FINANCING PLAN (IN US$): · Web viewOutcome 6: Increased Learning and Adaptive Management 62 Project Indicators, Risks and Assumptions 65 Cost Effectiveness 67 Table D: Growth in Production

FINANCING PLAN (IN US$):

UNDP Project Document

Rainforest Alliance

United Nations Development Programme

Global Environment Facility

Biodiversity Conservation in Coffee: transforming productive practices in the coffee sector by increasing market demand for certified sustainable coffee

Coffee is the second-largest traded commodity in the world after oil and employs 25 million people in the developing world. Coffee landscapes are very important for the worlds biodiversity. This project will result in conservation of biologically rich coffee areas though an increase in market demand for coffee produced under biodiversity-friendly, sustainable production practices. The project will work in Brazil, Colombia, El Salvador, Guatemala, Honduras and Peru and thereby deliver impacts in the Brazilian Atlantic Forest, Brazilian Cerrado, Mesoamerica, and in the Tropical Andes biomes. By increasing market demand for certified coffee from all origins, the project will also produce impact in other countries where certified sustainable coffee is produced. Providing market incentives through certification, the project will achieve transformation of the coffee sector, and ensure that it becomes a valuable complement to conservation efforts in protected areas. Results will include the direct conservation of 1,500,000 hectares of coffee, up from currently 93,000, with positive biodiversity impacts across coffee landscapes, representing approximately 10-15 million hectares. The project will foster an increase in the volume of sustainable coffee sold from 30,000 to 500,000 metric tons, with at least 100,000 of these metric tons coming from smallholders. The number of coffee companies (roasters) supporting biodiversity conservation by selling sustainable coffee will increase to more than 300. The project will work closely with governments in producer and consumer countries to make them partners in creating market-based solutions to conservation and development problems in coffee.

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Table of Contents

Acronyms6

Coffee Terminology8

Section I: Elaboration of the Narrative9

Part I: Situation Analysis9

Context and Global Significance9

Coffee Production and Biodiversity9

Box 1: Coffee in Threatened Ecosystems10

Coffee and Biodiversity in Project Countries11

Atlantic Forest12

Cerrado13

Mesoamerica14

Tropical Andes16

Table A: Project Coffee Regions17

Threats, Root Causes and Barrier Analysis18

Threats and Root Causes to Biodiversity-Friendly Coffee Production18

Conversion of Coffee Farms to Other Uses18

Conversion to Monoculture19

Threats from Poor Farm Land-Use Practices and Local Resource Use19

Opportunities for Sustainable Production20

Box 2: Certified Coffee Schemes and Movements22

Table B: Comparison of Three Major Certification Schemes24

RAC Coffee: The On-Farm Benefits25

Table C: Biodiversity Related Improvements on a Certified Farm26

Biodiversity Conservation and Environmental Protection27

Social Benefits27

Economic Sustainability27

RAC Coffee: The Market Potential28

Barriers for Expansion of Sustainable Production29

Barrier 1: Limited Demand30

Root Causes for Barrier 130

Barrier 2: Limited Consumer Interest31


Barrier 3: Capacity Constraints32


Barrier 4: Weak Economic Sustainability on Farms34


Barrier 5: Unfavorable Policies35


Barrier 6: Information and Knowledge not Systematic36


Institutional, Sectoral and Policy Context37

Global Level37

Regional Level38

National Level39

Community Level39

Stakeholder Analysis39

Baseline Analysis41

Part II: Strategy44

Project Rationale44

Design Principles and Strategic Considerations45

Policy Conformity46

Project Goal, Objective, Outcomes and Outputs/Activities47

Project Outcomes, Outputs and Activities49

Outcome 1: Increased Demand49

Outcome 2: Increased Consumer Interest52

Outcome 3: Increased Capacity to Certify54

Outcome 4: Increased Economic Sustainability57

Outcome 5: Increased Capacity to Engage Policymakers60

Outcome 6: Increased Learning and Adaptive Management62

Project Indicators, Risks and Assumptions65

Cost Effectiveness67

Table D: Growth in Production and Sales During Project68

Alternatives Considered69

Expected Global, National and Local Benefits70

Country Ownership: Country Eligibility and Country Drivenness72

Sustainability74

Replicability75

Part III: Management Arrangements77

Implementation and Execution Arrangements77

Consultation, Coordination and Collaboration Between IAs and EAs83

Part IV: Monitoring and Evaluation Plan and Budget84

Table E: Indicative Monitoring & Evaluation Workplan and Budget90

Table F: Key Impact Indicators and Targets91

Part V: Legal Context92

Section II: Strategic Results Framework and GEF Increment92

Part I: Incremental Cost Analysis92

Project Background92

Incremental Cost Assessment93

Baseline93

Alternative94

Cofinancing95

Leveraged Financing95

Systems Boundary96

Table G: Incremental Cost Matrix97

Part II: Logical Framework Analysis101

Table H: Project Logical Framework and Objectively Verifiable Impact Indicators101

Table I: Indicative Main/Strategic Activities107

Section III: Total Budget and Workplan114

Budget Considerations114

Cofinancing and Leverage Potential114

Budget

117

Section IV: Additional Information122

Part I: Other Agreements122

Part II: Organigram122

Part III: Terms of References122

Part IV: Stakeholder Involvement Plan122

Table J: Summary of Stakeholders and Potential Involvement in Project Implementation123

Annexes (See Additional Documents)

Part V:

Barriers and Root Causes Chart132

Part VI: Coffee Industry and Sustainability133

Part VII: Coffee Sector and Rainforest Alliance Marketing137

Part VIII: Coffee Certification Program141

Part VIII-A Coffee Certification Program Growth Potential and Targets145

Part IX: On Farm Benefits and Changes146

Part X: Criteria for Selection of Project Coffee Regions149

Part XI: Global Biodiversity Value of Project Coffee Regions151

Part XII: Adaptive Management168

Part XIII: Monitoring System171

Part XIV: Bibliography183

Part XV: Maps184

Part XVI:

Tracking Tool for GEF Biodiversity Focal Area Priority Two

Mainstreaming Biodiversity in Production Landscapes and Sectors.185

Part XVII:

Signature Page199

Acronyms

BDBiodiversity

BMPsBest Management Practices

CABEICentral American Bank for Economic Integration

CAMBioCentral American Markets for Biodiversity

CATIEThe Tropical Agronomic Centre for Research and Education

CBDConvention on Biological Diversity

CCADCentral American Commission on Environment and Development

CCCCCommon Code for the Coffee Community

CIMS Center of Intelligence on Sustainable Markets

CIRADFrench Agricultural Research Centre for International Development

CoCChain of Custody

CMPConservation Measures Partnership

CQI Coffee Quality Institute

CSAGCoffee Sector Advisory Group

CSPACertified Sustainable Products Alliance

CSR Corporate Social Responsibility

ECOMECOM Agroindustrial Corporation Ltd.

ExAExecuting Agency

FAOFood and Agriculture Organization

FIITFundacin Interamericana de Investigacin Tropical

FLOFairtrade Labeling Organization International

FOBFree-on-board

FOSFoundations of Success

FSCForest Stewardship Council

FTFairtrade

GEF Global Environment Facility

GTZGerman Technical Cooperation Agency

IAImplementing Agency

ICOInternational Coffee Organization

ICS Internal Control System

IDB Interamerican Development Bank

IEMIntegrated Ecosystems Management

IFOAMInternational Federation of Organic Agriculture Movements

IISDInternational Institute of Sustainable Development

ISEALInternational Social and Environmental Labelling Alliance

IUCNWorld Conservation Union

IICA Interamerican Institute for Cooperation on Agriculture

MBCMesoamerican Biological Corridor

MDGsMillenium Development Goals

NAFTA North American Free Trade Agreement

NBSAPsNational Biodiversity Strategy and Action Plans

PCR Project Coffee Region

PCUProject Coordination Unit

PMGProject Management Group

PSCProject Steering Committee

PDF-BProject Development Facility - B

PPPsPublic-Private Partnerships

RACRainforest Alliance Certified

SAI Sustainable Agriculture Initiative

SANSustainable Agriculture Network

SCAASpecialty Coffee Association of America

SMME Small, Micro and Medium Enterprises

SMESmall and Medium Enterprises

SCAA Specialty Coffee Association of America

TATechnical Assistance

TMTask Manager

TREES Rainforest All