BioCarbon Fund Projects and World Bank SafeguardsJean-Roger MercierJuly 11, 2005

Objectives of Safeguard PoliciesEnsure that Environmental and Social issues are evaluated in decision making;Reduce and manage project technical risks;Provide a mechanism for Consultation and Disclosure of Information;

EAReset.Indig.Nat. Hab.Cult.

Lending Volume

Bankwide Lending for FY02 and FY03

No. of ProjectsLoan FY02 ($M)Loan FY03 ($M)FY02+FY03 ($M)

AFR160394327516694

EAP64184223364178

SAR58357528456420

ECA121558026748254

MNA4159610991695

LCR1254414589610310

TOTAL569199501760137551

For FY02+FY03

AdjustmentInvestmentTOTAL

AFR215745376694

EAP11740614178

SAR146549556420

ECA376744878254

MNA13015651695

LCR4782552810310

TOTAL124182513337551

For FY02

AdjustmentInvestmentTOTAL

AFR127526683943

EAP1718251842

SAR85027253575

ECA322223585580

MNA10586596

LCR206223524414

TOTAL74361251419950

For FY03

AdjustmentInvestmentTOTAL

AFR72020312751

EAP10022362336

SAR61522302845

ECA62520492674

MNA1659341099

LCR272631705896

TOTAL49511265017601

Chart1

0.747826087

0.1

0.0652173913

0.0652173913

0.1

0.1652173913

0.252173913

0.0565217391

0.0391304348

0.0173913043

%

SP

FY03 Safeguard Triggered

Safeguard Policies

4.014.044.364.0911.034.204.124.377.507.60TOTAL

AFR488462243398

EAP2021241217159

SAR21433610541461

ECA44441323566

MNA122114222

LCR27531715664

TOTAL1722315152338581394370

are excluded from this list as they could be under any of the following categories: SAL, PSL, PRSC, or simply didn't have the

information entered in SAP. Hence the above list should be used with this in mind, and to give us an idea of the number of

safeguard policies that are triggered. This is not completely accurate by any measure.

Policy4.014.044.364.0911.034.204.124.377.507.60

%74.8%10.0%6.5%6.5%10.0%16.5%25.2%5.7%3.9%1.7%

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In a very small nutshellSafeguards apply to all Bank-managed investment lending (inc. GEF, MP, Carbon Fund)The Recipient is responsible for applying the policies to each Bank-managed loan/credit/grantWithin the Bank, Safeguard Policies Review and Clearance is a decentralized function with a centralized coordination/dispute resolution mechanism (Quality Assurance and Compliance Unit QACU)

Environmental Assessment OP 4.01Objectives:

1. To ensure that projects proposed for Bank financing are environmentally sound and sustainable

2. To inform decision makers of the nature of environmental risks (e.g. provisions to ensure compliance and prevent likely non-compliance)

Environmental ScreeningObjective - To determine EA categoryParticipants - Task team in Regional Sector unit and SafeguardsOutcome - A, B, C or FI category assignedFactors affecting categorizationproject type, location, sensitivity and scaleapplicability of other safeguard policies

Definition of CategoriesCategory A - likely to have significant adverse environmental impacts that are sensitive, diverse or unprecedentedCategory B - potentially adverse environmental impacts that are site specific and mostly reversible; mitigation measures already exist or can be designed with greater ease than for Category A

Definition of Categories (cont)Category C: likely to have minimal or no adverse environmental impactsCategory FI: involving investment of Bank funds through a financial intermediary in sub-projects that may result in adverse environmental impacts

Natural Habitats Policy OP 4.04Objectives:Ensure due consideration is given to the conservation of natural habitats

Safeguard their biodiversity

Ensure the sustainability of the services and products which natural habitats provide to human society

Objectives:To ensure that :Forests are managed in a sustainable mannerSignificant areas of forest are not encroached uponThe rights of forest communities to use their traditional forest areas in a sustainable manner are not compromisedCommercial logging operations are not financed by the Bank in primary tropical moist forestsForests Policy OP 4.36

Involuntary Resettlement OP 4.12Objective:

To avoid or minimise involuntary resettlement and related disruption and, where necessary, to resettle people in a manner that provides them with sufficient investment resources and opportunities to share in project benefits. Policy is triggered by any land acquisition.

Indigenous Peoples Policy OP 4.10Objective:To ensure that indigenous peoples:are afforded full respect for their dignity, human rights and cultural uniqueness in the development process; do not suffer adverse effects; receive culturally-compatible social and economic benefits; benefit from provision of informed participation in the project

Content of the red BinderVerbatim of the 10 Safeguard Policies and of the Disclosure PolicyMatrix for each safeguard policy showing objectives and triggersCD-ROM with all the policies, including translations into 6 major languages, reports, proceedings from workshops and links to other major resourcesMouse Pad with a summary of the policiesBrochures on QACU and the Inspection Panel

Inspection PanelEstablished by the Board of IDA/IBRD in September 1993Primary purpose:to address the concerns of the people who may be affected by Bank projects ensure that the Bank adheres to its operational policies and procedures during design, preparation and implementation phases of projects

Inspection Panel (cont.)The Inspection Panel consists of three members who are appointed by the Board for non-renewable periods of five years. Members are selected on the basis of their ability to deal thoroughly and fairly with the requests brought to them, their integrity and independence from the bank Management, and their exposure to developmental issues and living conditions in developing countries.