It is expected that conservation and restoration of ecosystems in the agricultural landscapes will enhance the resilience of ecosystems by increasing farmland biodiversity, reducing soil erosion and moderating water flows, thereby ensuring that agricultural productivity increases can be sustained over time. The project also aims to increase the resilience of local farmer communities by strengthening capacity of farmers and farmer cooperatives for climate-resilient, sustainable production techniques, including access to cultivars.

Finally, the project will generate socio-economic benefits for an estimated 250,000 farmers (women, men and youth), by strengthening individual, institutional and systemic capacity to benefit from value chains, ensuring stable and higher-quality agricultural production, maintaining or enhancing agricultural ecosystems and farmland biodiversity, and implementing adaptive measures that increase resilience of agricultural landscapes and livelihoods. More indirectly, several million people living in the target landscapes will benefit from enhanced biodiversity and ecosystem services.

7) Innovativeness, sustainability, potential for scaling up and capacity development

Innovativeness The project will introduce innovations at multiple levels. First, provincial and national collaboration mechanisms or platforms will have a major role in catalysing national, provincial and local action for sustainable food production and value chains. The unique collaboration between FAO, the World Bank, MARA and the

61 project provinces under this project will be used to leverage existing platforms and partnerships. Second, the project introduces a comprehensive landscape planning approach, which combines complementary objectives of productivity and restoration at scale.

Third, the project will promote innovative practices and technologies for integrated soil-crop management, farmland ecological enhancement and integrated pest management (IPM) to be applied at scale. This will generate benefits to farmers such as by enhancing crop yields, reducing loss, reducing input costs, and reducing health risks. By linking these interventions with sustainable value chains and access to financing, the necessary incentive systems will be put in place for farmers to adopt these practices.

Lastly, digitalization and innovative digital technologies will be introduced, through existing partnerships with Alibaba and other private companies, that support sustainable production, such as for access to markets, linking producers to consumers, monitoring of farmland for chemical residues and pest management, strengthening pest surveillance and early warning system, and digital finance.

Sustainability The project execution will be led by MARA at the national level, and by provincial and county agriculture departments at the local level. The project interventions will be closely embedded in ongoing government and private sector efforts to enhance sustainability of agricultural production and land management, and eliminate poverty. In the project provinces such as Shandong, the project is embedded in existing provincial plans and policies that promote sustainability, including the Ecological Protection and Construction Plan of Shandong Province (as outlined in Section 2) Baseline scenario). The project is also closely linked with ongoing chemical fertilizer and pesticide reduction projects in Laizhou City and Qihe. Qihe county is a National Agricultural Green Development Pioneer Area, and good practices can be scaled up within the county and beyond. Project investments will be linked with ongoing and planned investments in ecological agriculture by companies such as Shandong Changrun Ecological Agriculture Co., Ltd. The project will enhance incentives and capacities to enable these stakeholders to scale up sustainable practices. In Jiangxi, the project builds on experiences from 20 demonstration counties for reducing fertilizer and increasing efficiency. In all four provinces, the project builds on the momentum of a rapidly increasing number of cooperatives and agricultural enterprises, which enables the adoption of standards and practices at greater scale.

Moreover, the project will build capacity of local stakeholders and institutions to support sustainable production by linking it with benefits for farmers. It will help to put in place relevant policies (such as linking agricultural subsidies to sustainable practices), incentive systems, ILM plans, GAPs and technical standards, which, once in place, will be sustained beyond the project period. Technical standards (national, province and industry-wide) and training programs developed by the project will be adopted and promoted by MARA beyond the project implementation. Collaboration mechanisms with provincial and national stakeholders will be strengthened, enabling exchange of knowledge, standards and best practices. Through this strong national and local ownership, close alignment with national and local priorities, and by establishing the necessary incentive systems, it is anticipated that the project interventions will be sustained, and even replicated and scaled up, after the project ends.

Potential for scaling up The project interventions have been designed in a way that supports replication and scaling from the onset. First, the project will involve national, provincial and local decision and policy makers as well as private companies, who are responsible for investment and policy decisions. These stakeholders will be engaged in multi- stakeholder platforms and landscape-level planning processes that aim to seek transformational change at the landscape (horizontal) and value chain (vertical) scale. Awareness and commitment of national stakeholders to environmental sustainability of agricultural production landscapes and associated value chains will be increased.

62 Second, the technical standards and training and extension programs developed by the project will be designed to be applied not only in the project area, but beyond. Guidelines, best practices and technologies implemented under the project can be replicated in similar agro-ecological regions within the target provinces and beyond. The combined strengths of FAO, the World Bank, MARA and the project provinces will be leveraged to enhance project impact and influence at various levels. Scaling will be achieved, in particular, through the application of policies/incentives, industry and province wide standards and guidelines, partnerships as well as training modules, to areas beyond the project counties by the provincial DARA. Furthermore, MARA and the provincial DARA will use lessons learned of the project for their future policy setting and technical support at national and provincial level. Importantly also, under Component 4 the project will work to disseminate project achievements and influence policy and decision makers and value chain actors in order to support replication and scaling. As a result, good practices and lessons learned from this project are expected to be taken up by national and sub- national government, FAO and World Bank for future investments in China. Exchange with other relevant actors and partner projects in China, such as the FOLU Coalition, will be fostered by the project with a specific focus to identify opportunities for scaling, promote policy dialogue, and coalesce action of public and private sectors.

Capacity development The project is applying a system-wide capacity development approach in line with GEF and FAO principles. A participatory assessment of capacity was undertaken during the project preparation phase through a Capacity Development Scorecard and a farmer capacity survey. Based on this, project interventions were designed that develop capacity of farmers (women and men), farmer cooperatives, public and private institutions, and strengthen the policy and enabling environment. Gender-specific capacity development considerations have also been incorporated into the project design.

Details on the identified capacity needs, and the project interventions to address these needs, can be found in the capacity development report in Annex P.

8) Summary of changes in alignment with the project design with the original project concept at PFD stage

During the project preparation phase, the project interventions were elaborated in detail and information was collected on the baseline, co-financing and related initiatives. Some changes were made in close consultation with stakeholders, as described below.

Topic Main changes from project concept at PFD stage 1) Core indicator targets The core indicator targets were clarified and revised/confirmed, as follows, based on the baseline assessment and consultation with stakeholders, including coordination with the Hubei sub-project.

The targets included in the PFD for the China child project (for both the FAO- MARA and World Bank-Hubei sub-projects) were as follows:

• Core Indicator 3: 300,000 ha (50,000 for demonstration, 150,000 for replication, 100,000 of indirect impacted area, to be confirmed during PPG). • Core Indicator 4: 1,200,000 ha (150,000 for demonstration, 600,000 for replication, 450,000 of indirect impacted area, to be confirmed during PPG) • Core Indicator 6: 10,000,000 tons of CO2eq (to be confirmed during PPG) • Core Indicator 11: 500,000 direct beneficiaries (over 50% or 260,000 women)

The revised targets at CEO Endorsement Request stage, for the FAO-MARA sub- project, are as follows:

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• Core Indicator 3: 80,000 ha • Core Indicator 4: 450,0000 ha • Core Indicator 6: 4.82 million tons of CO2eq direct, 1.2 million tons of CO2eq indirect (joint target with the WB-Hubei sub-project, included in the CEO ER) • Core Indicator 11: 250,000 direct beneficiaries (at least 50% women)

It has been agreed and clarified with stakeholders that the area targets under Core Indicators 3 and 4 result both from interventions directly financed by the GEF grant (such as on-the-ground interventions, training, ILM plans, IPM, as well as changes in policy or GAP standards that influence current practices), and interventions financed through co-financing from national and local government and private sector (such as investments in high-standard ecological farmland construction, sustainable agriculture subsidies and standards, etc.). The distinction between demonstration, replication and indirect impacted area has been removed, as it was confusing to stakeholders.

In line with the GEF-7 definitions, Core Indicator 4 has been divided into two categories: (1) integrated land management (ILM) plans to be develop under Component 1; and (2) areas und improved practices such as good agricultural practices (GAP), climate-smart agriculture (CSA), and integrated pest management (IPM) based on interventions from Component 2.46

Core Indicator 3 targets have been reduced based on clarifications provided during the project design stage. There is some convergence between the definitions of GEF Sub-Indicators 3.1 (area of agricultural land restored) and 4.3 (area of landscapes under sustainable land management in production systems)47. In order to avoid double-counting, it was agreed among stakeholders that areas under GAP/CSA and IPM (interventions under Component 2) would be counted towards Core Indicator 4, even though some of these practices will also lead to land restoration. Interventions under Component 3 will count towards Core Indicator 3.

The results framework in Annex A1, as well as the Core Indicator worksheet in Annex F, include more details on the area-related targets.

The target of “over 50% women” has been adjusted to “at least 50% women” based on the analysis of the farmer structure in the target landscapes. Indeed, in some counties male farmers are still predominant. Thus, a target of 50% women beneficiaries overall seems more realistic. Details are described in the Gender Analysis and Action Plan (Annex N). 2) Target counties The selection of target counties was confirmed based on the detailed baseline analysis and in consultation with the provincial and local partners. Most counties remain unchanged from the project concept at PFD stage. The main changes are: • There will be only two main target counties in Jiangxi (Yushui and Fenyi). • There will be only three target counties in Guizhou (Congjiang, Liping and Rongjiang). • In Shandong, Qixia City has been replaced by .

46 Core Indicator 4 “captures the total area of landscapes under improved practices, including in production sectors (e.g., agriculture, rangeland, forestry, aquaculture, tourism, extractives [oil and gas]) that lead to improved environmental conditions and/or for which management plans have been prepared and endorsed and are under implementation”. https://www.thegef.org/sites/default/files/documents/Results_Guidelines.pdf. 47 GEF-7 Sub-Indicator 3.1 refers to “restoration practices to enhance soil and water conservation, erosion control, groundwater recharge, and improved vegetative cover.” Sub-Indicator 4.3 refers to “improved practices that benefit physical improvements in the environment (e.g., soil and soil carbon, nutrient recycling, diversity and functionality of vegetation cover, micro-climates, and water)”. https://www.thegef.org/sites/default/files/documents/Results_Guidelines.pdf.

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Additional counties may be added during implementation.

The criteria for selection of target counties are described in section 1.a.1).

Project concept at PFD: Shandong: Qihe County, Laiyang City, Qixia City, Laizhou City Jiangsu: Liuhe District, Jiangning District, Taicang District, Huaiyin District Jiangxi: Yushui District, Dingnan County, Yujiang County, Fenyi County Guizhou: Congjiang County, Liping County, Tianzhu County, Rongjiang County

CEO Endorsement Request: Shandong: Qihe City, Laiyang City, Qingyun County, Laizhou City Jiangsu: Liuhe District, Jiangning District, Taicang District, Huaiyin District Jiangxi: Yushui District, Fenyi County Guizhou: Congjiang County, Liping County, Rongjiang County 3) Outputs and outcomes The outputs and outcomes were made clearer and elaborated more in detail in consultation with stakeholders, and in coordination with the World-Bank Hubei sub- project. The main changes from the project concept at PFD stage are highlighted below.

Component 1 • Component wording: added “agricultural” in “Development of integrated landscape management (ILM) systems in agricultural landscapes”. Main focus of the ILM plans will be on agricultural land and surrounding areas, although integration and alignment with other sectors (forests, wetlands, etc.) will be sought. • Accordingly, Outcome 1.1 has been adjusted as follows, “Strengthened ILM policies, plans and capacities that promote participatory planning and enable national and provincial institutions across agricultural landscapes to meet their relevant sustainable agriculture, rural revitalization, land restoration and related climate and biodiversity targets. (instead of “across landscape and land use management”). • Output 1.1.1 “Food and land use collaboration mechanisms established or existing mechanisms strengthened at national and provincial level.” was added. It was clarified that these mechanisms are meant to bring together public-private sectors to collaborate on food and land use issues, and can take the form of committees, platforms, etc. (to be decided by each province). • Output 1.1.4 “Monitoring systems for sustainable food systems and land use established (or existing systems improved) and implemented.” was added. • Previous Output 1.1.1 on policy development was moved to new Output 1.1.5.

Component 2 • Wording of outputs was made clearer. • Output 2.1.1 “Sustainable intensified crop production systems” was reworded to “Sustainable and Climate Smart Agriculture (CSA)”. • Output 2.1.4 on “Strengthened high-standard ecological farmland construction” was added (to be implemented through co-financing). • Output 2.2.2, the aspect on “awareness raising of consumers” was moved to Output 4.1.2.

Component 3 • Component 3 was reworded from “Conservation and restoration of natural habitats in production landscapes” to “Conservation and restoration of

65 agroecosystems and biodiversity” to better reflect the context of the China child project. • Outcome 3.1 was reworded from “Enhanced conservation and restoration of natural habitats in production landscapes” to “Enhanced conservation and restoration of agroecosystems and biodiversity”. • Former Outcome 3.2 “Restoration of degraded landscapes for productive use” and its Outputs 3.2.1 and 3.2.2 were incorporated into Outcome 3.1. • Output 3.1.1 wording was made clearer “Interventions implemented to maintain and increase biodiversity in production systems”.

Component 4 • Outputs 4.1.4 and 4.1.5 on Monitoring Systems were moved to Component 1 (new Output 1.1.4). 4) Financing per component The project concept at PFD stage included the following amounts of GEF financing per component (for both the FAO-MARA and World Bank-Hubei sub-projects).

• Component 1: USD 3,000,000 • Component 2: USD 5,500,000 • Component 3: USD 3,000,000 • Component 4: USD 1,320,446 • PMC: USD 641,022

The amounts were adjusted as follows after elaboration of the detailed project budget (FAO sub-project): • Component 1: USD 1,320,875 • Component 2: USD 2,862,125 • Component 3: USD 1,107,125 • Component 4: USD 1,566,140 • PMC: USD 323,185 5) Total co-financing Total co-financing included in the project concept at PFD stage was USD 155 million, covering both the FAO-MARA and the World Bank-Hubei sub-projects. This amount has been adjusted as follows, based on the detailed baseline analysis and consultation with partners. • FAO-MARA sub-project: Total co-financing of USD 56.5 million. • Total project co-financing (including World-Bank Hubei sub-project): USD 345.7 million.

The details are described in Section C of this project document and of the CEO Endorsement Request.

1.b Project Map and Geo-Coordinates. Please describe the project sites and provide geo-referenced information and map where the project interventions will take place.

The project interventions will take place in the following 13 counties. Additional counties may be added during project implementation. 1. Shandong Province (4 counties): Qihe City, Laiyang City, Qingyun County, Laizhou City 2. Jiangsu Province (4 counties): Liuhe District, Jiangning District, Taicang District, Huaiyin District 3. Jiangxi Province (2 counties): Yushui District, Fenyi County 4. Guizhou Province (3 counties): Congjiang County, Liping County, Rongjiang County

The 13 counties are shown in the map below. Detailed land cover and land degradation maps can be found in Annex E.

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Province County Geo-coordinates Shandong Qihe City 36°47'24.59" N 116°45'19.19" E Laiyang City 36°58'32.99" N 120°42'49.00" E Qingyun County 37°46'31.00" N 117°23'07.00" E Laizhou City 37°10'27.00" N 119°55'59.99" E Jiangsu Liuhe District 32°21'59.04" N 118°50'45.60" E Jiangning District 31°52'0.84" N 118°48'1.44" E Taicang District 31°26'31.19" N 121°05'22.80" E Huaiyin District 33°35'19.00" N 119°01'9.01" E Jiangxi Yushui District 27°50'20.3"N 114°56'16.6"E Fenyi County 27°51'29.39" N 114°39'23.39" E Guizhou Congjiang County 25°45'15.00" N 108°54'19.00" E Liping County 26°19'13.31" N 109°09'3.64" E Rongjiang County 25°55'55.00" N 108°31'19.00" E

1c. Child Project If this is a child project under a program, describe how the components contribute to the overall program impact.

China’s participation in the IP will serve as a powerful catalyst for the transformation of the global food and land management systems. Through this unique partnership between FAO, World Bank, MARA, and the project provinces, the project will provide a model for other regions in China, and countries throughout the world on how to pursue a more sustainable food system. As the world’s largest producer of rice and wheat and second largest producer of maize, China is critical to the global agenda. China produces 30% of the world’s rice, 17.5% of wheat, and 25% of the world’s maize. China is the world’s biggest contributor of GHGs directly emitted from agriculture, accounting for 14% of total global agricultural emissions. How China manages its land and supply chains has a global impact, given its share of the global market, and the extent to which other countries look to China as an example. The project is expected to have a large-scale transformational impact on food systems in the target landscapes (around 530,000 ha) and beyond, aiming to transform the FOLUR target commodities/crops’ production and value chains at a scale that is significant at the global level. Furthermore, the project will foster exchange with other child projects globally and in the region, in particular with India,

67 Thailand and Vietnam on sustainable wheat and rice production and value chains. The project will also collaborate with IP partners (such as the FOLU Coalition) working on similar issues in China and globally to achieve greater impact.

2. Stakeholders

Stakeholders consulted during the project preparation phase include several agencies of the Ministry of Agriculture and Rural Affairs (MARA), the Ministry of Natural Resources, the Ministry of Finance, the Ministry of Ecology and Environment, the National Development and Reform Commission (NDRC), the Chinese Academy of Agricultural Sciences, and Provincial and District Government. In addition, consultations have been held with the World Bank, the Asian Development Bank (ADB), the International Fund for Agricultural Development (IFAD), GIZ (German Agency for International Cooperation), World Resources Institute (WRI), the International Rice Research Institute (IRRI), academic institutions, and Alibaba, as well as with local private sector, cooperatives, farmer associations, township and village governments, women’s groups and farmers. Detailed coordination took place between the FAO-MARA and World Bank-Hubei sub-projects to ensure alignment of project goals and components. A socio-economic analysis was conducted during project preparation and is available as a separate report. The Stakeholder Engagement Matrix in Annex I2 includes information on how stakeholders have been consulted, and how they will be engaged in the project execution, including any disadvantaged or vulnerable groups/individuals and ethnic minorities. Due to the COVID-19 outbreak, the project validation was conducted remotely via email with provincial stakeholders. More detailed consultations, validation and planning with local communities will be conducted when feasible, and at the latest during the project inception phase.

Select what role civil society will play in the project: Consulted only; Member of Advisory Body; contractor; Co-financier; Member of project steering committee or equivalent decision-making body; Executor or co-executor; Other (please explain)

As explained in Annex I2, civil society such as members from academia and local associations, NGOs and women’s groups will be involved as partners, beneficiaries and technical experts throughout project implementation.

The project will ensure meaningful engagement of key stakeholders from government, civil society such as NGOs, academia, private sector associations, and farmer cooperatives throughout project implementation. The National Project Management Office (NPMO) will be responsible for implementing the stakeholder engagement as outlined in the Stakeholder Engagement Matrix. Budget for stakeholder engagement has been allocated through the meeting, training and travel budget lines in Annex A2. Relevant activities have been included in the work plan (Annex H). The NPMO will also be responsible for monitoring and reporting on stakeholder engagement through the annual project implementation reports (PIRs).

In the annual PIRs, the NPMO will report on the following indicators: 1) Number of government agencies, civil society organizations, private sector, vulnerable groups and other stakeholder groups that have been involved in the project implementation phase. 2) Number of engagements (such as meetings, workshops, official communications) with stakeholders during the project implementation phase. 3) Number of grievances received and responded to/resolved.

68 3. Gender Equality and Women’s Empowerment. Provide the gender analysis or equivalent socio-economic assessment. If available provide document in annex and/or provide link.

Does the project expect to include any gender-responsive measures to address gender gaps or promote gender equality and women’s empowerment? (yes /no ) If yes, please explain and upload/annex Gender Action Plan or equivalent48.

The Gender Analysis and Action Plan is included in Annex N.

If possible, indicate in which results area(s) the project is expected to contribute to gender equality: Closing gender gaps in access to and control over natural resources; Improving women’s participation and decision making; and or Generating socio-economic benefits or services for women. Does the project’s results framework or logical framework include gender-sensitive indicators? (yes /no )

China has made substantial progress on gender equality; nevertheless, inequalities remain across livelihoods sectors, especially in the agriculture sector. Women play an important role in agricultural production systems in China as men increasingly seek employment in urban areas. Women make a considerable contribution to household income through farm and non-farm activities. However, their contribution to household food security and income generation in rural areas is often underestimated and undervalued. The project will, therefore, place a particular emphasis on involving women in the shift towards sustainable agricultural production systems and enhancing women’s access to rural finance and agricultural value chains. It will also ensure the adequate participation of women in planning, capacity building and decision-making activities under the project.

Generally, women farmers are more exposed to climate change risks compared to men, as they depend more on natural resources for their livelihoods, have fewer endowments and entitlements to help them absorb shocks, and may not equally benefit from agriculture technologies and practices. A gender-responsive approach is, thus, required that aims to reduce gender inequalities and ensures equal benefit from the project’s interventions and practices, thus achieving more sustainable and equitable results.49

The project will build on previous experiences and best practices in engaging and creating benefits for women. In particular, under a previous project in Yunnan Province, FAO and the Freshwater Fisheries Research Centre (FFRC) supported the Hani, a hill tribe minority group whose rice terraces are a World Heritage Site as well as an FAO recognized GIAHS site. The project introduced integrated agriculture-aquaculture practices that contribute to reducing the time women spend weeding and applying pesticides as the fish feed on the weeds, reduce pests and simultaneously fertilize rice.50 The GEF-7 project will apply similar strategies, as outlined in Annex N.

A Gender Analysis was conducted during the project preparation phase and a Gender Action Plan prepared (Annex N). The Gender Analysis points out that the Chinese constitution emphasizes that “women have equal rights with men in political, economic, cultural, social and family life.” Women’s rights and interests relating to land are well protected in the target counties, in line with the Law on Land Contract in Rural Areas. The transfer of rural labour force and agricultural mechanization has greatly promoted the contribution of women to

48 Please refer to GEF Gender Equality Guidelines, Guide to mainstreaming gender in FAO's project cycle, GEF Gender Guidelines. 49 FAO and CARE (2019). Good Practices for Integrating Gender Equality and Women’s Empowerment in Climate-Smart Agriculture Programmes. 50 China: A public/private partnership for extension provision supports the adoption of improved integrated rice & aquaculture practices at household level. http://www.fao.org/3/CA2731EN/ca2731en.pdf

69 agriculture. However, some differences persist. For instance, women in the target counties have generally lower education levels than men. They have fewer choices with regard to local employment opportunities, and women’s wages are lower than men’s. Also, women’s representation in local decision-making is still lower as compared to their male counterparts. On the other hand, although there are not enough system statistics on the financial services for rural women, the microcredit programs in rural areas are principally designed for rural women, playing an important role in female poverty alleviation and self-development.

The Gender Action Plan incorporates actions along the following principles: • Awareness and capacities among the project staff on gender mainstreaming, as well as socio-economic aspects in general, are considered as a basic requirement of gender mainstreaming. A gender focal point will be designated in the National Project Management Office (NPMO), and project local coordinators will support implementation of the gender equality measures and gender action plan at the county/local level. The project will also ensure adequate representation of women among project staff, including consultants and other service providers. • Consultation with women and women’s groups on needs and requirements associated with project interventions will promote equitable representation of women in project activities and in any mechanisms or platforms established and/or strengthened by the project. In particular, the project will ensure that its training programs are gender-sensitive, i.e. that they take into account the specific needs and priorities of women. The project executing partners will establish and strengthen networks with partners that have substantive experience working on gender issues, such as the All-China Women’s Federation, and utilize their expertise to implement the project. • The project will give special focus to ensuring adequate participation, and sharing of benefits, by all social groups – men and women, rich and poor, youth and the elderly – and to involving the most vulnerable people in the community in decision-making, including female-headed agricultural households. Importantly also, the project will implement sustainable agriculture approaches that specifically benefit women farmers, such as small-scale “green” mechanization, or the safe discarding of pesticides. It will organize value chain activities specifically targeting women, such as business development support for women’s enterprises. • Detailed gender specific data on the project beneficiaries will be collected in each target province/county during the first year of the project implementation. The Project Manager will work closely with the provincial and county counterparts and the Safeguards and Gender Specialist (gender focal point) to develop gender-disaggregated data of the selected target landscapes. • With regard to the knowledge management component, the project will develop case studies or success stories related to women farmers and/or women’s enterprises; and will organize exchange visits specifically for women to support exchange on women farmers and/or women’s enterprises promoting sustainable agriculture practices.

4. Private Sector Engagement. Elaborate on the private sector’s engagement in the project, if any.

Private sector will be engaged across all components of the project. The project will promote the participation of cooperatives and agro-enterprises and will leverage private sector investments through co-financing of investments that are linked to the project. Private sector will have a key role in helping farmers to adopt new technologies, and in developing market linkages and supply chains. Provincial and county-level companies will be an important stakeholder for the food systems and land use collaboration mechanisms established under Component 1. This will involve public and private actors across the value chains, including local government, grain producers, input suppliers, processors, distributors, traders, commercial banks and rural credit cooperatives, state-owned enterprises, as well as civil society. As mentioned earlier, the number of farmer cooperatives and agribusinesses have been rapidly increasing over the past few years. However, their capacity

70 to operate at scale and their access to green technologies and sustainable financing is still limited. Under Component 2, private sector will have a key role in helping farmers to adopt new technologies, and in developing market linkages and supply chains. Mechanisms such as certifications and traceability platforms, eco-labelling, and value adding will be developed in collaboration with local SMEs, farmer enterprises and cooperatives. Additionally, the project will expand and strengthen existing public-private partnerships to foster increased investments in sustainable value chains from input supply, to production, to processing and marketing; and access to affordable financing.

Furthermore, also under Component 2, Alibaba and other large e-commerce companies will be engaged for digital solutions that support sustainable production, including access to markets, monitoring of farmland for chemical residues and pest management, linking producers to consumers, and digital finance. E-commerce solutions will be piloted in Guizhou Province to support access to markets for poorer farming communities. Engagement with Alibaba and potentially other e-commerce companies will generate global environmental benefits in several ways. First, in Guizhou mostly, the project will create market incentives for farmers (through e-commerce, local branding and access to rural finance) to preserve or restore less intensive, low-chemical and biodiversity-friendly agricultural systems and landscapes through the promotion of local products such as red rice. Second, under its Output 2.1.3, the project will explore innovative digital solutions, including those developed by e-commerce companies, that would help farmers reduce chemical fertilizer and pesticide inputs, including through improved pest early warning and precision agriculture. Third, when developing technical standards, the project will seek to incorporate lessons learned from Alibaba on ensuring quality and safety of agricultural products. Lastly, the project will seek to engage Alibaba and potentially other e-commerce companies in global forums and exchange under FOLUR IP, in order to encourage them to further expand elements of environmental sustainability in their agriculture related business, in particular the rural finance and e-commerce activities, and inspire other key supply chain actors to do the same.

Private sector will also be engaged in the planning and implementation of ecological restoration under Component 3; as well as in platforms for knowledge creation and sharing of lessons learned under Component 4.

A value chain analysis was conducted during the project preparation phase and is available as separate report. The analysis has identified the following key public and private sector actors in the target counties for the staple crops of wheat, maize and rice: grain producers (including individual farmers, large grain farmers, family farms, professional cooperatives and enterprises); input suppliers (for seeds, fertilizers, pesticides, and machinery); processors (such as grain factories), and distributors. In some of the target counties, individual farmers still account for the majority of agricultural production, but cooperatives and agricultural enterprises represent an increasing and significant share of production in all counties. Cooperatives and local enterprises play a key role in agricultural mechanization, efficiency improvements, the introduction of new methods and technologies, and distribution and marketing. While state-owned enterprises still have a share of the market, in particular for the storage, aggregation and distribution of grains, private sector actors involved in the production, wholesale, trade and e-commerce play an increasingly important role. In addition, the analysis shows that most of the grain production is either consumed locally within the county or province, or exported to other provinces. There is no significant export market to other countries for the target grain crops; the internal market is predominant. It is considered that the biggest opportunity for value added lies in the internal Chinese market for high-quality, green, organic and geographic indication products, along with rural eco-tourism and experiencing of traditional farming culture. The key actors identified along the value chain of the target crops in the project counties are shown in Figure 7 below.

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Figure 7: Value chain analysis of the target crops in the project counties

Several constraints were identified that limit the development of sustainable value chains at scale. The main constraints include inadequate access to financing, the lack of adequate marketing channels including e- commerce, lack of awareness and standards, and insufficient skills and technologies. The following recommendations were formulated and have been incorporated into Component 2 of the project.

Inputs: 1. Explore more strategic use of government subsidies and improve policies in order to increase the scale of sustainable agricultural production and rural revitalization. Expand the scale of green and organic grain cultivation, and expand the proportion of certified organic production areas for pollution-free green agricultural products. 2. Strengthen access to high-quality, climate-resilient, and diverse grain varieties. 3. Strengthen the mechanism of benefit sharing of increased value between small farmers, cooperatives and enterprises, establish made-to-order farming (contract farming) model to ensure high-quality products and high-price in the value chain. 4. Strengthen existing policies to facilitate access to credit and financing for farmers and agricultural enterprises, especially for women and vulnerable groups. 5. Help farmers to reduce input costs through optimization of fertilizer and pesticide use and integrated pest management (IPM) approaches.

Production: 1. Strengthen capacity of local cooperatives, enterprises and industry associations to support adoption of new technologies, standards and practices, and develop market value and local brands, while ensuring that individual farmers and workers, in particular women and vulnerable groups, also benefit from the innovations. 2. Guide farmers, enterprises, and cooperatives to standardize production, and promote the upgrading of the grain industry value chain with quality improvement and brand leadership. 3. Strengthen existing standards and certifications for sustainable agricultural production. 4. Improve production levels by reducing occurrence and impacts of pests and diseases, optimizing fertilizer use and enhancing the quality of arable land. 5. Promote the replication of successful models based on local conditions, such as the “rice + fish, duck, frog, etc.” model, so as to improve the ecology and improve the efficiency, as well as the market value.

72 6. Promote the use of innovations and technologies of green agriculture models that have been successfully tested, in line with local specificities.

Marketing and distribution: 1. Support the development of value added for farmers through high-quality grain production, green and organic certifications, Good Agricultural Practices (GAP) standards, local brand development, and geographic indication schemes. 2. Enhance access to markets by improving e-commerce and other distribution channels, including through partnerships with Alibaba and other e-commerce companies.

Relevant local enterprises include, among others, local agricultural producers, cooperatives and agri-food enterprises involved in the production and distribution of agricultural products, processing, storage, utilization of agricultural wastes, organic fertilizer production, agricultural service and trainings, agricultural product marketing and sales, procurement of agricultural machinery, etc. as well as providers of agricultural services to rural areas. These local companies are instrumental in the implementation of government policies such as reutilization of straw and livestock waste (for biogas generation or organic fertilizer production). Companies and cooperatives that have been identified as partners and/or co-financiers under the project are listed below. Most of these companies sign contracts with farmers and support mechanization and industrialization of operations. They operate land through lease contracts and land transfers. Generally, they operate land in the order of 100 to 250 hectares, and have an annual turnover of between USD 0.5-12 million. Their profits are shared among cooperative members or owners, and/or reinvested in scaling operations. Additional companies will be identified and engaged during implementation. The project will also seek to engage with and strengthen provincial and national private sector associations, state-owned enterprises and chambers of commerce.

Province Partner companies / cooperatives Primary location within the value chain Shandong 1) Qihe Shuanfeng Flour Co., Ltd. • Input supply, production 2) Shandong Wankang Food Co., Ltd. • Processing, distribution 3) Shandong Changrun Ecological Agriculture Co., Ltd. • Production, aggregation 4) Laizhou Chenggang Road Weisong Plant Protection Professional • Input supply, production Cooperative Jiangsu 1) Jiangsu AiJin Agricultural Science and Technology Service Co., Ltd. • Input supply 2) Nanjing Hengcheng Agricultural Development Co., Ltd. • Production, aggregation 3) Nanjing Junsheng Ecological Agriculture Co., Ltd. • Production, processing 4) Nanjing Tianwei Agricultural Technology Co., Ltd. • Production 5) Taicang City Donglin Village Farm Professional Cooperative • Production, aggregation Jiangxi 1) Fenyi Huayong Agricultural Machinery Specialized Cooperative • Input supply, production 2) Fenyi Qunyuan Agriculture and Animal Husbandry Development Co. LTD • Production, distribution 3) Fenyi Guigen Grain Planting Professional Cooperative • Input supply, production 4) Fenyi Quanfeng Breeding Professional Cooperative • Production, aggregation 5) Jiangxi Jiafu Agricultural Technology Co., Ltd. • Input supply, production 6) Jiangxi Zhenghe Ecological Agriculture Co., Ltd. • Production, distribution Guizhou 1) Guizhou Rongjiangshan Agricultural Development Co., Ltd. • Production, distribution 2) Guizhou Yueliangshan Agriculture Co., Ltd. • Production, distribution 3) Guizhou Liping Dongxiang Rice Production Co., Ltd. • Production, distribution

5. Risks. Risk management is a structured, methodical approach to identifying and managing risks for the achievement of project objectives. The risk management plan will allow stakeholders to manage risks by specifying and monitoring mitigation actions throughout implementation. Part A of this section focuses on external risks to the project and Part B on the identified environmental and social risks from the project.

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Section A: Risks to the project In the section below, elaborate on indicated risks to the project, including climate change, potential social and environmental risks that might prevent the project objectives from being achieved, and, if possible, the proposed measures that address these risks at the time of project implementation.

Description of risk Impact Probability Mitigation actions Responsible of party occurrence 1) Lack of inter-sectoral Through the leadership of MARA and the MARA, collaboration among participating provinces and counties, different National agencies at the local, sectors will be engaged and their interests Project provincial and national taken into account. The project supports Management level. national and local priorities in various sectors Office by contributing to sustainable agriculture, (NPMO) Moderate Low restoration, poverty alleviation and rural revitalization goals. In addition, the project will bring together different agencies and stakeholders through the integrated landscape management (ILM) approach and the national and provincial food and land use collaboration mechanisms. 2) Demographic changes The project is aimed at increasing incentives MARA, lead to farmers for sustainable agricultural production through NPMO abandoning farmland in enhanced value chains and access to finance. It the project target areas. is, therefore, anticipated that the project will address some of the causes of abandonment of cropland. The project will also aim to strengthen implementation of efficient land Moderate Moderate transfers. Moreover, recent trends show that, due to the slowing of economic development in urban areas, young people in some areas choose to return to rural areas and resume farming activities. Nevertheless, the project will carefully monitor demographic trends and changes and periodically review its intervention strategy. 3) Market and other Close attention will be paid to the socio- MARA, incentives are insufficient economic benefits of project interventions, as NPMO to support the long-term these are a prerequisite for the adoption and shift towards sustainable sustainability of improved practices. The practices. project interventions will aim to reduce input costs for farmers, reduce occurrence of pests High Moderate and diseases, increase yields, introduce payments for agro-ecological services, and increase the value and quality of agricultural products, and thus should provide sufficient incentives for the adoption of sustainable practices and restoration of degraded lands. 4) Further shift towards Through its landscape approach, the project MARA, high-value crops cancels will look not only at the main staple crops, but NPMO Moderate Low out the benefits gained in at sustainable land use and restoration of degraded land holistically. Strategies to reduce

74 the project’s target crops chemical inputs can be replicated in other crop (rice, wheat and maize). areas, such as vegetables and fruit, and economic plantations such as oil trees. Also, based on current government policies, it is unlikely that there will be a significant reduction in grain crop areas. 5) Impacts of climate The innovative and climate-smart approaches MARA, change on crop to crop production and restoration to be scaled NPMO production during or after up under the project are aimed at increasing project implementation the resilience of production systems and lead to a decrease in farmer livelihoods. The project will build on yields or crop losses and ongoing efforts by government and research thus reduce the positive institutions in China to promote climate impact of the project. change adaptation in farming systems. It will aim to promote climate-resilient crop varieties In June-July 2020, the and climate-resilient production techniques project provinces of such as for pest control, water management, Jiangxi, Jiangsu and diversified cropping and establishing Guizhou were affected by vegetation buffers. An analysis of climate severe floods caused by change impacts and projected crop suitability torrential rains, affecting High Moderate in the GEF-7 target provinces was conducted the livelihoods of millions during the project design phase (see following of people. section). This will be further discussed and refined with local stakeholders during the preparation of ILM plans during implementation (as part of Output 1.1.2). Impacts of climate change on crop production will be carefully monitored during the project implementation, and capacity will be developed among local institutions and stakeholders to implement adaptive measures.

The project will apply adaptive management to adjust to new developments in the target counties. 6) (i) Impacts of COVID- (i) Impact on project implementation MARA, 19 may lead to a delay in At present, the office works, transportation, NPMO implementation, a delay meetings, training, etc. have all returned to in the realization of co- ordinary work. According to the national financing, and/or reduced epidemic prevention regulations, areas with ability to conduct face-to- sudden outbreaks will be blocked, but with the face interactions with continuous improvement of epidemic stakeholders. monitoring and prevention and control Furthermore, national measures, the range of blocked areas are technical experts may not High Moderate expected to become smaller and smaller. If an be able to travel to the epidemic occurs in individual areas of the project sites if COVID-19 project, activities such as conference and restrictions are reinstated. technical training can be carried out through online networks. The virtual communication (ii) Impacts of COVID-19 systems have been popularized by grassroots may delay or negatively governments and farmers. During the project affect the realization of design phase, remote communication via co-financing. email, video conference and phone was used increasingly to adjust to the new situation. The

75 (iii) COVID-19 may lead co-financing letters that were issued already to negative impacts on the reflect the new situation based on COVID-19. poor and vulnerable During implementation, the project will apply groups. adaptive management. The work plan and stakeholder engagement plan would be (iv) Potential migration to adjusted, if necessary, and submitted to PSC rural areas due to for approval. In case of travel restrictions, economic crisis may local facilitators or officials would be briefed increase pressure on remotely, and would be in charge of ensuring natural resources. adequate engagement of local stakeholders (including implementation of FPIC and the (v) Opportunity to gender action plan). support green agricultural development, as well as (ii) Impact on project co-financing improvement of The impact of COVID-19 on China’s national agricultural supply and local economies has been significant, but chains, as part of the the situation is gradually improving. As the COVID-19 recovery. province most affected by COVID-19, the Chinese Government has established a special fund for Hubei to help it resume economic development as soon as possible. In other regions, economic growth has been affected, but there has been no significant reduction in investment in agriculture and the ecological environment. Thus, it is not anticipated that co-financing support from relevant development partners and the private sector would be significantly reduced. The co- financing letters that were issued already reflect the new situation based on COVID-19.

(iii) Impact on target beneficiary communities Most of the project areas are rural areas. Due to scattered residence and low mobility, the occurrence of COVID-19 in these areas is low. China’s national and local governments have a relatively well-developed system for ensuring the supply of basic necessities in areas at high risk of COVID-19, as well as corresponding assistance policies for poor and vulnerable groups. In its interventions, the project will also focus on strengthening the resilience of agricultural supply chains in the face of COVID-19 and potential future similar crises.

Additionally, the project will assist communities to continue to undertake preventive measures to stop the spread of COVID-19, including through social distancing and other public health measures such as minimizing large meetings.

Finally, the project will contribute to the country’s COVID-19 recovery by

76 strengthening investments in sustainable agriculture, food security and environmental protection of natural resources.

(iv) Migration to rural areas Long-term demographic changes will be monitored by the project and the project intervention strategy would be revisited if the project context changes, to ensure any potential pressures on natural resources are addressed and opportunities such as increased labour availability taken into account.

(v) Food security has become a priority in the face of the COVID-19 pandemic. By improving traceability and supply chains, the project will make an important contribution to improving agricultural distribution systems and making them more resilient in the face of potential similar crises in the future. The State Council promulgated the opinions on the protection and utilization of agricultural resources, which remains a priority. The project will contribute to post-pandemic recovery by investing in green agricultural development. Importantly also, by supporting agricultural emissions reduction, the project will contribute to the recent commitment by President Xi to achieve carbon neutrality by 2060.

Climate change impacts Different climate scenarios suggest that annual mean air temperatures in all regions of China will increase, but with regional characteristics in the rates of increase. In general, the rate of projected increase grows larger from the southeast to the northwest, and is larger in the north than in the south. Between 2011 and 2100, under low, medium and high GHG concentration scenarios, China’s annual mean surface air temperature will increase by 0.08°C, 0.26°C and 0.61° per decade, respectively. At the same time, China’s annual precipitation is projected to continue to increase. Between 2011 and 2100, under low, medium and high scenarios, precipitation is projected to increase by 0.6%, 1.1% and 1.6% per decade, respectively, suggesting a rate of increase above the global average level.51 In addition, it is anticipated that variability and the frequency and intensity of extreme precipitation events will increase in most regions. High temperature events are expected to increase, while low temperature events will decrease.

The anticipated changes in minimum and maximum temperatures and annual precipitation in the GEF-7 target provinces (including Hubei) are summarized in the figures below.

51 Third National Communication on Climate Change, 2018.

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MAXIMUM TEMPERATURE OF AUGUST MAXIMUM TEMPERATURE OF AUGUST Average 1979-2013 Projected 2050 – RCP 4.5

Figure 8: Maximum temperature of August in the project provinces (including Hubei). Baseline and 2050 RCP 4.5 scenario. Source: CHELSA.

MINIMUM TEMPERATURE OF JANUARY MINIMUM TEMPERATURE OF JANUARY Average 1979-2013 Projected 2050 – RCP 4.5

Figure 9: Minimum temperature of January in the project provinces (including Hubei). Baseline and 2050 RCP 4.5 scenario. Source: CHELSA.

TOTAL ANNUAL PRECIPITATION (Average 1979-2013) TOTAL ANNUAL PRECIPITATION (Projected 2050 – RCP 4.5)

Figure 10: Annual precipitation in the project provinces (including Hubei). Baseline and 2050 RCP 4.5 scenario. Source: CHELSA.

78 As described above, climate change is anticipated to shorten crop growing periods, increase the frequency, affected area and damage caused by most types of disease and insect pests, increase the occurrence and severity of droughts and floods, and thus affect crop yields. An analysis of crop suitability in the GEF-7 target provinces shows that the suitability of rainfed rice, wheat and maize may increase in certain regions (such as for maize in Jiangxi), but is anticipated to decrease in other parts of the target provinces without adequate adaptive measures (such as for rainfed wheat in Shandong).

SUITABILITY OF RAINFED RICE (historical 1981 – 2010) SUITABILITY OF RAINFED RICE (2050s – RCP4.5) at high management level at high management level

Figure 11: Suitability of rainfed rice in the project provinces (including Hubei). Baseline and 2050 RCP 4.5 scenario. Source: SRTM30.

SUITABILITY OF RAINFED WHEAT (historical 1981 – 2010) SUITABILITY OF RAINFED WHEAT (2050s – RCP4.5) at high management level at high management level

Figure 12: Suitability of rainfed wheat in the project provinces (including Hubei). Baseline and 2050 RCP 4.5 scenario. Source: SRTM30.

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SUITABILITY OF RAINFED MAIZE (historical 1981 – 2010) SUITABILITY OF RAINFED MAIZE (2050s – RCP4.5) at high management level at high management level

Figure 13: Suitability of rainfed maize in the project provinces (including Hubei). Baseline and 2050 RCP 4.5 scenario. Source: SRTM30.

Studies project that without adaptation, yields of major crops such as maize, rice, and (unless CO2 fertilisation effects are assumed) wheat may decline towards the middle of this century. Adaptation measures such as the development of new crop varieties and agronomic techniques, and an effective knowledge extension service, will be required.52 The elevation and agro-ecological zones of the target provinces (including Hubei) are shown in the figures below.

ELEVATION

Figure 14: Elevation of project provinces (including Hubei). Source: SRTM30.

52 Wilkes, A. and Zhang, L. (2016). Stepping stones towards sustainable agriculture in China: an overview of challenges, policies and responses. IIED, London.

80 AGRO-ECOLOGICAL ZONES

Figure 15: Agro-Ecological Zones. Source: Global Agro-Ecological Zoning (GAEZ) Version 4.

Section B: Environmental and Social risks from the project – ESM Plan This section is based on the risk matrix obtained during risk screening in the concept note (in FPMIS) and based on further update and revision by the PTF under the responsibility of the LTO.

Risk Indicator / Mean(s) of Progress on Risk identified Classific Mitigation Action (s) Verification mitigation action ation 1) Pesticide Moderate An Integrated Pest Management • Amount of chemical To be assessed Management Plan has been prepared in line pesticides reduced semi-annually with the concept of Integrated through the project through the 5.1 – Would this Pest Management (IPM) and is interventions (in tons). project progress project procure, included as Annex O. Activities • Area of cropland under reports. supply and/or to reduce the use of chemical improved management result in the use of pesticides have been incorporated with reduced chemical Responsible: pesticides on into the project design. GEF-7 use. NPMO, crops, livestock, project funds will not be used to Environmental aquaculture or purchase chemical inputs. Safeguards forestry? Yes However, the project may issue Specialist technical guidelines and 5.2 – Would this recommendations for improved, project provide low-impact chemical use and seeds or other application, in line with the materials treated overall aim of reducing the use of with pesticides (in chemical pesticides. the field and/or in storage)? Yes 2) Ethnic Moderate Ethnic minorities are present in • Reports of community To be assessed Minorities/ the target counties of Guizhou meetings / FPIC semi-annually Indigenous Province. Consequently, a Free, consultations through the Peoples (Guizhou Prior and Informed Consent providing evidence of project progress only) (FPIC) procedure was prepared consent and reports. during the project preparation satisfaction rate. phase in line with FAO Responsible:

81 9.1 – Are there Environmental and Social NPMO, Gender indigenous Management Guidelines and GEF and Social peoples living Indigenous Peoples Principles and Safeguards outside the project Guidelines. Measures to mitigate Specialist area where risks and enhance opportunities activities will take were also elaborated as part of the place? Yes. FPIC report. The FPIC process is However, the described in Annex J. project activates will not influence any facets of their life.

9.2 – Are there indigenous peoples living in the project area where activities will take place? Yes

82 6. Institutional Arrangements and Coordination.

6.a Institutional arrangements for project implementation.

The Ministry of Agriculture and Rural Affairs (MARA) will have the overall executing and technical responsibility for the FAO-MARA sub-project, including overall coordinating role for the China child project, with FAO providing oversight as GEF Agency as described below. MARA will act as the lead executing agency and will be responsible for the day-to-day management of project results entrusted to it in full compliance with all terms and conditions of the Operational Partnership Agreement (OPA) signed with FAO. As Operational Partner (OP) of the project, MARA is responsible and accountable to FAO for the timely implementation of the agreed project results, operational oversight of implementation activities, timely reporting, and for effective use of GEF resources for the intended purposes and in line with FAO and GEF policy requirements.

The project organization structure of the FAO-MARA sub-project is as follows:

Figure 16: Project organization structure of the China child project, including FAO-MARA sub-project on the left

A Technical Advisory and Coordination Committee (TACC) will be established to oversee the implementation of the China child project and to foster coherence and consistency. As shown in Figure 16 above, the TACC will function as an intermediate group to provide inter-disciplinary technical guidance and coordination to the project to ensure that the project interventions are technically sound and that there is coordination among the relevant technical sectors/agencies for a holistic approach to project implementation. Furthermore, it will provide strategic guidance, in particular for the development of national policies and strategies for scaling. It will be co-chaired by the two Executing Agencies (MARA and Hubei Provincial DARA), with representation from FAO, WB and other relevant stakeholders and experts at national and provincial levels. The TACC will

83 meet twice a year before the PSC meetings and/or technical support missions so that all key technical issues relevant to project implementation are deliberated in advance and are ready for presentation at the PSC meetings. In particular, the TACC will have the following responsibilities: • Review planned activities and ensure that they are technically sound that, wherever necessary, there is integration and synergy between the various project components and sub-projects during planning and implementation; • Ensure that project interventions are planned and implemented in a coordinated and holistic manner at central as well as provincial levels; • Ensure coordination towards meeting the objectives of FOLUR Impact Program; • Link the project to the Global K2A platform project and serve as anchor for linking the project to other relevant initiatives in the country; • Promote technical coordination between institutions, where such coordination is necessary and where opportunities for synergy and sharing of lessons exist; • Provide guidance, and/or clarifications, where technical issues are confronted; • Ensure that the project activities are carried out in accordance with the desired policy/technical standards and norms of the Government of the People’s Republic of China, GEF, FAO and World Bank, including the social and environmental standards.

MARA as the leading ministry on agriculture and REEA as the leading national agency for agriculture environment protection will ensure national coordination of policies developed at the provincial level, and will ensure that national policy is based on experiences from the field.

The government will designate a National Project Director (NPD). Located in the Department of Science, Technology and Education (DSTE) under MARA, the NPD will be responsible for coordinating the activities with all the national bodies related to the different project components, as well as with the project partners. The NPD will also be responsible for supervising and guiding the National Project Coordinator (see below) on the government policies and priorities.

The Project Steering Committee (PSC) will be the main governing body of the project. With technical guidance and advice from the TACC, the PSC will approve annual work plans and budgets on a yearly basis and will provide strategic guidance to the Project Management Team and to all executing partners. The PSC will be chaired by the Director General, Rural Energy and Environment Agency (REEA, an agency under DSTE), and will be comprised of representatives from the Ministry of Finance, MARA, Ministry of Ecology and Environment, Ministry of Natural Resources, the Provincial Departments of Agriculture and Rural Affairs in Shandong, Jiangsu, Jiangxi and Guizhou, and FAO. The members of the PSC will each assure the role of a Focal Point for the project in their respective agencies. Hence, the project will have a Focal Point in each concerned institution. As Focal Points in their agency, the concerned PSC members will: (i) technically oversee activities in their sector; (ii) ensure a fluid two-way exchange of information and knowledge between their agency and the project; (iii) facilitate coordination and links between the project activities and the work plan of their agency; and (iv) facilitate the provision of co-financing to the project. The National Project Coordinator will be the Secretary to the PSC.

The PSC will meet at least once a year to ensure: i) Oversight and assurance of technical quality of outputs, and enable adaptive management, when required; ii) Close linkages between the project and other ongoing projects and programmes relevant to the project; iii) Timely availability and effectiveness of co-financing support; iv) Sustainability of key project outcomes, including upscaling and replication; v) Effective coordination of government partner work under this project; vi) Approval of the six-monthly Project Progress and Financial Reports, the Annual Work Plan and Budget; vii) Making by consensus, management decisions when guidance is required by the National Project Coordinator. In addition, the PSC will ensure regular exchange with the

84 World Bank-Hubei sub-project, in particular through the Technical Advisory and Coordination Committee (see section above).

A National Project Management Office (NPMO) will be co-funded by the GEF and established within MARA (REEA under DSTE) in Beijing. The main functions of the NPMO, following the guidance of the Project Steering Committee, are to ensure overall efficient management, coordination, implementation and monitoring of the project through the effective implementation of the annual work plans and budgets (AWP/Bs). The NPMO will be composed of a National Project Coordinator (NPC) who will work full-time for the project lifetime. In addition, the NPMO will include a part-time Chief Technical Advisor (CTA), a Knowledge Management Officer, M&E Officer, a Finance and Procurement Officer, as well as Technical Project Consultants.

The National Project Coordinator (NPC) will be in charge of daily implementation, management, administration and technical supervision of the project, on behalf of the Operational Partner and within the framework delineated by the PSC. The NPC will be responsible, among others, for: i) Coordination and close monitoring of the implementation of project activities; ii) Tracking the project’s progress and ensuring timely delivery of inputs and outputs; iii) Providing technical support and assessing the outputs of the project national consultants hired with GEF funds, as well as the products generated in the implementation of the project; iv) Coordination with relevant initiatives, and in particular with the World Bank-Hubei sub-project and the FOLUR Global Coordination Project (in coordination with FAO); v) Ensuring a high level of collaboration among participating institutions and organizations at the national and local levels; vi) Ensuring effective engagement of stakeholders as per the project’s Stakeholder Engagement Matrix; vii) Ensuring effective implementation of the project’s Integrated Pest Management Plan (IPMP), Gender Action Plan, capacity development measures and FPIC in collaboration with the Social Safeguards and Gender Specialist; viii) Ensuring compliance with all OPA provisions during the implementation, including on timely reporting and financial management; ix) Manage requests for provision of financial resources using provided format in OPA annexes; x) Monitoring financial resources and accounting to ensure accuracy and reliability of financial reports; xi) Ensuring timely preparation and submission of requests for funds, financial and progress reports to FAO as per OPA reporting requirements; xii) Maintaining documentation and evidence that describes the proper and prudent use of project resources as per OPA provisions, including making available this supporting documentation to FAO and designated auditors when requested; xiii) Implementing and managing the project’s monitoring and communications plans in close collaboration with the Project Knowledge Management Officer and the Project M&E Officer; xiv) Organizing project workshops and meetings, in particular of the Technical Advisory and Coordination Committee, to monitor progress and preparing the Annual Budget and Work Plan; xv) Submitting the six-monthly Project Progress Reports (PPRs) with the AWP/B to the PSC and FAO; xvi) Prepare and disseminate the minutes of PSC and TACC meetings within a week after the meeting; xvii) Preparing the first draft of the Project Implementation Review (PIR) and consolidate with inputs from the World Bank-Hubei sub-project; xviii) Ensuring that any technical project reports are submitted to FAO for technical review and clearance by FAO’s Lead Technical Officer (LTO);

85 xix) Supporting the organization of the mid-term and final evaluations in close coordination with the FAO Budget Holder and the FAO Independent Office of Evaluation (OED); xx) Submitting the OP six-monthly technical and financial reports to FAO and facilitate the information exchange between the OP and FAO, if needed; xxi) Inform the PSC and FAO of any delays and difficulties as they arise during the implementation to ensure timely corrective measure and support.

The Food and Agriculture Organization (FAO) will be the GEF Implementing Agency (IA) for the Project, providing project cycle management and support services as established in the GEF Policy. As the GEF IA, FAO holds overall accountability and responsibility to the GEF for delivery of the results. In the IA role, FAO will utilize the GEF fees to deploy three different actors within the organization to support the project (see Annex K for details): • The Budget Holder, which is usually the most decentralized FAO office, will provide oversight of day to day project execution; • The Lead Technical Officer(s), drawn from across FAO will provide oversight/support to the project’s technical work in coordination with government representatives participating in the Project Steering Committee; • The Funding Liaison Officer(s) within FAO will monitor and support the project cycle to ensure that the project is being carried out and reporting done in accordance with agreed standards and requirements.

FAO responsibilities, as GEF IA, will include: • Administrate funds from GEF in accordance with the rules and procedures of FAO; • Oversee project implementation in accordance with the project document, work plans, budgets, agreements with co-financiers, Operational Partners Agreement(s) and other rules and procedures of FAO; • Provide technical guidance to ensure that appropriate technical quality is applied to all activities concerned; • Conduct at least one supervision mission per year; and • Reporting to the GEF Secretariat and Evaluation Office, through the annual Project Implementation Review, the Mid Term Review, the Terminal Evaluation and the Project Closure Report on project progress (to be compiled with the World Bank-Hubei sub-project); • Financial reporting to the GEF Trustee.

Provincial-level Project Management Project level project management and implementation support will be delivered by Provincial Departments of Agriculture and Rural Affairs in Shandong, Jiangsu, Jiangxi and Guizhou Provinces. Provincial level PSCs/PMOs will be established in each province. County level project coordination committees/PMOs will be established in the counties where the target sites are located to guide and support the implementation of the project activities in the field. Each province and county covered by the project will appoint a focal person for the project. At the project demonstration sites, local agricultural agencies will mobilize and facilitate community and private sector participation in the project activities in close consultation with local government authorities and ensure that field activities are being implemented as planned. Women federations at local level will be engaged to facilitate the participation of women farmers and to ensure that project activities are responsive to the interests and needs of local women.

In addition, online and face-to-face meetings as well as exchange visits between the two sub-projects will be organized regularly by the NPMO of MARA and the Hubei Provincial PMO, in collaboration with FAO and

86 the World Bank. During the project design phase, detailed technical discussions were held between the two project design teams on issues such as climate-smart and sustainable agriculture interventions, innovations, private sector engagement, monitoring and evaluation, and the EX-ACT calculation of GHG emission reductions. Where feasible, project approaches and technical definitions were aligned. This exchange and strong coordination will continue throughout implementation, to ensure that the China child project achieves greater impact within China, and also contributes to the impact of the global FOLUR program by sharing technical approaches, best practices and innovations. The work plan in Annex H includes details on coordination and exchange between the two sub-projects, including among others (i) collaboration on food and land use collaboration mechanisms; (ii) meetings/site visits to exchange on sustainable agriculture practices and CSA; (iii) exchange of best practices on innovations to reduce chemical use; (iv) monitoring systems and policy innovations; (v) coordination and exchange with global IP. Through the involvement of World Bank as the global IP lead, FAO as a key IP partner, MARA and the project provinces, the project will be well placed to exchange and promote technical and policy innovations within China and globally.

Coordination with FOLUR Global Platform MARA as the Lead Executing Agency, in collaboration with FAO, World Bank and Hubei Province, will ensure coordination and exchange with the FOLUR Global Platform as well as other FOLUR child projects. Project stakeholders will participate in key global and regional FOLUR events. As integral part of Component 4, the project will actively promote exchange with other child project countries, in particular with India, Thailand and Vietnam on sustainable wheat and rice production and value chains. Cross-site visits and regional meetings will be organized in close collaboration with the FOLUR Global Platform and the FAO Regional Office for Asia and the Pacific (RAP).

Technical Assistance Consultancies will be procured through competitive bidding processes for technical assistance required for project implementation. The types of expertise envisaged on technical assignments include the following: • Senior Agronomy, Agro-ecology and Sustainable Agriculture Expert • Agricultural Policy/Strategy Development Expert • Ecological Restoration and Farmland Biodiversity Intervention Design Expert • Entomologist/Plant Pathologist • Climate Smart Agriculture Expert • Natural Resources Evaluation Expert • Digital Agriculture Expert • Value Chain and Standards Specialist • Agricultural Machinery Specialist • Social Safeguards and Gender Specialist

For the Mid-Term Review and Final Evaluation of the project, independent evaluators will be recruited directly by FAO using its internal procurement system.

6.b Coordination with other relevant GEF-financed projects and other initiatives.

The main relevant GEF-financed projects and other initiatives are described below. The GEF-7 project builds on the experiences and lessons learned of these projects and initiatives; and will coordinate with those that are being implemented in the same target provinces. Coordination will be ensured through the leadership of MARA and the coordinating role of the NPMO, with support from FAO and the World Bank.

UNDP GEF-6 Two UNDP-led programmes are under implementation under GEF-6 in China. The USD 12.3 million programme “PRC-GEF Partnership Program for Sustainable Agricultural Development”

87 aims to support the implementation of the Sustainable Development Goals and China’s National Plan for Sustainable Development of Agriculture (2015-2030) by a) piloting and scaling up effective policy and investment measures to mainstream in-situ conservation and sustainable use of globally important genetic resources for food and agriculture (GRFA), b) improving the prevention, control and management of invasive alien species (IAS), c) conserving and enhancing carbon stock and promoting evidence-based and climate-smart conservation of grassland ecosystems, and d) collaborative innovation in climate change and biodiversity from the aspects of policy, mechanism, knowledge sharing and partnerships. Target provinces across the five child projects are , Gansu, Hainan, , Hubei, Heilongjiang, Liaoning, Qinghai and Yunnan.

The second programme is the USD 18.6 million “China’s Protected Area System Reform (C- PAR)”. The programme aims to transform China’s national protected area system through systematic legal and institutional reform and innovation for conservation of globally significant biodiversity. In addition to the national level, child projects will include interventions in Qinghai, Gansu and Sichuan Provinces.

Another GEF-6 project under implementation by UNDP is entitled “Phase out of Endosulfan in China”. The project is addressing the phasing out of endosulfan by biological control and alternative technologies in cotton and tobacco pest management in China. Its geographical focus is on the main cotton producing provinces Shandong, Hebei, Henan, Hubei, Anhui, Jiangsu, Hunan, Jiangxi, Shanxi and Xinjiang Uygur Autonomous Region. World Bank The World Bank participates in key FOLUR initiatives globally, including as a founding member of the FOLU Coalition. It builds on a wealth of experience and knowledge from the implementation of climate-smart and sustainable agriculture projects globally and in China. Notably, World Bank in collaboration with REEA of MARA is implementing the GEF-5 “Climate Smart Staple Crop Production Project” in Anhui and Henan Provinces.53 The project focuses on China’s three main staple crops under two major crop production systems: the rice- wheat system in Huaiyuan County of Anhui Province and the wheat-maize system in Yexian County of Henan Province. The project is ending in 2020. Lessons and good practices, as well as policies and guidelines developed under this project have been, and will continue to be used to inform the GEF-7 project, in particular with regard to the Conservation Agriculture (CA) and fertigation approaches and technologies implemented under the project.

The World Bank has implemented an IBRD-financed “Integrated Modern Agriculture Development Project” in selected areas of Gansu, Hunan, Jiangxi, and Liaoning provinces, Xinjiang Uygur Autonomous region, and Chongqing municipality. The project has funded new and improved irrigation systems, showcased farming practices that enrich the soil without the use of chemicals, introduced new crop varieties, and helped train farmers on how to increase crop yields while also protecting the environment. Yushui District in Jiangxi was among the target counties. The project ended in 2019. World Bank is also implementing an IBRD and GEF financed “China Guangdong Agricultural Pollution Control” project, which ends in 2021. In order to reduce agricultural non-point source pollution, the project worked on improving (a) soil nutrient management; (b) integrated pest management (IPM); (c) conservation agriculture (CA) pilots; and (d) implementation support to project farmers. The project tested and implemented the “Three Controls Technology”, which consists in controlling (i) the amount and timing of fertilizer application, (ii) unproductive tillers, and (iii) fungicide and pesticide application. The project also implemented Alternate Wetting and Drying (AWD) to reduce water use and GHG emissions, while enhancing yields. Furthermore, the project piloted certifications for Safe Agricultural Products and Green Agricultural Products.

53 The detailed title of the project is “Energy Conservation, Greenhouse Gas Mitigation and Soil Carbon Sequestration in Staple Crop Production”. Anhui and Henan Provinces are adjacent to the GEF-7 landscape.

88 The World Bank is also implementing an IBRD-financed “Jiangxi Farm Produce Distribution System Development” project in eight counties/districts of Jiangxi Province, from 2018 to 2023.

From 2005-2010, World Bank implemented the IBRD/GEF-4 Special Climate Change Fund (SCCD) Irrigated Agriculture Intensification Loan III Project/Mainstreaming adaptation to climate change into water resources management and rural development. The project was implemented in Hebei, Jiangsu, Anhui, Shandong and Henan Provinces. The project introduced climate-resilient agriculture practices (such as drought and pest-resilient crop varieties); as well as agro-ecological environmental protection and management (such as the establishment of shelterbelt forest networks around farmlands and environment and soil and water conservation).54

In addition, the GEF-7 project will draw on experiences from a variety of other World-Bank supported projects, such as the China Food Safety Improvement Project in Jilin Province (closed in 2017). The aim of the project was to (i) improve agricultural product quality; and (ii) reduce agricultural product safety risks. Among others, over 100 technical standards for the quality of agricultural products were developed and adopted; over 200 demonstration sites for certified agricultural production were established; and 42,000 farmers visited demonstration sites, 91% of whom subsequently adopted “good agricultural practices” primarily covering product standards, production processes, testing and environmental testing standards.

The GEF-7 project will also aim to build on the recently approved Henan Green Agriculture Fund Project (approved in March 2020), in particular for its Output 2.2.3 on partnerships and investments to support sustainable value chains and access to financing. The objective of the Henan Green Agriculture Fund Project is to demonstrate the viability of financing green agriculture investments in Henan, fostering adoption of innovative green agriculture standards and replicable green technologies. The project aims to contribute to the development of a green agriculture financing mechanism for promoting green agriculture growth in Henan Province through market transformation and commercial sector engagement. Project-supported interventions will include green crop production expansion, livestock manure management, energy use efficiency, water use efficiency, wastewater treatment and knowledge-based services. This project can inform the GEF FOLUR IP China child project particularly in the innovation of providing financial support to the greening of the agricultural sector. FAO GEF projects Under the above-mentioned GEF-6 “PRC-GEF Partnership Program for Sustainable Agricultural Development”, FAO in collaboration with MARA is implementing a project on “On-farm conservation and sustainable use of genetic diversity of crops originated in China”, aiming to mainstream the on-farm conservation and sustainable use of globally important local varieties of crops originated in China for food and agriculture. Target provinces for interventions at the sub- national level include Yunnan for rice, Hebei for millet and oat, and Heilongjiang and Liaoning for soybean.

GEF-5 projects under implementation by FAO are: o Securing Biodiversity Conservation and Sustainable use in China’s Dongting Lake Protected Area (Hunan Province). o Securing Biodiversity Conservation and Sustainable Use in Huangshan Municipality (Anhui Province). o A New Green Line: Mainstreaming Biodiversity Conservation Objectives and Practices into China’s Water Resources Management Policy and Planning Practice (Chongqing and Yunnan Provinces). o Sustainable Forest Management to Enhance the Resilience of Forests to Climate Change (Hainan, Fujian, and Henan). o Piloting Provincial-level Wetland Protected Area System in Jiangxi Province (Poyang Lake).

54 See also Global Environment Facility (GEF), 2013. Two Decades of Experience: Investing in Ecosystem Services and Adaptation for Food Security.

89 o Biodiversity Conservation and Sustainable Land Management in the Soda Saline-alkaline Wetlands Agro Pastoral Landscapes in the Western Area of Jilin Province.

Sustainable Rice Landscapes FAO, in collaboration with UN Environment, GIZ, IRRI, the Sustainable Rice Platform (SRP) and other partners, is preparing several projects under the umbrella of a regional Sustainable Rice Landscapes initiative. Linkages and exchange of knowledge with this initiative will be sought during project implementation, in particular with regard to sustainable rice standards and value chains.

GIAHS 15 Globally Important Agricultural Heritage Systems (GIAHS) and 62 Nationally Important Agricultural Heritage Systems (NIAHS) have been established in China. The GIAHS and NIAHS projects aim not only to conserve genetic diversity and traditional production systems, but also to promote local economic development and improve livelihoods in a sustainable manner. For instance, under the GIAHS project of Hani rice terraces system in Honghe of Yunnan, a collaborative initiative of FAO and the Ministry of Agriculture, activities were undertaken to maintain the unique irrigation system and traditional methods of agricultural production. It was found that many local varieties, such as the red rice cultivated by , can survive at more than 1,400 meters above sea level, and are resilient to environmental change. These varieties with stable genetic characteristics were not only conserved on-farm but also delivered benefits to farmers.

Other FAO initiatives In 2019, FAO launched a new Australia-funded project “Modernizing irrigated agriculture to protect and restore aquatic biodiversity and ecosystem services in South-East Asia” in partnership with Charles Sturt University. The aim of the project is to build biodiversity considerations into irrigation modernization programs. FAO in collaboration with partners has also worked on Water Accounting and has developed evapotranspiration (ET)-based Water Management Guidelines. An Expert Consultation on Consumption Based Water Management was held in Beijing in 2019. Emerging guidelines and best practices will be shared with the GEF- 7 project partners and potential linkages will be explored. ADB The Asian Development Bank (ADB) is currently preparing the “Yangtze River Green Ecological Corridor Comprehensive Agriculture Development Project”, which aims to strengthen rural livelihoods to modernize their agriculture production systems and minimize environmental degradation and non-point source pollution. The project will be implemented in five provinces and one municipality in the upper and middle reaches of the Yangtze River Basin, notably Yunnan, Sichuan, Guizhou, Chongqing, Hunan, and Hubei. The GEF-7 project will seek to collaborate closely with this project to exchange knowledge and lessons learned and coalesce action for scaling up sustainable production.

ADB has recently approved a USD 300 million loan, co-financed by the Green Climate Fund (GCF), Agence Française de Développement and the German Development Bank KfW, for the Shandong Green Development Fund project. The project will pilot an innovative leveraging mechanism to catalyse private, institutional and commercial capital for the development of climate positive infrastructure and business in Shandong Province. The project will support a portfolio of mitigation and adaptation sub-projects assessed against both climate and financial eligibility criteria. Mitigation priorities are mainly in the energy, green building and low carbon transport sectors. Adaptation priorities include, among others, agricultural water supply infrastructures.

ADB’s GEF-2 project “Efficient Utilization of Agricultural Wastes”, was implemented in Henan, Hubei, Jiangxi, and Shanxi Provinces from 2003 to 2009.

90 IUCN GEF-6 IUCN is implementing a GEF-6 child project of The Restoration Initiative (TRI), entitled “Building Climate Resilient Green Infrastructure: Enhancing Ecosystem Services of Planted Forests in China through Forest Landscape Restoration and Governance Innovation”. The project is working in seven State Forest Farms across three municipalities across three provinces in China, notably Chengde in Hebei Province, in Jiangxi Province and in Guizhou. UN Environment UN Environment is implementing the GEF-5 project “Expansion and Improvement of Biodiversity Conservation and Sustainable Use of Natural Resources in the Greater Shennongjia Area, Hubei Province”. The project goal is to enhance conservation management effectiveness of National Nature Reserves in Hubei province, as well as the mainstreaming of biodiversity conservation and value of ecosystem services in economic development plans and sectors. IFAD IFAD is implementing several projects in China, with the aim to: • Contribute to the country’s efforts to eradicate rural poverty by 2020; • Ensure that smallholders in poor and marginalized areas are not left out from the process of rural transformation and agriculture modernization, and increase smallholders’ capacity and opportunities to access markets; • Strengthen the environmental sustainability and climate resilience of agricultural development.

In particular, IFAD has been implementing the Jiangxi Mountainous Areas Agribusiness Promotion Project (2014-2020). The project aims to increase farmers’ production bases and improve the efficiency of agricultural production. It also aims to enhance product quality and improve margins along value chains, especially at the farm level. The project targets poor rural people, especially women. The project involves ten counties in three prefectures, namely Jian, Suichuan, Jinggangshan, Yongxin and Wanan in Jian; Huichang, Anyuan, Chongyi and Ruijing in Ganzhou; and Lianhua in .

7. Consistency with National Priorities Describe the consistency of the project with national strategies and plans or reports and assessments under relevant conventions.

As described above, the project is aligned with China’s 13th Five-Year Plan, its National Plan for Sustainable Development of Agriculture, its No. 1 Central Document, and its Strategy on Rural Vitalization. The project will also contribute to sub-national (provincial, district) strategies and plans, including the Provincial and District Five-Year Plans. In addition, the project is aligned with the following national strategies and reports under the relevant conventions.

Sustainable Development The project will contribute primarily to the following SDGs: Goals (SDGs) • SDG 2: End Hunger, achieve food security and improved nutrition and promote sustainable agriculture. The project will particularly contribute to SDG 2, Target 2.4: By 2030, ensure sustainable food production systems and implement resilient agricultural practices that increase productivity and production, that help maintain ecosystems, that strengthen capacity for adaptation to climate change, extreme weather, drought, flooding and other disasters and that progressively improve land and soil quality. • SDG 13: Take urgent action to combat climate change and its impacts. • SDG 15: Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss. • Furthermore, the project will make secondary contributions towards SDG 1 (end poverty), SDG 5 (gender equality), SDG 10 (reduce inequality), and SDG 17 (global partnerships for sustainable development) China’s National The project supports the following priority area and actions of the National Biodiversity Conservation Biodiversity Conservation Strategy and Action Plan (NBSAP) 2011-2030:

91 Strategy and Action Plan (2011-2030) Priority Area 2: Incorporate biodiversity conservation into sectoral and regional planning to promote sustainable use Action 4: Incorporate biodiversity conservation into relevant sectoral and regional planning and programmes • Develop sectoral strategies and action plans for biodiversity conservation in the field of forestry, agriculture, construction, water conservancy, oceanic administration and management of traditional Chinese medicine. Action 5: Ensure sustainable use of biodiversity • Disseminate concepts and codes of conduct favourable to biodiversity conservation in the sectors of agriculture, forestry, water conservancy, industry and energy, transportation, tourism and trade, etc. • Promote consumption patterns and food culture favourable to biodiversity conservation. Action 6: Reduce impacts of environment pollution on biodiversity • Continue to implement water pollution control projects in three rivers (Huai, Hai, and Liao) and three lakes (Tai, Chaohu, and Dianchi), Three Gorges Reservoir area, the upper reaches of the Yangtse River, the upper and middle reaches of the Yellow River, , Zhujiang River, and sources of water and canals of Water Transfer Project from South to North China. Nationally Determined The project supports the following objectives under the NDC: Contribution (NDC) under the Paris Agreement (2015) Building Energy Efficient and Low-Carbon Industrial System • To promote the low-carbon development in agriculture, making efforts to achieve zero growth of fertilizer and pesticide utilization by 2020; • To control methane emissions from rice fields and nitrous oxide emissions from farmland; • To construct a recyclable agriculture system, promoting comprehensive utilization of straw, reutilization of agricultural and forestry wastes and comprehensive utilization of animal waste.

Increasing Carbon Sinks • To vigorously enhance afforestation, promoting voluntary tree planting by all citizens, continuing the implementation of key ecological programs, including protecting natural forests, restoring forest and grassland from farmland, conducting sandification control for areas in vicinity of Beijing and Tianjin, planting shelter belt, controlling rocky desertification, conserving water and soil, strengthening forest tending and management and increasing the forest carbon sink.

Enhancing Support in terms of Science and Technology • To develop technologies on biological nitrogen fixation, green pest and disease prevention and control and protected agriculture. Third National Mitigation: Communication under “In China’s National Climate Change Program published in 2007, Chinese UNFCCC (2018) government stated that, by 2010, the emissions of N2O from industrial processes would remain stable as that in 2005, and a number of measures would be taken to control the growth rate of CH4 emissions from the agriculture. (…)

In the 12th FYP period, China stated that a work focus would be on popularizing the technology for the efficient application of fertilizers, and such approaches as the application of fewer fertilizers, reuse, and recovery of resources were to be adopted to reduce energy consumption, pollution, and emission, and improve the sustainability of agriculture. (…) In 2015, China devoted great effort to the development of water-

92 saving agriculture, implemented the action for the zero growth in the use of chemical fertilizers and pesticides, promoted the control of pollution from farming, furthered such series of actions for the recovery of resources from stalks in order to control both pollution from non-point sources and GHG emissions.”

Adaptation: According to the National Climate Change Adaptation Strategy (2013-2020), “by 2020, the proportion of crops under comprehensive crop protection to prevent and control major crop diseases and insect pests will exceed 40%, water use efficiency for arable land irrigation will increase to over 0.55, water use efficiency of crops will increase to over 1.1 kg/m3, and the effectively irrigated arable land area will exceed 1 billion ha, and the penetration rate of practical adaptation technologies among the rural labour force will reach 70%.” China Final National Report Relevant objectives and actions of China’s Land Degradation Control targets 2030 are of the Voluntary Land cited below. Degradation Neutrality (LDN) Target Setting “Objectives: Programme (2017) under the Soil and water conservation UNCCD By 2030, comprehensive prevention and conservation system on soil and water adapt to the China’s economic and social development will be established to achieve overall prevention and protection. Soil erosion in key areas will be completely managed, and ecology realizes a virtuous circle. The newly increased soil and water conservation area will reach 940,000 km2, of which the new soil erosion treatment area will be 860,000 km2, moderate to severe erosion area will be significantly reduced, the wind erosion area will be effectively reduced, man-made soil erosion will be fully controlled; forest vegetation will be fully protected and restored; An annual reduction of soil loss will reach 1.5 billion tons, the sediment into the rivers and lakes will be significantly reduced.

Arable land protection/conservation To ensure that the arable land retaining quantity is above 120 million hectares or more, and the basic farmland is no less than 104 million hectares, permanent basic farmland of 103 million hectares is positioned. By 2020, arable land red line of 124 million hectares will be strictly protected. Soil environment safety for arable land will be basically guaranteed. The quality of arable land in China will be improved by 0.5 grade (level), the use of fertilizer and pesticide achieves zero growth. By 2030, the arable land retaining quantity will maintain at 122 million hectares, high standard farmland of 80 million hectares will be built, the national average arable land quality will be improved by 1.0 grade (level) compared to that of 2015, arable quality and situation will be significantly improved. Land that is not suitable for farming will be converted to forest. Reasonable rotation system and fallow system will be established, the overall pattern of efficient use of arable land, stable quality and environmental safety will be basically formed.

Action Plan: Soil and water conservation (…) (2) Comprehensive management. Include engineering, forest, grass and tillage measures. Engineering measures include slope control, channel and gully management, land remediation, collapse and landslide control; forest and grass measures include the establishment of soil and water conservation forest, economic trees, and other plant hedgerows (belt), shelterbelt and grid forest, establishment artificial grassland, development of complex agroforestry, and development and utilization of efficient soil and water conservation plants, etc.; tillage/farming

93 measures include ridge to the terraced fields, contour farming, ridge farming, no tillage, grassland rotation, intercropping and so on.

Farmland conservation (1) Strictly controlling farmland occupied by construction works. Control the occupancy of farmland by strengthening land use planning, strictly implementing delimitation and conservation for permanent basic farmland, and relieving the pressure caused by farmland occupancy for construction purpose by upholding economical and intensive use of land. (…) (3) Promoting farmland quality upgrade and conservation. By taking the actions such as building high standard farmland in large scale, farmland quality protection and upgrade, implementing national chemical fertilizer and pesticides zero growth strategic action plan, promote by planning as a whole the recuperation of land, strengthen farmland quality investigation, evaluation and monitoring, etc., promote the quality enhancement of farmland. (4) Perfecting the farmland conservation compensation mechanism. Through strengthening the compensation incentive to the responsible subject of farmland conservation and implementing benefit adjustment of trans-regional supplementary farmland, etc., improve the farmland conservation mechanisms.”

8. Knowledge Management Elaborate the knowledge management approach for the project, including a budget, key deliverables and a timeline, and explain how it will contribute to the project’s overall impact. Please also describe how the project is incorporating lessons learned from previous interventions in the same context.55

Knowledge sharing and learning is a key component to achieving the expected transformative impact of the project in China. National and provincial food and land use collaboration mechanisms/platforms will be established, under which the project will regularly convene leaders and public and private stakeholders of target and other key agricultural counties and provinces to exchange knowledge and lessons learned and inspire others. An information dissemination and communication strategy will be developed at the beginning of the project to support implementation and replication of project activities. In addition, a Technical Advisory and Coordination Committee will be established between the FAO-MARA and World Bank-Hubei sub-projects, to ensure exchange of knowledge, technologies, and best practices. Partnerships with the FOLU Coalition, WRI, IRRI, and the FABLE Consortium will allow for sharing and dissemination of knowledge with provincial, national and global stakeholders.

Furthermore, the project will ensure effective knowledge management and information dissemination to support implementation and scaling of project activities. An information dissemination and communication strategy will be developed at the beginning of the project to support implementation and replication of project activities at the county, provincial and national levels (including awareness raising of producers and consumers). Diversified information dissemination platforms/mechanisms will be established (or existing platforms improved) to share project achievements, knowledge, experiences, and expand environmental and social influence to support scaling and replication (Output 4.1.2). A particular focus will be on knowledge dissemination among farmers, private sector, local government and academia to increase knowledge and awareness on global environmental issues, responses to climate change, models for enhancing productivity, and value chains.

Under Outcome 4.1, knowledge will be created and shared through national and provincial platforms, exchange visits, and regular forums/seminars with other projects and institutions working on similar issues in China (such

55 FAO’s Knowledge Management Strategy requires formulators and implementers to consider sound knowledge management practices throughout the project cycle.

94 as the FOLU Coalition, IRRI, FAO, WB, etc.). Through exchange of lessons learned and best practices under the food systems and land use collaboration platforms and under the annual FOLU Platform partner meetings, best practices and opportunities for large-scale transformation will be identified, based on most recent research and applications from the field. The project will seek to engage with provincial and national private sector associations, state-owned enterprises and chambers of commerce, to share knowledge and seek opportunities for scaling through the private sector not just at local, but at provincial and national levels. The private sector will be an important catalyst for scaling and technology transfer in the target counties and within China.

In addition, it will be possible to ensure wider scale-up nationwide of the innovations to be implemented under the project, by demonstrating to the provincial/national government and to other counties/provinces how to achieve more sustainable outcomes, and by ensuring that knowledge from the project are transferred into the provincial/national government’s action plans, such as the next Five-Year Plan and provincial land use plans. The value chains (for rice, wheat, maize) included in the project span several counties and provinces, requiring close coordination between the counties, and at the provincial and national level. Innovative landscape planning approaches, restoration of degraded land, sustainable agriculture practices, digital technologies and GHG monitoring systems will be shared across counties, provinces and nationwide.

Through the FOLUR Global Coordination Project and existing global and regional platforms, knowledge and lessons learned will be shared at the regional and global level. In particular, the project will participate in activities coordinated under the Global Coordination Project, with regard to capacity building, regional/global exchange with commodity and value chain actors, and sharing of knowledge, innovations and good practices. China has extensive collaboration on agriculture across the globe, including on agricultural research and sustainable agriculture development, which will be leveraged to disseminate good practices from the Impact Program. Companies such as Alibaba are set out to export solutions on sustainable agriculture, access to markets and rural finance to other countries in Asia and globally. FAO and the World Bank will also play an important role in knowledge transfer to other countries and regions through existing platforms, working groups and engagements under the relevant conventions. In particular, the project will share knowledge and lessons with the One Planet Network (10YFP) Sustainable Food Systems (SFS) Programme, an important global multi- stakeholder partnership recognized by SDG 12, Target 12.1. It will also explore collaboration with other child projects related to the sustainability standards developed under the Sustainable Rice Platform (SRP), a multi- stakeholder platform established to promote resource efficiency and sustainability in trade flows, production and consumption operations, and supply chains in the global rice sector.

China has itself become a major financier of overseas investments, particularly in developing countries. The project will seek to engage with the National Development and Reform Commission (NDRC), the China Development Bank (CDB) and other similar institutions, in order for these institutions to gain knowledge on sustainable approaches to food systems and land use, which they can in turn use to increase the sustainability of their growing agriculture portfolio.

The relevant budget and key deliverables are shown below.

Deliverable Timeline Budget Information dissemination and Q1 2021 • Information dissemination platforms: USD communications strategy to be developed 90,000 under Output 4.1.2. • Development of information dissemination

and communication strategy and of multi- Implementation of information dissemination Throughout and communications strategy and knowledge project media products: USD 100,000 management activities. implementation • Dissemination of project information through print media: USD 100,000 Outcome indicator targets (see Annex A1):

95 • Number of information dissemination • Study and develop the project best practice platforms (smart-phone based apps, reports: USD 100,000 internet portals, etc.) established (or • Coordinate with and participate in regional existing platforms improved) and and global IP events and activities: USD operational. 44,000 • Number of people reached by information • Regular forums/seminars in-country: USD dissemination and knowledge exchange. 40,000 • Cross-site exchange visits (including national/regional/global): USD 100,000 • Overseas study visits (including participation in global FOLUR events): USD 250,000 • Printing of reports: USD 30,000 Total Budget USD 854,000

9. Monitoring and Evaluation Project oversight will be carried out by the PSC, FAO GEF Coordination Unit and relevant technical units in FAO headquarters. Oversight will ensure that: (i) project outputs are produced in accordance with the project results framework and leading to the achievement of project outcomes; (ii) project outcomes are leading to the achievement of the project objective; (iii) risks are continuously identified and monitored and appropriate mitigation strategies are applied; and (iv) agreed project global environmental benefits/adaptation benefits are being delivered.

The FAO GEF Coordination Unit and HQ Technical Units will provide oversight of GEF financed activities, outputs and outcomes largely through the annual Project Implementation Reports (PIRs), periodic backstopping and supervision missions.

Project monitoring will be carried out by the NPMO and the FAO BH. Project performance will be monitored using the project results matrix, including indicators (baseline and targets) and annual work plans and budgets. At project inception, the results matrix will be reviewed to finalize identification of: i) outputs; ii) indicators; and iii) any missing baseline information and targets. A detailed M&E plan, which builds on the results matrix and defines specific requirements for each indicator (data collection methods, frequency, responsibilities for data collection and analysis, etc.) will also be developed during project inception by the Knowledge Management/M&E Officer appointed at the NPMO.

Moreover, progress towards achievement of the project indicators, outputs and outcomes will be discussed and reviewed at the Technical Advisory and Coordination Committee (TACC) meetings. The TACC will then recommend any necessary corrective actions to the MARA NPMO and Hubei PPMO of both sub-projects. The NPMO and the TACC will also link the project to the Global K2A platform project for monitoring of the global level impact.

Project Monitoring and Evaluation Plan M&E Activity Responsible Parties Timeframe GEF Budget (USD)

Inception Workshop at National Project Management Within two months of 75,000 national and provincial Office project document levels signature

Project Inception Report National Project Manager Within two weeks of None inception workshop

96 M&E Activity Responsible Parties Timeframe GEF Budget (USD)

Annual PSC meetings National Project Manager Annually 50,000

Annual financial FAO China Representation Annually 50,000 audits/spot checks Office/NPMO (10,000 per year) Project Progress Reports National Project Manager and Annually 75,000 Knowledge Management/M&E Officer, Financial Officer Project Implementation National Project Manager Annually in July None Review report (PIR)

Co-financing Reports FAO China Representation Annually Co-financing Office Mid-term Review NPMO and FAO China In the 3rd quarter of the 50,000 Representation Office 3rd year of the project

Final evaluation FAO Office of Evaluation At least three months 50,000 before operational closure

Terminal Report NPMO/GEF Coordination Unit Within two months of 6,550 project closure PMU support and FAO China Representation Throughout project 7,828 training Office implementation Total Budget 364,378

Specific reports that will be prepared under the M&E program are: (i) Project inception report; (ii) Annual Work Plan and Budget (AWP/B); (iii) Project Progress Reports (PPRs); (iv) annual Project Implementation Review (PIR); (v) Technical Reports; (vi) co-financing reports; and (vii) Terminal Report. In addition, assessment of the relevant GEF-7 core indicators (see Annex A1: Project Results Framework) and capacity scorecards against the baselines (completed during project preparation) will be required at mid-term and final project evaluation.

Project Inception Report. It is recommended that the NPMO prepare a draft project inception report in consultation with the LTO, BH and other project partners. Elements of this report should be discussed during the Project Inception Workshop and the report subsequently finalized. The report will include a narrative on the institutional roles and responsibilities and coordinating action of project partners, progress to date on project establishment and start-up activities and an update of any changed external conditions that may affect project implementation. It will also include a detailed first year AWP/B, and a detailed project monitoring plan. The draft inception report will be circulated to the PSC for review and comments before its finalization, no later than one month after project start-up. The report should be cleared by the FAO BH, LTO and the FAO GEF Coordination Unit and uploaded in FPMIS by the BH.

Results-based Annual Work Plan and Budget (AWP/B). The draft of the first AWP/B will be prepared by the NPMO in consultation with the FAO Project Task Force and reviewed at the project Inception Workshop. The Inception Workshop (IW) inputs will be incorporated and the NPMO will submit a final draft AWP/B within two weeks of the IW to the BH. For subsequent AWP/B, the NPMO will organize a project progress review and planning meeting for its review and adaptive management. Once comments have been incorporated, the BH will circulate the AWP/B to the LTO and the FAO GEF Coordination Unit for comments/clearance prior to uploading in FPMIS by the BH. The AWP/B must be linked to the project’s Results Framework

97 indicators so that the project’s work is contributing to the achievement of the indicators. The AWP/B should include detailed activities to be implemented to achieve the project outputs and output targets and divided into monthly timeframes and targets and milestone dates for output indicators to be achieved during the year. A detailed project budget for the activities to be implemented during the year should also be included together with all monitoring and supervision activities required during the year. The AWP/B should be approved by the Project Steering Committee and uploaded on the FPMIS by the BH.

Project Progress Reports (PPR): PPRs will be prepared by the NPMO based on the systematic monitoring of output and outcome indicators identified in the project’s Results Framework (Annex A1). The purpose of the PPR is to identify constraints, problems or bottlenecks that impede timely implementation and to take appropriate remedial action in a timely manner. PPRs will also report on projects risks and implementation of the risk mitigation plan. The Budget Holder has the responsibility to coordinate the preparation and finalization of the PPR, in consultation with the NPMO, LTO and the FLO. After LTO, BH and FLO clearance, the FLO will ensure that project progress reports are uploaded in FPMIS in a timely manner.

Annual Project Implementation Review (PIR): The NPMO (in collaboration with the BH and the LTO) will prepare an annual PIR covering the period July (the previous year) through June (current year) to be submitted to the FAO GEF Coordination Unit Funding Liaison Officer (FLO) for review and approval no later than (check each year with GEF Unit but roughly end June/early July each year). The NPMO will integrate inputs from the World Bank-Hubei sub-project and submit one, consolidated PIR to the FAO GEF Coordination Unit as part of the Annual Monitoring Review report of the FAO-GEF portfolio. PIRs will be submitted to the GEF and uploaded on the FPMIS by the FAO GEF Coordination Unit.

Key milestones for the PIR process: • Early July: The LTOs submit the draft PIRs (after consultations with BHs, project teams) to the GEF Coordination Unit ([email protected], copying respective GEF Unit officer) for initial review; • Mid July: FAO GEF Coordination Unit responsible officers review main elements of PIR and discuss with LTO as required; • Early/mid-August: The FAO GEF Coordination Unit prepares and finalizes the FAO Summary Tables and sends to the GEF Secretariat by (date is communicated each year by the GEF Secretariat through the FAO GEF Coordination Unit); • September/October: PIRs are finalized. PIRs carefully and thoroughly reviewed by the FAO GEF Coordination Unit and discussed with the LTOs for final review and clearance; • Mid November: The FAO GEF Coordination Unit submits the final PIR reports – cleared by the LTO and approved by the FAO GEF Coordination Unit – to the GEF Secretariat and the GEF Independent Evaluation Office.

Technical Reports: Technical reports will be prepared by national, international consultants (partner organizations under LOAs) as part of project outputs and to document and share project outcomes and lessons learned. The drafts of any technical reports must be submitted by the NPMO to the BH who will share it with the LTO. The LTO will be responsible for ensuring appropriate technical review and clearance of said report. The BH will upload the final cleared reports onto the FPMIS. Copies of the technical reports will be distributed to project partners and the Project Steering Committee as appropriate.

Co-financing Reports: The BH, with support from the NPMO, will be responsible for collecting the required information and reporting on co-financing as indicated in the Project Document/CEO Request. The NPMO will compile the information received from the executing partners and transmit it in a timely manner to the LTO and BH. The report, which covers the period 1 July through 30 June, is to be submitted on or before 31 July and will be incorporated into the annual PIR. The format and tables to report on co-financing can be found in the PIR.

98

Terminal Report: Within two months before the end date of the project, and one month before the Final Evaluation, the NPMO will submit to the BH and LTO a draft Terminal Report. The main purpose of the Terminal Report is to give guidance at ministerial or senior government level on the policy decisions required for the follow-up of the project, and to provide the donor with information on how the funds were utilized. The Terminal Report is accordingly a concise account of the main products, results, conclusions and recommendations of the project, without unnecessary background, narrative or technical details. The target readership consists of persons who are not necessarily technical specialists but who need to understand the policy implications of technical findings and needs for insuring sustainability of project results.

Evaluation Provisions Two independent project evaluations, a Mid-Term Review (MTR) in the 3rd quarter of project year 3 and a Final Evaluation (FE) three months prior to the terminal review meeting of the project partners, will be carried out. The BH will arrange an independent MTR in consultation with the PSC, the NPMO, the LTO and the FAO- GEF Coordination Unit. The MTR will be conducted to review progress and effectiveness of implementation in terms of achieving project objective, outcomes and outputs. The MTE will allow mid-course corrective actions, if needed. The MTE will provide a systematic analysis of the information on project progress in the achievement of expected results against budget expenditures. It will refer to the Project Budget (see Annex A2) and the approved AWP/Bs. It will highlight replicable good practices and key issues faced during project implementation and will suggest mitigation actions to be discussed by the PSC, the LTO and FAO-GEF Coordination Unit.

An independent Final Evaluation (FE) will be carried out three months prior to the terminal report meeting. The FE will aim to identify the project impacts, sustainability of project outcomes and the degree of achievement of long-term results. The FE will also have the purpose of indicating future actions needed to expand the existing project results, mainstream and upscale its products and practices, and disseminate information to management authorities and institutions with responsibilities for food systems, land use and restoration, and improvement of agricultural livelihoods to assure continuity of the project initiatives. Both the MTR and FE will pay special attention to outcome indicators, including the GEF core indicators and the capacity scorecards.

Disclosure The project will ensure transparency in the preparation, conduct, reporting and evaluation of its activities. This includes full disclosure of all non-confidential information, and consultation with major groups and representatives of local communities. The disclosure of information shall be ensured through posting on websites and dissemination of findings through knowledge products and events. Project reports will be broadly and freely shared, and findings and lessons learned made available.

10. Benefits Describe the socioeconomic benefits to be delivered by the project at the national and local levels, as appropriate. How do these benefits translate in supporting the achievement of global environment benefits (GEF Trust Fund) or adaptation benefits (LDCF/SCCF)? Please also explain how the project promotes full and productive employment and decent work in rural areas, aiming at the progressive realization of their right to Decent Rural Employment56.

56 Specific guidance on how FAO can promote the Four Pillars of Decent Work in rural areas is provided in the Quick reference for addressing decent rural employment (as well as in the full corresponding Guidance document). For more information on FAO’s work on decent rural employment and related guidance materials please consult the FAO thematic website at: http://www.fao.org/rural- employment/en/.

99 As mentioned above, the project will pay close attention to the socio-economic benefits of project interventions, as these are a prerequisite for the adoption and sustainability of improved practices leading to global environmental benefits. The project will generate important socio-economic benefits for 250,000 farmers (women, men and youth) in the target communities by strengthening individual, institutional and systemic capacity to benefit from value chains, ensuring stable agricultural production, maintaining or enhancing agricultural ecosystems and farmland biodiversity, and implementing adaptive measures that increase resilience of agricultural landscapes and livelihoods. The project will also improve farmer incomes and profitability of farmer cooperatives and enterprises through improved productivity and efficiency of farming systems, value- addition, and market opportunities. These benefits are expected to result in increased incomes and long-term local employment opportunities for the beneficiary population.

In particular, the project will help to (i) reduce input costs for farmers through optimization of fertilizer and pesticide use and integrated pest management (IPM) approaches, (ii) increase yields and reduce occurrence and impacts of pests and diseases, (iii) enhance access to rural finance, especially for women and vulnerable groups, and (iv) increase the market value of agricultural products through enhanced value chains, certifications and Good Agricultural Practices (GAP). The project will also contribute to reducing health risks through reduced use of harmful pesticides. These socio-economic benefits and increased capacities will enable stakeholders to adopt and sustain agricultural technologies and practices that involve reduced chemical inputs, enhanced soil and water management, restore degraded land, and increase vegetation and farmland biodiversity, thereby supporting the achievement of global environmental benefits. Furthermore, as explained above, the project will realize opportunities for linking restoration, biodiversity and GHG mitigation goals with production objectives, helping to address trade-offs in the landscape.

Through its interventions, the project will promote full and productive employment and decent work in rural areas, in particular by supporting women and men small-scale producers in accessing markets and modern value chains, and by building capacities of farmers and cooperatives to support sustainable value chains.

The project seeks to achieve a 10% increase in annual household income of farmers participating in value chain activities in the project target sites.

More indirectly, several million people living in the target landscapes will benefit from enhanced biodiversity and ecosystem services. The project will generate benefits for the larger community by addressing degradation and pollution of land, water and biodiversity. Several million people in the target landscapes are affected by land degradation, soil and water pollution and a decline in biodiversity and ecosystem services. Total population of the four target provinces is 263.7 million people.

100 PART III: ANNEXES

Annex A1: Project Results Framework

Note: This framework covers only the FAO-MARA sub-project. See separate Project Appraisal Document (PAD) for the World Bank-Hubei sub-project.

The project will contribute primarily to the following Sustainable Development Goals: SDG 2: End Hunger, achieve food security and improved nutrition and promote sustainable agriculture. It will particularly contribute to SDG 2, Target 2.4: By 2030, ensure sustainable food production systems and implement resilient agricultural practices that increase productivity and production, that help maintain ecosystems, that strengthen capacity for adaptation to climate change, extreme weather, drought, flooding and other disasters and that progressively improve land and soil quality. SDG 15: Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss. It will make secondary contributions towards SDG 1 (end poverty), SDG 5 (gender equality), SDG 10 (reduce inequality), SDG 13 (climate change), and SDG 17 (global partnerships for sustainable development) FAO’s Strategic Framework (reviewed, 2017): Strategic Objective 2: Make agriculture, forestry and fisheries more productive and sustainable. Strategic Objective 4: Enable more inclusive and efficient agriculture and food production systems. FAO Country Programming Framework (2016-2020): Priority Area 1: Fostering sustainable and climate-resilient agriculture development. • Output 1.1: Introduction and adoption of innovative approaches and best practices in global agriculture development, such as agro-ecology, nutrition-sensitive agriculture, ICT, facilitated and strengthened to contribute to sustainable agricultural development in China. • Output 1.2: Biodiversity conservation and development interventions supported to revitalize key forest, water and wetland agro-ecosystems in the country. • Output 1.3: Agriculture climate adaptation and mitigation measures implemented to improve agriculture resilience to climate change. Priority Area 2: Reducing rural poverty, food insecurity and malnutrition • Output 2.1: Decision-making, partnership-building and rural livelihoods improved and enhanced through provision of policy advice, engagement of private sector, support to rural organizations, and empowerment of poor and vulnerable smallholders to support inclusive pro-poor development in rural and peri-urban areas of China. Development Objective: Sustain and enhance the country’s food security, rural livelihoods and global environmental values through sustainable agro-ecological landscapes and food systems in China. Project Objective: To support the innovative transformation of China’s agro-landscapes and agri-food value chains towards environmental and ecological sustainability at scale in support of the 2030 Sustainable Development Goals (SDGs), Rural Revitalization, and climate resilience.

Results chain Indicators Baseline Mid-term target Final target Means of Assumptions Responsible for verification data collection Objective-level indicators/GEBs GEF-7 Core a) Core Indicator 3: 0 Total: 63,000 Total: 80,000, of which: Project progress Project NPMO, local- Indicators Area of land restored reports interventions to level PMOs (hectares) - Shandong: 20,000 support scaling and - Jiangsu: 20,000 Monitoring systems replication are Sub-Indicator 3.1: - Jiangxi: 20,000 put in place under successful. Area of degraded - Guizhou: 20,000 Component 1

101 Results chain Indicators Baseline Mid-term target Final target Means of Assumptions Responsible for verification data collection agricultural land Project restored Project maps interventions in target areas lead to Note: This indicator measurable results results from on the ground. interventions under Component 3 (restoration). b) Core Indicator 4: 0 Total: 156,000 Total: 440,000, of which: Project progress Project NPMO, local Area of landscapes reports interventions to level PMOs under improved (i) GAP/IPM (200,000): support scaling and practices (hectares) - Shandong: 70,000 Monitoring systems replication are - Jiangsu: 50,000 put in place under successful. Sub-Indicator 4.3: - Jiangxi: 30,000 Component 1 Area of landscapes - Guizhou: 50,0000 Project under sustainable land Project maps interventions in management in (ii) ILM plans (250,000)*: target areas lead to production systems - Shandong: 75,000 measurable results - Jiangsu: 65,000 on the ground. Note: This indicator - Jiangxi: 50,000 results from - Guizhou: 60,0000 interventions under Components 1 (ILM *Note: Other area targets plans) and 2 (SLM). have been deducted from this number to avoid double-counting. c) Core Indicator 6: 0 Direct: 4.82 million EX-ACT calculation Project NPMO, local- Greenhouse Gas interventions to level PMOs Emissions Mitigated Indirect: 1.2 million Monitoring systems support scaling and (metric tons of CO2e) put in place under replication are Component 1 successful. Sub-indicator 6.1: Carbon sequestered or Project emissions avoided in interventions in the AFOLU sector target areas lead to measurable results on the ground. d) Core Indicator 9: 0 4 (1 per province) Project progress Implementation of NPMO, local- Reduction, reports on the the IPM plans level PMOs disposal/destruction, implementation of leads to a sustained phase out, elimination the Integrated Pest reduction in the and avoidance of Management Plans use of harmful chemicals of global chemical concern and their pesticides.

102 Results chain Indicators Baseline Mid-term target Final target Means of Assumptions Responsible for verification data collection waste in the See also indicator on environment and in Pesticide reduction processes, materials under Outcome 2.1 and products below.

Sub-indicator 9.5: Number of low- chemical/non- chemical systems implemented particularly in food production, manufacturing and cities e) Core Indicator 11: 0 75,000 (at least 50% 250,000 (at least 50% Project progress Project NPMO, local- Number of direct women) women) reports. interventions in level PMOs beneficiaries target areas lead to disaggregated by This number includes Training attendance, measurable gender as co-benefit individuals benefiting extension service benefits for of GEF investment57 from capacity building, and beneficiary list farmers. assets or services (disaggregated by provided by the project, gender). and/or who use the specific resources that Review of county the project maintains or data on enhances (in line with farmers/resource GEF definition, see users in the target footnote 57). areas. Capacity Scorecard a) Capacity development Baseline score Mid-term target: End-of-project target: Capacity Project NPMO, local- results scores (average): 51% 56% 61% Development interventions lead level PMOs Scorecard (mid-term to measurable See Capacity Increase of at least 5 Increase of at least 10 and end score) increases in Development percentage points percentage points per capacity. report for per county. county. detailed scores per county. Component 1: Development of integrated landscape management (ILM) systems in agricultural landscapes Outcome 1.1: a) Number of county- 0 6 12 Project progress NPMO, local- Strengthened ILM level ILM and reports level PMOs policies, plans and restoration plans in Counties have - Shandong: 2 - Shandong: 4 capacities that place. general land use - Jiangsu: 1 - Jiangsu: 3

57 This indicator captures the number of individual people who receive targeted support from a given GEF project/activity and/or who use the specific resources that the project maintains or enhances. https://www.thegef.org/sites/default/files/council-meeting-documents/EN_GEF.C.54.11.Rev_.02_Results.pdf (p. 35). 103 Results chain Indicators Baseline Mid-term target Final target Means of Assumptions Responsible for verification data collection promote plans, but these - Jiangxi: 1 - Jiangxi: 2 ILM and restoration participatory do not - Guizhou: 2 - Guizhou: 3 plans planning and enable incorporate national and integrated, provincial landscape-level institutions across planning agricultural focused on landscapes to meet SLM and their relevant restoration. sustainable b) Area under improved - See Core Indicator 4 above - agriculture, rural management plans: revitalization, land See Core Indicator 4. restoration and c) Number of decision- 0 150 (at least 50% 300 (at least 50% Project progress Training and NPMO, local- related climate and makers and technical women), of which: women), of which: reports. activities to level PMOs biodiversity targets. staff of national, develop ILM plans provincial and local - Shandong: 40 - Shandong: 80 Training reports, lead to increased governments with - Jiangsu: 40 - Jiangsu: 80 including qualitative capacity that can increased capacity to - Jiangxi: 30 - Jiangxi: 60 assessment. be sustained apply ILM. - Guizhou: 30 - Guizhou: 60 beyond the project - National: 10 - National: 20 period. d) Number of new or 0 4 (at least one per 8 (at least two per Project progress County and NPMO, local- improved monitoring province) province) reports. province level PMOs systems in place and Some governments have operational beyond monitoring is sufficient interest project. (on land use, conducted at the in monitoring biodiversity, GHG local level, but systems to sustain emissions, climate not systematic them beyond the change impacts) and not project period. integrated. e) Number of improved 0 0 5 (1 national and 4 NPMO, local- policies drafted and provincial) level PMOs recommended for adoption. Outcome 1.2: f) Number of 0 0 4 (1 per province) NPMO, local- Innovative payment improved/newly level PMOs for agro-ecological established payment services incentive for agro-ecological mechanisms in place services incentive for sustainable, safe, mechanisms. and smart agri-food systems.

104 Results chain Indicators Baseline Mid-term target Final target Means of Assumptions Responsible for verification data collection Component 2: Promotion of sustainable food production practices and responsible agri-food value chains for the staple crops of rice, wheat and maize Outcome 2.1: a) Area under improved - See Core Indicator 4 above - Sustainable practices/under GAP: agricultural practices See Core Indicator 4. deployed and scaled up that enhance b) Carbon sequestered or - See Core Indicator 6 above - ecological functions, emissions avoided: improve soil quality See Core Indicator 6. and fertility, mitigate GHG emissions and c) Number of newly 0 At least 2. At least 4. Project progress NPMO, local- establish resilient developed or reports. level PMOs agricultural improved standards production models. (GAP/ climate- New or revised smart/organic/ standards. green/sustainable agriculture) d) Chemical fertilizer Some general Reduce by 5% Reduce by 10% Monitoring system/ Project NPMO, local- reduction in the baseline data app. interventions lead level PMOs project intervention available in the to measurable area agriculture changes in report, but not chemical use by specific for the farmers. project intervention area.

Monitoring system, with detailed baseline, to be put in place at the beginning of project implementation. e) Pesticide reduction in Some general Reduce by 5% Reduce by 10% Monitoring system/ Project NPMO, local- the project baseline data app. interventions lead level PMOs intervention area available in the to measurable agriculture changes in report, but not chemical use by specific for the farmers. project intervention area.

105 Results chain Indicators Baseline Mid-term target Final target Means of Assumptions Responsible for verification data collection Monitoring system, with detailed baseline, to be put in place at the beginning of project implementation. f) Soil organic matter Monitoring Increase by 3% Increase by 6% Monitoring system/ Project NPMO, local- content in the project system, with app. interventions in level PMOs intervention area detailed target areas lead to baseline, to be measurable results put in place at in soil organic the beginning of matter. project implementation. g) Average yield per Monitoring Increase by 3% Increase by 6% Monitoring system/ Project NPMO, local- hectare in the project system, with app. interventions in level PMOs intervention area detailed target areas lead to baseline, to be measurable results put in place at in yields. the beginning of project implementation. Outcome 2.2: a) Number of person- 0 15,000 (at least 50% 50,000 (at least 50% Project progress NPMO, local- Responsible, market- time (women and women), of which: women), of which: reports. level PMOs oriented agricultural men) trained. value chains - Shandong: 5,000 - Shandong: 17,000 Training / Farmer implemented and - Jiangsu: 3,500 - Jiangsu: 12,000 Field School / online scaled up, including - Jiangxi: 3,000 - Jiangxi: 9,000 modules training through government- - Guizhou: 3,500 - Guizhou: 12,000 reports. private enterprise- b) Increased farmer Detailed 5% increase in 10% increase in income Survey among Project supported NPMO, local- farmer cooperative incomes from project baseline for income for farmers for farmers benefiting participating agri-food value level PMOs partnerships and supported agri-food participating benefiting from from price premium farmers. chains and capacity building. value chains58, farmers to be price premium and/or additional sales capacity will be disaggregated by established at and/or additional sustained beyond gender. the start of sales Estimated number of the project period. value chain farmers: 5,000 (50% activities. Estimated number women) of farmers: 500 - Shandong: 1,700 (50% women) - Jiangsu: 1,200 - Shandong: 150 - Jiangxi: 900

58 Such as from yield increase, crop diversification, and agri-food value chain development. 106 Results chain Indicators Baseline Mid-term target Final target Means of Assumptions Responsible for verification data collection - Jiangsu: 100 - Guizhou: 1,200 - Jiangxi: 100 - Guizhou: 150

c) Number of green/ 0 5, of which 15, of which Project progress The project NPMO, local- organic/ecological reports. interventions will level PMOs agri-food brands - Shandong: 1 - Shandong: 4 develop sufficient certified. - Jiangsu: 1 - Jiangsu: 4 capacity among - Jiangxi: 1 - Jiangxi: 3 farmers, local - Guizhou: 2 - Guizhou: 4 cooperatives and companies to implement agri- food brands and certifications. d) Number of farmer 0 10, of which 20, of which Project progress NPMO, local- cooperatives with reports. level PMOs increased capacity to - Shandong: 3 - Shandong: 5 support responsible - Jiangsu: 2 - Jiangsu: 5 Qualitative value chains. - Jiangxi: 2 - Jiangxi: 4 assessment of - Guizhou: 3 - Guizhou: 6 business support / value chain activities. Component 3: Conservation and restoration of agroecosystems and biodiversity Outcome 3.1: a) Species and Some general No reduction in No reduction in plant and Monitoring system, Species and crop NPMO, local- Enhanced ecosystems indicators baseline data plant and animal animal species with detailed diversity are not level PMOs conservation and (details to be available in the species baseline and significantly restoration of determined as part of biodiversity / Crop varieties increased indicators, to be put negatively affected agroecosystems and Output 1.1.2) ecosystems Crop varieties by 5% in place at the by climate change biodiversity report, but increased by 2% beginning of project or other factors detailed implementation during the project baseline for based on survey period. each county is under Output 1.1.2. yet to be compiled. b) Carbon sequestered or - See Core Indicator 6 above - emissions avoided: See Core Indicator 6 c) Area of upland and - See Core Indicator 3 above - farmland surrounding ecosystems under ecological restoration/ rehabilitation: See Core Indicator 3.

107 Results chain Indicators Baseline Mid-term target Final target Means of Assumptions Responsible for verification data collection Component 4: Project coordination, knowledge management and M&E Outcome 4.1: a) Number of 0 At least 1 At least 2 NPMO, local- Effective project information level PMOs coordination, dissemination knowledge platforms (smart- management/informa phone based app, tion exchange and internet portal, etc.) M&E. established (or existing platforms improved) and operational. b) Number of people 0 100,000 250,000 NPMO, local- reached by level PMOs information This may, in part, dissemination and overlap with the 250,000 knowledge exchange. beneficiaries above (Core Indicator 11).

108 Annex A2: Project Budget

See separate Excel file.

109 Annex B: Response to Project Reviews (from GEF Secretariat and GEF Agencies, and Responses to Comments from Council at work program inclusion, and responses to comments from the Convention Secretariat and STAP at PIF).

Council comment (on PFD) Responses (specific to China child project) Germany Comments 1) Sustainable soil management (including associated 1) The [PFD] text systematically narrows landscape incentive systems) is an important element of the China ecosystem challenges down to forest resources. child project design, in line with the FOLUR IP strategy, as expressed explicitly in the Theory of Change, in Consequently, the lack of conclusive regulatory frameworks on soils and targeted incentives for Outputs 1.2.1, 2.1.1, 2.1.3, and 3.1.3, and in Section 3) sustainable soil management are not addressed in the Proposed alternative scenario. Furthermore, soil and water [PFD]. Germany would like to suggest, that the vital conservation is an important objective of China’s LDN role of soil ecosystem services are more specifically targets, as explained in Section 7. Consistency with National Priorities. Reference to the Global Soil spelled out in the program description and analysis of root causes, and to include GSP/FAO in the list of Partnership has been added in Component 4 description. relevant stakeholders. 2) Reference to and alignment with China’s LDN targets is 2) Furthermore, Germany would like to suggest included in the CEO ER. Through its interventions, the stronger reference to Land Degradation Neutrality project will enhance and restore agro-ecological services and contribute to land degradation neutrality (LDN) in the (SDG 15.3) targets and policies. The link of [the PFD] to the LDN conceptual framework (SPI/UNCCD) target landscapes by preventing and reversing land needs more systematic elaboration and should include degradation. In particular, the project contributes to the following objectives of China’s LDN targets: Soil and an explicit reference to UNCCD as the custodian agency for SDG 15.3. water conservation, and Arable land protection/conservation. Norway-Denmark Comments Close alignment with the Global Knowledge to Action 1) In our view this program seems to be a series of (K2A) platform project was sought during the China child project development, including alignment of outcomes, individual projects or activities which have been put together under one program. It is unclear how this is a outputs and indicators where relevant. Project M&E will be closely coordinated with the program M&E. program which has been built with the intention to tackle a specific issue or problem. The program tries to convert all the individual project activities into higher level outcomes. United States Comments 1) A detailed gender analysis was conducted for the China 1) Gender. It is insufficiently clear how the program child project and gender actions incorporated into the project design. Please refer to CEO ER Section 3. Gender will incorporate actions that will address the institutional constraints on gender equity and women’s Equality and Women’s Empowerment for details. Among economic empowerment on the part of implementing others, the Gender Action Plan explicitly includes partners (government agencies) and key stakeholders reference to mainstreaming gender into national and (non-gender oriented CSOs). For example, although provincial policy formulation, as well as into the ILM the program expresses an interest in providing greater planning process, in line with Government of China training of women and in increasing their number in policies and priorities. There are no significant gender leadership roles within groups supported by FOLUR, differences in the target provinces with regard to access to there is no mention of how government policies and education, land property rights and access to microcredit. practices (at the national or decentralized levels) will In fact, microcredit programs in rural areas are mainly continue to support these initiatives upon the designed for rural women, playing an important role in completion of the program cycle. There is also no female poverty alleviation and self-development. mention of promoting gender sensitive procurement to However, there are still gender gaps with regard to funding between male and female-owned cooperatives. The project encourage economic empowerment of women. Another concern is the gendered rates of literacy; if literacy will, therefore, prioritize investing in women-led cooperatives and enterprises, or those with a defined

110 rates are low, how will female small holder farmers be significant share of women members, which will guided on how to read the labels of agro-chemical contribute to women’s economic empowerment in the long inputs so that applications can be applied in a safe and term. environmentally friendly manner? The issue of 2) Women and youth empowerment is an important gendered literacy also extends to access to credit and consideration in the China child project and has been land tenure (e.g. title deeds). What strategies are being included as integral part of the project design (please refer considered to encourage best practices for measures to to Section 3) Proposed alternative scenario, and Gender increase access to credit for female smallholder Action Plan). In the China child project context, one of the farmers and gender sensitive procurement? Finally, the main challenges is the ageing of farmers and how to create sustainability/durability of interventions to incorporate incentives for young farmers to remain engaged in gender equity and economic empowerment of women agriculture. at the conclusion of the program cycle could be made clearer. 2) Additional questions. Given the demographic changes in much of Africa and Asia, how will the program address the various constraints (financial, legal, etc.) that impede the ability of youth (18-25 years) to access productive inputs such as land? STAP comment (on PFD) Responses (specific to China child project) 1) The STAP encourages additional quantification of Detailed baseline information was collected for the key trends during the next phase of program China child project on the policies, production and preparation as a baseline from which to measure value chains of the target crops (rice, wheat and maize) change, and further specification of the change in the target provinces and counties, and at the national mechanisms indicated in the theory of change, level. Mechanisms for implementation and scaling were especially those essential to achieve scaling. The identified through consultation with stakeholders and scale of outcomes is difficult to predict and highly embedded in the project design and Theory of Change. dependent upon quality of stakeholder engagement In addition, China will play a key role in transferring processes at multiple levels. Given the geographic knowledge to other countries in the region and globally and commodity coverage of this IP, scaling up through the FOLUR Global Platform as well as other, beyond country-level outcomes is integral to existing platforms and mechanisms. planned program-level outcomes, targeting fundamental transformation in food systems. 2) More detail should be provided during full A detailed analysis of risks was conducted during the program development regarding systematic risk project preparation phase (including climate risks), and identification and assessment of risk management mitigation actions identified. Details can be found in options and strategies. (…) The PFD notes potential Section 5. Risks. Conflicting political and economic social and environmental risks posed by the country interests were not identified, given the close alignment projects but does not specify these. While generic of the project strategy with political and socio-economic policy and governance risks are noted, there is priorities in China. inadequate explicit attention to political and economic interests that could (and are likely to) oppose desired changes. 3) Gender equality aspects merit deeper analysis A detailed gender analysis was conducted during the during full program preparation, particularly project preparation phase, and a Gender Action Plan regarding barriers to gender-equitable resource was elaborated. See Section 3. Gender Equality and access and tenure rights, and to inclusive decision- Women’s Empowerment. making in landscape-level planning and policy formulation. In particular, the project will ensure women’s participation in landscape-level planning and policy

111 formulation; and will aim to generate socio-economic benefits for women. 4) Climate mitigation and adaptation goals are well An assessment of climate impacts was conducted during integrated in the high-level program description, and the project preparation phase. Interventions aimed at climate-smart agriculture (CSA) practices and enhancing the resilience of agricultural production technologies are integral to the planned landscape- systems and livelihoods to climate change have been level responses. Yet, assessment of program-level incorporated into the project design. See Section 5. sensitivity to climate impacts is not presented; more Risks and Section 1.a.1) Climate change impacts. detail is expected in development of country projects and in program-level monitoring and targeted capacity support functions.

Annex C: Status of Utilization of Project Preparation Grant (PPG) Provide detailed funding amount of the PPG activities financing status in the table below.

PPG Grant Approved at PIF: $300,000 (FAO 160,000, WB 140,000) GETF/LDCF/SCCF Amount ($) Project Preparation Activities Implemented Budgeted Amount Spent To Amount Committed Amount date FAO PPG activities 160,000 147,911 12,089 WB PPG activities 140,000 - 140,000 Total 300,000 147,911 152,089

If at CEO Endorsement, the PPG activities have not been completed and there is a balance of unspent fund, Agencies can continue to undertake exclusively preparation activities (including workshops and finalization of baseline, when needed) up to one year of CEO Endorsement/approval date. No later than one year from CEO endorsement/approval date. Agencies should report closing of PPG to Trustee in its Quarterly Report.

Annex D: Calendar of Expected Reflows (if non-grant instrument is used) Provide a calendar of expected reflows to the GEF/LDCF/SCCF Trust Funds or to your Agency (and/or revolving fund that will be set up) N/A

112 Annex E: Project Map(s) and Coordinates

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120 Annex F: GEF TF Core Indicator Worksheet

Note: In this table, PIF stage targets include both the FAO-MARA and the World Bank-Hubei sub-projects. CEO Endorsement stage targets include FAO-MARA targets only. For World Bank-Hubei targets, please refer to the joint CEO Endorsement Request.

Core Area of land restored (Hectares) Indicator 3 Hectares (3.1+3.2+3.3+3.4) Expected Achieved PIF stage (WB Endorsement MTR TE and FAO) (FAO only) 300,000 80,000 Indicator 3.1 Area of degraded agricultural land restored Hectares Expected Achieved PIF stage Endorsement MTR TE 300,000 80,000

Indicator 3.2 Area of forest and forest land restored Hectares Expected Achieved PIF stage Endorsement MTR TE

Indicator 3.3 Area of natural grass and shrublands restored Hectares Expected Achieved PIF stage Endorsement MTR TE

Indicator 3.4 Area of wetlands (including estuaries, mangroves) restored Hectares Expected Achieved PIF stage Endorsement MTR TE

Core Area of landscapes under improved practices (hectares; excluding protected areas) (Hectares) Indicator 4 Hectares (4.1+4.2+4.3+4.4) Expected Expected PIF stage (WB Endorsement MTR TE and FAO) (FAO only) 1,200,000 450,000 Indicator 4.1 Area of landscapes under improved management to benefit biodiversity Hectares Expected Achieved PIF stage Endorsement MTR TE ILM plans 50,000

Indicator 4.2 Area of landscapes that meet national or international third-party certification that incorporates biodiversity considerations Third party certification(s): Hectares Expected Achieved PIF stage Endorsement MTR TE

Indicator 4.3 Area of landscapes under sustainable land management in production systems Hectares Expected Achieved PIF stage Endorsement MTR TE ILM plans 1,200,000 200,000

121 Good agricultural practices, IPM, 200,000 CSA Indicator 4.4 Area of High Conservation Value Forest (HCVF) loss avoided Include documentation that justifies HCVF Hectares Expected Achieved PIF stage Endorsement MTR TE

Core Greenhouse gas emission mitigated (Metric tons Indicator 6 of CO₂e ) Expected metric tons of CO₂e (6.1+6.2) PIF stage (WB Endorsement MTR TE and FAO) (FAO only) Expected CO2e (direct) 10,000,000 4,820,000 Expected CO2e (indirect) 1,200,000 Indicator 6.1 Carbon sequestered or emissions avoided in the AFOLU sector Expected metric tons of CO₂e PIF stage Endorsement MTR TE Expected CO2e (direct) 10,000,000 4,820,000 Expected CO2e (indirect) 1,200,000 Anticipated start year of 2021 for direct accounting emissions, 2026 for indirect emissions Duration of accounting 5 years implementation, 15 years capitalization Core Reduction, disposal/destruction, phase out, elimination and avoidance of chemicals of (Metric Tons) Indicator 9 global concern and their waste in the environment and in processes, materials and products Metric Tons (9.1+9.2+9.3) Expected Achieved PIF stage PIF stage MTR TE

Indicator 9.5 Number of low-chemical/non-chemical systems implemented particularly in food production, manufacturing and cities Technology Number Expected Achieved PIF stage Endorsement MTR TE Integrated Pest 4 Management (IPM)

Core Number of direct beneficiaries disaggregated by gender as co-benefit of GEF (Number) Indicator 11 investment Number Expected Achieved PIF stage (WB Endorsement MTR TE and FAO) (FAO only) Female 260,000 125,000 Male 240,000 125,000 Total 500,000 250,000

122 Annex G: GEF Project Taxonomy Worksheet

Level 1 Level 2 Level 3 Level 4 Influencing models Transform policy and regulatory environments Strengthen institutional capacity and decision- making Demonstrate innovative approaches Stakeholders Indigenous Peoples Private Sector Large corporations SMEs Beneficiaries Local Communities Civil Society Academia Type of Engagement Partnership Consultation Participation Capacity, Knowledge and Research Capacity Development Knowledge Generation and Exchange Innovation Gender Equality Gender Mainstreaming Beneficiaries Women groups Sex-disaggregated indicators Focal Areas/Theme Integrated Programs Food Systems, Land Use and Restoration Sustainable Food Systems Comprehensive Land Use Planning Food Value Chains Biodiversity Mainstreaming Agriculture & agrobiodiversity Land Degradation Sustainable Land Management Restoration and Rehabilitation of Degraded Lands Sustainable Agriculture Chemicals and Waste Pesticides Climate Change Climate Change Adaptation Climate Resilience Climate Change Mitigation Agriculture, Forestry, and other Land Use

123 Annex H: Work Plan

202 2021 2022 2023 2024 2025 202 Responsibl Output Main Activities 0 6 e /Lead Q4 Q1 Q2 Q3 Q4 Q1 Q Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2 Component 1: Development of integrated landscape management (ILM) systems in agricultural landscapes Outcome 1.1: Strengthened ILM policies, plans and capacities that promote participatory planning and enable national and provincial institutions across agricultural landscapes to meet their relevant sustainable agriculture, rural revitalization, land restoration and related climate and biodiversity targets. Output 1.1.1 Activity 1.1.1.1: Hold consultations at national level to NPMO, Food and land use discuss the terms of reference and roles and responsibilities MARA collaboration of national collaboration mechanism on food systems and mechanisms established land use, building on existing platforms and bringing or existing mechanisms together public and private sector. This will be done in close strengthened at national collaboration with the WB/Hubei sub-project. and provincial level. Activity 1.1.1.2: Work towards adoption and

operationalization of the national collaboration mechanism. Activity 1.1.1.3: Hold consultations at provincial level to NPMO, discuss the terms of reference and roles and responsibilities provincial of provincial collaboration mechanisms on food systems and DARA land use, building on existing platforms and bringing together public and private sector. Activity 1.1.1.4: Work towards adoption and operationalization of the provincial collaboration mechanisms. Output 1.1.2 Activity 1.1.2.1: Establish working groups at county level NPMO, County-level ILM and to elaborate draft ILM and restoration plans for target provincial restoration plans counties (ensuring participation of women and DARA, developed and representation of vulnerable groups). county-level implemented in a Activity 1.1.2.2: Conduct field surveys and assessment of PMOs participatory process land degradation, biodiversity and ecosystems (including bringing together public cultivated and wild plants and animals at ecosystem, species and private sectors and and genetic levels) in agricultural land and surrounding supporting cross-sectoral ecosystems in the target counties. Analyse the main threats planning and scaling up, to biodiversity (including agrobiodiversity) and ecosystems ensuring participation of and associated root causes, as well as anticipated climate women. change impacts. Identify priority areas for interventions under Component 2 and 3. Identify indicators to measure changes in biodiversity and land degradation, and establish biodiversity targets for Output 3.1.1. Activity 1.1.2.3: Elaborate county-level ILM and restoration plans in 1-2 key target counties per province based on existing plans (such as land use plans, sustainable agriculture development and rural revitalization plans), field surveys, expert assessments (including spatial analysis), and

124 202 2021 2022 2023 2024 2025 202 Responsibl Output Main Activities 0 6 e /Lead Q4 Q1 Q2 Q3 Q4 Q1 Q Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2 stakeholder inputs. A particular focus of the plans will be on reducing negative externalities of the target grain crops (rice, wheat, maize) and enhancing diversity and resilience of agro-ecosystems while maintaining crop production. Thus, while the primary focus of the plans will be on agricultural land and surrounding areas, integration or alignment with other sectors (forests, wetlands, etc.) will be sought. Activity 1.1.2.3: Organize consultation meetings to discuss plans with stakeholders, building on the recommended collaboration mechanisms under Output 1.1.1. Activity 1.1.2.4: Work towards finalization and adoption of the plans. Activity 1.1.2.5: Organize regular coordination meetings to support implementation and monitoring of the ILM and restoration plans.59 Activity 1.1.2.6: Support incorporation of the ILM and restoration plans into the County 5-Year Plans (2026-2030) or other relevant plans (if relevant). Activity 1.1.2.7: Elaborate ILM and restoration plans in additional 1-2 counties per province. Output 1.1.3 Activity 1.1.3.1: Elaborate gender-sensitive training NPMO, Gender-sensitive program for decision makers and technical staff in the target MARA, capacity building provinces/ counties on sustainable integrated land and water provincial implemented for resources management, sustainable agriculture, biodiversity DARA, decision makers and conservation, and restoration, in support of the county-level technical staff of the ILM/restoration plans as well as local poverty alleviation PMOs local government on and rural revitalization goals. sustainable integrated Activity 1.1.3.2: Conduct Training of Trainers (women and land and water resources men). management, sustainable Activity 1.1.3.3: Conduct training of decision makers and agriculture, biodiversity technical staff (women and men), as well as representatives conservation and from civil society and academia. restoration. Output 1.1.4 Activity 1.1.4.1: Develop indicators and guidelines for NPMO, Monitoring systems for farm- and landscape-level monitoring in agricultural land MARA, sustainable food systems and surrounding areas of the following: provincial and land use established (i) Land use/land degradation/soil quality DARA, county-level (or existing systems (ii) Biodiversity and ecosystems PMOs (iii) GHG emissions and carbon sequestration

59 Note: On-the-ground activities will be implemented under Components 2 and 3. 125 202 2021 2022 2023 2024 2025 202 Responsibl Output Main Activities 0 6 e /Lead Q4 Q1 Q2 Q3 Q4 Q1 Q Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2 improved) and (iv) Economic and social impacts on beneficiaries such implemented. as income growth and poverty reduction (v) Integrated pest management measures

Links will be established with existing monitoring systems and reporting needs/requirements in the target counties, in order for the indicators to be relevant, realistic, and sustainable. Activity 1.1.4.2: Develop or enhance existing systems for monitoring of the above indicators. The potential development of digital/app-based solutions will be analysed, in collaboration with national partners/regional/global IP partners. Activity 1.1.4.3: Implement the monitoring systems and conduct monitoring, at least once annually. Output 1.1.5 Activity 1.1.5.1: Gather stakeholder inputs on innovative NPMO, Innovative national and policy options at the provincial and/or national level MARA, provincial policies associated with the target grain crops. The proposed policy provincial drafted and options may be related to agricultural subsidies, chemical DARA recommended for use, restoration, land consolidation, women and youth adoption to support empowerment and rural revitalization, or other aspects sustainable food systems related to sustainable food systems and land use. The project and land use. will also aim to further scale good practices by incorporating them into the local Five-Year Plans and/or land use plans. Activity 1.1.5.2: Draft relevant policies, plans or policy revisions. Activity 1.1.5.3: Organize consultations to support finalization and adoption of the new/revised policies or plans. Outcome 1.2: Innovative payment for agro-ecological services incentive mechanisms in place for sustainable, safe, and smart agri-food systems. Output 1.2.1 Activity 1.2.1.1: Conduct analysis of existing and potential NPMO, Analysis of payment for future payment for agro-ecological services/eco- MARA, agro-ecological services compensation mechanisms related to the target grain crops provincial mechanisms conducted in consultation with stakeholders. DARA and national/provincial Activity 1.2.1.2: Develop detailed recommendations/options policy reform on for national/provincial incentive mechanisms/policy reform payment for agriculture (including considerations on women and youth supported, in order to empowerment and rural revitalization). strengthen biodiversity Activity 1.2.1.3: Develop policy briefs and analyses to in agro-production support incentive mechanisms/policy reform.

126 202 2021 2022 2023 2024 2025 202 Responsibl Output Main Activities 0 6 e /Lead Q4 Q1 Q2 Q3 Q4 Q1 Q Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2 system and sustainability Activity 1.2.1.4: Conduct consultations and briefing of land and soil sessions to support delivery of the incentive resources. mechanisms/policy reform. Component 2: Promotion of sustainable food production practices and responsible agri-food value chains for the staple crops of rice, wheat and maize Outcome 2.1: Sustainable agricultural practices deployed and scaled up that enhance ecological functions, improve soil quality and fertility, mitigate GHG emissions and establish resilient agricultural production models. Output 2.1.1 Activity 2.1.1.1: Conduct detailed analysis of existing NPMO, Sustainable and Climate technical guidelines and GAPs for the target grain crops (in MARA, Smart Agriculture the target provinces and similar agro-ecological zones in provincial (CSA) implemented and China), including their contributions to biodiversity, land DARA, scaled up to promote degradation, carbon sequestration and GHG emission county-level carbon sequestration and reduction, climate change adaptation and food security PMOs emission reduction; targets. demonstrate effective Activity 2.1.1.2: Improve existing or develop new technical soil and water guidelines and/or GAP standards for sustainable and management; and climate-smart agriculture practices in consultation with optimize the agricultural stakeholders (including potential incorporation of elements environment. of SRP; and the use of traditional knowledge where relevant). Activity 2.1.1.3: Hold community meetings, including consultations with vulnerable groups such as women, the poor, and ethnic minorities, to agree on detailed

implementation plans in each county and regularly assess progress. In Guizhou, this will also involve ensuring FPIC for ethnic minority groups. Activity 2.1.1.4: Implement field activities to support implementation and replication of the new practices/

technologies/standards above, in parallel with training conducted under Output 2.2.1. Activity 2.1.1.5: Experiment and demonstrate new technologies for farmland diversity planting and ecological landscape development. Activity 2.1.1.6: Experiment and demonstrate new technologies for carbon sequestration and GHG reduction

such as through farmland conservation and water management. Activity 2.1.1.7: Conduct meetings/site visits to exchange with WB/Hubei on sustainable agriculture practices and Climate-Smart Agriculture (CSA). Activity 2.1.1.8: Regularly review and, if required, revise or improve guidelines and standards.

127 202 2021 2022 2023 2024 2025 202 Responsibl Output Main Activities 0 6 e /Lead Q4 Q1 Q2 Q3 Q4 Q1 Q Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2 - Note: Output 2.1.2 (on climate-smart livestock) applies to World Bank-Hubei sub-project only. - Output 2.1.3 Activity 2.1.3.1: Conduct detailed analysis and assess NPMO, Innovations to reduce feasibility of innovations (including digital technologies) to MARA, the use and discharge of reduce chemical use and discharge in collaboration with provincial chemical fertilizers and stakeholders and private sector partners in the target DARA, pesticides implemented, counties. county-level such as precision Activity 2.1.3.2: Develop detailed integrated pest PMOs agriculture, soil testing, management plans (IPMP) and technical guidelines on integrated pest selected innovations, in coordination with the guidelines management (IPM), and/or GAP standards developed under Output 2.1.1. ecological interception Activity 2.1.3.3: Implement field activities to support systems, and digital implementation of the IPMPs and innovations mentioned technologies. above. Activity 2.1.3.4: Support replication and upscaling of the innovations, including through exchange of best practices

among counties/provinces and with WB/Hubei, and through private sector investments (Output 2.2.3). Output 2.1.4 Activity 2.1.4.1: Formulate recommendations for NPMO, Strengthened high- incorporating biodiversity considerations into high-standard MARA, standard ecological ecological farmland construction (such as on biodiversity- provincial farmland construction friendly irrigation infrastructure to preserve biodiversity DARA, implemented according along rivers and streams). county-level to national standards Activity 2.1.4.2: Implement high-standard ecological PMOs (such as land levelling, farmland construction in the target counties, such as land improved irrigation and consolidation, tillage land levelling, improved field drainage, and improved irrigation and drainage facilities, improved field road field road accessibility). accessibility. (through government co-financing) Where required, the project will provide technical assistance to implement the recommendations above on incorporating biodiversity considerations. Activity 2.1.4.3: Where relevant, enhance mechanization (such as for low impact tillage, straw incorporation, and conservation agriculture) to support the new crop production

practices, and improve field monitoring facilities such as for carbon sequestration and GHG emissions. (equipment funded through government or private sector co-financing) Outcome 2.2: Responsible, market-oriented agricultural value chains implemented and scaled up, including through government-private enterprise-farmer cooperative partnerships and capacity building. Output 2.2.1 Activity 2.2.1.1: Develop gender-sensitive training and NPMO, Capacity and awareness extension program (including Farmer Field Schools MARA, developed among approach where relevant) for farmers, extension service provincial farmers (especially providers, enterprises and cooperatives in the target DARA, women), extension counties/provinces on: (i) technical guidelines/standards 128 202 2021 2022 2023 2024 2025 202 Responsibl Output Main Activities 0 6 e /Lead Q4 Q1 Q2 Q3 Q4 Q1 Q Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2 service providers, developed under Outputs 2.1.1 and 2.1.3; and (ii) associated county-level enterprises and value chains. The training may also incorporate aspects of PMOs cooperatives on eco-agriculture and ecological restoration to support sustainable production implementation of Outputs 3.1.1 and 3.1.2. and agricultural value Activity 2.2.1.2: Implement training and extension program chains. with local stakeholders (women and men) in the target

counties/provinces, in parallel with field activities implemented under Outputs 2.1.1 and 2.1.3. Output 2.2.2 Activity 2.2.2.1: Conduct detailed analysis (building on NPMO, Innovative market analysis conducted during PPG) and assess feasibility of MARA, linkages and access to developing market linkages/value chains and access to provincial finance developed (in finance for farmers (in particular, women and youth) in the DARA, particular, for women target counties (focused on the target grain crops). This will county-level farmers) in support of be done in close collaboration with farmer cooperatives and PMOs sustainable agricultural private enterprises, as well as relevant industry associations, value chains. state-owned enterprises or Chambers of Commerce. Activity 2.2.2.2: Assess the ecological value of agricultural products in the target landscapes, based on the application of

ILM and GAP measures, through innovative ecological value assessment methods. Activity: 2.2.2.3: Preliminary establishment of an ecological product certification system based on the ecological value of agricultural products. Activity 2.2.2.4: Provide technical assistance to local businesses and cooperatives to develop and implement selected value chains for sustainably-produced crops, including certifications and traceability systems, digital

technologies, and financial services. This may involve the use of existing certifications such as green/organic, as well as ecological product certification system based on the ecological value of agricultural products. Activity 2.2.2.5: Support replication and upscaling of responsible, inclusive value chains and access to financial services for sustainable crop production. Output 2.2.3 Activity 2.2.3.1: Assess feasibility of establishing or NPMO, Government-private strengthening public-private partnerships and investments in MARA, enterprise-farmer support of the above value chains, by involving actors across provincial cooperative partnerships the value chain from grain producers, input suppliers, DARA, established (or existing processors, distributors, traders, commercial banks and rural county-level partnerships credit cooperatives, and state-owned enterprises. PMOs strengthened) and Activity 2.2.3.2: Collaborate with cooperatives and private investments made to companies to implement partnerships and investments.

129 202 2021 2022 2023 2024 2025 202 Responsibl Output Main Activities 0 6 e /Lead Q4 Q1 Q2 Q3 Q4 Q1 Q Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2 support scaling up of sustainable value chains and financing from input supply, to production, to processing and marketing. Component 3: Conservation and restoration of agroecosystems and biodiversity Outcome 3.1: Enhanced conservation and restoration of agroecosystems and biodiversity. Output 3.1.1 Activity 3.1.1.1: Implement interventions to maintain and NPMO, Interventions increase biodiversity in production systems at selected sites MARA, implemented and scaled in the target counties in line with the ILM/restoration plans provincial up to maintain and developed under Output 1.1.2, in close collaboration with all DARA, increase biodiversity in relevant stakeholders. Interventions under this component county-level production systems. will be focused on the landscape level, while interventions PMOs under Component 2 are primarily focused on the farm level. They will include, in particular, interventions to maintain or increase crop diversity in the landscape, and conserving important habitat for farmland biodiversity such as vegetation along streams and at the edge of farmland. Activity 3.1.1.2: Assess the effectiveness of implementations and provide recommendations for replication in the target counties and beyond. Activity 3.1.1.3: Support replication of interventions in the target counties and beyond. Output 3.1.2 Activity 3.1.2.1: Elaborate detailed plans and technical NPMO, Ecological guidelines for ecological restoration/rehabilitation in MARA, restoration/rehabilitation farmland boundaries and surrounding ecosystems in the provincial implemented and scaled target counties, in line with the ILM/restoration plans DARA, up (e.g., through developed under Output 1.1.2. county-level revegetation of slopes, Activity 3.1.2.2: Implement restoration/rehabilitation PMOs ecological corridors, interventions at selected sites in the selected counties. trees on farm, vegetation Activity 3.1.2.3: Assess the effectiveness of buffers, hedgerows, implementations and provide recommendations for nutrient interception) to replication in the target counties and beyond, including on enhance ecological sustainable financing mechanisms for restoration. The functions of farmland project will also help farmers and farmer enterprises to fully boundaries and utilize existing incentive mechanisms and subsidies for surrounding ecosystems. restoration (such as for planting trees on farm); as well as incentives newly developed under the project. Activity 3.1.2.4: Support replication of restoration/ rehabilitation interventions.

130 202 2021 2022 2023 2024 2025 202 Responsibl Output Main Activities 0 6 e /Lead Q4 Q1 Q2 Q3 Q4 Q1 Q Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2 - Note: Output 3.1.3 (on agroforestry) applies to World Bank-Hubei sub-project only. - Component 4: Project coordination, knowledge management and M&E Outcome 4.1: Effective project coordination, knowledge management/information exchange and M&E. Output 4.1.1 Activity 4.1.1.1: Establish NPMO, provincial-level focal NPMO, Project coordination, points, and county-level coordination committees/PMOs. provincial monitoring and Hold inception workshop at national and provincial levels. DARA and evaluation, and Activity 4.1.1.2: Lead effective project coordination and county-level reporting, as well as M&E, including adaptive planning and management. Project PMOs coordination with and M&E will be closely linked to the monitoring processes participation in global developed under Output 1.1.4. Links will also be established Impact Program (IP) with program-level monitoring under the FOLUR Global events and activities, Platform. conducted. Activity 4.1.1.3: Coordinate with and participate in regional and global IP events and activities. Activity 4.1.1.4: Support and monitor implementation of Gender Action Plan, FPIC and Pest Management Plan. Organize gender training for project staff and focal points. Activity 4.1.1.5: Conduct Mid-Term Review and Final FAO Evaluation. Activity 4.1.1.6: Organize annual national PSC meetings. NPMO

Activity 4.1.1.7: Organize regular meetings (twice a year) of Technical Advisory and Coordination Committee with the WB/Hubei sub-project. Activity 4.1.1.8: Project closure

Output 4.1.2 Activity 4.1.2.1: Develop information dissemination and NPMO Establish diversified communication strategy to support implementation and information replication of project activities at the dissemination county/province/national level (including awareness raising platforms/mechanisms to of producers and consumers). The strategy will be share project coordinated with the WB/Hubei sub-project. It will also achievements, include a section on dissemination of information to ethnic knowledge, experiences, minorities in Guizhou. and expand Activity 4.1.2.2: Establish (or improve existing) information environmental and social dissemination platforms at the county/province/national influence to support level (such as smart-phone based apps, internet portals, etc.). scaling and replication. Activity 4.1.2.3: Disseminate information through platforms.

131 202 2021 2022 2023 2024 2025 202 Responsibl Output Main Activities 0 6 e /Lead Q4 Q1 Q2 Q3 Q4 Q1 Q Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2 Output 4.1.3 Activity 4.1.3.1: Create and share knowledge products at the NPMO Knowledge effectively county/province/national as well as regional/global level to created and shared share best practices and support replication. through national and Activity 4.1.3.2: Organize regular forums/seminars with provincial platforms, other projects and institutions working on similar issues in exchange visits, and China (such as the FOLU Coalition, IRRI, FAO, WB, etc.). global platforms such as Activity 4.1.3.3: Organize cross-site exchange visits (at the One Planet Network county/province/ national as well as regional/global level) to

Sustainable Food transfer knowledge and exchange lessons learned on Systems Programme to sustainable food systems, land use and restoration. support replication at the Activity 4.1.3.4: Participate in international exchange on global, regional, national sustainable agriculture (at least 50 person times). and provincial levels.

132 Annex I1: Environmental and Social Risk Certification

Project Risk Certification Entity Number: 658820 Project Title: Innovative transformation of China’s food production systems and agro-ecological landscapes Recipient Country(ies): China Peoples' Republic Estimated total budget in USD: 15,000,000 $

Risk Certification

Certified by: Zhou, Bo (RAPDD)

Date: Reclassification on 28-Feb-2020

The table below summarizes the environmental and social risks identified in relation to the proposed action.

The proposed action is classified as: Moderate

Safeguards triggered Yes No Would this project: • result in the direct or indirect procurement, supply or use of pesticides60: X § on crops, livestock, aquaculture, forestry, household; or § as seed/crop treatment in field or storage; or § through input supply programmes including voucher schemes; or 5 § for small demonstration and research purposes; or § for strategic stocks (locust) and emergencies; or § causing adverse effects to health and/or environment; or • result in an increased use of pesticides in the project area as a result of production intensification; or X • result in the management or disposal of pesticide waste and pesticide contaminated materials; or X • result in violations of the Code of Conduct? X Would this project: 9 • have indigenous peoples* living outside the project area¹ where activities will take place; or X

60 Pesticide means any substance, or mixture of substances of chemical or biological ingredients intended for repelling, destroying or controlling any pest, or regulating plant growth. 133 • have indigenous peoples living in the project area where activities will take place; or X • adversely or seriously affect on indigenous peoples' rights, lands, natural resources, territories, livelihoods, knowledge, social fabric, X traditions, governance systems, and culture or heritage (physical² and non-physical or intangible³) inside and/or outside the project area; or X • be located in an area where cultural resources exist?

* FAO considers the following criteria to identify indigenous peoples: priority in time with respect to occupation and use of a specific territory; the voluntary perpetuation of cultural distinctiveness (e.g. languages, laws and institutions); self-identification; an experience of subjugation, marginalization, dispossession, exclusion or discrimination (whether or not these conditions persist).

¹The phrase "Outside the project area" should be read taking into consideration the likelihood of project activities to influence the livelihoods, land access and/or rights of Indigenous Peoples' irrespective of physical distance. In example: If an indigenous community is living 100 km away from a project area where fishing activities will affect the river yield which is also accessed by this community, then the user should answer "YES" to the question.

²Physical defined as movable or immovable objects, sites, structures, group of structures, natural features and landscapes that have archaeological, paleontological, historical, architectural, religious, aesthetic or other cultural significance located in urban or rural settings, ground, underground or underwater.

³Non-physical or intangible defined as "the practices, representations, expressions, knowledge and skills as well as the instruments, objects, artifacts and cultural spaces associated therewith that communities, groups, and in some cases individuals, recognize as part of their spiritual and/or cultural heritage"

134 Annex I2: Stakeholder Engagement Matrix and Grievance Redress Mechanism

Stakeholder Engagement Matrix61 The table below summarizes the main stakeholders that were consulted during project preparation (PPG) and/or who will play a role in the project implementation. It also indicates the methodology for consultation or engagement

Issues raised (during PPG) and how they Role in project implementation, Interest in the project/ Stakeholder Name Stakeholder Type Stakeholder profile were addressed and/or Consultation methodology Impact by the project a) National and local government Ministry of GEF Focal Point MOF is responsible for public finance, Inputs incorporated into project design. As the GEF focal point MOF will receive Interest: Moderate Finance taxation, the treasury, government properties, the GEF grant for the current project on operations of government monopolies, and behalf of the Chinese Government. MOF Impact: Neutral revenue-generating enterprises. The ministry will be a core member of the Project also provides loan guarantees for the Steering Committee. MOF will have a core governmental agencies, financial institutions, role in providing guidance, coordination and state enterprises. MOF is also the GEF and supervision on the disbursement and Operational Focal point of China responsible expense of GEF grant, performance for coordinating the programming of GEF evaluation, summary and promotion of resources and overseeing the China GEF project results. The project will provide portfolio with the GEF Agencies. project documentation and reporting to MOF through MARA.

Ministry of Lead Executing MARA is in charge of agriculture and rural Led project design in close collaboration As the Lead Executing Agency, MARA Interest: High Agriculture Agency economic development, research and with FAO. will be chairing the Project Steering And Rural Affairs development of strategies and long-term and Committee, will have the lead Impact: Potentially mid-term policy and plans for agriculture and responsibility for overall execution of the positive the rural economy. Its Department of project, as well as the supervision of, and Science, Technology and Education (DSTE) coordination between, the relevant is in charge of the management of the government agencies involved in the farmland, Agricultural biological species project at both national and local levels. resources, Environmental protection and Establishment of national level PMO. management of agricultural products MARA will also ensure coordination with producing areas, and energy conservation and the World Bank/Hubei sub-project. Within emission reduction, cleaner agricultural MARA, DSTE and its Rural Energy and production and the construction of ecological Environment Agency (REEA) will be in circular agriculture. Also guide agricultural charge of the project execution nationally education and cultivation of professional

61 See FAO Operational Guidelines for Stakeholder Engagement. Please include identification and consultations of disadvantage and vulnerable groups/individuals in line with the GEF policy on Stakeholder Engagement and GEF Environmental and Social Safeguards.

135 Issues raised (during PPG) and how they Role in project implementation, Interest in the project/ Stakeholder Name Stakeholder Type Stakeholder profile were addressed and/or Consultation methodology Impact by the project farmers. Its Department of International and in Shandong, Jiangsu, Jiangxi and Cooperation (DIC) is responsible for external Guizhou. agricultural affairs, agricultural trade promotion and negotiations, industry harm investigations, agricultural foreign aid projects, and international treaties. Ministry of Partner MEE is responsible for establishing a sound Consulted on project design. As a member of the project steering Interest: High Ecology and basic system for environmental protection; committee, provide guidance and Environment responsible for the overall coordination, consultation on project design and Impact: Potentially supervision and administration of major implementation, in particular with regard positive environmental problems; undertakes the to integrated landscape management (ILM) responsibilities for attaining national and biodiversity/carbon monitoring. pollution reduction targets; guides, coordinates, and oversees ecological conservation effort; Responsible for the supervision and administration of the prevention and control of environmental pollution etc. Also the lead agency of biodiversity conservation and Climate change at national level. Ministry of Partner MNR is responsible for the planning, Consulted on project design. As a member of the project steering Interest: High Natural Resources management, protection and effective use of committee, provide guidance and natural resources, which include the land consultation on project design and Impact: Potentially planning and utilization. implementation, especially on land positive planning and utilization. National Partner NDRC is the agency responsible for China’s Consulted on project design. Will be engaged for outreach and scaling. Interest: Moderate Development and macroeconomic planning and management Reform under the State Council. Impact: Neutral Commission (NDRC) Shandong Partner Responsible for the province’s agricultural Project design was elaborated in close Responsible for supervision and guidance Interest: High Agriculture and and rural development work, undertake the collaboration and consultation with of project implementation in Shandong, Rural Affairs management of agricultural resources and the Shandong DARA. assisting the government at the county Impact: Potentially Department management and technology promotion of level in project coordination and resource positive rural energy work, and also as the provincial integration. Promote the establishment of a competent department of management of coordination mechanism at provincial level Farmland ecosystem. and the revision of related policy/regulation and standards.

136 Issues raised (during PPG) and how they Role in project implementation, Interest in the project/ Stakeholder Name Stakeholder Type Stakeholder profile were addressed and/or Consultation methodology Impact by the project Jiangxi Partner Responsible for the province‘s agricultural Project design was elaborated in close Responsible for supervision and guidance Interest: High Agriculture and and rural development work, undertake the collaboration and consultation with of project implementation in Jiangxi, Rural Affairs management of agricultural resources and the Jiangxi DARA. assisting the government at the county Impact: Potentially Department management and technology promotion of level in project coordination and resource positive rural energy work, and also as the provincial integration. Promote the establishment of a competent department of management of coordination mechanism provincial level Farmland ecosystem. and the revision of related policy/regulation and standards. Jiangsu Partner Responsible for the province‘s agricultural Project design was elaborated in close Responsible for supervision and guidance Interest: High Agriculture and and rural development work, undertake the collaboration and consultation with of project implementation in Jiangsu, Rural Affairs management of agricultural resources and the Jiangsu DARA. assisting the government at the county Impact: Potentially Department management and technology promotion of level in project coordination and resource positive rural energy work, and also as the provincial integration. Promote the establishment of a competent department of management of coordination mechanism provincial level Farmland ecosystem. and the revision of related policy/regulation and standards. Guizhou Partner Responsible for the province‘s agricultural Project design was elaborated in close Responsible for supervision and guidance Interest: High Agriculture and and rural development work, undertake the collaboration and consultation with of project implementation in Guizhou, Rural Affairs management of agricultural resources and the Guizhou DARA. assisting the government at the county Impact: Potentially Department management and technology promotion of level in project coordination and resource positive rural energy work, and also as the provincial integration. Promote the establishment of a competent department of management of coordination mechanism provincial level farmland ecosystem. and the revision of related policy/regulation and standards. County Partner, Responsible for administration and Project design was elaborated in close Responsible for coordination, supervision Interest: High Governments Direct Beneficiary implementation of national and provincial collaboration and consultation with and guidance of project implementation at policies at county level. target counties. the county level, and reporting to Impact: Potentially provincial/national level. Establishment of positive county level project coordination committees/PMOs. County Partner, Responsible for the county’s agricultural and Project design was elaborated in close Supporting project implementation at the Interest: High Agricultural Direct Beneficiary rural development work and implementation collaboration and consultation with county level in close coordination with Bureaus of agricultural policies. county agricultural bureaus. ongoing programmes. Impact: Potentially positive Provincial Partner Responsible for provincial-level land use Consulted on project design. Will be engaged for the Integrated Interest: Moderate Department of planning process. Landscape Management (ILM) process. Land Resources Impact: Neutral County Bureau of Partner Responsible for county-level land use Consulted on project design. Will be engaged for the Integrated Interest: Moderate Land Resources planning process. Landscape Management (ILM) process.

137 Issues raised (during PPG) and how they Role in project implementation, Interest in the project/ Stakeholder Name Stakeholder Type Stakeholder profile were addressed and/or Consultation methodology Impact by the project Impact: Neutral Township and Partner, Responsible for township and village level Consulted on project design. Supporting project implementation at the Interest: High village Direct Beneficiary administration. township and village level. administrations Impact: Potentially positive China Other Development bank in the People’s Republic Will be engaged for outreach and scaling. Interest: Neutral Development of China under the direct jurisdiction of the Bank (CDB) State Council. CDB is the world’s largest Impact: Potentially development finance institution, and the positive largest Chinese bank for financing cooperation, long-term lending and bond issuance. b) Local communities and community groups Local farmers Direct Beneficiaries Local farmers living in the target counties/ Consulted during PPG missions. Raised Main beneficiaries of project interventions. Interest: High (women and men) townships. issues such as low market price for rice, Will be closely involved and consulted in low productivity, impacts of pests and the planning and implementation of project Impact: Potentially weather events, insufficient marketing activities. Will benefit from capacity positive and participation in cooperatives. Issues building, new technologies, and the incorporated into project design. development of value chains. Disadvantaged or Direct Beneficiaries Disadvantaged or vulnerable community Consulted during PPG missions. Will be consulted and involved in project Interest: High vulnerable members such as the poor or single-headed implementation. The project will ensure groups/individuals households. that vulnerable groups have equal Impact: Potentially such as poorer opportunities to benefit from project positive community activities and participate in training. members or single-headed households. Ethnic minority Direct Beneficiaries The target counties in Qiandongnan Miao and Consulted during PPG missions. FPIC Ethnic minority groups will be the main Interest: High groups (in Dong Autonomous Prefecture are home to process has been prepared. beneficiaries of project interventions in Guizhou) the Dong and Miao ethnic minority groups. Guizhou. Will be closely involved and Impact: Potentially consulted in the planning and positive implementation of project activities. FPIC will be ensured throughout project implementation in line with the defined process. Farmer Partners, Farmer cooperatives and associations in the Consulted during PPG missions and Will be closely involved in the project Interest: High cooperatives/ Direct Beneficiaries target counties. baseline survey. Raised issues such as implementation, in particular with regard associations high cost of financing, and low capacity

138 Issues raised (during PPG) and how they Role in project implementation, Interest in the project/ Stakeholder Name Stakeholder Type Stakeholder profile were addressed and/or Consultation methodology Impact by the project for innovation. Incorporated into project to Outcome 2.2 on the development of Impact: Potentially design. value chains. positive Women’s groups/ Partners, Women’s groups and associations in the Consulted during PPG missions. Raised Will be closely involved in the project Interest: High associations Direct Beneficiaries target counties. issues such as high labour cost, as well implementation. as the fact that women are busy during Impact: Potentially planting and harvesting time. Taken into positive account in project design and gender action plan. c) Regional and international organizations, development partners Food and GEF Lead FAO has a long history of cooperation with Led project design in close collaboration GEF Lead Implementing Agency. In Interest: High Agriculture Implementing Agency, the Government of China in sustainable with MARA. collaboration with MARA, will ensure Organization of Partner agricultural development. FAO is also coordination with the World Bank in China Impact: Potentially the United Nations implementing several GEF-funded projects in and at the global level. positive (FAO) China. World Bank Partner International financial institution that funds Closely consulted throughout project GEF Co-Implementing Agency, Interest: High several programmes on sustainable design for alignment with Hubei sub- responsible for the Hubei sub-project. agricultural development in China. In charge project. Impact: Potentially of FOLUR Global Programme. positive GIZ (German Other GIZ is implementing several projects and Consulted during project design. Will be kept informed. Interest: High Agency for programmes in China, among others related International to climate change, the environment and Impact: Potentially Cooperation) natural resources, as well as industry, positive infrastructure and trade. Member of the Sustainable Rice Platform. United Nations Partner UNDP is implementing several projects, Consulted during project design. Will be kept informed and consulted Interest: High Development including GEF projects, in China. UNDP is during project implementation. Programme leading the GEF-6 PRC-GEF Partnership Impact: Potentially (UNDP) Program for Sustainable Agricultural positive Development. Asian Partner Regional development bank funding several Consulted during project design. The project will seek to collaborate closely Interest: High Development initiatives in China. Currently preparing the with relevant ADB projects for knowledge Bank (ADB) Yangtze River Green Ecological Corridor exchange and lessons learned as well as to Impact: Potentially Comprehensive Agriculture Development coalesce action for sustainable production. positive Project. ADB has also recently approved the Shandong Green Development Fund project.

139 Issues raised (during PPG) and how they Role in project implementation, Interest in the project/ Stakeholder Name Stakeholder Type Stakeholder profile were addressed and/or Consultation methodology Impact by the project d) Civil society World Resources Partner Coordinates the work of the Food and Land Consulted on project design. Will be engaged as a partner for Interest: High Institute (WRI) Use (FOLU) Coalition and the Food, knowledge exchange, dissemination and Agriculture, Biodiversity, Land Use and scaling. Impact: Potentially Energy (FABLE) Consortium in China. positive Organizes regular meetings with members, WRI as the coordinator of the FOLU partners and stakeholders. Coalition in China, will be a strong partner of the China child project and exchange will be regularly held to identify and support opportunities for replication and scaling. Local NGOs, Partners Local civil society. Consulted during PPG missions. Will be involved as stakeholders, partners Interest: High associations and beneficiaries throughout project implementation. Impact: Potentially positive China Agricultural Partner Association under MARA in charge of Will be engaged for knowledge Interest: Moderate Association for international agricultural exchange. dissemination and scaling. International Impact: Potentially Exchange positive All-China Partner The main task of Women’s Federation is to Will be engaged for the implementation of Interest: High Women’s represent women in the democratic project activities, and in particular the Federation management and supervision of state and Gender Action Plan. Impact: Potentially social affairs, in the development of law, positive rules and regulations of women and children to protect their rights and interests. Chinese Society of Partner Association promoting research and Will be consulted and involved in project Interest: High Agro-Ecological application of agro-ecology. implementation. Environment Impact: Potentially Protection positive Paulson Institute Other The Paulson Institute is a non-partisan, Will be kept informed. Interest: Neutral independent “think and do tank” dedicated to fostering a US-China relationship that serves Impact: Potentially to maintain global order in a rapidly evolving positive world. Promotes market-based solutions for low carbon growth in China.

140 Issues raised (during PPG) and how they Role in project implementation, Interest in the project/ Stakeholder Name Stakeholder Type Stakeholder profile were addressed and/or Consultation methodology Impact by the project e) Academia/research institutions 学术/研究机构 Chinese Academy Partner National agricultural research institution Involved in project design. Will be involved as technical experts in Interest: High of Agricultural established in 1957, undertaking agricultural project implementation. Sciences (CAAS) research and development in China in both Impact: Potentially basic and applied sciences as well as new and positive advanced application technology. Central China Partner Multi-disciplinary university in Wuhan (the Involved in project design. Will be involved as technical experts in Interest: High Agricultural capital of Hubei Province) with a focus on project implementation. University agriculture, life sciences, engineering, liberal Impact: Potentially (Huazhong) arts, law, economic trade, and management. positive China Agriculture Partner University in Beijing specialized in Involved in project design. Will be involved as technical experts in Interest: High University agriculture, biology, engineering, veterinary project implementation. medicine, economics, management, Impact: Potentially humanities and social science. positive Chinese Academy Partner CAS is the highest academic institution and Involved in project design. Will be involved as technical experts in Interest: High of Sciences (CAS) research and development centre in China. It project implementation. is the world’s largest research organisation. Impact: Potentially positive Renmin University Partner Renmin University of China is specialized in Involved in project design. Will be involved as technical experts in Interest: High of China economics, the development of society, project implementation. agriculture and rural community. Impact: Potentially positive IRRI Other IRRI is a leading international agricultural Consulted during project design. Will be consulted and kept informed Interest: High research and training organization, during project implementation. conducting interdisciplinary research on rice Impact: Potentially in the region and globally, from breeding to positive pest control to value chains. Member of the Sustainable Rice Platform. f) Private sector Local small and Partners Local agricultural producers and agri-food Consulted during PPG missions and Will be involved in the development of Interest: High medium enterprises. baseline survey. value chains, such as through certifications enterprises and traceability platforms, innovative Impact: Potentially (SMEs), farmer technologies, eco-labelling, value adding positive enterprises and and marketing. cooperatives Large e-commerce Partners E-commerce companies operating in China Consulted during project design. Will be involved in the development of Interest: High companies such as and overseas. Also active in the agricultural value chains, in particular for market Alibaba sector for technology and innovations.

141 Issues raised (during PPG) and how they Role in project implementation, Interest in the project/ Stakeholder Name Stakeholder Type Stakeholder profile were addressed and/or Consultation methodology Impact by the project access and access to innovative Impact: Potentially technologies. positive Local private Partners Will be engaged in value chain, knowledge Interest: High sector associations exchange and scaling activities. and Chambers of Impact: Potentially Commerce. positive

142 Grievance Redress Mechanism

Grievance Mechanism

Focal Point Information Mr. Vincent Martin, FAO Representative in China e-mail: [email protected] Contact Details Tel: (+86) 10 6532 2835 Like all the FAO GEF projects in China, this project will follow the Operational Partners Implementation Modality, with MARA as the execution Explain how the grievance mechanism partner. FAO will share an official letter on grievance mechanism with MOF will be/ has been communicated to (the GEF focal point) and MARA, which will also be attached to the Project stakeholders Document. MARA will further disseminate the information to the PSC members, local partners and other stakeholders through meetings, trainings, workshops and field visits.

Disclosure (only for Moderate or High Risk) Disclosure Means Disclosure information/document shared Disclosure dates From: Click here to enter a date. To: Click here to enter a date. Location Language(s) Other Info

FAO is committed to ensuring that its programs are implemented in accordance with the Organization’s environmental and social obligations. In order to better achieve these goals, and to ensure that beneficiaries of FAO programs have access to an effective and timely mechanism to address their concerns about non- compliance with these obligations, the Organization, in order to supplement measures for receiving, reviewing and acting as appropriate on these concerns at the program management level, has entrusted the Office of the Inspector-General with the mandate to independently review the complaints that cannot be resolved at that level. FAO will facilitate the resolution of concerns of beneficiaries of FAO programs regarding alleged or potential violations of FAO’s social and environmental commitments. For this purpose, concerns may be communicated in accordance with the eligibility criteria of the Guidelines for Compliance Reviews Following Complaints Related to the Organization’s Environmental and Social Standards62, which applies to all FAO programs and projects. Concerns must be addressed at the closest appropriate level, i.e. at the project management/technical level, and if necessary at the Regional Office level. If a concern or grievance cannot be resolved through consultations and measures at the project management level, a complaint requesting a Compliance Review may be filed with the Office of the Inspector-General (OIG) in accordance with the Guidelines. Program and project managers will have the responsibility to address concerns brought to the attention of the focal point. The principles to be followed during the complaint resolution process include: Impartiality, respect for human rights, including those pertaining to indigenous peoples, compliance of national norms, coherence with the norms, equality, transparency, honesty, and mutual respect.

62 Compliance Reviews following complaints related to the Organization’s environmental and social standards: http://www.fao.org/aud/42564-03173af392b352dc16b6cec72fa7ab27f.pdf

143 Project-level grievance mechanism The project will establish a grievance mechanism at field level to file complaints during project inception phase. Contact information and information on the process to file a complaint will be disclosed in all meetings, workshops and other related events throughout the life of the project. In addition, it is expected that all awareness raising material to be distributed will include the necessary information regarding the contacts and the process for filing grievances. The project will also be responsible for documenting and reporting as part of the safeguards performance monitoring on any grievances received and how they were addressed. The mechanism includes the following stages: • In the instance in which the claimant has the means to directly file the claim, he/she has the right to do so, presenting it directly to the National Project Management Office (NPMO). The process of filing a complaint will duly consider anonymity as well as any existing traditional or indigenous dispute resolution mechanisms and it will not interfere with the community’s self-governance system. • The complainant files a complaint through one of the channels of the grievance mechanism. This will be sent to the National Project Coordinator (NPC) to assess whether the complaint is eligible. The confidentiality of the complaint must be preserved during the process. • The NPC will be responsible for recording the grievance and how it has been addressed if a resolution was agreed. • If the situation is too complex, or the complainer does not accept the resolution, the complaint must be sent to a higher level, until a solution or acceptance is reached. • For every complaint received, a written proof will be sent within ten (10) working days; afterwards, a resolution proposal will be made within thirty (30) working days. • In compliance with the resolution, the person in charge of dealing with the complaint, may interact with the complainant, or may call for interviews and meetings, to better understand the reasons. • All complaint received, its response and resolutions, must be duly registered.

Internal process Level 1: National Project Management Office (NPMO). The complaint could come in writing or orally to the NPMO directly. At this level, received complaints will be registered, investigated and solved by the NPMO. Level 2: If the complaint has not been solved and could not be solved in level 1, then the National Project Coordinator (NPC) elevates it to the FAO Representative in China. Level 3: Project Steering Committee (PSC). The assistance of the PSC is requested if a resolution was not agreed in levels 1 and 2. Level 4: FAO Regional Office for Asia and the Pacific (RAP). If necessary, the FAO Representative will request the advice of the Regional Office to resolve a grievance, or will transfer the resolution of the grievance entirely to the regional office, if the problem is highly complex. Level 5: Only on very specific situations or complex problems, the FAO Regional Representative will request the assistance of the FAO Office of the Inspector General, who follows its own procedures to solve the problem.

144 Resolution Upon acceptance a solution by the complainer, a document with the agreement should be signed with the agreement.

National Project Must respond within 5 working days. Management Office (NPMO) FAO Representation in Anyone in the FAO Representation may receive a complaint and must request proof of China receipt. If the case is accepted, the FAO Representative must respond within 5 working days in consultation with FAO’s Representation and Project Team. FAO Representative: Mr. Vincent Martin e-mail: [email protected] Tel: (+86) 10 6532 2835 Project Steering Committee If the case cannot be dealt by the FAO Representative, he/she must send the (PSC) information to all PSC members and call for a meeting to find a solution. The response must be sent within 5 working days after the meeting of the PSC. FAO Regional Office for Must respond within 5 working days in consultation with FAO’s Representation. Asia and the Pacific (RAP) FAO Regional Representative: Mr. Jong-Jin Kim, Officer-in-Charge and Deputy Regional Representative e-mail: [email protected] Tel: (+66) 2 697 4000 Office of the Inspector To report possible fraud and bad behaviour by fax, confidential: General (OIG) (+39) 06 570 55550 By e-mail: [email protected] By confidential hotline: (+ 39) 06 570 52333

145 Annex J: Ethnic Minorities

China is a signatory to the United Nations Declaration on the Rights of Indigenous Peoples, an international document adopted by the United Nations in 2007 that addresses the human rights of indigenous peoples. A total of 56 ethnic minorities’ groups have been identified in China, primarily based on their similarities such as common ancestry, language, society, and culture. The term “indigenous peoples” is not used in China.

Ethnic minorities are present in the target counties of Guizhou Province. Consequently, a Free, Prior and Informed Consent (FPIC) procedure was prepared during the project preparation phase in line with FAO Environmental and Social Management Guidelines and GEF Indigenous Peoples Principles and Guidelines. Measures to mitigate risks and enhance opportunities were also elaborated as part of the FPIC report.

Please refer to separate document for Annex J.

Annex K: FAO’s Roles in Internal Organization

FAO will be the GEF Implementing Agency of the project. As such, FAO has the project assurance role and will supervise and provide technical guidance for the overall implementation of the project, including: a) Monitor and oversee OP’s compliance with the OPA and project implementation in accordance with the project document, work plans, budgets, agreements with co-financiers and the rules and procedures of FAO and GEF; b) Commence and completing the responsibilities allocated to it in the Project Document in a timely manner, provided that all necessary reports and other documents are available; c) Making transfers of funds, supplies and equipment, as applicable, in accordance with the provisions of the OPA; d) Administrate the portion of project GEF funds that has been agreed with the OP to remain for FAO direct implementation. These funds will be managed in accordance with the rules and procedures of FAO; e) Organizing and completing monitoring, assessment, assurance activities and evaluation of the Project; f) Review, discuss with the OP, and approve the project progress and financial reports, as detailed in the OPA and its annexes. undertaking and completing monitoring, assessment, assurance activities, evaluation and oversight of the project; g) Liaising on an ongoing basis, as needed, with the Government (as applicable), other members of the United Nations Country Team, Resource Partner, and other stakeholders; h) Providing overall guidance, oversight, technical assistance and leadership, as appropriate, for the Project; i) Provide financial and audit services to the project including budget release, budget revisions and administration of funds from GEF in accordance with rules and procedures of FAO; j) Oversee financial expenditures against project budgets; k) Ensure that all activities, including procurement and financial services are carried out in strict compliance with FAO and GEF relevant procedures and agreements; l) Initiate joint review meetings with the OP to agree on the resolution of findings and to document the lessons learned;

146 m) Report to the GEF Secretariat and Evaluation Office, through the annual Project Implementation Review, on project progress and provide consolidated financial reports to the GEF Trustee; n) Conduct at least one supervision mission per year; o) Lead the Mid-Term Review and Final Evaluation; p) Monitor implementation of the plan for social and environmental safeguards, in accordance with the FAO Environmental and Social Safeguards; q) Trigger additional reviews, audits and/or evaluations, as necessary.

In collaboration with the Project Management Unit (PMU) and under the overall guidance of the Project Steering Committee, FAO will participate in the planning of contracting and technical selection processes. FAO will process fund transfers to the OP as per provisions, terms and conditions of the signed OPA.

The FAO Representative in China will be the Budget Holder (BH) and will be responsible for timely operational, and financial management of GEF resources implemented -. The budget holder will be also responsible for i) managing OPIM for results, including monitoring of risks and overall compliance with the OPA provisions; ii)review and clear financial and progress reports received from the OP and certify request for funds iii) review and clear budget revisions and annual work plan and budgets; iv) ensure implementation of the Risk Mitigation and Assurance Plan v) follow up and ensure that the OP implements all actions and recommendations agreed upon during Assurance Activities.

As a first step in the implementation of the project, the FAO Representation will establish an interdisciplinary Project Task Force (PTF) within FAO, to guide the implementation of the project. The PTF is a management and consultative body that integrate the necessary technical qualifications from the FAO relevant units to support the project. The PTF is composed of a Budget Holder, a Lead Technical Officer (LTO), the Funding Liaison Officer (FLO) and one or more technical officers based on FAO Headquarters (HQ Technical Officer).

The FAO Representative, in accordance with the PTF, will give its non-objection to the AWP/Bs submitted by the PCU as well as the Project Progress Reports (PPRs). PPRs may be commented by the PTF and should be approved by the LTO before being uploaded by the BH in FPMIS.

The Lead Technical Officer (LTO) for the project will be Bo Zhou, RAPDD. The role of the LTO is central to FAO’s comparative advantage for projects. The LTO will oversee and carry out technical backstopping to the project implementation. The LTO will support the BH in the implementation and monitoring of the AWP/Bs, including work plan and budget revisions. The LTO is responsible and accountable for providing or obtaining technical clearance of technical inputs and services procured by the Organization.

In addition, the LTO will provide technical backstopping to the PMU to ensure the delivery of quality technical outputs. The LTO will coordinate the provision of appropriate technical support from PTF to respond to requests from the PSC. The LTO will be responsible for the following: a) Assess the technical expertise required for project implementation and identify the need for technical support and capacity development of the OP; b) Provide technical guidance to the OP on technical aspects and implementation; c) Review and give no-objection to TORs for consultancies and contracts to be performed under the project, and to CVs and technical proposals short-listed by the PCU for key project positions and services to be financed by GEF resources; d) Review and give clearance for the OP’s procurement plans; e) Supported by the FAO Representation, review and clear final technical products delivered by consultants and contract holders financed by GEF resources;

147 f) Assist with review and provision of technical comments to draft technical products/reports during project implementation; g) Review and approve project progress reports submitted by the National Program Director (NPD), in cooperation with the BH; h) Support the FAO Representative in examining, reviewing and giving no-objection to AWP/B submitted by the NPD, for their approval by the Project Steering Committee; i) Ensure the technical quality of the six-monthly Project Progress Reports (PPRs). The PPRs will be prepared by the NPD, with inputs from the PCU. The BH will submit the PPR to the FAO/GEF Coordination Unit for comments, and the LTO for technical clearance. The PPRs will be submitted to the PSC for approval twice a year. The FLO will upload the approved PPR to FPMIS. j) Supervise the preparation and ensure the technical quality of the annual PIR. The PIR will be drafted by the NPD, with inputs from the PT. The PIR will be submitted to the BH and the FAO-GEF Coordination Unit for approval and finalization. The FAO/GEF Coordination Unit will submit the PIRs to the GEF Secretariat and the GEF Evaluation Office, as part of the Annual Monitoring Review report of the FAO- GEF portfolio. The LTO must ensure that the NPD and the PCU have provided information on the co- financing provided during the year for inclusion in the PIR; k) Conduct annual supervision missions; l) Provide comments to the TORs for the mid-term and final evaluation; provide information and share all relevant background documentation with the evaluation team; participate in the mid-term workshop with all key project stakeholders, development of an eventual agreed adjustment plan in project execution approach, and supervise its implementation; participate in the final workshop with all key project stakeholders, as relevant. Contribute to the follow-up to recommendations on how to insure sustainability of project outputs and results after the end of the project. m) Monitor implementation of the Risk Mitigation Plan, in accordance with the FAO Environmental and Social Safeguards. The HQ Technical Officer is a member of the PTF, as a mandatory requirement of the FAO Guide to the Project Cycle. The HQ Technical Officer has most relevant technical expertise - within FAO technical departments - related to the thematic of the project. The HQ Technical Officer will provide effective functional advice to the LTO to ensure adherence to FAO corporate technical standards during project implementation, in particular: a) Supports the LTO in monitoring and reporting on implementation of environmental and social commitment plans for moderate risk projects. In this project, the HQ officer will support the LTO in monitoring and reporting the identified risks and mitigation measures (Appendix H2) in close coordination with the OP. b) Provides technical backstopping for the project work plan. c) Clears technical reports, contributes to and oversees the quality of Project Progress Report(s). d) May be requested to support the LTO and PTF for implementation and monitoring. e) Contribute to the overall ToR of the Mid-term and Final Evaluation, review the composition of the evaluation team and support the evaluation function. The FAO-GEF Coordination Unit will provide Funding Liaison Officer (FLO) functions. This FAO/GEF Coordination Unit will review and provide a rating in the annual PIR(s) and will undertake supervision missions as necessary. The PIRs will be included in the FAO GEF Annual Monitoring Review submitted to GEF by the FAO GEF Coordination Unit. The FAO GEF Coordination Unit may also participate or lead the mid-term evaluation, and in the development of corrective actions in the project implementation strategy if needed to

148 mitigate eventual risks affecting the timely and effective implementation of the project. The FAO GEF Coordination Unit will in collaboration with the FAO Finance Division to request transfer of project funds from the GEF Trustee based on six-monthly projections of funds needed.

The FAO Financial Division will provide annual Financial Reports to the GEF Trustee and, in collaboration with the FAO-GEF Coordination Unit, request project funds on a six-monthly basis to the GEF Trustee.

Financial management

Financial management in relation to the GEF resources directly managed by FAO will be carried out in accordance with FAO’s rules and procedures as outlined below. The OP is accountable to FAO for achieving the agreed project results and for the effective use of resources made available by FAO. Financial management and reporting for the funds transferred to the OP will be done by the OP in accordance with terms, conditions, formats and requirements of FAO and the provisions of the signed Operational Partners Agreement (OPA). The administration by the OP of the funds received from FAO shall be carried out under its own financial regulations, rules and procedures, which shall provide adequate controls to ensure that the funds received, are properly administered and expended. The Operational Partner shall maintain the account in accordance with generally accepted accounting standards.

Financial Records. FAO shall maintain a separate account in United States dollars for the project’s GEF resources showing all income and expenditures. FAO shall administer the project in accordance with its regulations, rules and directives. The OP shall maintain books and records that are accurate, complete and up- to-date. The OP’s books and records will clearly identify all Fund Transfers received by the OP as well as disbursements made by the OP under the OPA, including the amount of any unspent funds and interest accrued.

Financial Reports. The BH shall prepare quarterly project expenditure accounts and final accounts for the project, showing amount budgeted for the year, amount expended since the beginning of the year, and separately, the un-liquidated obligations as follows: i) Details of project expenditures on outcome-by-outcome basis, reported in line with Project Budget as at 30 June and 31 December each year; ii) Final accounts on completion of the Project on a component-by-component and outcome-by-outcome basis, reported in line with the Project Budget; iii) A final statement of account in line with FAO Oracle Project budget codes, reflecting actual final expenditures under the Project, when all obligations have been liquidated.

The OP will prepare the financial reports in accordance with terms, conditions, formats and requirements of FAO and the provisions of the signed OPA. The BH will review and approve request for funds and financial reports of the OP. The subsequent instalments can be released only based on the BH confirmation that all expenditures are eligible and all OPA requirements are fulfilled to the satisfaction of FAO. The BH will withhold any payment due to the OP in case of non-compliance with the reporting obligations detailed in the OPA.

Financial reports for submission to the donor (GEF) will include both FAO- and OP-managed resources, will be prepared in accordance with the provisions in the GEF Financial Procedures Agreement and submitted by the FAO Finance Division.

Responsibility for Cost Overruns. As regards resources directly managed by FAO, the BH shall utilize the GEF project funds in strict compliance with the Project Budget (Appendix A2) and the approved AWP/Bs. The BH can make variations provided that the total allocated for each budgeted project component is not exceeded and the reallocation of funds does not impact the achievement of any project output as per the project Results Framework (Appendix A1). At least once a year, the BH will submit a budget revision for approval of the LTO and the FAO/GEF Coordination Unit. Cost overruns shall be the sole responsibility of the BH.

As regards resources managed by the OP, the OP shall utilize the funds received from FAO in strict compliance with provisions of the signed OPA and its Annexes, including approved work plan and budget. The OP can

149 make variations not exceeding 10 percent on any budget heading. Any variations above 10 percent on any budget heading that may be necessary will be subject to prior consultations with and approval by FAO.

Under no circumstances can expenditures exceed the approved total project budget or be approved beyond the NTE date of the OPA and/or the project. Any over-expenditure is the responsibility of the BH.

Audit. The project shall be subject to the internal and external auditing procedures provided for in FAO financial regulations, rules and directives and in keeping with the Financial Procedures Agreement between the GEF Trustee and FAO.

The audit regime at FAO consists of an external audit provided by the Auditor-General (or persons exercising an equivalent function) of a member nation appointed by the Governing Bodies of the Organization and reporting directly to them, and an internal audit function headed by the FAO Inspector-General who reports directly to the Director-General. This function operates as an integral part of the Organization under policies established by senior management, and furthermore has a reporting line to the governing bodies. Both functions are required under the Basic Texts of FAO which establish a framework for the terms of reference of each. Internal audits of imprest accounts, records, bank reconciliation and asset verification take place at FAO field and liaison offices on a cyclical basis. Specific provision for auditing the OP managed funds are included in the signed Operational Partners Agreement (OPA). During implementation, assurance activities are organized by FAO to determine whether the progress has been made and whether funds transferred to Operational Partners were used for their intended purpose, in accordance with the work plan and relevant rules and regulations. This may include, but is not limited to, monitoring missions, spot checks, quarterly progress and annual implementation reviews, and audits on the resources received from FAO.

Procurement. Careful procurement planning is necessary for securing goods, services and works in a timely manner, on a “Best Value for Money” basis. It requires analysis of needs and constraints, including forecast of the reasonable timeframe required to execute the procurement process.

Procurement will follow OP rules and regulations for the procurement of supplies, equipment and services. The OP will draw up a procurement plan as part of the supporting documentation to each request for funds submitted to FAO. The plan will include a description of the goods, works, or services to be procured, estimated budget and source of funding, schedule of procurement activities and proposed method of procurement. In situations where exact information is not yet available, the procurement plan should at least contain reasonable projections that will be corrected as information becomes available.

The procurement plan shall be updated every quarter and submitted to FAO BH and LTO for clearance.

Annex L: FAO and Government Obligations

To be added before signature.

150 Annex L1: Terms of Reference of PMU staff

I. National Project Coordinator (NPC) The National Project Coordinator is a GEF-financed full-time position. Under the overall supervision and guidance of the NPD, the NPC will be in charge of daily implementation, management, administration and technical supervision of the project, on behalf of the Operational Partner and within the framework delineated by the PSC.

Specific responsibilities will include: • Coordination and close monitoring of the implementation of project activities; • Tracking the project’s progress and ensuring timely delivery of inputs and outputs; • Providing technical support and assessing the outputs of the project national consultants hired with GEF funds, as well as the products generated in the implementation of the project; • Coordination with relevant initiatives, and in particular with the World Bank-Hubei sub-project and the FOLUR Global Coordination Project (in coordination with FAO); • Ensuring a high level of collaboration among participating institutions and organizations at the national and local levels; • Ensuring effective engagement of stakeholders as per the project’s Stakeholder Engagement Matrix. • Ensuring effective implementation of the project’s Integrated Pest Management Plan (IPMP), Gender Action Plan, capacity development measures and FPIC in collaboration with the Social Safeguards and Gender Specialist. • Ensuring compliance with all OPA provisions during the implementation, including on timely reporting and financial management; • Manage requests for provision of financial resources using provided format in OPA annexes; • Monitoring financial resources and accounting to ensure accuracy and reliability of financial reports; • Ensuring timely preparation and submission of requests for funds, financial and progress reports to FAO as per OPA reporting requirements; • Maintaining documentation and evidence that describes the proper and prudent use of project resources as per OPA provisions, including making available this supporting documentation to FAO and designated auditors when requested; • Implementing and managing the project’s monitoring and communications plans in close collaboration with the Project Knowledge Management Officer and the Project M&E Officer; • Organizing project workshops and meetings, in particular of the Technical Advisory and Coordination Committee, to monitor progress and preparing the Annual Budget and Work Plan; • Submitting the six-monthly Project Progress Reports (PPRs) with the AWP/B to the PSC and FAO; • Prepare and disseminate the minutes of PSC and TACC meetings within a week after the meeting; • Preparing the first draft of the Project Implementation Review (PIR) and consolidate with inputs from the World Bank-Hubei sub-project; • Ensuring that any technical project reports are submitted to FAO for technical review and clearance by FAO’s Lead Technical Officer (LTO). • Supporting the organization of the mid-term and final evaluations in close coordination with the FAO Budget Holder and the FAO Independent Office of Evaluation (OED); • Submitting the OP six-monthly technical and financial reports to FAO and facilitate the information exchange between the OP and FAO, if needed; • Inform the PSC and FAO of any delays and difficulties as they arise during the implementation to ensure timely corrective measure and support.

151 Background/qualifications • At least 8 years’ experience in the agricultural environment protection, Agro-Ecology, natural resource management and related sectors； • At least five years of relevant work experience preferably in a project management setting involving multi- lateral/ international funding agency. Previous experience with UN project will be a definite asset; • Demonstrated creativity and innovation • Demonstrated ability to communicate with governmental and non-governmental stakeholders • Excellent project management skills • Excellent communication, writing and presentation skills • Fluent in English, Chinese

II. Project Knowledge Management Officer Under the overall supervision and guidance of the NPC, the Knowledge Management will have the responsibility for project knowledge management.

Specific responsibilities will include: • Develop the project knowledge management plan according to the prodoc; • Coordinate the implementation of the knowledge management outputs (component 4) of the project; • Coordinate with FAO to develop the news bulletin , information • Ensure coordination with the World Bank-Hubei sub-project and the FOLUR Global Coordination Project with regard to knowledge sharing and management. • Establish information sharing platform and communication mechanism with other child-projects of the FOLUR Impact Program and other partners in China; • Organize workshops on project experience sharing between different provinces/countries and so on. • Facilitate knowledge generation by supporting the documentation of emerging good and best practices and lessons learnt; • Liaise with broadcast and print media to disseminate project events and activities of interest; • Participate in project activities and actively collect data of information dissemination；

Background/qualifications • Degree in journalism, communications or information technology, or in agriculture, environment, natural resource or social science discipline with practical experience in communications, publishing, web- development and information dissemination; • At least 3-5 years demonstrated experience in development/environment projects/programmes and implementation of journalism, communications and knowledge sharing activities; • Excellent communication, writing and presentation skills • Fluent in English, Chinese.

III. Project Monitoring & Evaluation Officer Under the overall supervision and guidance of the NPC, the Project Monitoring & Evaluation Officer will have the responsibility for project monitoring and evaluation of project activities.

Specific responsibilities will include: • Develop annual M&E plan for the project. • Monitor project progress and participate in the production of progress reports in compliance with FAO and GEF reporting requirements and standards;

152 • Oversee and ensure the implementation of the project’s M&E plan, including periodic appraisal of the Project’s Theory of Change and Results Framework with reference to actual and potential project progress and results; • Coordinate with consultants and closely monitor project results. • Oversee and guide the design of surveys/ assessments commissioned for monitoring and evaluating project results; • Ensure coordination with the World Bank-Hubei sub-project and the FOLUR Global Coordination Project with regard to M&E. • Facilitate mid-term and terminal evaluations of the project; • Assist the NPC to organize PSC and TACC meetings in a timely and efficient manner; • Ensure that necessary documents (agenda, annual work plans and budgets, progress reports, relevant background documents and technical reports, etc) for PSC and TACC meetings are circulated to the members at least a week in advance; • Facilitate annual reviews of the project and produce analytical reports from these annual reviews; • Liaise with FAO and responsible parties for implementation of project activities in matters related to M&E; • Visit project sites at least twice in a year to appraise project progress on the ground and validate written progress reports.

Background/qualifications • Master degree, preferably in the field of international project management, agriculture, natural resources management or landscape restoration; • At least 5 years of experience working with communities, IPs and other group in community-based restoration; • Solid experience in project management, including results-based management and monitoring and evaluation; • Experience working with international partners on related issues; • Strong report-writing skills in English.

IV. Project Financial & Procurement Officer A full-time Project Finance & Procurement Officer will be recruited with GEF funds. Under the direct guidance and oversight of the NPC.

Specific responsibilities will include: • Prepare annual work plans and budgets, and make revisions if and when necessary, in close coordination with the focal persons at the provincial departments of agricultural and rural affairs for project implementation; • Ensure timely submission of technical and financial progress reports in accordance with the requirements specified in the Project Document; • Coordinate with government agencies in the provinces for implementation of project activities and provide necessary facilitation and backstopping; • Assist the NPC to organize PSC and TACC meetings in a timely and efficient manner; • Ensure that necessary documents (agenda, annual work plans and budgets, progress reports, relevant background documents and technical reports, etc) for PSC and TACC meetings are circulated to the members at least a week in advance;

153 • Provide project information required by the PSC, TACC, and FAO, including progress reports and other documents produced by the project in a timely manner; • Assist the PMC in the recruitment of project consultants and delivery of high-quality consulting inputs in accordance with the approved ToR; • Assist the PMC to complete the procurement of the project contract, review the procurement process and allocate the project cost on schedule; • Prepare and cooperate with project audit.

Background/qualifications • Master degree related to business/financial management or discipline related to the project. • Minimum five (5) years of relevant work experience that demonstrates increasing levels of responsibility and includes at least two (2) years of experience in a similar setup; • Proficiency in the use of Microsoft Excel and Word software is required, and computerized accounting systems (e.g. the TOMPRO, FINEXPP) is desirable; • Familiarity with contract and financial procedures • Possess good organizational skills and able to work independently; • Good writing and speaking skills in English are required; • Good interpersonal skills, proficient in interacting with Government officials, with international organizations and grassroots level community members; • Experience in working and collaborating within governments is an asset.

V. Chief Technical Advisor (part-time) A Chief Technical Advisor for the project will be recruited with GEF funds on a part-time basis for a total duration of 18 months over the five-year project period.

Specific responsibilities will include: • Provide strategic and technical support and backstopping to the project for synergy with national agricultural development programs at national and provincial levels; • Technical guidance to ensure project activities are implemented in a sound manner and there is technical coherence in the approach and practices employed across the provinces and their project demonstration sites; • Facilitate close technical collaboration with agricultural research and educational institutions to enhance the technical quality of project implementation; • Contribute to technical knowledge exchange with the World Bank-Hubei sub-project and the FOLUR Global Coordination Project (in coordination with FAO). • Seek technical guidance from/exchange with FAO’s Lead Technical Officer (LTO) when appropriate. • Assist the PMC in the recruitment of project consultants and review the consulting inputs in accordance with the approved ToR; • Assist the PMC to review the TOR of contracts and review the outputs delivered by contractors. • Draft the project inception report , PIR and APR; • Participate in TACC meetings and provide guidance to the TACC; • Support the mid-term and final evaluations of the project; • Review technical aspects of the planned project activities and provide necessary recommendations and inputs. • Perform other tasks as may be requested by the NPD and PC.

154 Background/qualifications • Higher degree related to agriculture, ecology, natural resources, environment management or rural development; • At least 15 years of professional experience in conservation planning and management and proven ability to work with multiple stakeholders; • Demonstrable experience in the implementation of multilateral donor funded or government funded international development projects; • Demonstrable experience in project organization and ability to serve as effective communicator and negotiator with excellent oral presentation skills; • Solid experience in project management and results-based management; • Strong report-writing skills in English; • Knowledge of FAO’s project management systems is preferred.

155 PART IV: ADDITIONAL ANNEXES

Annex M: Co-financing letters Annex N: Gender Analysis and Action Plan Annex O: Integrated Pest Management Plan Annex P: Capacity Development Report Annex Q: EX-ACT calculation sheet

Available as separate reports (upon request): 1. Baseline reports on agriculture, agro-ecosystems and biodiversity in the target landscapes 2. Socio-economic analysis 3. Value chain analysis

156 GEF-7 Innovative Transformation of China’s Food Production Systems and Agro-ecological Landscapes towards Sustainability

Free, Prior and Informed Consent (FPIC) for ethnic minorities in Guizhou

Content 1. Introduction ...... 2 2. Project Description ...... 3 2.1 Project Objective ...... 3 2.2 Project location ...... 3 2.3 Project beneficiaries ...... 3 3. Environmental and Socio-Economic Baseline Conditions ...... 4 3.1 Environmental conditions ...... 4 3.2 Socio-economic conditions ...... 7 3.3 Ethnic minority groups ...... 10 3.4 Culture and traditions ...... 13 4. FPIC Procedure ...... 14 4.1 Analysis of potential impacts, risks and opportunities ...... 14 4.2 Measures to avoid, minimize and mitigate negative impacts, and enable additional positive benefits ...... 14 Annex 1: Population of ethnic minorities in Qiandongnan ...... 18

1 1. Introduction China is a large country for food crop cultivation and animal husbandry. The rapid development of modern agriculture in recent years has significantly improved agricultural productivity, but the use of long-term high-yield intensive agriculture, pesticides and other chemical inputs has disrupted the balance of agricultural ecosystems, causing a series of ecological problems such as reduced system stability, contaminated soil and water resources, reduced biodiversity, and reduced habitat. Therefore, the development of sustainable agricultural production systems has become the primary task of current agricultural development. The GEF-7 project “Innovative Transformation of China’s Food Production Systems and Agro-ecological Landscapes towards Sustainability” aims to support the innovative transformation of China’s agro-ecological landscapes and rural revitalization towards sustainability by integrating agro-ecological systems management, product value chains, innovative technologies for green agriculture development, payment for agro-ecological services incentive mechanisms and partnerships for biodiversity, soil and water conservation, climate change mitigation, food security, food safety, and sustainable rural livelihoods in support of the 2030 Sustainable Development Goals (SDGs). It will be implemented in selected counties of Shandong, Jiangsu, Jiangxi and Guizhou Provinces, as well as at the national level. The application of the Free, Prior and Informed Consent (FPIC) procedure in the context of the project aims to ensure the alignment of its activities with the relevant FAO Environmental and Social Management Guidelines, GEF’s Policy on Environmental and Social Safeguards and GEF Principles and Guidelines for Engagement with Indigenous Peoples, as well as the avoidance of any potential negative impacts on ethnic minorities/minority nationalities1 in the project sites. Stemming from a socio-economic analysis, the presence of minority nationalities are not foreseen in the target counties of Shandong, Jiangsu and Jiangxi. Thus, the FPIC procedure applies only to the target counties of Guizhou Province. FAO requires that, before adopting and implementing projects and programmes that may affect ethnic minorities, a process of Free, Prior and Informed Consent is followed and consent is given by the concerned indigenous community. In addition, complete information must be disclosed to the minority nationalities involved; (i) in a timely manner, with sufficient time for the community to carry out internal deliberations; (ii) in accordance with ethnic minorities’ traditions and customs; (iii) in their local language; and (iv) in an environment and in ways to which the ethnic minorities can relate. The implementation of the FPIC process will aim at: (a) ensuring a positive engagement of minority nationalities in the project; (b) avoiding adverse impacts, or when avoidance is not feasible, minimizing, mitigating, or compensating for such effects, as per the agreement of the concerned minority nationalities; and (c) tailoring benefits in a culturally appropriate way.

1 The terms ‘minority nationalities’ or ‘ethnic minorities’ will be used for simplicity throughout the text to refer to indigenous peoples.

2 2. Project Description

2.1 Project Objective The project aims to promote the comprehensive management of agricultural ecosystems and the extension of agricultural product value chains, create new technological models for green agricultural development, build ecological compensation incentive mechanisms and stakeholder partnerships, and promote biodiversity protection, land restoration, and climate change in agricultural production, and lead the ecological transformation of China’s agriculture, the promotion of rural revitalization and agricultural green development, and the provision of a model and experience for realizing the UN’s 2030 Sustainable Development Goals.

2.2 Project location Guizhou Province is located in the Southwest of mainland China, adjacent to Guangxi in the south, Yunnan in the west, Sichuan and Chongqing in the north. Guizhou is a transportation hub in southwest China and an important part of the Yangtze River Economic Belt. Guizhou has many world-famous mountain tourist attractions, such as Huangguoshu Waterfall. In Guizhou Province, the project will involve the three target counties of Liping, Rongjiang and Congjiang, all located in Qiandongnan Miao and Dong Autonomous Prefecture in the Southeast of the Province. The counties are home to the Dong, Miao as well as other ethnic minorities’ groups.

2.3 Project beneficiaries As described in the Project Document, the main beneficiaries of the project interventions will be local farmers (women and men), farmer cooperatives/associations, as well as local agriculture bureaus. As the main beneficiaries, local farmers and community groups will be closely consulted and involved in project planning and implementation. In addition, the project will ensure that vulnerable groups have equal opportunities to benefit from project activities and participate in training.

In the three target counties of Guizhou Province – Liping, Rongjiang and Congjiang –, 84.4% to 94.6% of the population belongs to ethnic minorities’ groups. Accordingly, almost 90% of the project beneficiaries are expected to belong to ethnic minorities’ groups, primarily the Dong, Miao and Shui. Their livelihoods and income sources are mainly derived from farming activities. These ethnic minorities speak their own local language. Part of the population in Liping, Rongjiang and Congjiang also speaks Chinese (Mandarin) as a second language; however, often women and the elderly do not speak Chinese. The literacy rates in the target areas were 90.73%, 85.45% and 79.17%, respectively.

3 3. Environmental and Socio-Economic Baseline Conditions

3.1 Environmental conditions 3.1.1 Climate Guizhou Province has a subtropical humid monsoon climate, with four distinct seasons and an average temperature of about 15 ° C. Due to the lower latitudes, the climate in many areas is not severely cold in winter and not very hot in summer. The coldest January is an average temperature of 3-8 ° C. The hottest July is between 18-26 ° C. Due to the influence of the monsoon and the frequent confluence of cooling and heating currents, the annual precipitation in Guizhou is between 1100-1300 mm, but the seasonal distribution of precipitation is uneven, and 80% of the rainwater is concentrated from May to October. Liping County has an average annual temperature of about 16 ° C. Among them, January was the coldest, with an average temperature of 4.5 ° C and an extreme minimum temperature of -9.8 ° C. The county's annual average precipitation is 1325.9 mm, with a maximum of 1690.4 mm and a minimum of 1093.1 mm. The average annual evaporation is 1255.9 mm. Rongjiang County is located on the edge of the transition from the Yunnan-Guizhou Plateau to the hills of Guangxi. The terrain slopes from northwest to southeast, the river is deep, the middle is low, and the mountain features are obvious. The average annual temperature is 18.1 ° C, the average precipitation is 1196 mm, and the relative humidity is 80%. It has the characteristics of no severe cold in winter, no extreme heat in summer, mild climate, abundant rainfall, and long frost-free period. The air quality is excellent, and the annual averages have reached the national secondary standard.

3.1.2 Biophysical zones, soils and geology The landforms of Guizhou belong to the plateau mountains of southwestern China. The terrain in the territory is high in the west and low in the east, and it slopes north, east, and south from the middle. The average elevation is about 1100 meters. The Guizhou Plateau is mostly mountainous, and is known as “eight mountains, one water and one field”. The landforms of the province can be broadly divided into four basic types: plateau, mountain, hill and basin, of which 92.5% of the area is mountain and hill. There are many mountains in the territory. There is Dalou Mountain in the north, which runs through the north boundary from west to northeast. The Loushan Pass in Sichuan and Guizhou is 1444 meters high. The Miaoling crosses in the south and south of the country and the main peak Lei Gong Mountain is 2178 meters high. There is Wuling Mountain in the northeast. Fanjing Mountain is 2,572 meters high; Wumeng Mountain is high in the west, and Jiucaiping, Zhushi Township, , which belongs to this mountain range, is 2900.6 meters above sea level, the highest point in Guizhou. According to the second land census in 1993, Liping County has deep natural soil layers and moderate texture. The soil fertility is mostly medium, accounting for 56.31% of the total soil area, and high-quality soil accounts for 4.31%. The Shuikou River in Diping Township, Liping County, Qiandongnan Prefecture, is 147.8 meters above sea level, the lowest point in the province. The development of karst landforms in Guizhou is very typical. The karst landform covers an area of 109,084 square kilometers, accounting for 61.9%

4 of the province's total land area. The territory has a wide range of karst distribution, complete morphological types, and obvious geographical distribution. As of 2012, the underground mineral resources of Rongjiang County include eight kinds of metal ore: antimony, iron, gold, mercury, manganese, lead, copper and vanadium. Among them, the antimony metal reserves are 112,900 tons, and there are non-metallic ore silica, stone coal, kaolin, Sand and stone.

3.1.3 Land use The land resources of Guizhou Province are mainly mountains and hills, and there are fewer plains. The mountain area is 108,740 square kilometers, accounting for 61.7% of the total land area of Guizhou Province, and the hilly area is 54197 square kilometers, accounting for 31.1% of the total land area of Guizhou Province. The area of the flat dam between the mountains is 13,230 square kilometers, which only accounts for 7.5% of the total land area of Guizhou Province. There are not many land resources available for agricultural development. Due to the increase in population, non-agricultural land has increased, and the area of arable land has continued to shrink. The arable land area of Guizhou Province in 2018 was 4.5 million hectares, a decrease of 2,000 hectares compared to 2017.The per capita arable land area was less than 0.05 hectares, far below the average level of China. The proportion of cultivated land with thick soil layers, high fertility and good water conservancy conditions is low. According to the statistics of the detailed land survey in 1996, Liping County has a total land area of 444,100 hectares. The cultivated land within the territory is scattered between the gully slopes at an altitude of 400-1000 meters. The slopes of 6 °-15 ° and 15 °-25 ° are large, and the cultivated land is of medium utilization. It covers 39.51% of the cultivated land area, 56.59% of the two-cropped arable land a year, 3.68% of the three-crop arable land a year, and 0.04% of rest land and intercropping land. Per capita garden land is 0.02 hectare, per capita forest land is 4.5 hectares, and residential and industrial land per capita is 0.07 hectare; transportation land per capita is 0.01 hectare; water area per capita is 0.05 hectare; per capita unused land is 0.37 hectare.

3.1.4 Biodiversity and forests There are 9,982 species of vascular plants in Guizhou Province (including subspecies and varieties, the same below), of which more than 700 are edible, greening, landscaping, and more than 2,000 species capable of resisting pollution and improving the environment; they are listed as national first-class protection rare There are 16 kinds of plants, including fir, silver fir, Davidia involucrata, and cycad. It has abundant wildlife resources, including 1053 species of vertebrates, including 141 species of mammals, 509 species of birds, 104 species of reptiles, 74 species of amphibians, and 225 species of fish. The rare animals listed in the national level protection include the golden snub-nosed monkey, 15 species including the black leaf monkey and black necked crane. “Yelang has no idle grass, and Guizhou has many good medicines”. Guizhou is one of the four major Chinese medicinal material producing areas in the country. There are 4,419 kinds of medicinal plants and 301 kinds of medicinal animals in the province. There are 50 famous “authentic medicinal materials” at home and abroad. There are more than 350 kinds of Chinese herbal medicine resources that have been

5 developed and utilized. Gastrodia elata, Eucommia ulmoides, Coptis chinensis, Wujing, Dendrobium are the five famous medicinal crops in Guizhou. Forestry is a traditional industry in Liping, with a forest coverage rate of 78%. As early as the four years of Qianlong (1739) in the , Liping started artificial forestation. Forty-two years of Qianlong (1777), Liping’s territory “the firs on both sides of the strait are reflected, and the river has a long stream.” Timber sells well in Jianghuai and Guangxi. In 2006, the county had a forest area of 246,666 hectares, a forest coverage rate of 65%, and a standing timber volume of 14.15 million cubic meters, ranking first in the province's 10 forestry counties. There are 24 state-protected rare tree species and 1,220 wild species. Chinese herbal medicine; 675 species of 52 genera. It mainly produces Chinese fir, so it is called "Home of Chinese Fir", it is one of the top ten forest districts and counties in Guizhou Province, with a forest coverage rate of 58%. The main tree species are: Chinese fir, Masson pine, Camellia oleifera, Pecan, Tung, Oak, bamboo. Rongjiang County has a ground forest coverage rate of 74.71% and a standing timber volume of 21.28 million cubic meters. There are more than 2,000 types of plants in the county, of which more than 400 types have high practical value. Rare tree species Qing Qian Liu will be included in the national first-class protected plants, 20 in the second-level protection, and 17 in the third-level protection. It belongs to the key protected tree species of Guizhou Province: Cunninghamia lanceolata, Taxus chinensis, Magnolia grandiflora, Michelia sibirica, Broad-leaved Michelle, Bright-leaf Michelia, Rubia rubra, Small-leaf Red Bean, Flower Palm, Red Bean, South China Birch Green line willow, Muhe, etc.

3.1.5 Water resources There are many rivers in Guizhou. There are 984 rivers over 10 kilometers in length. In 2002, the river flow in Guizhou Province reached 114.52 billion cubic meters. The mountainous characteristics of the rivers in Guizhou are obvious. Most rivers have open valleys, smooth water flow, and small water volume. The middle river valleys are spread out, and the water flow is rapid. The downstream river valleys are deep and narrow, with large water volumes and rich hydraulic resources. The reserves of hydropower resources are 18.745 million kilowatts, ranking sixth in China, among which 16.83 million kilowatts can be developed, accounting for 4.4% of China's total. There are many river sections with concentrated water level differences, and the development conditions are superior. Liping County belongs to the watershed of the Yangtze River Basin and the Basin. The county ’s total runoff water production is about 2.660 billion cubic meters, and the theoretical resource of hydraulic resources is 80210 kilowatts. It accounts for 39.5% of the theoretical reserves, of which the Yangtze River system is 16060 kilowatts and the Pearl River water and sea are 15660 kilowatts. The average density of river networks is 0.78 kilometers per square kilometer, which is higher than the provincial average of 0171 kilometers. The groundwater reserves in the county reached 280 million cubic meters, accounting for 10.7% of surface water. Rongjiang County has 67 large and small rivers, with a total length of 1,303 kilometers. The theoretical water resources reserve is 259,900 kilowatts, and 103,700 kilowatts can be developed.

6 3.2 Socio-economic conditions The total area of family contracted cultivated land in Guizhou Province was 815,400 hectares in 2018, accounting for 2.26% of the country’s total. Among them, there were 75,913 hectares of food crops transferred, an increase of 5.6% compared to 2017. There were 35,362.8 hectares of arable land in the form of swap area, an increase of 16.7%. The area of arable land in the form of share cooperation was 175,800 hectares, an increase of 106.6%. The area of arable land in the form of farmland-shared cooperatives was 35,739.7 hectares, an increase of 19.6%. There were 68,600 hectares of cultivated land in other forms, a decrease of 33.5%. The area transferred to farmers was 221,400 hectares, an increase of 28.87%, the area transferred to cooperatives was 2.9 million hectares, an increase of 35.74%, and the area transferred to enterprises was 201,267 hectares, an increase of 20.38%. The area transferred to other entities is 102,533 hectares, an increase of 4.40%. In 2018, Guizhou’s total agricultural production accounted for 27.91% of GDP. The added value of agriculture, forestry, animal husbandry and fishery was 227.674 billion yuan, an increase of 6.8% over the previous year. The added value of the planting industry was 143.846 billion yuan, the added value of forestry was 17.461 billion yuan, the added value of animal husbandry was 50.804 billion yuan, and the added value of fishery was 3.843 billion yuan.

Table 1 Value added and growth rate of agriculture, forestry, husbandry and fishery in Guizhou Province Value Added (in Growth rate billion yuan) （%） Agriculture, forestry, animal husbandry and fisheries 227.674 6.8 Agriculture 143.846 8 Forestry 17.461 8.1 Animal husbandry 50.804 4.3 Fisheries 3.843 0 Agriculture, forestry, animal husbandry and fisheries auxiliary activities 11.72 5

The total output value of agriculture, forestry, animal husbandry and fishery and its service industry in Rongjiang County in 2018 totaled 3073 million yuan. Among them: the total output value of agriculture is 1565.41 million yuan; the total output value of forestry is 644.79 million yuan; the total output value of animal husbandry is 694.56 million yuan; the total output value of fishery is 80.43 million yuan; the total output value of agriculture, forestry, animal husbandry and fishery service industry is 87.81 million yuan. The total value-added of agriculture, forestry, animal husbandry and fishery and its service industry is 1931.38 million yuan, of which: the agricultural value-added value is 974.34 million yuan; the forestry value-added value is 457.49 million yuan; the animal husbandry value-added value is 386.99 million yuan; the fishery value-added value is 56.69 million yuan; The added value of the industry was 57.87 million yuan.

7 Table 2 Rongjiang county agricultural, forestry, livestock and fishery output value, value added and growth Output Value value (in Added (in Growth million Growth million rate yuan) rate（%） yuan) （%） Agriculture, forestry, animal husbandry and fisheries 3073 6.8 1931.38 6.54 Agriculture 1565.41 9.5 974.34 9.5 Forestry 644.79 5 457.49 4 Animal husbandry 694.56 4.5 386.99 4.5 Fisheries 80.43 1.5 54.69 1.4 Agriculture, forestry, animal husbandry and fisheries and auxiliary activities 87.81 1 57.87 0.5

Liping County’s added value of the planting industry was 998.67 million yuan, up 7.6%. The added value of forestry is 560. 53 million yuan ,up 6.9%; the added value of animal husbandry is 473.76 million yuan, up 5.1%. The added value of fishery was 52.77 million yuan, up 3.9%. The total value-added of agriculture, forestry, animal husbandry and fishery and its service industry is 75.15 million yuan, up 6.4 percent. Agricultural production conditions continue to improve. The county’s total power of agricultural machinery is 299,200 kilowatts. At the end of 2018, Liping County registered 1,284 farmers’ professional cooperatives (including 467 new cooperatives in 2018). The number of members who joined the cooperative was 39,100. In 2018, the county’s farmers’ professional cooperatives registered capital of 14.7999 million yuan, sales income reached 53.756 million yuan, and annual output value reached 42.718 million yuan, managing more than 37.817 million farmers. In addition, agricultural production conditions continue to improve. The total power of agricultural machinery in the whole year was 29.105 million kilowatts, and the newly-added water-saving irrigation area was 58,620 hectares. Among them, the total power of agricultural machinery in Liping County in 2018 was 299,200 kilowatts. In addition, the mechanization rate of Liping County is 70%, the mechanization rate of Zhaihao Town is 90%, and the mechanization rate of Pingding Village is also 90%.2 The income of farmers has increased steadily. In 2018, the per capita disposable income of all residents in Guizhou Province was 18,430 yuan, of which the per capita disposable income of urban residents was 31,592 yuan, an increase of 8.6%; the per capita disposable income of rural residents was 9,716 yuan, an increase of 9.6%.

2 During the GEF-7 project preparation phase, in Guizhou detailed baseline assessment was conducted in the two target counties Liping and Rongjiang, as well as in Zhaihao Town and Pingding Village of Liping County. These are considered representative samples of the province and respective counties.

8 Table 3 Farmers’ disposable income in Guizhou Province Amount Per capita disposable income of rural residents 9716 Wage income 4276 Net operating income 3227 Net income from property 126 Transfer of net income 2087

In 2018, the per capita disposable income of urban residents in Rongjiang County was 29,267 yuan, an increase of 8.9% year-on-year; the per capita disposable income of rural residents was 8,801 yuan, an increase of 10.5% over the previous year. In Liping County, the per capita disposable income of farmers in the county in 2018 was 8,735 yuan, an increase of 772 yuan over the previous year, an increase of 9.7%, and the quality of life of farmers was further improved.

There are 19.32 million farmers in Guizhou Province, of which 9.274 million are female and 10.045.3 million are male. There are 288,943 farmers and 490,000 farmers in Liping County and Rongjiang County, of which 22,826 farmers, 10,500 women and 12,326 men are in Zhaihao Town, Rongjiang County. The age composition of farmers in Zhaihao Town is as follows: 42.73% of farmers are under 35 years old, 41.78% of farmers are 35-65 years old, and 15.49% are farmers over 65 years old. There are 1,098 farmers in Pingding Village, Zhaihao Town. The age composition is as follows: 50.09% of farmers are under 35, 40.71% are farmers between 35 and 65, and 9.2% are farmers over 65. Wugong Village has 1416 farmers. The age composition is 51.55% of farmers under 35, 35.45% of farmers 35-65, and 12.99% of farmers over 65.

Figure 1 The age structure of the farmers

It can be seen that with the economic development and the implementation of the rural revitalization strategy, the economic pressure on urban life has become greater, and the economic and environmental development of rural areas has become better in recent years. More young people choose to go back home to

9 develop, so that they can not only take care of the elderly at home, but also accompany the children. More than half of the farmers in Wugong Village and Pingding Village are under 35, and there is a tendency for famers to become younger. In addition, the percentage of poor farmers in Guizhou Province is 4.3%. At the end of 2018, the total number of poor people in the province was 1.5512 million, and the total number of poor people was reduced by 1.841 million in the whole year. The incidence of poverty dropped to 4.29%. The percentage of poor farmers in Rongjiang County was 14.55%. In 2018, Rongjiang County received a total of 507,383 government minimum living guarantees, of which 21,620 were the minimum living guarantees for urban residents and 485,763 were the minimum living guarantees for rural residents. The percentage of poor farmers in Liping County is 77.12%.3 Thus, the incidence of poverty in the target area is significantly higher than the provincial average.

3.3 Ethnic minority groups In 2017, Guizhou Province had a resident population of 36 million, an increase of 200,000 over the end of the previous year. Among them, the urban resident population was 17.1 million, and the rural resident population was 18.9 million; males were 18.6 million and females were 17.4 million. There are 8.5 million children under 16 years of age. Liping County has a permanent population of 393,000, an increase of 10,800 over the previous year. Rongjiang County has a permanent population of 376,000, of which 87,300 are urban and 289,900 are rural residents. There are 27,394 permanent residents in Zhaihao Town, 14,862 males and 12,532 females, and the male-female ratio is 1.1859: 1. Pingding Village in Zhaihao Town has 1,098 permanent residents, 598 males and 500 females, and the male-female ratio is 1.196: 1. Wugong Village has a resident population of 1423, including 787 males and 636 females, with a male-to-female ratio of 1.2374: 1. It can be seen that the number of men is slightly more than that of women, but the male-female ratio is generally balanced.

The ethnic minorities in Guizhou are very diverse. There are 11.06 million ethnic minority people in Guizhou Province, representing approximately 30.7% of the total population. According to the sixth national census, Mongolians account for 0.12%, Huis account for 0.53%, Miaos account for 11.42%, Yis account for 2.40%, and Zhuangs account for 0.15%. account for 7.23%, Manchus account for 0.07%, Dong account for 4.12%, Yaos account for 0.12%, Bais account for 0.52%, Tujias account for 4.14%, She account for 0.11%, and Shui account for 1%, Muam ethnic group accounts for 0.07%, Qiang ethnic group accounts for 0.01%, Maonan ethnic group accounts for 0.08%, Gelao ethnic group accounts for 1.43% and other ethnic groups accounts for 2.2%.

As one of the Guizhou residents, according to the sixth national census, the total population of the Dong is 2,140,014. It is mainly distributed in areas adjacent to Guizhou Province, Hunan Province, and Guangxi

3 Numbers to be confirmed (source: county government).

10 Zhuang Autonomous Region. Among them, Qiandongnan Miao and Dong Autonomous Prefecture in Guizhou Province is the main settlement.

Han Percentage of ethnic groups in GuiZhou province (%) Mongolian Hui Miao Yi Zhuang Bouyei Manchu Dong Yao Bai Tujia She Shui Mu1am Qiang Maonan Gelao Other unrecognized peoples Figure 2 Percentage of ethnic groups in Guizhou Province (%)

According to the population statistics of Southeastern Guizhou Miao and Dong Autonomous Prefecture, in 2017 there were 33 ethnic groups in Southeast Guizhou Miao and Dong Autonomous Prefecture, including Miao, Dong, Han, Buyi, Shui and so on. As shown in Figure 3, Tianzhu, Liping, and Kaili are the three counties with the most ethnic minorities in Southeastern Guizhou Miao and Dong Autonomous Prefecture. Their ethnic minorities account for 97.9%, 88%, and 81.4% of the local registered population, respectively (Figure 4). The areas where ethnic minorities account for more than 90% of the local registered population are Tianzhu County, , Congjiang County, , and , accounting for 97.9%, 97.3%, 95.3%, 94%, and 92.3%. Shibing County, Cengong County and Zhenyuan County accounted for the least proportion, accounting for 57.8%, 50.7% and 48.5% of the local registered population.

11

Figure 3 Qiandongnan minority-population distribution map

Figure 4 Qiandongnan minority-population ratio As shown in Figure 5, the Dong people are mainly distributed in the eastern half of the Qiandongnan Miao and Dong Autonomous Prefecture, while the Miao (or Hmong) people are relatively evenly distributed (with a larger proportion in the western part). The Shui ethnic group is mainly distributed in the southwestern part, and the Buyi and other ethnic groups are mainly distributed in the northwestern part of the Miao and Dong Autonomous Prefecture in Southeast Guizhou.

12

Figure 5 Different minorities pie graph

It can be seen from the above that Guizhou Qiandongnan Miao and Dong Autonomous Prefecture is an autonomous prefecture composed of 33 ethnic minorities. Its ethnic distribution presents the characteristics of large mixed and small settlements, creating the vivid and colorful ethnic culture of Qiandongnan. More details on the distribution of the main ethnic groups are included in Annex 1.

3.4 Culture and traditions The ethnic minorities in Guizhou and in Qiandongnan Miao and Dong Autonomous Prefecture have distinct cultures and traditions. The provincial and local government is implementing several programmes to support the safeguard of cultural traditions and alleviate poverty among ethnic minority groups. Guizhou regards the heritage protection and development of minority cultures as an important starting point for inheriting national cultures and promoting a well-off society. It has put forward the concept of “excellent national culture is the treasure of Guizhou”. Since 2012, documents such as the “Regulations on the Protection of Intangible Cultural Heritage” have been introduced to inherit the traditional culture of ethnic minorities. For example, in 2011, the Qiang Dongzhou rice and fish and duck ecosystem was selected as a GIAHS protection pilot site, and in 2013 it was included in the first batch of China’s important agricultural cultural heritage list. The traditional agricultural ecosystem of rice-fish-duck is a unique production method and land use created by Dai residents in a natural condition with a small amount of arable land and a large mountain area in the process of long-term adaptation to nature. This method effectively saves land resources, realizes natural three-dimensional agricultural production, and effectively alleviates human-land conflicts. At the same time, this ecosystem also protects animal and plant diversity, controls pests and diseases, regulates local microclimates, and maintains soil and water conservation Ecological function.

13 4. FPIC Procedure

4.1 Analysis of potential impacts, risks and opportunities 4.1.1 Potential negative impacts and risks Generally, the project is aimed at generating positive environmental and socio-economic benefits for the local communities, including ethnic minority groups. The project will ensure that local communities, including vulnerable groups, women and the poor, are able to benefit from the project interventions. In Guizhou Province, the majority of project beneficiaries will be ethnic minorities. It is not anticipated that there will be any negative impacts on the ethnic minorities, since all project activities will be voluntary and elaborated in close consultation with the communities. Nevertheless, there is a small risk that, if the project activities are not planned and discussed in detail with ethnic minority groups, project activities may introduce new technologies (such as green mechanization or land consolidation to support minimum/zero tillage and conservation agriculture) that may go against local traditions and may not be well received by local communities. In addition, there is a risk that, if meetings are not held in a culturally appropriate way and in appropriate local language, some community members (such as women and vulnerable groups) are not able to actively participate in the meetings and benefit from the project interventions.

4.1.2 Opportunities There is a significant opportunity to strengthen and revive traditional agricultural systems such as the integrated rice-fish systems in the rice terraces. These systems not only ensure sustainable agricultural practices by reducing chemical use and increasing yields, but also provide income opportunities for local communities through marketing of local products (e.g., through Geographical Indication certification scheme). There is also opportunity to protect and restore local biodiversity and ecosystems that underpin these traditional systems. The target counties in Qiandongnan Miao and Dong Autonomous Prefecture are poorer than the target counties in other provinces. Thus, there is an opportunity to link measures for sustainable agriculture and value chains with poverty alleviation. E-commerce companies such as Alibaba are supporting farmers in poorer areas of China in marketing of agricultural products, such as the red rice cultivated by the Hani ethnic group in Yunnan Province.

4.2 Measures to avoid, minimize and mitigate negative impacts, and enable additional positive benefits 4.2.1 Guiding principles As mentioned above, the project will ensure that local communities, including vulnerable groups, women and the poor, are able to benefit from the project interventions. The project will also ensure that ethnic minority groups in the target townships and villages are informed, consulted and given the right to provide consent, or not, to the implementation of project activities. Local project implementation plans will be

14 developed in close consultation with ethnic minority groups, with involvement of a Social Safeguards Specialist. The national and county-level project implementation team will be responsible for ensuring that the project activities do not negatively affect indigenous peoples’ rights, access to land, natural resources, livelihoods, knowledge, or any other resources. Initial consultations were held with ethnic minority groups during the project preparation mission to Guizhou, and the local representatives expressed their general interest and welcomed the project activities. This will be discussed in more detail and confirmed during implementation following the four steps described below.

4.2.2 Ensuring FPIC for project implementation The FPIC process will be implemented in line with the FAO corporate manual4 consisting of a six-step procedure that aims at facilitating the process that should lead to consent. In order to be better aligned to the specificities of the project in question and its related proposed activities, the following specific steps will be adopted: Step 1: Training of project staff. As part of Activity 4.1.1.4, the project team (national PMO and county-level project coordination committees/PMOs) will be sensitized and trained on the principles of FPIC. Step 2: Disclosure. As part of Activity 1.1.2.1, the project will hold consultation meetings in the target townships and villages to inform ethnic minority groups (including both women and men, as well as any unrecognized ethnic groups) about the planned project interventions, with the involvement of a Social Safeguards Specialist. The project team will ensure that the meetings are held in a culturally appropriate way and in appropriate local language, by working closely with local representatives of the ethnic minority groups. The ethnic minority groups will also be informed about the FAO and GEF requirements for FPIC, and their right to decide whether or not to give consent. Furthermore, the ethnic minorities will be informed about the need to jointly design and put in place a project’s grievance redress mechanism. Step 3: Planning and Consent. A local project implementation plan will be elaborated and agreed upon by the community in each county/township, taking into account local specificities and traditional agricultural systems. Evidence of consent will be recorded in meeting minutes and/or a written agreement. Inputs from the communities will be taken into account in elaborating the local project implementation plans. In addition, the project’s knowledge management and communications strategy will include a section on dissemination of information to ethnic minorities in Guizhou. Step 4: Monitoring. Regular community meetings will be organized (at least semi-annually) as part of Activity 4.1.1.4 to review and, if necessary, adjust the implementation plans. Monitoring of progress and assessment of project impacts (positive and negative) will be done jointly with the communities in a participatory manner (ensuring participation of women and men). Surveys will be conducted to assess the satisfaction rate of the community groups and any grievance or complaint lodged will be assessed throughout

4 http://www.fao.org/3/a-i6190e.pdf.

15 the duration of the project with corrective measures being taken as necessary and in accordance with the local community.

4.2.3 Plan to mitigate risks and enhance opportunities

Risk Risk/opportunity Indicator / Mean(s) of Progress on Classific Mitigation Action (s) identified Verification mitigation action ation Risk 1. Project Moderate An FPIC procedure was • Reports of To be assessed activities may prepared (see above) in line community semi-annually introduce new with FAO Environmental and meetings / FPIC through the technologies that may Social Management consultations project progress go against local Guidelines and GEF Principles providing reports. traditions and may not and Guidelines for evidence of be well received by Engagement with Indigenous consent and Responsible: local communities. Peoples. satisfaction rate. PMU, Gender and Social Thus, before introducing any Safeguards new technologies (such as Specialist green mechanization or land consolidation), ethnic minorities will be consulted and activities will be adjusted based on community feedback. Risk 2. Meetings or Moderate In line with the FPIC • Reports of To be assessed trainings are not held procedure, the project staff community semi-annually in a culturally (national and local) will be meetings. through the appropriate way and trained and sensitized on the project progress in appropriate local principles of FPIC and the reports. language, thus some importance of culturally community members appropriate consultations. A are not able to Social Safeguards Specialist • Feedback from the To be reviewed participate or benefit. will support the process, and grievance redress in each location the national and local PMOs mechanism. on a monthly will monitor and report on the basis. process. Responsible: PMU, Gender and Social Safeguards Specialist Opportunity 1. High As part of Outputs 2.2.2 and • Project progress Responsible: Traditional 2.2.3, sustainable value chains reports. PMU, Gender agricultural systems and marketing of sustainable and Social

16 offer opportunities for products will be supported. Safeguards sustainable For Guizhou, this will involve Specialist agricultural practices marketing of products from and can be promoted sustainable, traditional through marketing of agricultural systems (among local products (e.g., others through partnership through Geographical with Alibaba). Indication certification scheme).

4.2.4 Organizational responsibilities and monitoring, evaluation and reporting The national and county-level project implementation team (national PMO and county-level project coordination committees/PMOs) will be responsible for ensuring that the FPIC process, and the risk mitigation plan, are followed, and for documenting and monitoring their implementation. Progress in the implementation of FPIC and the risk mitigation plan will be assessed through the semi-annual project progress reports. The costs of a Social Safeguards Specialist and relevant meetings and trainings have been included in the budget under Activities 1.1.2.1 and 4.1.1.4.

17 Annex 1: Population of ethnic minorities in Qiandongnan In 2017, there were 2.0481 million Miao (Hmong) people in Southeastern Guizhou Miao and Dong Autonomous Prefecture, accounting for 43.02% of the total registered population. As shown in Figure 6, they are mainly distributed in the western region of Southeastern Guizhou Miao and Dong Autonomous Prefecture. In contrast, there are fewer in the northern region. Kaili County has 372,687 , which is the region with the most Hmong people in Southeastern Guizhou Miao and Dong Autonomous Prefecture. As shown in Figure 7, Miao people account for a large proportion of the local registered population in some parts of the eastern and central regions, with Taijiang and Leishan counties accounting for 96.19% and 84.15% of the total registered population.

Figure 6 Miao population distribution map

18

Figure 7 Miao population ratio In 2017, there were 1.4465 million Dong people in Southeastern Guizhou Miao and Dong Autonomous Prefecture, accounting for 30.39% of the total registered population. As shown in Figure 8, they are mainly distributed in the southeast of Southeastern Guizhou Miao and Dong Autonomous Prefecture, and there are fewer Dong people in the west. Liping County has 386,404 Dong people, which is the region with the most Dong people in Southeastern Guizhou Miao and Dong Autonomous Prefecture, followed by Tianzhu County. As shown in Figure 9, the Dong population in the southeast region also accounts for a large proportion of the local registered population, with Liping County and Tianzhu County being the most prominent, accounting for 69.1% and 65.66%.

19 Figure 8 Dong population distribution map

Figure 9 Dong-population ratio In 2017, Southeastern Guizhou Miao and Dong Autonomous Prefecture had 76,200 Shui people, accounting for 1.60% of the total registered population. As shown in Figure 10, the Shui are mainly distributed in the southern regions of Southeastern Guizhou Miao and Dong Autonomous Prefecture, represented by Rongjiang County and . Rongjiang County has 41,865 Shui people, which is the region with the most Shui in Southeastern Guizhou Miao and Dong Autonomous Prefecture. As shown in Figure 11, the proportion of Shui people in the southeast area in the local registered population is relatively large, with Rongjiang County and Danzhai County being the most obvious.

20 Figure 10 Shui population distribution map

Figure 11 Shui population distribution map In 2017, Southeastern Guizhou Miao and Dong Autonomous Prefecture had 47,552 Buyi, accounting for 0.99% of the total registered population. As shown in Figure 12 and 13, there are fewer Buyi ethnic groups in Southeastern Guizhou Miao and Dong Autonomous Prefecture, which are mainly distributed in the eastern part of Southeastern Guizhou Miao and Dong Autonomous Prefecture. Among them, the Buyi ethnic group in has the largest number and accounts for the largest proportion of the local registered population.

Figure 12 Bouyei population distribution map

21

Figure 13 Bouyei population distribution map

22 GEF-7 Innovative Transformation of China’s Food Production Systems and Agro-ecological Landscapes towards Sustainability

Integrated Pest Management Plan

July 2020

Zhao Zhonghua, National Agricultural Technology Extension Service Center Xingfu Jiang, Institute of Plant Protection, Chinese Academy of Agricultural Sciences

Table of Contents A. Introduction ...... 2 B. Baseline analysis of pest control in the target areas ...... 3 1) Jiangxi, Jiangsu and Shandong Provinces ...... 3 2) Guizhou Province ...... 10 3) Issues and challenges ...... 12 C. Integrated Pest Management Plan ...... 13 1) Prevention and control strategy ...... 13 2) Main technical measures ...... 14 3) Assessment of risks and mitigation actions ...... 15 4) Capacity needs and technical assistance ...... 17 5) Monitoring and evaluation ...... 18 6) Budget and responsibility for IPMP implementation ...... 18 Annex 1: Relevant project activities and results indicators ...... 20

1 A. Introduction

The GEF-7 project “Innovative Transformation of China’s Food Production Systems and Agro-ecological Landscapes towards Sustainability” aims to support the innovative transformation of China’s agro-ecological landscapes and rural revitalization towards sustainability by integrating agro-ecological systems management, product value chains, innovative technologies for green agriculture development, payment for agro-ecological services incentive mechanisms and partnerships for biodiversity, soil and water conservation, climate change mitigation, food security, food safety, and sustainable rural livelihoods in support of the 2030 Sustainable Development Goals (SDGs). It will be implemented in selected counties of Shandong, Jiangsu, Jiangxi and Guizhou Provinces, as well as at the national level.

The project will be divided into four components as follows: 1. Component 1. Development of integrated landscape management (ILM) systems in agricultural production landscapes. 2. Component 2. Promotion of sustainable food production practices and responsible agri-food value chains. 3. Component 3. Conservation and restoration of ecosystems in production landscapes. 4. Component 4. Project coordination, knowledge management and monitoring & evaluation (M&E).

The project will aim to achieve improved practices in 610,000 ha and restore 120,000 ha of ecosystems in agricultural landscapes in Shandong, Jiangsu, Jiangxi and Guizhou Provinces, with a focus on the major staple crops rice, wheat, and maize. This will lead to benefits in the areas of biodiversity, climate change, and land degradation; and will also generate important socio-economic benefits. As such, the project directly contributes to China’s National Plan for Sustainable Development of Agriculture and its Strategy for Rural Revitalization. The project will also aim to support provincial and national upscaling and replication.

The project will be executed by the Ministry of Agriculture and Rural Affairs (MARA) in close collaboration with the Provincial Departments of Agriculture and Rural Affairs and County Agriculture Bureaus, and will engage stakeholders from government, academia, private sector, civil society, and local communities.

A baseline analysis on pesticide use and pest control measures was conducted during the project preparation phase, in order to assess any negative impacts from current pesticide use in the target areas as well as opportunities to reduce the use of chemical pesticides. The baseline survey on plant protection was conducted for the three major cropping patterns single or double cropping of rice, rice-wheat and wheat-corn in eight counties: Fenyi, Yushui, Liuhe, Taicang, Laizhou, Qihe, Rongjiang, and Liping, located in the four provinces of Jiangxi, Jiangsu, Shandong, and Guizhou. Based on the analysis, the project design team developed measures on Integrated Pest Management (IPM) to be incorporated into the project design. These measures are included in section C. “Integrated Pest Management Plan” of this document.

2

Most of the participating counties in this project are key counties of agricultural production and advanced counties of green production with good foundation and technical capacity in green prevention and control. According to the requirements and local conditions, the proposed project will carry out technology integration demonstration on three planting structure models, and promote application through various forms such as farmer training.

The objectives of this Integrated Pest Management Plan (IPMP) are: • To establish clear procedures and methodologies for IPM planning, design and implementation of activities to be financed under the project; • To develop monitoring and evaluation systems for the various pest management practices implemented under the project; • To assess the potential economic, environmental and social impacts of the pest management activities within the project; • To mitigate against negative impacts of crop protection measures; • To identify capacity needs and technical assistance for successful implementation of the IPMP; • To propose a budget required to implement the IPMP.

B. Baseline analysis of pest control in the target areas

1) Jiangxi, Jiangsu and Shandong Provinces The planting structure of Jiangxi, Jiangsu and Shandong provinces is in rotation of early rice – middle-late rice, wheat – single season rice – wheat – corn. Regarding the cultivation of rice, wheat and corn in the project: In Jiangxi Province, the rice planting area is 52 million mu; in Jiangsu Province, the rice planting area is 34.14 million mu, and the wheat planting area is 32.7 million mu; in Shandong Province, the wheat planting area is 61.258 million mu, and the corn planting area is 60 million mu. The main pest and disease occurrence area and main type of pests and diseases of the three main crops are shown in Table 1.

Table 1 Types and areas of diseases and pests of target crops in the three provinces Unit: per 10,000 mu1, ton (2018) Crop Province Pest Type Occurred Controlled Loss Actual Loss area area Retrieved

Rice blast 236.73 2,095.97 272,700.04 24,265.68 Sheath blight 3,025.37 4,055.69 1,213,732.24 126,920.55 Rice Jiangxi False smut 259.43 725.84 110,378.21 9,227.82 Rice stem borer 2,640.43 4,356.47 1,013,568.11 102,904.29

1 1 mu is 0.067 hectare. 10,000 mu are 666.7 hectare.

3 Rice leaf roller 976.73 1,645.03 311,961.15 29,063.01 Rice planthopper 1,225.70 2,357.61 621,270.96 48,016.98 Rice blast 684 5,539 573,773 1,1691 Sheath blight 2,706 6,042 1,422,761 70,328

False smut 390 3,038 112,469 3,490 Jiangsu Rice stem borer 948 1,890 178,430 8,664

Rice leaf roller 3,584 5,009 644,284 21,344

Rice planthopper 4,687 6,111 210,675 8,439

Wheat scab 1,459 5,799 1,212,366 82,400

Powdery mildew 1,458 3,274 448,831 31,969 Wheat sharp 1,773 1,815 354,033 47,901 Jiangsu eyespot Aphid 2,032 3,147 368,056 28,553

Gree Wheat mite 782 859 5,3761 8,639 Underground pest 304 327 18,894 3,457

Wheat Wheat rust 816.35 1,063.60 101,036.62 18,745.78 Wheat scab 576.26 868.81 47,640.04 8,049.02

Powdery mildew 1,710.32 1,878.36 270,630.03 40,771.12 Wheat sharp Shandong 2,125.95 2,142.71 275,754.89 64,023.77 eyespot Aphid 5,005.36 5,312.41 1,576,109.01 177,979.63 Gree Wheat mite 1,758.06 1,811.65 276,174.77 40,472.76

Underground pest 1,186.81 1,351.51 115,902.45 19,092.70 Corn northern 366.12 357.04 47,001.89 12,538.24 leaf blight Corn southern 455.45 451.75 62,982.69 14,016.86 leaf blight Corn rust 597.02 601.80 92,889.15 24,607.37 Corn Corn brown sport 600.20 599.80 75,668.72 14,927.53 Shandong (maize) Curvalaria leaf 480.27 483.18 59,219.58 11,270.06 spot Corn borer 4,195.47 4,265.39 771,979.61 123,395.71

Cotton bollworm 1,591.54 1,623.81 260,730.86 44,676.49 Aphid 819.97 834.87 126,975.21 20,875.42

4 Armyworm 355.42 380.98 45,125.40 8,457.12 Thrips 1,228.72 1,256.34 203,805.47 32,715.62

Underground pest 1,127.98 1,157.20 128,365.98 22,936.10

According to the current situation of the prevention and control of diseases and pests of the three main crops, the main challenge is to ensure the contradiction between quantity and quality safety of food production. Effective control of pests and diseases and rats through various planting measures is an important way to ensure the quantity and quality of agricultural products. However, due to the serious occurrence of pests and diseases, the prevention and control measures are mainly based on chemical control, which has caused problem of resistance to chemical pesticides. At the same time, due to the non-standard use of chemical pesticides, the simultaneous use of a variety of pesticides, excessive use, not using pesticides at safe intervals, results in pesticide residues and pesticide overuse. There are also problems such as the high cost of using non-chemical pesticides and low planting efficiency caused by the shortage of rural labor force, which aggravate the problem of non-standard use of chemical pesticides, as well as the illegal use of some internationally restricted pesticides. In addition, weeding problem exists in all three major crops. Malignant weeds in paddy field and dry land, herbicide dependence and resistance are also one of the major challenges, as shown in Table 2.

Table 2 Pesticide use in 3 provinces, with detailed data for various crops (2018) Province Pesticide use in Pesticide use Pesticide use Pesticide use Other the whole for rice for wheat for corn province (state) (commodity (data currently (data currently volume, ton) unavailable) unavailable) Jiangxi 34,294.6 24,000 - - Fenyi Early rice: 274 - - Mid-late rice: 389 Yushui Early rice: - - 191.8 Mid-late rice: 272 Jiangsu 69,545 - - - Liuhe 285 - - - Taicang 284 - - - Shandong 130,807.9 - - - Laizhou 1,250 - - - Qihe 709.7 - - -

5 Among the main diseases and pests of the three crops, rice planthopper, rice leaf roller, rice stem borer, rice blast, false smut; wheat aphid, wheat midge, underground pest, wheat scab, wheat strip rust, sharp eyespot, powdery mildew; corn northern/southern leaf blight, corn rust, cotton bollworm, etc. are the main targets of current control, and also the diseases and pests with large chemical pesticide use. The annual dosage is shown in Table 2.

At present, the number of pesticides registered amount of the three crops in China accounts for the majority of registered pesticides. The main types of chemical pesticides for controlling the above main target pests and diseases are: organophosphorus pesticides, pyrethroid pesticides, neonicotinoid, etc. The specific types are shown in Table 3.

Table 3 Pesticide registration and common types on rice, wheat and corn. Crop Number of Commonly Jiangxi Jiangsu Shandong Pesticide used registered pesticide Rice 10,642 Insecticide 48% chlorpyrifos Organophosphrous Omethoate Acaricide 10% imidacloprid Carbamate Phoxim Wheat 3,840 Fungicide 50% mancozeb Pyrethroid Chlorpyrifos Herbicide 40% Neonicotinoid Carbaryl Elicitor isoprothiolane Bisamide Bifenthrin Corn 3,092 Regulator 50% acetochlor Cyhalothrin (maize) Rodenticide Imidacloprid Pymetrozine Thiophonate-methyl Chlorothalonil Validamycin Hexaconazole Pyraclostrobin Difenoconazole Acetochlor MCPA 2,4-butylate Atrazine Fiuroxypyr Nicosulfuron

According to the baseline survey of the three provinces and six counties, high toxic or persistent organic pesticides are no longer used. Only one county in Jiangxi has the use of following pesticides, see Table 4 for detailed info.

6 Table 4 Use of high toxic or persistent organic pesticides (in Fenyi, Jiangxi Province) Dosage No. Type of pesticide Crop Pest/disease Usage Area (mu) (kilogram) 1 Aldicarb / / / 0 0 2 Phorate / / / 0 0 3 Isocarbophos Rice Borers Insecticidal 9,000 1,800 Rice, seedling, Aphids, 4 Omethoate Insecticidal 9,000 1,800 forest planthoppers 5 Phonamiphos / / / / / 6 Isofenphos-methyl / / / / / 7 Endosulfan / / / / / 8 Lindane / / / / / Nematode, 9 Carbosulfan Rice Insecticidal 6,000 6,000 aphid, borers 10 Other / / / / /

At present, each province’s integrated pest management measures in the three main crops mainly include agricultural measures based on disease-resistant varieties, physical/chemical prevention and control measures, biological control measures, ecological control measures, and comprehensive usage of these measures. According to the official report of the Ministry of Agriculture and Rural Affairs, the coverage rate of green control technology for the three main crops is 29.4%, and the coverage rate of measures is more than 60%. The detailed survey result of the three provinces are shown in Table 5.

Table 5-1 Application of IPM measures (comprehensive control) for rice-rice planting model in Jiangxi Province Rice diseases Main Implementation Input per 100% basis Amount Yield per and pest measures area mu invested mu monitoring and control measures Monitoring Automatic 80,000 mu 0.0667 / 40 yuan per / and pest detection lamp per mu per year Forecasting lamp mu Agricultural ploughing and 5,968,800 mu / / 80 yuan per control retting mu Physical Insecticidal 3,683,400 mu 0.025 lamp / 65 yuan per / control lamp per mu mu Biological Microbial 412,680,000 mu 0.1 0.032 20 yuan per / control preparation kilogram kilogram mu per mu per mu Chemical Chemical 101,213,200 mu 0.5 0.16 90 yuan per / control pesticide kilogram kilogram mu

7 per mu per mu

According to the baseline survey in Jiangxi Province, IPM technology is used as the guidance to control rice diseases, pest and weeds, and integrated agricultural control (ploughing and retting to kill borers), physical and chemical inducement control, biological control and chemical control. Among them, non-synthetic chemical pesticide control measures account for 33.5%.

Table 5-2 Application of IPM measures for wheat rice planting model in Jiangsu Province Wheat diseases and Main measures Implementation area pest monitoring and control measures Agricultural control Ecological regulation 590 Physical control Subtotal 95 Lamp 53 Yellow sticky trap 18 Insect pheromone 24 Biological control Subtotal 3,417 Artificial feeding of natural enemies 0 Microbial preparation (for disease) 1,584 Microbial preparation (for pest) 806 Agricultural antibiotics 823 Botanical pesticide 31 Inducer 10 Plant growth regulator 163 Chemical control Subtotal 13,502 Seed treatment 1,474 Soil treatment 382 Spraying 11,645

Rice diseases and pest Main measures Implementation area monitoring and control measures Agricultural control Ecological regulation 855 Physical control Subtotal 514 Lamp 142 Insect pheromone 148 Physical barrier (insect net) 158 Physical barrier (others) 66 Biological control Subtotal 9,650 Artificial feeding of natural enemies 22 Microbial preparation (for disease) 3,267 Microbial preparation (for pest) 2,330

8 Agricultural antibiotics 3,150 Botanical pesticide 133 Inducer 56 Insect growth regulators 372 Plant growth regulators 321 Chemical control Subtotal 33,900 Seeding treatment 17,947 Soil treatment 735 Spraying 15,218

The proportion of non-chemical technical measures in Jiangsu wheat-rice planting model was 23.4% for wheat and 38.0% for rice, and the weighted average non-chemical measures accounted for 31.2%

Table 5-3 Application of IPM measures for wheat corn planting model in Shandong Province Corn (maize) diseases Main measures Implementation area and pest monitoring and control measures Monitoring and Field investigation Information Forecasting unavailable Fixed point survey Agriculture control Selection of resistant varieties Physical control Insecticidal lamp Biological control Trichogramma Insect growth regulator Chemical control Chemical pesticide

Wheat diseases and Maim measures Implementation area pest monitoring and control measures Monitoring and Field investigation Information Forecasting unavailable Fixed point survey Agricultural control Selection of resistant varieties Physical control Insecticidal lamp Biological control Trichogramma Insect growth regulator Chemical control Chemical pesticide

In the wheat corn planting model, Shandong Province also adopts integrated IPM technology as the other two provinces, but due to the lack of specific data in the baseline survey, the proportion of non-chemical measures is temporarily lacking.

9 Since the Ministry of Agriculture and Rural Affairs put forward the concept of “public plant protection and green plant protection” in 2006, it has vigorously promoted the green prevention and control of crop diseases and pests, which achieved remarkable results. First, the coverage of green prevention and control has been increased. In 2006, the green control rate of crop diseases and pests in China was less than 20%, and by 2018, the coverage rate has increased to 29.4%. Second, a number of green prevention and control technology products have been developed and promoted. Physical and chemical inducement, biological control and ecological control technology have been widely accepted. Third, a number of green prevention and control demonstration sites have been set up. There are nearly 100 million mu of demonstration area across the country at national, provincial, municipal and county levels, involving various crops such as grain, fruit trees and vegetables. In 2015, the action of zero growth of pesticide use was carried out. In 2017, the goal of zero growth of pesticide use was achieved in advance. In 2018 and 2019, the Ministry of Agriculture and Rural Affairs proposed the goal of negative growth of pesticide use, which is gradually being realized.

Most of the participating counties in this project are key counties of agricultural production and advanced counties of green production with good foundation and technical capacity in green prevention and control. According to our requirements and local conditions, the proposed project will carry out technology integration demonstration on three planting structure models, and promote application through various forms such as farmer training.

2) Guizhou Province The main kinds of rice diseases and insect pests in Guizhou Province of China are as follows: rice blast, Pyricularia oryzae, rice sheath blight, Rhizoctonia solani, rice false smut, Ustilaginoidea virens, rice planthopper, Nilaparvata lugens, rice leafroller, Cnaphalocrocis medinalis, rice stem borer, Chilo suppressalis, rice stem maggot, Chlorops oryzae, etc. The annual occurrence area of the rice pests in Guizhou Province is 1.53 million ha in total. In recent years, the rice disease and insect pests in Guizhou Province are of average occurrence, while the rice blast and the rice plant hopper in the local area are more likely to occur.

There are 533,000 ha of rice area in Guizhou Province that need to use pesticide control each year, with 2-3 times of pesticides control on rice every year, and 750 g/ha of pesticide usage. The local pesticide control device is mainly a hand sprayer and an electric automatic sprayer. In some places, the plant protection unmanned aircraft is adopted; the average control efficiency is 0.67-3.33 ha/day of rice area. However, most of small farm holders spray the pesticide by themselves, organized by the local plant protection station staff. Some farmers ask specialized professionals to spray the pesticide uniformly. The total cost of pesticide control is 60 Chinese yuan every 666.7 m2 (1 mu).

At present, the management of pesticide use in Guizhou Province is based on the “Regulations on Pesticide Management”, the “Regulations on Quality and Safety of Agricultural Products of Guizhou Province”, the “Action Plan for the Integration and Development of Green Prevention and Control and

10 Integrated Prevention and Control of Characteristic Dominant Crops in Guizhou Province (2019-2020)”, the “Standard for Safe Use of Pesticides (GBb4285)”, and the “Guidelines for Rational Use of Pesticides (GB/T 8321.1-8321.7)”. The control of rice diseases and insect pests is mainly based on the “Guizhou Technical Specification for Monitoring Rice blast (DB52/T398-2005)”, the “Technical Specification for Monitoring the Rice false smut in Guizhou Province (DB52/T480-2005)”, the “Technical Specification for Monitoring Rice sheath blight in Guizhou Province (DB52/T397-2005), the “Technical Specification for Monitoring Rice planthopper (DB52/T396-2005) in Guizhou Province, the “Technical Specification for Monitoring Rice Leaf Roller (db52/T395-2005) in Guizhou Province”, the “Technical specification for monitoring Chilo suppressalis in Guizhou (DB52/T481-2005)”, the “Technical specification for monitoring of rice stem maggot, Chlorops oryzae in Guizhou Province (DB52/T479-2005)”, the “Technical specification for pollution-free and high quality rice production (DB52/T444-2003)”, and some other related standards for rice disease and insect pests control. Therefore, although information on whether highly hazardous pesticides (HHPs) are used on rice in Guizhou Province is unavailable, according to the requirements of the above regulations on pesticide and several technical specifications for monitoring rice disease and insect pests, the above HHPs (see Table 4) are not used in Guizhou.

Currently, management of rice diseases and insect pests in Guizhou Province is based on pests early monitoring and warning, and integrated pest management (IPM). The monitoring and early warning methods are as follows: 1) There are 30 national regional detection stations on disease and pests monitoring, and 33 provincial diseases and insects detection stations in the whole province. 2) The monitoring technology mainly includes automatic light trap of insects, field microclimate monitors, and real-time remote monitoring system through internet. Among them, the real time remote monitoring system uses big data tools for information exchange and sharing through the internet. 3) The monitoring staffs are mainly county-level plant protection station technicians and township agro-technical station technicians. The national agro-technical extension service center of the Ministry of Agriculture organizes training courses of pests monitoring and prediction in Southwest University (in neighbouring Chongqing) annually, and provincial and municipal training courses are held according to the pest occurrence situation annually. 4) The main monitoring crops and their early warning targets pests are rice (rice blast, rice sheath blight, rice false smut, rice plant hopper, rice leaf roller, rice stem borer, stem maggot); wheat (wheat stripe rust, powdery mildew, aphids); corn (Asian corn borer, oriental armyworm); tea (small green leafhopper, tea caterpillar); and vegetables (diamondback moth).

The main schemes of IPM of rice pests and diseases in Guizhou Province are as follows (Table 6): 1) Agricultural management: the control area is 0.533 million ha, the main technical measures are seed treatment and planting flowers on field ridges2, 2) Physical management: the control area is 0.067 million ha, the main technical measures are sexual pheromone trap, 3) Biological control: the control area is 0.2 million ha, the main technical measures are the release of natural enemies, spraying biological pesticides, and rice-fish

2 Seed treatment in the local area involves, firstly, selecting locally suitable high pest-resistant rice varieties, and secondly, treating rice seeds using pesticides before planting.

11 or rice-duck, or rice-frog culture, etc. 4) Chemical control: the control area is 0.533 million ha, mainly sprayed with chemical pesticides. However, in Rongjiang and Liping counties of Guizhou, most pest control measures still mainly rely on chemical control.

Table 6 Application of IPM measures for rice planting model in Guizhou Province Rice diseases and pest Main measures Control area monitoring and control measures Agricultural Seed treatment 533,000 ha management Planting flowers on field ridges Physical management Pheromone trap 67,000 ha Biological control Release of natural enemies 20,000 ha Spraying biological pesticides Rice-fish or rice-duck, or rice-frog culture Chemical control Chemical pesticides spraying 533,000 ha

3) Issues and challenges Based on the baseline survey on plant protection of the three major cropping patterns single or double cropping of rice, rice-wheat and wheat-corn in eight counties: Fenyi, Yushui, Liuhe, Taicang, Laizhou, Qihe, Rongjiang, and Liping, located in the four provinces of Jiangxi, Jiangsu, Shandong, and Guizhou, the following issues and challenges exist in the occurrence and control of pests and diseases.

1. The occurrence of pests and diseases is relatively severe. The survey results of six counties in three provinces show that whether it is rice, wheat or corn, the main pests and diseases are more than 8-10 species, and if weeds are added, there are more species. At present, the area of diseases, pests and weeds is relatively large, and the frequency of occurrence is medium or higher all year round, and some of the pests and diseases are severe in local areas.

2. The capacity for monitoring and early warning of pests and diseases is weak. Although China has continuously strengthened its capacity for monitoring and early warning of pests and diseases, due to institution reforms, staff turnover, urban expansion, etc., the current monitoring and early warning mainly focuses on the large-scale trend forecasts of several major pests and diseases. There is a shortage of monitoring equipment directly installed in the field, and the training of technicians in monitoring and early warning needs to be strengthened.

3. The proportion of chemical control is high. Based on the baseline survey, the prevention and control of major crop diseases and pests mainly adopts comprehensive control, but chemical control is still the main measure and the area of biological control is relatively small. In the three provinces Jiangxi, Jiangsu and Shandong, the area applying non-chemical prevention and control technologies accounts for around 30%, and

12 70% is still mainly applying chemical control. In Rongjiang and Liping counties of Guizhou, most pest control measures mainly rely on chemical control.

4. The prevention and control equipment is relatively backward. In Jiangxi, Jiangsu and Shandong, electric electrostatic sprayers and stretcher mounted sprayers account for a large proportion, and plant protection drones and other methods are adopted in some areas. Farmers in Rongjiang and Liping counties of Guizhou mainly use manual and power sprayers for self-protection, and no drone sprayer has been carried out yet.

5. Lack of standards for plant control/protection drones. Under the current situation of lack of rural labors and low efficiency in planting, drones reduce the dependence on manpower, but due to the lack of corresponding standards of using drones, the control effect and safety in pesticide application cannot be ensured. In particular, there are no corresponding measures for environmental pollution such as drift and loss of high-concentration chemical solutions.

6. Discarded pesticides and containers. Discarded pesticides and containers are mostly disposed of as part of general waste, without any special treatment, which causes secondary pollution of pesticides.

C. Integrated Pest Management Plan

1) Prevention and control strategy The prevention and control of pests and diseases adheres to the plant protection principle “prevention-oriented, comprehensive control”, and implements the concept “public plant protection, green plant protection”. Combining the green measures of prevention and control in various places and the issues and challenges reflected in the baseline survey, it is planned to increase the proportion of pest and disease monitoring and warning, agricultural control, physical control and biological control measures under the three planting patterns, and reduce the proportion of chemical control. The project will promote an integrated management model based on agricultural control (ecological control), biological control and physical control as main measures, and chemical control as an emergency supplement to protect the ecological environment and serve the production of safe, high-quality agricultural products. In terms of the chemical control, it is proposed to implement a professional unified prevention and control model, promote large-scale mobile sprayers, and improve drone control technologies to reduce pollution and improve control efficiency.*

*Note: No GEF-7 project funds will be used to procure chemical inputs. However, the project may issue technical guidelines and recommendations for improved, low-impact chemical use and application, in line with the overall aim of reducing the use of chemical pesticides.

13 2) Main technical measures The main technical measures that are proposed are summarized below. These measures will be implemented as part of Outputs 2.1.1, 2.1.3 and 4.1.1, taking into account local specificities and building on ongoing projects and programmes. The relevant activities and indicators related to these outputs are included as Annex 1 to this document.

1. Monitoring and early warning. Building on the existing local pest and disease monitoring and early warning stations, carry out artificial intelligence methods such as big data and the Internet of things to predict and forecast rice pests and diseases, improve the accuracy of predicting and forecasting, and guide the comprehensive management of local rice pests and diseases. Strengthen investment in monitoring equipment, make good use of supporting funds, strengthen the capacities for monitoring and warning of pilot counties, strengthen the capacity on pest diagnosis and surveillance using different approaches including molecular technology, and appropriately invest in monitoring and control equipment such as sex pheromone trap, light trap and efficient insecticide spreading equipment.

2. Agricultural control. The main methods of agricultural control are resistant varieties, seed treatment and planting flowers and grass on field ridges (without the use of herbicides). Specifically, select the suitable local resistant varieties for seeding, and seed treatment should be done before sowing to control pests and diseases. Field ridges and edges can be used to grow trapping plants and flowering plants (such as vetiver grass, sesame, soybean and clover) to attract and cultivate the natural enemy populations and increase biodiversity. Appropriately invest in purchasing seed resources of flowering plants. Through deep plowing, weeds can be reduced, and the use of herbicides can be reduced. Pilot AI technologies to manage weed, where relevant.

3. Physical control. Insecticidal lamps, sex pheromone trap and insect nets are the main methods of physical control. According to the main target pest species and population density in the local area, select insecticidal lamps and sex pheromone trap and install them in a certain density. In areas where rice planthopper is more serious, insect prevention nets can be selected where suitable.

4. Biological control. Promote green methods of prevention and control such as rice field fish culture, rice field duck culture, rice field frog culture, intercropping wheat and corn, crop diversification. To improve the biodiversity of farmland systems, flowering plants are planted in field ridges and filed edges to attract and cultivate the natural enemy populations to strengthen the function of biological control, or release natural enemies such as Trichogramma to control target pests. If necessary, according to the target pests and diseases, appropriately spray biological agents such as Bt, so as not to adversely affect farmland ecology. Review current subsidies and incentives for biological alternatives to chemical pesticides; and further promote such alternatives. The traditional rice-fish system in Qiandongnan of Guizhou Province will be improved and further

14 expand the green control methods of rice-fish, rice-duck and rice-frog area. In a small number of areas where conditions permit, a rice-azolla-fish system can be piloted to control pests in rice field using food chains.

5. Chemical control. Promote adoption of high-efficiency, low-toxicity and environment-friendly chemical pesticides in chemical control. Considering the types and severity of major local pests and diseases, rationally use highly effective and low-toxic chemical pesticides for prevention and control in emergency or when non-chemical options are not available, and meanwhile, promote professional, mobile sprayers or drones to conduct unified control, in order to improve control efficiency. Support phasing out of the small number of highly hazardous pesticides (HHPs) that are still in use in Fenyi county. In cooperation with the environment experts of the project team, carry out environmental impact assessment of drone application in the control of pests and diseases of major crops. It mainly monitors the drift and loss of chemical solutions during the operation of the drones, and the impact on environmental organisms, so as to improve drone control technologies and evaluate the necessity of drone control scientifically and reasonably. In addition, the project will work to improve pesticide management including pesticide registration, usage, and disposal of leftover and contaminated containers.

3) Assessment of risks and mitigation actions

The following table analyses the potential risks and impacts from the pest management activities implemented within the project, and proposes actions to mitigate these risks.

Risks / potential impacts Proposed mitigation action Socio-economic risks 1. The replacement of chemical control by Measures to replace chemical pesticides will be closely linked with other measures (agricultural, physical, strengthening pest early warning and monitoring systems, so that the biological) does not have the anticipated necessary actions for chemical control can be taken in a timely effect and leads to crop damage and loss manner if and when other measures are not effective (as already from pests that would have been otherwise currently applied in the project area). controlled by pesticides. 2. The replacement of chemical pesticides by The measures to replace chemical pesticides will be associated with low-impact alternatives may result in support measures implemented by local government, such as increased costs for farmers. government-supported biological control mechanisms as well as financial incentives/subsidies where appropriate. Close attention will be paid to the economic benefits for farmers. Environmental and health risks 3. The replacement of highly hazardous The project will only recommend WHO Class III and Class U pesticides (HHPs) under the project leads to pesticides, and will aim to phase out the use of Class I and Class II the use of other chemical pesticides that pesticides. Furthermore, the project will enhance capacity and level have negative impact on the environment of understanding among farmers, local enterprises and extension and human health. service providers for technical and rational pesticide application.

15 4. As highlighted above, GEF-7 project funds The target provinces and counties already have significant will not be used to procure chemical inputs, regulations, technical guidelines and procedures, as well as and the project is expected to result in the institutional structures in place for the safe use and handling of reduced use of chemical pesticides. chemical pesticides. These will be closely adhered to by the project. Nevertheless, the project may issue technical guidelines and recommendations In addition to these local regulations and guidelines, the project will for improved, low-impact chemical use and take measures to enhance capacity and level of understanding among high-efficiency application and farmers, local enterprises and extension service providers for demonstration, in line with the overall aim technical and rational pesticide application. In the selection of of reducing the use of chemical pesticides. pesticides, factors to be taken into account include hazards and risks This may result in the use of chemical to users, selectiveness and risk to non-target species, persistence in pesticides in activities associated with the the environment, efficacy and likelihood of development or presence project, which could create environmental of resistance by the target organism, in line with FAO’s and health risks. Environmental and Social Management (ESM) Guidelines under Environmental and Social Standard (ESS) 53. In addition, in line with the provisions of the FAO/WHO International Code of Conduct on Pesticide Management and relevant multilateral environmental agreements that include pesticides, the following list of criteria will have to be met for any pesticide use associated with the project: a. The product should be registered, or specifically permitted by the relevant national authority if no registration exists. Use of any pesticide should comply with all the registration requirements including the crop and pest combination for which it is intended. b. Users should be able to manage the product within margins of acceptable risk. Activities associated with the project will not use pesticides that meet the criteria that define HHPs. c. Preference should be given to products that are less hazardous, more selective and less persistent, and to application methods that are less hazardous, better targeted and requiring less pesticides. d. Any international procurement of pesticides must abide with the provisions of the Rotterdam Convention on the Prior Informed Consent (PIC) Procedure for Certain Hazardous Chemicals and Pesticides in International Trade. 5. Although not directly procured by the In line with the FAO ESM Guidelines, the following additional project, the use of pesticides in the treatment conditions must be met if pesticides are used for seed of seeds in activities association with the treatment (seed storage chemical or seed treatment): project may create environmental and health a. The treatment of seeds must be done in an appropriately risks. equipped facility that ensures full containment of the pesticides. b. Users of seed treatment equipment should be provided with suitable application equipment and instructed on calibration, use

3 http://www.fao.org/fileadmin/templates/agphome/documents/Pests_Pesticides/Code/E_SS5_pesticide_checklist.pdf.

16 and cleaning of the equipment. c. Treated seeds must be dyed using an unusual and unpalatable colour to discourage consumption. d. All packages containing treated seeds must be clearly marked “Not for human or animal consumption” and with the skull and crossbones symbol for poison. e. Those handling treated seeds during distribution or use in the field should be informed that the seeds are treated with pesticides which can have toxic effects on their health, the health of others and on the environment. They should be instructed to wear gloves, dust masks and clothes that fully cover their body Gloves and dust masks must be provided if these are not available. f. Packaging from treated seeds should not be reused for any purpose.

The project will take measures to enhance capacity and level of understanding among farmers, local enterprises and extension service providers for technical and rational pesticide application, including for seed treatment. 6. Activities to improve pesticide management For activities related to the disposal of obsolete pesticides and including pesticide registration, usage, and pesticide contaminated materials, the project will follow the disposal of leftover and contaminated guidance in the FAO Environmental Management Toolkit for containers may result in environmental and obsolete pesticides4. Suitable risk evaluation, management and health risks through the handling and mitigation measures as provided by the Toolkit, will be applied in all movement of hazardous waste. such activities.

4) Capacity needs and technical assistance As explained above, the target provinces and counties already have significant regulations, technical guidelines and procedures, as well as institutional structures in place for the safe use and handling of chemical pesticides. These will be closely adhered to by the project. In addition to these local regulations and guidelines, the project will take measures to enhance capacity and level of understanding among farmers, local enterprises and extension service providers for technical and rational pesticide application.

The IPM measures to be implemented under Output 2.1.3 will be incorporated into the training and extension program to be developed under Output 2.2.1. It is proposed to set up Farmer Field Schools to carry out trainings on pest and disease monitoring, early warning and comprehensive control technologies to improve the IPM technique level of local technicians and farmers. Considering the features of the project, the Farmer Field Schools are mainly based on three cropping models, and participatory trainings are carried out to cultivate farmers’ awareness of independent decision-making and improve the consciousness of farmers’

4 http://www.fao.org/agriculture/crops/obsolete-pesticides/resources0/en/.

17 application of green technologies in prevention and control.

Local agriculture and extension officers will be closely involved in the development of the training and extension curricula, and close attention will be paid to ensuring that adequate capacity is developed in local institutions to sustain the interventions in the long term.

5) Monitoring and evaluation According to the specific conditions of the project, the project will conduct regular surveys and guidance of IPM implementation to supervise and monitor the implementation of the plan. In particular, the project will evaluate the following benefits: i. Accuracy rate of predicting and forecasting of pests and diseases: Evaluate the improvement of predicting and forecasting of the occurrence of local rice pests and diseases. ii. Economic benefit analysis: Conduct production test in the farmland system and analyze economic benefit according to the market mechanism. Assess rice field fish, duck and frog breeding system rice production and economic benefit and revenue increase benefit after the intervention of this project. iii. Ecological benefit analysis: Investigate the amount of increased natural enemy populations and the reduced chemical inputs for ecological benefit analysis. iv. Social benefit analysis: Analyze the percentage of the reduction of chemicals, and analyze social benefit to ensure the quality and safety of agricultural products. v. Improvements in pesticide management including pesticide registration, usage, and disposal of leftover and contaminated containers.

The provincial and county Bureaus of Agriculture and Rural Affairs relevant personnel will be responsible for the implementation and monitoring of the IPM measures. The progress in implementing the IPM plan will be assessed and reported in the annual Project Implementation Reports (PIRs).

6) Budget and responsibility for IPMP implementation

The budget for the implementation of the IPMP is summarized below.

Budget item Timeline Amount • Training budget under Output 2.2.1 (about Year 1-2 and • USD 140,000 25% of the overall training budget under throughout project this output is estimated to contribute to the implementation IPMP implementation).

• Entomologist/plant pathologist Throughout • USD 25,000 project implementation

18 • Implementation budget for IPMP and Throughout • USD 380,000 (estimated as 20% of innovations to reduce chemical use under project implementation budget) Output 2.1.3. implementation

• Guidelines for IPM monitoring Throughout • USD 100,000 project implementation Total Budget USD 645,000

The provincial and county Bureaus of Agriculture and Rural Affairs relevant personnel, to be designated at the project inception, will be responsible for the implementation and monitoring of the IPMP and IPM measures, with technical support from the project team. The National Project Management Office (NPMO) under MARA will be responsible for oversight of the IPMP implementation and monitoring.

This includes responsibility for the proper storage, transport, distribution and use of any chemical pesticides used in association with the project activities, in accordance with national and local regulations.

The progress in implementing the IPM plan will be assessed and reported in the annual Project Implementation Reports (PIRs).

19 Annex 1: Relevant project activities and results indicators The following table is an excerpt of Annex H (work plan).

Responsible 2020 2021 2022 2023 2024 2025 2026 Output Main Activities /Lead Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Component 2: Promotion of sustainable food production practices and responsible agri-food value chains for the staple crops of rice, wheat and maize Outcome 2.1: Sustainable agricultural production practices deployed that enhance ecological functions, improve soil quality and fertility, mitigate GHG emissions and establish resilient agricultural production models. Output 2.1.1 Activity 2.1.1.1: Conduct detailed analysis of existing technical NPMO, Sustainable and Climate guidelines and GAPs for the target grain crops (in the target MARA, Smart Agriculture (CSA) provinces and similar agro-ecological zones in China), including provincial implemented to promote their contributions to biodiversity, land degradation, carbon DARA, carbon sequestration and sequestration and GHG emission reduction, climate change county-level emission reduction; adaptation and food security targets. PMOs demonstrate effective soil Activity 2.1.1.2: Improve existing or develop new technical and water management; guidelines and/or GAP standards for sustainable and and optimize the climate-smart agriculture practices in consultation with agricultural environment. stakeholders (including potential incorporation of elements of SRP; and the use of traditional knowledge where relevant). Activity 2.1.1.3: Hold community meetings, including consultations with vulnerable groups such as women, the poor, and ethnic minorities, to agree on detailed implementation plans in each county and regularly assess progress. In Guizhou, this will also involve ensuring FPIC for ethnic minority groups. Activity 2.1.1.4: Implement field activities to support implementation and replication of the new practices/

technologies/standards above, in parallel with training conducted under Output 2.2.1. Activity 2.1.1.5: Conduct meetings/site visits to exchange with WB/Hubei on sustainable agriculture practices and Climate-Smart Agriculture (CSA). Activity 2.1.1.6: Regularly review and, if required, revise or improve guidelines and standards. Output 2.1.3 Activity 2.1.3.1: Conduct detailed analysis and assess feasibility NPMO, Innovations to reduce the of innovations (including digital technologies) to reduce MARA, use and discharge of chemical use and discharge in collaboration with stakeholders provincial chemical fertilizers and and private sector partners in the target counties. DARA, pesticides implemented, Activity 2.1.3.2: Develop detailed integrated pest management county-level such as precision plans (IPMP) and technical guidelines on selected innovations, PMOs

20 Responsible 2020 2021 2022 2023 2024 2025 2026 Output Main Activities /Lead Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 agriculture, soil testing, in coordination with the guidelines and/or GAP standards integrated pest developed under Output 2.1.1. management (IPM), Activity 2.1.3.3: Implement field activities to support ecological interception implementation of the IPMPs and innovations mentioned above. systems, and digital technologies. Activity 2.1.3.4: Support replication and upscaling of the innovations, including through exchange of best practices

among counties/provinces and with WB/Hubei, and through private sector investments (Output 2.2.3). Outcome 2.2: Responsible, market-oriented agricultural value chains implemented, including through government-private enterprise-farmer cooperative partnerships and capacity building. Output 2.2.1 Activity 2.2.1.1: Develop gender-sensitive training and NPMO, Capacity and awareness extension program (including Farmer Field Schools approach MARA, developed among farmers where relevant) for farmers, extension service providers, provincial (especially women), enterprises and cooperatives in the target counties/provinces on: DARA, extension service (i) technical guidelines/standards developed under Outputs 2.1.1 county-level providers, enterprises and and 2.1.3; and (ii) associated value chains. The training may also PMOs cooperatives on incorporate aspects of eco-agriculture and ecological restoration sustainable production and to support implementation of Outputs 3.1.1 and 3.1.2. agricultural value chains. Activity 2.2.1.2: Implement training and extension program with local stakeholders (women and men) in the target

counties/provinces, in parallel with field activities implemented under Outputs 2.1.1 and 2.1.3. Activity 2.2.2.3: Support replication and upscaling of responsible, inclusive value chains and access to financial services for sustainable crop production. Component 4: Project coordination, knowledge management and M&E Outcome 4.1: Effective project coordination, knowledge management/information exchange and M&E. Output 4.1.1 Activity 4.1.1.4: Support and monitor implementation of Project coordination, Gender Action Plan, FPIC and Pest Management Plan. Organize monitoring and gender training for project staff and focal points. evaluation, and reporting, as well as coordination with and participation in global Impact Program (IP) events and activities, conducted.

21 The following table is an excerpt of Annex A1 (results indicators).

Results chain Indicators Baseline Mid-term target Final target Means of verification Assumptions Responsible for data collection Objective-level indicators/GEBs GEF-7 Core a) Core Indicator 9: 0 4 (1 per province) Project progress Implementation of NPMO, local-level Indicators Reduction, reports on the the IPM plans leads PMOs disposal/destruction, implementation of the to a sustained phase out, elimination Integrated Pest reduction in the use and avoidance of Management Plans of harmful chemical chemicals of global pesticides. concern and their waste See also indicator on in the environment and Pesticide reduction in processes, materials under Outcome 2.1 and products below.

Sub-indicator 9.5: Number of low-chemical/non-chem ical systems implemented particularly in food production, manufacturing and cities Component 2: Promotion of sustainable food production practices and responsible agri-food value chains for the staple crops of rice, wheat and maize Outcome 2.1: a) Pesticide reduction in Some general Reduce by 5% Reduce by 10% Monitoring system/ Project interventions NPMO, local-level Sustainable the project intervention baseline data app. lead to measurable PMOs agricultural production area available in the changes in chemical practices deployed that agriculture use by farmers. enhance ecological report, but not functions, improve soil specific for the quality and fertility, project mitigate GHG intervention area. emissions and establish resilient Monitoring agricultural production system, with models. detailed baseline, to be put in place at the beginning of project implementation.

22 Results chain Indicators Baseline Mid-term target Final target Means of verification Assumptions Responsible for data collection Outcome 2.2: a) Number of person-time 0 15,000 (at least 50% 50,000 (at least 50% Project progress NPMO, local-level Responsible, (women and men) women), of which: women), of which: reports. PMOs market-oriented trained. agricultural - Shandong: 5,000 - Shandong: 17,000 Training / Farmer value chains - Jiangsu: 3,500 - Jiangsu: 12,000 Field School / online implemented, - Jiangxi: 3,000 - Jiangxi: 9,000 modules training including through - Guizhou: 3,500 - Guizhou: 12,000 reports. government-private enterprise-farmer cooperative partnerships and capacity building.

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