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PROJECT INFORMATION DOCUMENT (PID)
APPRAISAL STAGE
Project Name
Region
Sector
Project ID
GEF Focal Area
Borrower(s)
Implementing Agency
Environment Category
Date PID
Prepared/Updated
Date of Appraisal
Authorization
Date of Board Approval
Report No.: 38488
COLOMBIA: Caribbean Savannah Carbon Sink Project
LATIN AMERICA AND CARIBBEAN
Forestry (100%)
P100738
Climate change
N.A.
Corporación del Valle del Sinu (CVS)
[ ] A [X ] B [ ] C [ ] FI [ ] TBD (to be determined)
November 17, 2006
ERPA: March 2007
1. Country and Sector Background
The Global climate is changing rapidly. The 2001 Third Assessment Report of the
Intergovernmental Panel for Climate Change (IPCC) concluded that, with the continuing
emission of GHG (greenhouse gases), the mean surface temperature may increase between 1.5
and 5.8 degrees Celsius during the next 100 years. Documentation being used in the preparation
of the Fourth Assessment Report, due to be released by the year 2007, corroborates the range of
the projected increase. A change of this magnitude is unprecedented and will result in significant
impacts to be felt at a global scale. Along with changes in mean climatic conditions, the
biosphere potentially faces irreversible and catastrophic system impacts associated, for example,
with the reduction of thermo-haline circulation, the melting of the Greenland ice sheet (Epstein
2005), the subsidence of small islands, increases in intensity of hurricanes (Webster et al. 2005),
the elimination of permafrost in Siberia and northern Canada and affect ecosystem integrity.
Climate change is the most serious challenge being faced by the global ecosystem and may
further accelerate the ongoing processes of land degradation.
Climate Change impacts will affect forest composition and accelerate processes of land
degradation. Colombia has about 55,000 species of vascular plants, making it the country with
the highest density worldwide. With the rate of increase in surface temperature far outpacing the
ability of forest species to migrate to more temperate latitudes, anticipated changes can affect
mountain forests in the Andes and impact ecosystem integrity. This will add to the on-going
process of land use change, where already nearly 42 million hectares have been intervened and
transformed from their original state. Further, anticipated drastic reductions in runoffs from
Colombia’s high altitude moorlands, and tropical glaciers, caused by their warming and rapid
retreat will also affect the ability of mountain ecosystems in nearby areas to maintain diversity
and provide environmental services.
Colombia’s emissions of GHG are very modest (0.2% of global, with 0.6% of global
population). Within these low intensity emissions, opportunities do exist to mitigate emissions
in key sectors. Opportunities for GHG mitigation are being actively pursued in renewable
energy, wastewater treatment and energy efficiency (Jepirachi, Amoya, Rio Frio and Furatena
projects). Adaptation measures are also being explored and implemented through the Amoya
and the recently approved Integrated National Adaptation Project (INAP). Still, the National
Strategic Study and the first National Communication estimated that 21% of GHG emissions in
the country are due to land use change and that over 40% of the opportunities for GHG
mitigation in the country are related to reforestation and afforestation. Yet, so far, only one
carbon sink project is in the portfolio and it deals with highlands.
Caribbean Savannahs face serious land degradation. Recent inventories carried out by the
CVS (Corporacion del Valle del Sinu) have indicated that of the 2.5Mha of land within the
Cordoba department, at least 200,000 hectares are moderately degraded pastures and 100,000
hectares are severely degraded. The entire Caribbean savannas show similar patterns of
degradation. Land degradation processes yield poorer soils unable to sustain agriculture or
forestry, and ultimately result in the impoverishment of local farming and indigenous
communities as well as biodiversity. Under a business as usual scenario, degradation is
anticipated to accelerate resulting in an additional 100,000 hectares of degraded pastureland in
the coming decade (CVS). The net accumulated loss in income generation for producers in the
Cordoba Department, resulting from soil impoverishment is estimated in the range of US$150250 million. Further land degradation would result in a net loss of soil organic carbon of at least
1t C/ha-y which could total approximately 1 million t C in the next 10 years in the region.
Indigenous and black populations have traditionally been at the margin of economic
activity and have been relegated to areas that have suffered, over the last decades accelerated
processes of degradation. Both groups in the area (Zenu Nation and afro-Colombians) have
limited opportunities for economic and social improvements. The cycle of poverty and limited
opportunities feeds into each other and further exacerbates the process of environmental
degradation in the area. Local governments recognize that degradation is a major root cause of
human displacements and social conflict in the region.
Government Strategy
Colombia is a party to the Convention on Biological Diversity, the Framework Convention on
Climate Change and has also signed and ratified the Kyoto Protocol (Law 629 enacted
November 30, 2001). The Government has also issued two National Communications to the
UNFCCC, which highlight the challenges posed by climate change and outlining opportunities
for mitigation and carbon sinks in the country. In fact, Colombia has been a leading participant
in the discussions on the provisions and regulations of the Clean Development Mechanism
(CDM), in the context of the international negotiations under the auspices of the UNFCCC, and
has developed a detailed negotiations agenda on items leading to the definition of the rules for
the CDM.
As part of these activities, the Government has completed, with Bank support, a national
assessment for the optimal use of the CDM. The Government has, likewise, taken steps leading
to the further development of institutional capacity through: a) the organization of an interinstitutional committee under the aegis of the Vice-president’s office to ensure full coordination
on climate change issues; and b) the set up of a climate change office, which has now been in
operation for the last three years. On the basis of the studies sponsored as part of the National
Strategic Studies (NSS), other inputs and the development of institutional capacity, the
Government has defined the main trusts of a National Climate Change Plan, as follows:

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Strengthen the capacity to adapt to the anticipated impacts from climate change;
Promote reduction of emissions and increase the sequestration capacity for greenhouse
gases;
Minimize the adverse impacts on the nation’s exports of fossil fuels;
Promote scientific capacity and the availability of information on the impacts of climate
change on the nation’s economy and ecosystems; and
Promote financial mechanisms for the adoption and funding of response actions.
Forestry Law
On April 2006, the Colombian Congress approved a new Forest Bill. The Bill seeks to establish
legal norms that promote the sustainable development of the Colombian forest sector within the
framework of a National Plan of Forest Development, and under the coordination of a new
National Forest Council. The Bill states that development of the forest sector is of strategic and
priority interest for Colombia. The law introduces the concept of ‘vuelo forestal’; this allows a
separation of rights to land from rights to timber and has particular application for the
development of natural forests. Key aspects of the law include:

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The conservation and sustainable management of natural forests and the establishment of
forestry plantations on designated soils are considered national priority and of strategic
importance for the country’s development.
Measures to stop deforestation and illegal logging, as well as the measures to promote
sustainable development in the forestry sector have to be adopted and implemented in
coordination between the State, the civil society and the productive sectors.
The State will promote the development of the forestry sector in terms of its economic,
social and environmental benefits. The development of the forestry sector is regarded as
national priority for the peace making process.
Forests and agro-forestry systems fulfill a fundamental function in the production of
renewable energy, provision of environmental services, employment generation, national
socio-economic development, etc. For these reasons the State will support its
development in areas that do not have natural forest coverage.
Project eligibility
The proposed project meets the selection criteria of the BioCarbon Fund (BCF) and will be the
second CO2 (carbon dioxide) emission reduction project in the sector of Land Use, Land Use
Change, and Forestry (LULUCF) in Colombia. The project activities correspond to a
reforestation effort in accordance with the UNFCC (United Nations Framework Convention on
Climate Change (UNFCCC) definitions. As indicated above, Colombia ratified the Kyoto
Protocol in 2000 and established a Designated National Authority, DNA, which enables the
country to participate in the Clean Development Mechanism. This allows the development of
carbon sequestration activities, which can generate Emission Reductions (ERs) to be traded in
the international market, once certified. All project activities will take place on land without land
tenure issues.
Colombia’s DNA Forest Definition: The project activity will follow the forest definition as set
by the DNA in Colombia. For afforestation and reforestation project activities the DNA requires
a single minimum tree crown cover value of 30 percent, a single minimum land area value of 1
ha, and a single minimum tree height value of 5 meters.
Eligibility under the Marrakesh Accords. The area under the program was degraded before
December 31, 1989 as required by the Marrakesh Accords in order to be eligible for certification
of carbon sinks. The status of land cover was established through remote (LANDSAT) sensing
images taken in 1986 and 2000. The reforested areas will have at least 30% of forest cover and
meet the minimal requirements as established under COP-9. A monitoring plan has been
prepared to measure the carbon links during implementation. The monitoring arrangements will
also be reviewed during project implementation.
2. Objectives
The project is also consistent with the CAS and the CEA study. In terms of the CAS, the
project contributes to environmental sustainability and sustainable growth for the poor. Major
project beneficiaries are rural and indigenous communities. The project will diversify their
production systems and increase their income. The project would also contribute to rural
employment in a region where unemployment rates are around 22%. Project related work
activities include establishing tree nurseries, planting, fencing and maintaining trees and
managing improved pastures.
The CEA shows that land degradation and natural disasters are among the most costly problems
associated with environmental degradation. The CEA recommends the generation of alternatives
to diversify non-timber forest products and improve the livelihoods of forest-dwelling
communities, and the fostering of capacity for both indigenous communities and the rural poor to
profit from the sustainable and productive uses of forest areas and the implementation of
payments for environmental services. The project is in line with the CEA recommendations as it
contributes to arrest land degradation while promoting reforestation and therefore contributes to
limiting landslides and prevent floods, root causes of natural disasters in the region. It also
contributes to the diversification of agro-forestry production systems with the benefits reach
directly rural communities.
Finally, the project responds to Colombia’s strategy for use of the CDM as outlined in the NSS
study as it promotes carbon sinks in Colombia. It also meets the objectives of the Biodiversity
strategy in that it seeks to enhance biodiversity by substituting monocultures with diverse
systems that favor higher faunal and microbial populations. It also meets the goals of the forestry
strategy by contributing to the reforestation under the current government.
Project development objective
The project development objective is to pilot the use of carbon sinks (through sylvopastoral and reforestation systems) to arrest the process of land degradation in the coastal
plains of the country (focused on 2200 ha of the Caribbean Savannah ecosystem). This will
be achieved through schemes that include: growing trees in pastures, introducing live fences,
growing fodder banks, promote direct reforestation and secondary forest regeneration. The
improved productivity will increase the storage of carbon both above- and below-ground.
The project also contributes to improvements in the quality of life of local impoverished Zenu
indigenous population, and Afro-Colombian communities, through the labor and forest product
revenues related to the reforestation program as well as a fraction of the of the carbon revenues
as incentive for sustainable ecosystem management. The increase in carbon sink will not change
the nature of the Savannah ecosystem. The reforestation will be implemented in traditional forest
areas around the piedmont of the Andes. The BioCarbon Fund intends to purchase around
200,000 t CO2e in carbon sinks. A letter of intention has already been signed. A letter of no
objection from the Designated National Authority has also been received. The project has also
the endorsement of the BCF Committee and has been vetted by the Sector Manager for LCSEN.
3. Rationale for Bank Involvement
The World Bank/Bio Carbon Fund (BCF). A regional strategy for Latin America on
responses to climate change identifies carbon sinks as an important element for mitigation of
GHG (World Bank, 2004) and the BCF as a tool in the creation of a specific market for tCERs
stemming from land use, land use change and forestry (LULUCF). The World Bank Carbon
Funds are part of a larger global effort to combat global climate change. Through the Project,
the Bank has a unique opportunity to help alleviate both climate change and poverty by
supporting the generation of Certified Emission Reductions (ERs). The BCF links climate with
the goals of conservation and preservation of biodiversity. Projects could also be formulated that
promote afforestation and watershed protection. The development of LULUCF projects in
Colombia complements the World Bank support on energy and waste management issues
through carbon funds (Jepirachi, Amoya, Rio Frio, and Furatena). Development of carbon sinks
in Colombia will assist both the government and the World Bank to develop experience and tools
for the anticipated expansion of the scope of activities in reforestation and avoided deforestation,
under consideration by the COP to the UNFCCC.
4. Description
Components:
a) Development of Silvo-pastoral schemes in the Zenu indigenous area. The component will
support the establishment of 500 ha of sylvopastoral schemes. The area is located in the
indigenous land San Andres de Sotavento. This component will recuperate areas of pastures that
are in process of degradation without increasing the number of cattle. The indigenous
communities will receive the bulk of the carbon revenues for a social program developed in close
consultation with the Zenu nation. An IPP has already been prepared with the Zenu. The
component will include the planting of forage shrubs (Gliricydia sepium, Cresentia Cujete and
Leucaena leucocephala), and some 40 arboreal species (Pachira quinata, Switenia macrophylla,
Tabebuia rosea). Direct seeding (no-tillage) will be used for the crops. In areas where the status
of the pasture is too poor, seeds of improved pastures (Brachiaria hybrids) will be used.
b) Reforestation. This component will support the reforestation of 1700 hectares where of 1500
ha will be reforested by small farmers mainly with Hevea Brasilensis in small plots of no more
than 5 Ha, interspersed with pastures and annual crops. The reforested area is located in the
“corregimiento de Uré”, Montelíbano municipality in the department of Córdoba. The remaining
200 ha will be managed by farmers with Ceiba, roble and teca and will generate wood products.
The latter will be located in the municipality of Valencia (Córdoba). The reforestation will be
conducted according to procedures recommended by CVS for the region. Plantings will be
grown in nurseries and transplanted at 4 months of age. The reforestation includes three native
tree species (Hervea brasilensis, Bombacopsis quinatum, and Tabebuia rosea) and one exotic
species Tectona Grandis which was introduced in the region more than 3 decades ago. Grasses
will be established in the soils most devoid of vegetation, to favor rapid land cover and minimize
erosion while accelerating the rebuild of soil organic matter. Priority in reforestation will be
given to areas surrounding water streams and undulating terrain where soil erosion is a major
problem.
5. Financing
Source
Financing Plan (US$m.)
Local
Foreign
Total
1.0
1.0
BCF
0.9
0.9
CVS
1.5
1.5
Landowner (Caucho)
0.2
0.2
Zenu indigenous community and others
2.6
1.0
(Silvopastoral)
3.6
TOTAL
Responsible Agency: Centro Internacional de Agricultura Tropical (CIAT), corporación Colombiana
de Investigación agropecuaria (CORPOICA); Other agencies: corporación del Valle del Sinu (CVS)
Borrower: Not applicable
6. Implementation
The institutional arrangements are solid and include research organizations as well as a
regional environmental authority. The project will be implemented by the Environmental
Regional Government Agency (CVS). CVS’ mandate is to conserve and protect the natural
resources in the basins of Sinú and San Jorge rivers. CVS covers 35% of the project’s initial
investment cost and will receive 50% of the carbon revenues. The other 50% go to the small
landholders and to the indigenous community.
CVS counts with the technical assistance of the Centro Internacional de Agricultura Tropical
(CIAT) and the Colombian National Agricultural Research Organization (CORPOICA). CIAT
is part of the Consultative Group for International Agriculture Research and has an outstanding
list of contributions both in scientific research and in impact to improve the livelihoods of rural
people in the tropics. In the project CIAT is responsible for financial, economic and
methodological aspects of the project. CIAT is in the process of developing a methodology to
account for sequestered carbon in the soils and of elaborating the PDD. CORPIOCA generates
and validates technology suitable for the Colombian agricultural systems. CORPOICA is the
leading institution in the development and evaluation of silvopastoral systems as an alternative
for recovering degraded land and pastures not only in Colombia but also in the Andean Region.
In the project Corpoica is involved in the Indigenous People Plan and in the silvopastoral
component.
The Ministry has made a recent assessment of institutional capacity of all regional corporations.
The assessment made covered three key elements: Efficiency in the implementation of its
objectives, financial management and overall management capacity. The CVS ranked sixth
amongst all 33 regional corporations with an overall good qualification.
7. Sustainability
The project area will be gradually reforested during the first 3 years. The project is expected to
sequester about 1 million tCO2e in 30 years with continuously increasing carbon capture per
year. The increasing carbon revenues in time provide an incentive to maintain the plantation and
contribute to the project’s sustainability. Besides carbon revenues, each component will generate
income from the sale of wood, agricultural products and seeds further improving the financial
sustainability of the project. Thus, the local population has an important stake in the success of
the project and is strongly behind its implementation.
The environmental benefits will further strengthen the sustainability of the project through the
development of stable forests in the region. Success of the project will open the door to the use
of the Kyoto protocol for purposes of arresting land degradation.
The carbon capture can be maintained for decades after the end of the project as most of the
extracted timber is expected to be converted into long lived products (furniture, structural
material in constructions etc). The net GHG mitigation potential of the project has been
underestimated because the following components have not been included in the estimations of
C capture:

The C stored in the biomass of shrubs

Documented increases in soil organic carbon in the SPS and likely also in the
reforestation area
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Net reduction in methane emissions by cattle due to better quality diets

Documented higher methane sinks by soils due to land rehabilitation (higher aeration and
less water-logging during the rainy season) are also not included.

Net reduction in GHG emissions due to elimination of periodic fires in the areas used for
the project, were not accounted.
Replicability:
This project is expected to serve as a catalyst for future expansion of both sylvopastoral and
reforestation components. Once the feasibility of the approach is proven at a medium size
project, involving an important group of farmers, it is very likely that other communities from
the Cordoba department and neighboring provinces will follow the example. Demand for high
value timber both national and international is growing rapidly and timber production could
become an important economic activity in the region. Local agencies and the central
government provide tax and other incentives to favor forest plantations. CVS and similar
regional environmental agencies will continue the promotion of environmentally sound land uses
to arrest land degradation and to rehabilitate degraded lands. It is very likely that the use of SPS
and reforestation programs will expand to a considerable higher scale in the coming decades, and
the income from carbon trading will prove to be a key component for such expansion.
8. Lessons Learned from Past Operations in the Country/Sector
The Bank’s work on environmental issues in Colombia builds upon opportunities provided under
the Kyoto Protocol through sources such as Carbon Finance (CF) and the Global Environment
Facility (GEF). Climate Change Mitigation initiatives, supported through carbon finance include:
Jepirachi Carbon Offset Project1, Rio Amoya Environmental Services Project,2 The Rio Frio
Carbon Offset Project3, and Furatena Agroindustry Carbon Offset Project4. The project belongs
to the first carbon sink projects being implemented in Colombia and will thus help to learn in
terms of managing carbon sinks The inclusion of silvopastoril systems will help to gain
experience in the generation of long term revenues with this kind of agro forestry system. The
participation of indigenous communities in the implementation of the project demonstrates an
option to directly contribute to the improvement of their livelihoods and to support tailored social
programs. The project will demonstrate how beyond afforestation and reforestation activities the
BCF is also a tool to address biodiversity protection and enhancement, carbon sequestration and
social aspects.
Previous CDM projects formulated with World Bank assistance in Colombia have demonstrated
the need to: a) involve the local community in the ownership of the carbon asset, in the process
creating a strong incentive for sustainability; b) ensure financial closure prior to completion of
ERPA discussions; c) maximize the use of tools already developed under the CDM to avoid the
additional and complex process of registration of new methodologies. Project has incorporated
these lessons into its design.
9. Safeguard Policies (including public consultation)
The project is expected to trigger Environmental Assessment (OP/BP 4.01), Forests (OP/BP
4.36) because of the nature of the project, and Indigenous Peoples (OP 4.10). An important
community of the Zenu ethnic group lives within the area where the project will be implemented.
It is estimated that there are around 1000 indigenous people within the Cordoba department. By
involving a group of at least 5 sites within the ethnic community in the project, it is expected that
the whole community could benefit from new alternatives to improve their livelihoods. However,
the borrower is preparing an Indigenous Peoples Plan (IPP) in consultation with the Zenu and
support from the project team.
Despite current degradation, pastureland and even abandoned areas are still host of a diversity of
reptiles, insects, birds etc. By converting these lands into SPS or forest plantations certain
specific niches may be lost or reduced and could potentially have an impact on such species.
There is no specific information to address if this actually happens and to which extent. Any
potential impact is expected to be very minor given that the area of the project is very small
compared to the current area of degraded land. However the triggering of Natural Habitats
(OP/BP 4.04) will be further analyzed during project preparation also with regard to the planting
of non native species.
The project is expected to use agrochemicals, such as fertilizers, pesticides and herbicides. The
Pest Management safeguard (OP 4.09) is triggered. CVS, CORPOICA and CIAT have
developed a manual to guide the use of pesticides in the project area, minimize the use of
dangerous herbicides and pesticides, provide guidelines on the usage of agrochemicals, including
1
Project No. P074426, Emissions Reduction Purchase Agreement signed January 27, 2003.
Project No. P078220, Emissions Reduction Purchase Agreement signed June 28, 2004.
3
Project No. P088752, Emissions Reduction Purchase Agreement signed June 30, 2005.
4
Project No. P086455, ERPA pending.
2
transport, storage, usage, and disposal. This manual will serve also as basic training material on
the adequate use of tools, utensils, machinery, cloths and health protection practices.
Safeguard Policies Triggered by the Project
Yes
No
Environmental Assessment (OP/BP/GP 4.01)
Natural Habitats (OP/BP 4.04)
Pest Management (OP 4.09)
Cultural Property (OPN 11.03, being revised as OP 4.11)
Involuntary Resettlement (OP/BP 4.12)
Indigenous Peoples (OD 4.10, being revised as OP 4.10)
Forests (OP/BP 4.36)
Safety of Dams (OP/BP 4.37)
Projects in Disputed Areas (OP/BP/GP 7.60)*
Projects on International Waterways (OP/BP/GP 7.50)
[X]
[X]
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[X]
[X]
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10. List of Factual Technical Documents
11. Contact point
Contact: Walter Vergara
Title: Lead Chemical Engineer
Tel: (202) 458-2705
Fax:
Email: [email protected]
12. For more information contact:
The InfoShop
The World Bank
1818 H Street, NW
Washington, D.C. 20433.
Telephone: (202) 458-5454 Fax: (202) 522-1500, Web: http://www.worldbank.org/infoshop
*
By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the
disputed areas