ESIA Appendix 2 Oyu Tolgoi Project Critical Habitat Assessment: IFC Performance Standard 6/ EBRD Performance Requirement 6 August 2012 The Biodiversity Consultancy Ltd and Fauna & Flora International – Oyu Tolgoi LLC – Critical Habitat Assessment: IFC Performance Standard 6/EBRD Performance Requirement 6 –August 2012 This report has been written by: The Biodiversity Consultancy Ltd and Fauna & Flora International, Cambridge, UK, with contributions from the Wildlife Conservation Society Recommended citation: TBC & FFI (2012) Oyu Tolgoi Project Critical Habitat Assessment: IFC Performance Standard 6/EBRD Performance Requirement 6. Unpublished draft report of The Biodiversity Consultancy and Fauna & Flora International, August 2012. 2 The Biodiversity Consultancy Ltd and Fauna & Flora International – Oyu Tolgoi LLC – Critical Habitat Assessment: IFC Performance Standard 6/EBRD Performance Requirement 6 –August 2012 TABLE OF CONTENTS I CONCLUSIONS AND IMPLICATIONS........................................................................... 9 II AN INTRODUCTION TO THE OYU TOLGOI PROJECT........................................... 11 III WHAT IS CRITICAL HABITAT? A RESUMÉ OF PARAGRAPH 9 OF PERFORMANCE STANDARD 6 /PARAGRAPH 13 OF PERFORMANCE REQUIREMENT 6................... 11 IV METHODS..................................................................................................................... 13 V RESULTS........................................................................................................................ 13 VI NEXT STEPS AND RECOMMENDATIONS................................................................ 17 1 INTRODUCTION: THE OYU TOLGOI PROJECT, THE ENVIRONMENT, AND PROJECT STAKEHOLDERS.................................................................................................................20 1.1 The Oyu Tolgoi Project.................................................................................................................20 1.2 The environment and biodiversity of the Oyu Tolgoi project......................................................20 1.2.1 The South Gobi Region.....................................................................................................20 1.2.2 Environmental studies to date..........................................................................................21 2 JUSTIFICATION AND SCOPE......................................................................................22 2.1 Report purpose ...........................................................................................................................22 2.2 Report delimitation: inclusions and exclusions...........................................................................22 2.2.1 Performance Standard 6/Performance Requirement 6....................................................22 2.2.2 Scope of report.................................................................................................................22 3 UNDERSTANDING PARAGRAPH 9 OF PERFORMANCE STANDARD 6 /PARAGRAPH 13 OF PERFORMANCE REQUIREMENT 6........................................................................... 23 3.1 Context: the IFC Performance Standards and EBRD Performance Requirements......................23 3.2 The concept of Critical Habitat....................................................................................................23 3.3 The seven PS6 Paragraph 9/PR6 Paragraph 13 Critical Habitat Criteria......................................24 3.4 Nature of the PS6 Paragraph 9/PR6 Paragraph 13 Criteria.........................................................24 3.4.1 As trigger criteria..............................................................................................................24 3.4.2 As qualitative versus quantitative criteria........................................................................25 3.5 A summary of the IFC Oyu Tolgoi project Guidance Note for IFC Paragraph 9 Criteria 1-3.......25 3.5.1 Units of analysis................................................................................................................25 3.5.2 Tiers and the concept of grades of Critical Habitat..........................................................25 3.5.3 Global versus national population sizes...........................................................................26 3.5.4 Biodiversity offsets............................................................................................................26 3.6 PS6 Paragraph 9 Criteria in detail................................................................................................27 3.6.1 Understanding of PS6 Paragraph 9 Criterion 1/PR6 Paragraph 13 Criterion 2.................27 3.6.2 Understanding of PS6 Paragraph 9 Criterion 2/PR6 Paragraph 13 Criterion 3.................27 3.6.3 Understanding of PS6 Paragraph 9 Criterion 3/PR6 Paragraph 13 Criterion 4.................28 3.6.4 Understanding of PS6 Paragraph 9 Criterion 4.................................................................28 3 The Biodiversity Consultancy Ltd and Fauna & Flora International – Oyu Tolgoi LLC – Critical Habitat Assessment: IFC Performance Standard 6/EBRD Performance Requirement 6 –August 2012 3.6.5 Understanding of PS6 Paragraph 9 Criterion 5.................................................................29 3.6.6 Understanding of PS6 Paragraph 9 Criterion 6.................................................................30 3.6.7 Understanding of PS6 Paragraph 9 Criterion 7/PR6 Paragraph 13 Criterion 6.................31 4 METHODS..................................................................................................................... 32 4.1 Summary......................................................................................................................................32 4.1.1 Step 1: Define scope of assessment, area of influence and units of analysis..................33 4.1.2 Step 2: Collect and verify available information on biodiversity and ecosystem services35 4.1.3 Step 3: Screen against Paragraph 9 Criteria......................................................................35 4.2 PS6 Paragraph 9 Criteria 1-3/PR6 Paragraph 13 Criteria 2-4 species methods...........................35 4.2.1 Defining candidate taxa (Conservation Priority Species)..................................................35 4.2.1.1 Criterion 1: Critically Endangered and Endangered species.....................35 4.2.1.2 Criterion 2: Endemic and restricted-range/geographically-restricted species.....................35 4.2.1.3 Criterion 3: Congregatory and migratory species.....................................36 4.2.2 Interpretation of the Oyu Tolgoi Guidance Notes Methods for Criteria 1-3....................36 4.2.3 Determine the units of analysis........................................................................................37 4.2.3.1 Understand the regional landscape in which the project is located.........37 4.2.3.2 How is the taxon using the landscape?.....................................................37 4.2.3.3 How is the taxon using the project site?...................................................37 4.2.3.4 What is the spatial scope of potential project impacts? ..........................37 4.2.3.5 Result: definition of the units of analysis..................................................37 4.2.4 Obtain or calculate the global EOO, AOO, total area of known sites, or population .......38 4.2.4.1 Extent of occurrence (EOO).......................................................................38 4.2.4.2 Area of occupancy (AOO)..........................................................................39 4.2.4.3 Total surface area of known sites..............................................................39 4.2.4.4 Population size..........................................................................................39 4.2.5 Obtain or calculate the national EOO, AOO, total area of known sites, or population....40 4.2.6 Calculate the population size within, and/or area of, the units of analysis.....................40 4.2.7 Calculate the proportion of the global or national population represented by the units of analysis..........................................................................................................................................40 4.2.8 Screen this output against significance thresholds within Tiers 1 and 2 of the Oyu Tolgoi Project Guidance Note on Critical Habitat....................................................................................40 4.3 PS6 Paragraph 9 Criterion 4 methods: unique assemblages of species......................................40 4.4 PS6 Paragraph 9 Criterion 5 methods: key evolutionary processes............................................40 4.5 Criterion 6 and 7 general methods: key ecosystem services and biodiversity of significant social, economic or cultural importance to local communities.........................................................................41 4.5.1 Spatial scale.......................................................................................................................42 4.5.2 Two axes to define Critical Habitat for ecosystem services..............................................42 4.5.2.1 Significance of ecosystem services............................................................42 4.5.2.2 Availability of spatial alternatives to ecosystem services.........................43 4.5.2.3 Significance × Replaceability.....................................................................44