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Prepared by MGM Innova Address: Cra 43ª # 1- 50. San Fernando Plaza Torre 4 Oficina 315 Phone: 57.4.3260584 Web Site: www.mgminnova.com Date: Wednesday, 06 de November de 2013 EXECUTIVE SUMMARY OF EPM’ S REDD+ PROJECT

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Page 1: EXECUTIVE SUMMARY OF EPM’S REDD+ PROJECT · Date: Wednesday, 06 de November de 2013 EXECUTIVE SUMMARY OF EPM ... Reduce deforestation and degradation in EPM forests with natural

Prepared by MGM Innova Address: Cra 43ª # 1- 50. San Fernando Plaza

Torre 4 – Oficina 315 Phone: 57.4.3260584

Web Site: www.mgminnova.com Date: Wednesday, 06 de November de 2013

EXECUTIVE SUMMARY OF EPM’S REDD+ PROJECT

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EMPRESAS PÚBLICAS DE MEDELLÍN REDD+ PROJECT

Table of Contents INTRODUCTION ....................................................................................................................................... 3

G3.Project Design and Goals .................................................................................................................... 5

G3.1. Main Climate, Community and Biodiversity Objectives of the Project. ........................................ 5

G3.2.Main Project Activities. ................................................................................................................ 8

G3.3. Limits and Location of Project Activities .................................................................................... 10

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EMPRESAS PÚBLICAS DE MEDELLÍN REDD+ PROJECT

INTRODUCTION

Over the years, Empresas Públicas de Medellín (EPM) has carried out a number of actions aimed at

managing environmental impacts and promoting better environmental practices and community

development in the regions in which it operates. These activities are currently performed under the

framework of the company’s Environmental Policy, approved by EPM’s Board on July 7th, 2008 (Board

Minutes #1489).

The policy of EPM has always been to exceed regulatory requirements with regards to protection and

conservation of natural resources. Thus, for example, the company currently owns tracts of land with

forest cover – the size of which significantly exceeds that required under Colombian law - in which a

project aimed at Reducing Emissions from Deforestation and Forest Degradation (REDD+) under the

framework of EPM’s Environmental Policy, which focuses strongly on climate change mitigation, is being

developed. It should be noted that the border areas in which the EPM REDD+ project is located are

currently threatened by land use change, with a shift towards agricultural crops and pasture, which

provide local smallholders with an interesting opportunity to improve their income. An additional threat

in the border areas adjacent to the Porce III Reservoir is the change in land use of forested areas to illicit

crops, specifically in the Municipality of Anori, which has one of the highest rates of illicit plantations in

the province of Antioquia.

The areas in which the EPM REDD+ project is being developed were selected in line with an internal

analysis conducted by EPM, based on the following criteria: the area should i) not be subject to any legal

commitment, ii) not include plantations, iii) only include areas with clear and recent mapping, iv) be

demonstrably threatened by deforestation or degradation; v) not be included in a buffer area of 100 m

around the four reservoirs. It is understood that in addition to the areas included in the REDD+ project

there are other wooded areas (both within the project area and elsewhere) that belong to EPM and are

also under threat of deforestation and degradation, notwithstanding which they also play an important

role in carbon storage and conservation of biodiversity.

EPM’s REDD+ project aims to ensure the protection of natural forests surrounding the Miraflores,

Riogrande I Porce II and Porce III hydroelectric projects (5,648.42 hectares), through the strengthening

of the following activities: monitoring and surveillance, planting of trees, promotion of reforestation for

timber and firewood, silvihorticulture, sustainable agroforestry or silvopasture, efficient stove program,

environmental education program and proposed biological corridor.

This Project Design Document (PDD) has been developed following the rules and guidelines set forth in

the Climate, Community and Biodiversity Alliance’s Standard (CCBS). The CCBA is a unique partnership of

leading international NGOs that was founded in 2003 and promotes forest protection and restoration

and agroforestry projects through land-based carbon projects such as REDD+.

The PDD is structured in five sections: General (with 5 subsections), Climate (with 3 subsections),

Community (with 3 subsections), Biodiversity (with 3 subsections) and an optional Gold Level section,

which emphasizes exceptional benefits in terms of climate change adaptation, biodiversity and

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EMPRESAS PÚBLICAS DE MEDELLÍN REDD+ PROJECT

community. The document is accompanied by five annexes that include supporting documentation on

the reporting process and on the structuring of the socio-environmental management plan under the

framework of the methodology, the location of the permanent plots in the various project areas, EPM

Group’s Declaration on Climate Change and the executive summary of the inventory of flora and fauna

of the natural forest cover located in the surroundings of the Riogrande and Miraflores reservoirs.

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EMPRESAS PÚBLICAS DE MEDELLÍN REDD+ PROJECT

G3.PROJECT DESIGN AND GOALS

G3.1. MAIN CLIMATE, COMMUNITY AND BIODIVERSITY OBJECTIVES OF THE PROJECT.

Due to the geographical and climatic characteristics of each of the project areas, the woodland areas

surrounding Empresas Públicas de Medellín (EPM)’s reservoirs are some of the most biodiverse areas in

the North and Northeastern regions of the Department of Antioquia. Over the years, however, the

forest cover has diminished as a consequence of the peasants’ crop and cattle raising activities, as well

as intensive collection of firewood and timber harvesting. The reduction of forest cover not only affects

the water cycle – a key issue given the type of services EPM provides – but also leads to the loss of

habitats for both animal and plants species.

The overall aim of the project is to contribute towards emission mitigation as well as with the national

climate change strategy, through prevention of degradation and deforestation of the forests included in

the project, in line with EPM’s corporate social responsibility policy, and, in particular, its climate change

strategy.

EPM’s specific aims and goals with regards to the development of the REDD+ project, resulting from the

logframe matrix developed on the basis of workshops carried out with the communities located at the

project zone, are listed below.

In some cases the goals have been defined for the first five years of implementation of the project, at

which point they shall be redefined for the remaining project period on the basis of success to date and

other specific conditions.

Climate

Global climate mitigation: by avoiding greenhouse gas (GHG) emissions due to forest degradation and deforestation. The project shall lead to an estimated reduction in GHG emissions of 109,241.83 tCO2e over a 20 year period.

Contribute towards the regulation of the water cycle, through conservation of the forest cover.

Community

Create awareness in the community with regards to the rational use of natural resources.

Contribute in a sustainable way to human welfare.

Contribute to poverty reduction in the communities located in the REDD+ project zone. The components/specific goals developed in the logframe matrix workshops carried out with the community during project design should enable the above mentioned aims to be achieved.

-Component 1- Implementation of sustainable productive systems: greater diversification of the

farming systems of families in the neighborhood of EPM’s forest in the REDD+ project over the

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EMPRESAS PÚBLICAS DE MEDELLÍN REDD+ PROJECT

first `five years of project development (see Tab le 1) will generate economic benefits for 137

families1 on their own land. These benefits can represent an increase in monthly family income

of around COP 1’000000 through gum tree production or COP 800,000 through cacao

production. This should also serve to diminish the pressure on forests and prevent further

deforestation or degradation through the expansion of the farming frontier and removal of

firewood.

The quantitative goals that have been set in order to achieve this aim are:

Over the first five years of the Project, sustainable productive systems will be established in the project zone in the municipalities of Amalfi, Guadalupe and Anorí. These systems will include at least 175 ha of gum tree and 50 ha of cocoa plantations, as follows:

Table 1. Establishment of sustainable productive systems

Gum tree (Hevea brasiliensis)

Municipality 2014 2015 2016 2017 2018 Total Ha

Ha Ha Ha Ha Ha

Amalfi 0 25 0 25 0 50

Guadalupe 0 0 25 0 25 50

Anorí 25 0 25 0 25 75

TOTAL 25 25 50 25 50 175

Cacao (Theobroma cacao)

Municipality 2014 2015 2016 2017 2018 Total Ha

Ha Ha Ha Ha Ha

Anorí 10 10 10 10 10 50

1 87 families with gum tree production at a rate of 2 ha per family and 50 families with cacao production at a rate of 1 ha per family

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EMPRESAS PÚBLICAS DE MEDELLÍN REDD+ PROJECT

Component 4: Provision of efficient firewood stoves: Over the first five years of the project, at least 354 efficient firewood stoves will be installed in municipalities within the project’s zone, as follows:

Table 2. Efficient firewood stoves to be installed in municipalities in project zone

Municipality 2.014 2015 2.016 2.017 2.018 Total

Amalfi 30 30 30 30 30 150

Anorí 24 24 24 24 24 120

Carolina 12 12 0 0 0 24

Guadalupe 12 12 12 12 12 60

TOTAL 78 78 66 66 66 354

The use of efficient firewood stoves leads to health benefits for those families that traditionally cook with firewood (due to less exposure to smoke inhalation). As mentioned in Ecosystem Marketplace of Forest Trends , the distribution of efficient firewood stoves grew significantly in countries such as Peru, Haiti and Guatemala, with the double benefit of reducing both GHG emissions and household smoke. Furthermore, efficient stoves require less firewood, and participant families will have access to silvihorticulture plantations.

Component 5: Strengthening of control and surveillance of forests: This component involves hiring members of the communities within the project zone to work as forest wardens. As from the second year of the Project, illegal extraction of forest products in project forests is expected to stop growing in terms of number of events and critical sites.

Component 6: Communities with environmental education: Over the first five years of the Project, every year at least two radio programs will be emitted on a quarterly basis, as well as radio slots focused on environmental education, broadcast through radio stations with coverage in the municipalities of Anorí, Amalfi, Guadalupe and Carolina del Príncipe.

Biodiversity

Reduce deforestation and degradation in EPM forests with natural cover involved in the REDD+ project in the surroundings of the energy-generating reservoirs: As from the second year of the Project, illegal extraction of forest products in Project forests is expected to stop growing in terms of number of events and critical sites.

Protect forest species threatened by selective logging, expansion of the farming frontier and illegal alluvial mining.

Protect forests and conserve habitats of endemic fauna and flora in areas threatened by selective logging, expansion of the farming frontier and illegal alluvial mining.

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EMPRESAS PÚBLICAS DE MEDELLÍN REDD+ PROJECT

Increase and maintain landscape connectivity in order to reduce/revert habitat loss and degradation, and avoid species movement constraints (e.g. for foraging, breeding, migration and dispersal).

The specific goals developed in the logframe matrix workshops carried out with the community during project design should enable the above mentioned aims to be achieved.

- Component 2: Establishment of forest cover for use of wood-based products: Over the first five years of the Project, at least 110 ha of forest will be planted in order to provide families in the project area with wood-based products, as follows:

Table 3. Forest covers for wood-based products.

Municipality 2014 2015 2016 2017 2018

Total Ha Ha Ha Ha Ha Ha

Amalfi 14 14 14 14 14 70

Anorí 3 3 3 3 3 15

Guadalupe 3 3 3 3 3 15

Carolina del Príncipe 2 2 2 2 2 10

TOTAL 22 22 22 22 22 110

- Component 3: Establishment of silvihorticulture: Concomitant with the supply of efficient

firewood stoves, sivihorticulture plantations will be established for each beneficiary family, in order to ensure an adequate supply of firewood while at the same time avoiding exerting pressure on the natural forests. This will have a positive impact on the well-being of the families, will no longer have to invest significant time and effort in collecting firewood.

In terms of quantitative goals, over the first five years of the Project, at least 354 silvihorticulture plantations, each consisting of 150 trees, will be established in the municipalities within the Project’s area of influence, as follows:

Table 4. Silvihorticulture plantations to be established

Municipality 2014 2015 2016 2017 2018 Total

Amalfi 30 30 30 30 30 150

Anorí 24 24 24 24 24 120

Carolina 12 12 0 0 0 24

Guadalupe 12 12 12 12 12 60

Total 78 78 66 66 66 354

G3.2.MAIN PROJECT ACTIVITIES.

With the aim of protecting and increasing the forest cover included in the REDD+ project, in addition to

strengthening the currently ongoing socio-environmental management activities, EPM shall focus its

efforts on those regions found to have greater risk of deforestation and forest degradation. The

activities to be developed by EPM were identified by the communities located in the project zone in the

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EMPRESAS PÚBLICAS DE MEDELLÍN REDD+ PROJECT

logframe matrix developed as from the results of the workshops on deforestation and forest

degradation. It is important to note that these activities will be carried out on the basis of EPM’s

experience in the areas of influence of its energy-generating projects. The activities to be carried out

under the components established within the framework of EPM’s REDD+ Project are described below.

Component 1: Implementation of sustainable productive systems.

The aim of this activity is to consolidate new productive options - cacao and gum tree crops - that have a

positive economic impact (estimated at around COP 1’0000 per month) on the household incomes of

the families involved. This should also have a positive impact on biodiversity, reflected in a diminished

pressure on the forest, since the activity will reduce the economic incentive of other alternatives, such

as expansion of the farming frontier and/or the extraction of non-timber and timber forestry products

(e.g., rod tutors and timber).

Component 2: Establishment of forest cover for use of wood-based products. Component 3: Establishment of silvihorticulture:

These activities have a positive impact on the communities in terms of facilitating access to firewood

and wood for domestic use, reducing the time and effort required for these endeavors and, eventually,

allowing for a surplus of marketable wood. At the same time, pressure on the natural forest caused by

demand for these products will lessen, leading to further positive impacts with regards to biodiversity

and climate. Currently, the forests that supply the community with firewood are located between 1 and

2 km from the houses; this distance is expected to significantly diminish with the establishment of

silvihorticulture.

The operational strategy to achieve these goals will focus on the establishment of inter-administrative

agreements with the municipalities and participatory processes with the communities to select the

beneficiaries, co-financing and execution of the activities. The main activities are the production of plant

material in EPM’s nursery and its distribution to the beneficiaries, both of which shall be in charge o

EPM. Transport of the plant material to the actual planting site, supplies and tools, site preparation

(plating, hole digging), planting and transplanting, maintenance (cleaning), fertilization, pruning, pest

and disease control, and fence maintenance will be in charge of the beneficiaries. Training and technical

assistance and follow up will be provided by EPM.

Component 4: Provision of the efficient firewood stoves

The use of efficient firewood stoves (with low firewood consumption and minimum or no smoke

emission) will have direct benefits for the users’ health, due to less/no exposure to smoke inhalation.

Biodiversity will benefit through less firewood consumption and the establishment of silvihorticulture,

leading to less pressure on the forest. In addition, GHG emissions will be lowered, with the consequent

positive impact on climate change.

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EMPRESAS PÚBLICAS DE MEDELLÍN REDD+ PROJECT

The activities required to achieve this goal will be developed through inter-administrative agreements

with the municipalities. The municipalities will be in charge of selecting the beneficiaries and, together

with EPM, will provide resources to finance the efficient firewood stoves as well as the materials needed

for their installation, transport to final location and appropriate training in their use.

Component 5: Strengthening of control and surveillance of forests. Ninety formal permanent jobs will be created (Porce II: 34, Porce III: 24, Miraflores: 14, Riogrande: 18). The basic monthly income of forest wardens will be COP 600,000 plus social benefits and entitlements as defined under the law. Additional income may be derived by the community through the rental of horses, which is required with certain frequency. The hiring of forest wardens shall be channeled through a local hiring program; this shall entail benefits to the community both in terms of jobs and income. The actual contracting will be carried out by community organizations selected on a rotating basis, to ensure fairness and equity in the distribution of this benefit. Although the community organizations themselves will be in charge of personnel selection, this selection must meet the requisites set by EPM. Community organizations will be trained in the areas of contract management, accountability systems and reporting. Forest wardens shall receive training in first aid, fire control, industrial safety, environmental awareness, knowledge of flora and fauna, environmental regulations, registration and reporting of crimes and offenses against natural resources, amongst others. The positive impact on biodiversity will be reflected in reduced extraction of forest products and improved forest conservation, both of which improve the project forests’ capacity to retain GHGs.

Component 6: Environmental education

Environmental education will be a key activity to articulate the communities of the Project area with the REDD+ project. Different strategies and means will be used to this end, including radio slots, radio programs on specific issues, dissemination of the REDD+ project, newsletters, pamphlets, etc. EPM’s Environmental Division’s Communications Team will be involved in content design and the production of informational material (written and programs for local radio stations).

The communities will therefore strengthen their capacity to relate to the natural environment, which in turn ultimately serves to buttress the environmental sustainability of the territory.

G3.3. LIMITS AND LOCATION OF PROJECT ACTIVITIES

Project activities will be implemented in the project zone, which includes villages adjacent to EPM’s

plots that have a strong influence on the deforestation and degradation of EPM’s forests (see Table 7,

Figure 1). These areas plus others that could entail environmental issues for the forests surrounding EPM’s dams, will be gradually adjusted, in line with resource availability, commitments and quid pro quos from municipal administrations, community receptivity and priorities, among other.

The above mentioned project activities will generate the following benefits for the communities

surrounding the project areas:

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EMPRESAS PÚBLICAS DE MEDELLÍN REDD+ PROJECT

Economic benefits: The project will improve household income levels of the communities through the implementation of activities aimed at more efficient use of natural resources such as those mentioned. There will be an economic incentive represented in the delivery of an efficient stove for cooking, technical assistance, and some inputs to improve agroforestry. productivity

Positive changes in land use practices: The project expects to help reduce illegal logging, firewood collection and the destructive extraction of natural forests, improve the protection of endangered species habitats, and improve soil and water management in order to achieve sustainable productive systems.

Promotion of reforestation and the establishment of silvihorticulture is expected to mitigate the

problems associated with the communities’ needs for forest timber as well as with land use changes.

Furthermore, the above mentioned activities will also serve as barriers to reduce pressure on natural

forests in the project area, and will contribute with the establishment of a biological corridor to restore

connectivity between different patches of forest, thereby contributing to the conservation of wildlife

species in the project zone.

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EMPRESAS PÚBLICAS DE MEDELLÍN REDD+ PROJECT

Figure 1. Location of the project area of EPM’s REDD+ Project

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EMPRESAS PÚBLICAS DE MEDELLÍN REDD+ PROJECT

Table 5. Project areas of EPM’s REDD+ Project by reservoir and by municipality

Reservoir Municipality Forest cover area

(ha)

Total Area

Miraflores Carolina 1977.26 1,977.26

Porce II Amalfi 384.56 1,883.68

Gómez Plata 904.74

Guadalupe 0.071

Yolombó 594.31

Porce III Amalfi 473.76 1,558.46

Anorí 903.99

Gómez Plata 18.09

Guadalupe 162.62

Riogrande I

Donmatías 220.95 229.03

Santa Rosa de Osos

8.076

TOTAL 5,648.42

Table 6. UTM Points for the project areas

Reservoir Point X - Coordinate Y - Coordinate

Porce III

1 894,945 1,268,100

2 875,492 1,248,650

3 877,942 1,248,010

4 891,852 1,269,810

Miraflores

5 864,733 1,239,440

6 855,802 1,240,090

7 859,090 1,243,390

8 863,403 1,235,760

Riogrande I

9 857,359 1,214,280

10 854,158 1,214,830

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EMPRESAS PÚBLICAS DE MEDELLÍN REDD+ PROJECT

Reservoir Point X - Coordinate Y - Coordinate

11 857,849 1,215,620

12 856,801 1,215,920

Porce II

13 878,514 1,250,830

14 891,250 1,239,900

15 882,632 1,235,450

16 883,495 1,235,150

According to CCB 2008, the ‘project zone’ is defined as the project area and the land within the

boundaries of the adjacent communities potentially affected by the project. The project zone of EPM’s

REDD+ Project was defined according to the sub-districts of the various municipalities (Carolina del

Príncipe, Amalfi, Gómez Plata, Yolombó, Anorí, Donmatías and Santa Rosa de Osos) (see Table 7), which

are located in the North and Northeastern regions of the Department of Antioquia. Furthermore, the

‘project area’ is defined as the land within the carbon project boundary and under the control of the

Project proponent; based on this definition, the project area of EPM’s REDD+ project is the forest cover

found in the areas of influence of the reservoirs owned by EPM. Table 6 shows the UTM grid points

corresponding to the project areas.

Table 7. Sub-districts with a direct influence on EPM’s REDD+ Project

Reservoir Municipality Sub-districts

Porce III Anorí El Retiro, Roble Arriba, Medias Faldas, El limón, Pajonal, El Zafiro, El Roble.

Porce II Yolombó La Cancana

Porce II Gómez Plata Vega Botero, Quebradona, Juntas, El Brasil, Puente Porce, El Oso.

Porce II y III Guadalupe Morrón, Guanteros, Guadalupe IV, San Julián, Malabrigo, Bramadora (Plan de Pérez) y el Guadual

Porce II y III Amalfi La Manguita, El Guayabito, La Esperanza, María Teresa, Tinitacita, Los Mangos, El Encanto, La Guayana, El Retiro, El Guaico.

Miraflores Carolina del Príncipe La Herradura, Tenche y La Granja

Riogrande I Don Matías Mocorongo, Rio Grande, Miraflores

Riogrande I Santa Rosa de Osos Rio Grande, Las Animas

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EMPRESAS PÚBLICAS DE MEDELLÍN REDD+ PROJECT

Offsite impacts are not expected to be mitigated and therefore they are not considered leakage areas.

Nevertheless, EPM will monitor the wildlife around the project areas of Porce II and Porce III (at the

requite under of environmental licenses), in order to analyze the dynamics of the area which may affect

other forests different to the REDD project’s forests and take corrective measures.