Poverty-Environment FundPoverty-Environment FundFrom small-scale innovation … to From small-scale innovation … to

stories of …transformation stories of …transformation

Daniele PonziDaniele PonziLead Environment SpecialistLead Environment Specialist

ADBADB15 May 2013 15 May 2013

OutlineOutline

Introduction: the ADB PEFIntroduction: the ADB PEFTransformational Chain – What is it? Transformational Chain – What is it? Success StoriesSuccess StoriesKey LessonsKey LessonsConclusionsConclusions

Poverty and Environment FundPoverty and Environment Fund

Focal AreasFocal Areas Natural Resources (protection + livelihoods) Natural Resources (protection + livelihoods) Pollution and Health (productivity of poor)Pollution and Health (productivity of poor) Vulnerability Reduction (resilience building)Vulnerability Reduction (resilience building)

Total amount available: Total amount available: $8.9 million ($5.0m from $8.9 million ($5.0m from Norway, $3.6m from Sweden, and $.300 k from Norway, $3.6m from Sweden, and $.300 k from income from investments and interest earningsincome from investments and interest earnings

14 DMCs14 DMCs 30 projects30 projects

Poverty and Environment FundPoverty and Environment Fund

Objective:Objective: gain experience, learn lessons, & generate gain experience, learn lessons, & generate knowledge on poverty-environment linkages through knowledge on poverty-environment linkages through poverty reduction environment improvement pilotspoverty reduction environment improvement pilots

Established in July 2003 Established in July 2003 Donors: Norway and SwedenDonors: Norway and Sweden Phase I – PEP RETA (2004-08): Accelerated learning – Phase I – PEP RETA (2004-08): Accelerated learning –

pilot sub-project interventions and analytical studiespilot sub-project interventions and analytical studies Phase II – MEPR (2009-13): Mainstreaming Phase II – MEPR (2009-13): Mainstreaming

environment in ADB operations (support to country environment in ADB operations (support to country strategies, res. Missions capacities, piloting analytical strategies, res. Missions capacities, piloting analytical approaches in add to studies and pilots and as hybrid) approaches in add to studies and pilots and as hybrid)

Transformational Chain: testing Transformational Chain: testing transformation (work in progress)transformation (work in progress)

Scan for innovationScan for innovation

Identify new Identify new projects (studies) projects (studies) provide fundingprovide funding

Replicate/upscale Replicate/upscale successful projectssuccessful projects

Result:Result:Transformational Transformational

changechange

Pilot Biodiversity Corridor Program in Pilot Biodiversity Corridor Program in Lam Dong, Viet NamLam Dong, Viet Nam

Implemented:Implemented: June 2005- November 2006 June 2005- November 2006

Total Project Cost: Total Project Cost: US$332,000US$332,000

PEF Funding: PEF Funding: US$249,000US$249,000

Pilot Biodiversity Corridor Program in Pilot Biodiversity Corridor Program in Lam Dong, Viet NamLam Dong, Viet Nam

TTBCs: Linear strips of vegetation that provide continuous or near continuous pathways between protected areas (to address f/f habitats fragmentation)

Pilot Biodiversity Corridor Program in Pilot Biodiversity Corridor Program in Lam Dong, Viet NamLam Dong, Viet Nam

•Problem Statement: Address threats to biodiversity & poor Problem Statement: Address threats to biodiversity & poor communities without access to servicescommunities without access to services

..

•The project developed / tested models to engage The project developed / tested models to engage communities in BD and alternative livelihood opportunities communities in BD and alternative livelihood opportunities (reforestation, animal husbandry, eco-farming) but also BD (reforestation, animal husbandry, eco-farming) but also BD baseline surveys and BD assessments.baseline surveys and BD assessments.

• bottom up approaches (farmers and local governments), bottom up approaches (farmers and local governments), beneficiaries ownerships of proposals, growing trust beneficiaries ownerships of proposals, growing trust between experts and local smallholders) between experts and local smallholders)

Awareness Awareness on the tremendous on the tremendous pressure on forest ecosystemspressure on forest ecosystems Awareness Awareness on the importance of on the importance of maintaining connectivitymaintaining connectivity Testing Testing modelmodel for community-based for community-based approaches to forest managementapproaches to forest management

From Lam Dong …to …the Biodiversity From Lam Dong …to …the Biodiversity Conservation Corridors Initiative (BCI) Conservation Corridors Initiative (BCI)

Biodiversity Conservation Corridors Biodiversity Conservation Corridors Initiative (BCI) Initiative (BCI)

Forest protection Forest protection Rehabilitation measures Rehabilitation measures Alternative livelihood Alternative livelihood developmentdevelopmentImprove habitats Improve habitats connectivityconnectivity

US$20M = 7 pilot sitesUS$20M = 7 pilot sites

1.3 million ha. of land under 1.3 million ha. of land under BCI managementBCI management

Biodiversity Conservation Biodiversity Conservation Corridors Initiative (BCI)Corridors Initiative (BCI)

Following the model of Lam Dong project, BCI addresses critical Following the model of Lam Dong project, BCI addresses critical problems in biodiversity areas by combining forest protection and problems in biodiversity areas by combining forest protection and rehabilitation measures with alternative livelihood development. rehabilitation measures with alternative livelihood development. This integrated approaches will improve habitat connectivity and This integrated approaches will improve habitat connectivity and ecosystem functionality and reduce rural poverty.ecosystem functionality and reduce rural poverty.

About 1.3 million hectares is now under the management of BCI. About 1.3 million hectares is now under the management of BCI. Community protected areas and livelihood plantations have been Community protected areas and livelihood plantations have been established in these areas.established in these areas.

Since the first phase of the BCI project ended in 2012, another $20-Since the first phase of the BCI project ended in 2012, another $20-million phase of the CEP-BCI is implemented from 2012 to 2016.million phase of the CEP-BCI is implemented from 2012 to 2016.

In addition, upscaling is being implemented through a $69-million In addition, upscaling is being implemented through a $69-million investment program to manage biodiversity corridors in 3 investment program to manage biodiversity corridors in 3 countries: Cambodia, Lao PDR, and Viet Nam.countries: Cambodia, Lao PDR, and Viet Nam.

Further upscaling is also being carried out in the form of GEF Further upscaling is also being carried out in the form of GEF support for a $20-million GMS Forests and Biodiversity Program support for a $20-million GMS Forests and Biodiversity Program with a $115-million cofinancing from ADB and World Bank.with a $115-million cofinancing from ADB and World Bank.

Incorporating Coastal Livelihoods, Sustainable Incorporating Coastal Livelihoods, Sustainable Fisheries in the Poverty Reduction Strategies in the Fisheries in the Poverty Reduction Strategies in the Sulu Sulawesi SeasSulu Sulawesi Seas

Identify main threats to Identify main threats to sustainable fisheries in the sustainable fisheries in the regionregionIdentify opportunities to Identify opportunities to address these in the context address these in the context of national development and of national development and local management planslocal management plansAssessments, case studies, Assessments, case studies, dialogues with stakeholders dialogues with stakeholders to understand marine to understand marine degradation & livelihoods degradation & livelihoods poverty dimensionspoverty dimensions

center of center of marine biodiversitycenter of center of marine biodiversityProvides food and livelihood to about Provides food and livelihood to about 40 million people40 million people

(The Project developed action plans )(The Project developed action plans )

1 million sq. km.1 million sq. km.

From Sulu-Sulawesi to the Coral Triangle From Sulu-Sulawesi to the Coral Triangle Initiative (CTI)Initiative (CTI)

Foundation of knowledge on institutional arrangements and governance issues

Built trust among stakeholders and countries and led to the development of regional cooperation/action plans

Helped forge alliances between ADB and NGOs including WWF, which then worked together to mobilize resources from other partners such as GEF, USAID, AUSAID and others

The Coral Triangle Initiative on Coral The Coral Triangle Initiative on Coral Reefs, Fisheries, and Food Security (CTI)Reefs, Fisheries, and Food Security (CTI)

Source: J.E.N. Veron and Mary Stafford-Smith. Corals of the World (Cape Ferguson: AIMS, 2000)

CT-6CT-6: Philippines, Malaysia, Indonesia, Timor-Leste, Papua : Philippines, Malaysia, Indonesia, Timor-Leste, Papua New Guinea, Solomon IslandsNew Guinea, Solomon Islands

76% of all known coral species76% of all known coral species37% of all known coral reef fish37% of all known coral reef fish53% of world’s coral reefs53% of world’s coral reefs3,000 species of reef fish3,000 species of reef fishgreatest extent of mangrove greatest extent of mangrove forests in the worldforests in the world

PEF Phase II ExamplesPEF Phase II Examples

•Piloting Pro-poor and Gender-responsive Sanitation Options in Under-served Urban Settlements in Colombo, Sri Lanka (linked to a 300 mill Colombo water &waste water invetsment)

•Developing a Framework for Wetland Eco-compensation Mechanism in Jiangsu-Yancheng Coastal Wetlands, PRC (linked to an ADB executed GEF grant)

•Vietnam: support roll out of Payments for Forest Environmental Services and Benefit Sharing Mechanisms (payments by hydropower operators above the dam watershed communities for national scale up)

Key LessonsKey LessonsStrong Relationships as Strong Relationships as

basis (among basis (among communities, (local) communities, (local) governments, NGOs, governments, NGOs, businesses + +, businesses + +, donors ) donors )

Catalytic support Catalytic support by ADB (pilots, by ADB (pilots, support to support to replication, etc)replication, etc)

Commitment to the Commitment to the medium long term, medium long term, institutional stamina, institutional stamina, predictable resource predictable resource envelopeenvelope

ConclusionsConclusions

Unmet demandUnmet demand

Investment opportunities Investment opportunities Towards …. ….. Towards …. …..

Transformations ….. Transformations …..

Scan for innovationScan for innovation

Air and Noise Pollution Reduction from Air and Noise Pollution Reduction from the Tricycle Sub-sector, Philippinesthe Tricycle Sub-sector, Philippines

Improve tricycle emissions Improve tricycle emissions through skills trainingthrough skills training

Enhance government’s capacity to enforce Clean Air ActEnhance government’s capacity to enforce Clean Air Act

Establish multi-purpose fund for Establish multi-purpose fund for cleaner technologies and cleaner technologies and livelihood improvementlivelihood improvement

Air and Noise Pollution Reduction from Air and Noise Pollution Reduction from the Tricycle Sub-sector, Philippinesthe Tricycle Sub-sector, Philippines

Preventive maintenance programPreventive maintenance programEngine technician vocational programEngine technician vocational programCapacity building for Clean Air Act enforcementCapacity building for Clean Air Act enforcementTricycle multi-purpose fundTricycle multi-purpose fundLivelihood development programLivelihood development program