proposals – Addendum

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RISK ASSESSMENT AND MANAGEMENT GREEN CLIMATE FUND FUNDING PROPOSAL | PAGE 56 OF 101 G Peaceful resolution of differences will be encouraged, as well as through example in the implementation of the project activities. The project will ensure to set a monitoring plan to provide early warning on any potential social conflict. In addition to that, a grievance mechanism will be put in place as part of the activities of the project. Selected Risk Factor 4 Description Risk category Level of risk Probability of risk occurring Severe droughts and associated fires have proved to be potentially very disruptive to life and economic activities in the Amazon. Transportation is severely curtailed, natural productivity is reduced, the quality of forest products has changed, and more time is needed to find food. In addition, forest fires could become a real threat to communities unfamiliar with the phenomena and lacking the skills necessary to survive and/or contain fires. Health issues could be aggravated as a consequence of smoke. Social and environmental Low (
RISK ASSESSMENT AND MANAGEMENT GREEN CLIMATE FUND FUNDING PROPOSAL | PAGE 57 OF 101 G Selected Risk Factor 6 Description Risk category Level of risk Probability of risk occurring Political shifts could reduce the national government’s interest in channelling resources to the project area and potentially change incentives to promote palm oil development. Because Peru is facing a new election cycle, it is clear that support for one of the country’s poorest provinces, with a very sparse population and even lower political leverage, is highly dependent on the elected officials and their preferences. An adverse result could bring sharp reductions in government investment and support for Datem del Marañón. From the project’s perspective, this could imply a reduction in cooperation and protracted bureaucratic processes that might delay the adoption of decisions. Other High (>20% of project value) Medium Mitigation Measure(s) The project is well established in the region and the province. It has gained the support of all levels of government. Building this relationship has required time and perseverance, as well as trust-building activities. The two main mitigation options to be implemented are: (a) “early engagement” (i.e. provision of information and data to disseminate expected outcomes); and (b) “awareness creation” through well-orchestrated events to disseminate the project and its achievements. It is also important to note that the project will coordinate with the relevant governmental organizations at the national level to mitigate these risks, including the Forestry Service (SERFOR), the Ministry of Agriculture (MINAGRI), and the National Program of Forest Conservation (PNCB) at the Ministry of Environment (MINAM), more specifically in regard to the agricultural development and palm oil Nationally Appropriate Mitigation Action (NAMA) currently under preparation. Selected Risk Factor 7 Description Risk category Level of risk Probability of risk occurring Political risk arising from the indigenous communities’ registration and land titling, including potential conflict between different groups, and the inability of the independent Redress Mechanism to solve conflicts and to solve them in a timely manner. If these risks were to materialize, they would affect not only the project, but through legal and reputational risks, both the accredited entity and the GCF. Other Medium (5.1- 20% of project value) Medium
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Meeting of the Board 2 - 5 November
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Contents Section A Section B Sectio
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PROJECT / PROGRAMME SUMMARY GREEN C
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DETAILED PROJECT / PROGRAMME DESCRI
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Page 28 and 29: RATIONALE FOR GCF INVOLVEMENT GREEN
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Page 64 and 65: RESULTS MONITORING AND REPORTING GR
Page 76 and 77: ANNEXES GREEN CLIMATE FUND FUNDING
Page 106: GCF/B.11/04/Add.01 No-objection let
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