US Agency for International Development (USAID) Bosnia and ...DCN: 2018-BOS-001 BiH/ SME Energy 1 EE.BEU Standard Form: IEE.v3 US Agency for International Development (USAID) Bosnia

DCN: 2018-BOS-001

BiH/ SME Energy 1 EE.BEU Standard Form: IEE.v3

US Agency for International Development (USAID) Bosnia and Herzegovina

Initial Environmental Examination (IEE) Activity Data

Activity Name: “ENERGY SME DEVELOPMENT ACTIVITY”

Assistance Objective: Economic Development

Program Area: Economic Opportunity

Country(ies) and/or Operating Unit: Bosnia and Herzegovina (BiH) Originating Office: Economic Development Date: December 4, 2017 PAD Level IEE: Yes No Supplemental IEE: Yes NoRCE/IEE Amendment: Yes No

DCN of Original RCE/IEE: n/a

DCN of Amendment(s): n/a

If Yes, Purpose of Amendment (AMD):

DCN(s) of All Related EA/IEE/RCE/ER(s): PAD-level IEE: DCN: 2014-BOS-009 and DCN: 2016-BOS-005

Implementation Start/End: LOP: FY 2018-FY2022

Funding Amount: LOP Amount: $858,188

Contract/Award Number (if known): TBD Recommended Environmental Determination:

Categorical Exclusion: Positive Determination: Negative Determination: Deferral:

Additional Elements:

Conditions: Local Procurement: Government to Government: Donor Co-Funded: Sustainability Analysis (included): Climate Change Vulnerability Analysis (included):

1. Background and Activity Description

1.1. Purpose and Scope of IEE

The purpose of this IEE is to determine the environmental impact and mitigation measures that will be applied during implementation of the “Energy SME Development Activity”.

1.2. Activity Overview This activity builds upon the momentum of that activity to increase the production and use of renewable energy sources. The anticipated result areas include:

supporting SMEs to meet higher production value through cleaner energy production and sustaining related value-chain linked microenterprises that support solar and biomass energy;

promoting more cost effective SME production through use of efficient energy technologies in BiH, and encouraging development of local private sector delivery of energy and environmental management services

contributing to BiH’s economic growth; improved quality of housing, and longer life expectancy of a residential building; contribution to environmental protection and reduced emissions, and

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1.3. Activity Description The Activity addresses these goals through two components: (1) promoting the sustainability of the domestic production of solar and biomass energy systems, and (2) developing financial support for the end-users of the systems. This Activity incorporates the factors that contributed to its predecessor’s success, along with lessons learned, to simultaneously address both demand- and supply-side constraints through two separate but interrelated components.

1.3.1. Component 1: Promoting sustainable domestic production This activity will build the capacity of SMEs in Bosnia and Herzegovina (BiH) to build, service, and market solar and biomass (pellet boilers) energy systems to households and small businesses in BiH. Working with 20 SME producers (all members of the Eco Solar Association, or Association), this Activity will encourage private sector delivery of energy management services by building sustainability for domestic production of solar panels through a new prototype of plate solar collector. This prototype will achieve higher performance through enhanced technical design (weight, thickness, and appearance) with less material used for its production, based on Partner’s unique and specific experience in the solar energy area. Importantly, this new product will be more competitive on the market due to lower production costs. Partner will work on certification of the newly developed plate solar collector with the pertinent national institute responsible for this (Research Institute in Tuzla, Bosnia and Herzegovina.) Once certification is obtained, all of the SMEs would undergo expert technical training for production and servicing of the new plate solar collector. The 40 newly developed plate solar collectors produced at the training would be donated to the first borrowers under the program (see Component 2). Partner will dedicate support to the SME’s marketing and public relations capacities, including capacity building specifically addressing the marketing of this new product (e.g., development of new delivery channels), as well as the latest domestically-produced home pellet boiler technology (extremely energy efficient), the value of voluntary environmental certifications, and general sales skills. This will be coordinated with support to the Association for a nation-wide media campaign for domestic products, which Partner anticipates will put the Association in a stronger position to advocate for favorable renewable energy policy, legislation, and regulation – for example, tax breaks for producers and/or end-users. The BiH market for renewables is still underdeveloped although there is a significant amount of legislation that the country adopted in the recent years:

Policy Name Country/Entity Year adopted

Status Areas of involvement/action Actors

Law on energy efficiency RS

RS 2015

In Force

Strategic planning/Policy Support>Strategic planning, Regulatory Instruments>Other mandatory requirements

Multiple RE Sources

Low on energy efficiency FBIH

FBIH 2017

In Force

Strategic planning/Policy Support>Strategic planning, Regulatory Instruments>Other mandatory requirements

Multiple RE Sources

National Bosnia and Herzegovina

2016 In Force

Pollution prevention/Policy Support>Strategic planning,

Multiple RE Sources,

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Emissions Reduction Plan (NERP)

Regulatory Instruments>Other mandatory requirements

Rule Book on incentives for generation of electricity from RES and efficient co-generation, Republic of Srpska

Bosnia and Herzegovina

2012 (January 1st)

In Force

Economic Instruments>Fiscal/financial incentives>Feed-in tariffs/premiums, Economic Instruments>Fiscal/financial incentives>Tax relief, Economic Instruments>Fiscal/financial incentives>Taxes, Policy Support>Strategic planning, Regulatory Instruments>Other mandatory requirements

Multiple RE Sources, Bioenergy>Co-firing with fossil fuels, Hydropower, Wind, Bioenergy

Decision on the amount of the fee to encourage electricity generation from renewable energy sources and efficient co-generation, Republic of Srpska


2012 (January 1st)

In Force

Economic Instruments>Fiscal/financial incentives>Feed-in tariffs/premiums

Multiple RE Sources

Decision on the amount of the feed-in prices and premiums for generation of electricity from RES and in efficient co-generation, Republic of Srpska


2012 (January 1st)

In Force

Economic Instruments>Fiscal/financial incentives, Economic Instruments>Fiscal/financial incentives>Feed-in tariffs/premiums, Economic Instruments>Fiscal/financial incentives>Tax relief, Economic Instruments>Fiscal/financial incentives>Taxes

Multiple RE Sources

Decree on generation and consumption of electricity from renewable sources and cogeneration in Republic of Srpska


2011 (March 30th)

In Force

Policy Support, Policy Support>Strategic planning

Multiple RE Sources, Bioenergy>Co-firing with fossil fuels

Regulation amending regulation on use of renewable


2011 (March 14th)

In Force

Economic Instruments>Fiscal/financial incentives, Economic Instruments>Fiscal/financial

Multiple RE Sources

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energy and co-generation

incentives>Feed-in tariffs/premiums

National Environmental Action Plan (NEAP)


2003 In Force

Policy Support>Strategic planning, Policy Support

Multiple RE Sources

1.3.2. Component 2: Facilitating finance for end-users

These new systems offer savings over other options in the long-term, but require a comparatively high up-front investment. Partner’s proposal includes concrete financial support (i.e., cost share) for the end-users of renewable sources systems by creating a unique loan product in accordance with market conditions; this loan product will be tailored specifically to the needs of BiH consumers. Moreover, the loan characteristics will be adjusted to the repayment capacity of prospective clients in BiH through longer loan terms (up to 72 months), affordable monthly installments for the loan users (ca. USD 62), and technical support by the supplier/manufacturers of pellet boilers. By the end of the activity implementation period, Partner anticipates that the systems sold by the SMEs will have established a firm presence in the market, and consumer demand will have begun to realize and reflect the long-term benefits of cheaper, cleaner systems and no longer depend on subsidized financing.

2. Baseline Environmental Information

2.1. Locations Affected and Environmental Context The implementation of activities under this IEE will be implemented throughout BiH. BiH is a beautiful country with softly undulating terrain and rich beech (Fagus silvatica) forests located in southeast Europe. Total land area is 51,129 square kilometers. BiH has 1,459 km of border, with Croatia to the north and west and Serbia and Montenegro to the east and south; it also has 20 km of coastline on the Adriatic Sea, though it is otherwise landlocked. All major watersheds and biogeographical regions in the country are shared with its neighbors; thus the natural resources and biodiversity conservation challenges of BiH are transboundary not only in nature but also in importance. BiH’s biodiversity is founded on a heterogeneous geological foundation that has undergone major tectonic change since the Pleistocene and Cretaceous periods and that has been further complicated more recently by extensive glaciation. Carbonate rocks like limestone and dolomite predominate, but silicate rocks and alluvia of various ages are common in the central and the eastern parts of the country. The southern portion of the country contains 4,400 square kilometers of karst topography. Owing to its wide range of altitudes and its situation between European and Mediterranean weather systems, BiH also has very diverse climatic zones and precipitation characteristics. The geology and weather together, and the resultant microclimates and soil types, have created a rich mosaic of biodiversity. Almost half the country (47 percent) is covered with forests, distributed throughout the central and portions of the country. Mixed farming—grains, horticulture, vineyards, and pasture—is concentrated mainly in the north. Intermountain valleys in the central and southern parts of the county support a variety of farming and grazing activities. Permanent cropland (olive, grapes, and citrus) is predominant in the south. In all, mixed farming and permanent crop uses cover about 30 percent of the country and pastureland an additional 23 percent. BiH has is very rich in flora; it has an estimated 3,572 plant species, subspecies, and varieties; some 3,000 species of algae; and 3,000 to 5,000 species of fungi and lichens. Considering the number of species and the relatively small land area, BiH is among the five richest countries in Europe in terms of species density and diversity. The country has a significant number of endemic plant species, an estimated 500.

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Bosnia and Herzegovina has a high level of diversity in domesticated species of plants and animals. Today they, together with the wild species, represent a valuable part of the country’s natural heritage. Though about 54 percent of land holdings occupy less than 2 hectares, most small-scale farmers nevertheless produce multiple products; the mixed habitats contribute to preserving biodiversity. These farmers usually grow fruit, including a wide spectrum of cherries, plums, apples, and pears, and several famous grapes for wine. Very important crops are various types of wheat, barley, oats, rye, buckwheat, and corn. In gardening there are varieties of potatoes, pumpkins, cabbage, garden oraches, mangel-wurzel, and peas, as well as of decorative, medicinal, and aromatic horticultural species. There is localized overexploitation of forests and rangelands. Because 60 to 70 percent of the people in BiH are living barely at subsistence level (NEAP, 2003), there is tremendous pressure on the environment. Many rely in whole or in part on natural resources, especially non-timber resources such as plants and game for food and forest timber or other woody biomass resources for fuel and heating. Harvesting and processing of non-timber forest products and other native plants and animals are seen by both entity governments as well as some donors as an economic development sector with significant potential. There is already commercial extraction of these materials, and formal and informal forest product collectors bring the number of people at least partially dependent on forest and its broad suite of products into the hundreds of thousands. Uncontrolled and excessive exploitation of these resources has been reported in numerous locations throughout the country. Current collection systems are poorly regulated and are often volume-based, not place or area-based, which leads to additional over harvest. A common visible example is deforestation of hillsides near urbanized areas in response to local fuel and heating needs. Illegal logging has also occurred throughout the country, primarily as an economic activity rather than a response to subsistence requirements. 2.2. Description of Applicable Environmental and Natural Resource Legal Requirements Policies,

Laws, Regulations, and Capacities Analysis Environmental issues are primarily dealt with at Entity level through laws and regulations that are partially harmonized. A “National Environmental Action Plan” exists but there is total absence of environmental strategy. BiH has very limited financial resources. The institutional structure in the field of environment is very complex and inefficient. The Ministry of Foreign Trade and Economic Relations has received the authority over the issues related to natural resources and environmental protection at the State level, however, the capacity on the State level is still insufficient due to non-existence of the state level environmental protection agency. Most of the responsibilities and authorities have been delegated to the lower levels of the governance, e.g. two entity governments, or in the case of the Federation of BiH to the ten cantonal governments. The authority over key sectors is often overlapping and regulations and standards are not always harmonized. Some legislative steps have been taken by BiH regarding air, water and waste water management. A monitoring system has been established and it is operational for air quality. Both Entities have adopted legislation and by-laws on air protection. There have been improvements in the development of the legislation for waste management as well. The Waste Management Strategy has been developed and current legislation has been amended according to the Strategy. A register of the polluters has been developed. However, the polluter pays principle has not been adopted yet. To reduce pollution from the large power plants, in accordance with the Large Combustion Plants Directive (LCPD), with the help from USAID the Council of Ministers of BIH adopted a National Emission reduction Plan for BiH (BIH NERP). In this way, BiH has fulfilled its obligation toward the Energy Community, and created the preconditions for emissions reduction from thermal power plants boilers and thereby decreased the adverse impacts to human and environmental health. The National Emissions Reduction Plan for BIH refers to reduction of sulphur dioxide, azote oxides and solid particles emission from big combustion facilities in BIH.

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Regarding water quality, the collection of data on water quality is not functioning. Water quality reporting and waste water treatment remain the key environmental challenges. Water quality in the major rivers is generally not good due to discharge of approximately 95% of municipal and industrial waste directly into rivers without treatments.

2.3 Country/Ministry/Municipality Environmental Capacity Analysis :

FBiH: Environmental management in the Federation BiH is uneconomical and unsustainable. The main reason for this serious lack of coordination, disorientation, and duplication between the different levels of administration responsible for environmental issues lies in the fact that institutionalized mechanisms and channels for exchange of information virtually do not exist. In addition to the relevant ministries involved in the environment and biodiversity, the Federation has quite an impressive number of specialist institutions that provide expert consulting, inspection and monitoring, and/or services that protect citizens, property and the environment/biodiversity from natural disasters. These institutes and agencies work under relevant ministries or report directly to the government. While the structure and number of institutions is rather impressive, the lack of inter-ministry coordination on all levels, as well as weak information exchange, are serious issues that impede and obstruct efficient environment/biodiversity management. Additionally, inadequate experience in environmental management of ministerial staff often results in serious gaps between the legal requirements and actual implementation.

The environmental protection legal framework in FBiH consists of five laws that were developed and adopted in 2003 at the entity level:

Law on Environmental Protection; Law on Nature Protection; Law on Waste Management; Law on Air Protection; and Law on Environmental Protection Fund.

Adoption of these laws was a crucial step towards harmonizing BiH legislation with the EU. Although, FBiH adopted several of the sub-laws that harmonized many aspects of environmental protection with the EU legislation, the process of harmonization is far from finished. The process of harmonization must continue in order for FBiH to meet all EU directives related to regulating the environment. The main impediments to harmonization are the lack of a vision and the lack of a strategy for improving the efficiency of the harmonization processes.

Furthermore, harmonization of legislation is required within the legal structure in the entity and cantonal governments. The environmental laws adopted in 2003 were at the entity level, and some cantons have never adopted cantonal laws. In addition, some cantonal laws were adopted prior to the year 2003, so many provisions in these laws are inconsistent with the 2003 entity environmental laws.

RS: The institutional framework for environment in the RS is simpler than the one in FBiH. There are only two levels of administration in the RS: entity and local. Similarly to FBiH, there are public enterprises tasked with specific consulting, monitoring or other services related to the environment.

At the entity level, the Ministry for Spatial Planning, Construction, and Ecology is responsible for all issues related to the environment. This Ministry is responsible for drafting and adopting laws, implementing laws relevant to environmental protection, recommending areas to be protected, and monitoring and supervising work of local/municipal administrations. Within this ministry, there is a specialized department that handles environmental issues. Some responsibilities at the entity level related to the environment are also delegated to the Ministry of Agriculture, Forestry and Water Works; the Ministry of Education; and the Ministry of Trade and Tourism. The roles and responsibilities of each of these ministries have been defined by the Law on Ministries (2002). This same law provides for the role of the Public Institute for Protection of Cultural, Historical and Natural Heritage of Republika Srpska. This institution is tasked with all works related to protected areas, including updating the register of protected areas. They also provide expert and consulting services related to protection of the RS. In its work, the institute cooperates with

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other public institutions in the RS, such as faculties, museums, etc. In addition, and similarly to FBiH, there are public enterprises that manage natural parks. In the RS, there are two such institutions that are responsible for the national nature parks, Sutjeska and Kozara. Also, there is a public enterprise “Srpske Sume” that is responsible for overall management of all forests in the RS.

The most significant legislative reform related to the environment in the RS was the adoption of a set of entity laws on the environment. This set of five laws was drafted and adopted by both entities at the same time and are harmonized with EU legislation regulating the environment. Furthermore, and similarly to FBiH, there are other pieces of legislation that regulate certain aspects of the environment that were adopted in the RS. These include the following:

o Law on Forests (2003); o Law on Hunting (2002); o Law on National Parks (2005); o Law on Waters (2006); o Law on Agricultural Lands (2006); o Law on Fishing (2002); o Law on Communal Police (2003); o Law on Fees for Utilizing Natural Resources for Energy Generation (2003); and o Law on Environmental Fund (2002).

The RS is facing some of the same issues as FBiH, including the requirement for full harmonization of its legislation with EU regulations. As previously stated, in order to harmonize its legislation with the EU, the BiH government started revising existing laws in 2006. This project was financed by the EC with the ultimate goal of monitoring the level of harmonization with EU regulations. 2.3. Sustainability Analysis BiH’s most used energy sources are non-renewable ones, which are by nature unsustainable: they are limited in amount, pollute the environment, and have a negative impact on humanity. The purpose of the activity is to improve the sustainability of the domestic market for solar and biomass systems utilizing renewable energy; these systems reduce or eliminate the need to utilize fossil fuels and improve domestic air quality in the country, thereby improving the environmental sustainability of energy production in BiH. In addition, in the future, Partner predicts that the Association will be well-positioned to advocate for legal and regulatory reforms that further promote the utilization of renewable energy sources. This activity presents an environmentally sustainable, scalable solution for an existing environmental problem. In addition, the significant resources the activity budget dedicates to marketing reflect prioritization of the sustainability of the continued adoption of these technologies, even when the Activity is no longer offering support to producers or favorable lending terms to end-users. To ensure a healthy market once the activity’s assistance has ended, the SME producers must know how to effectively market their products; this activity will dedicate significant resources to ensure they do. In addition, through demonstration effect, improved market visibility, and a stronger business Association, awareness should spread to higher-income users (who can afford unsubsidized loans), availability of credit through banks should increase (once they see the long-term cost savings accrued by potential borrowers), and the regulatory environment should become more favorable, for example, with government tax breaks (when the SME producers’ Association advocates for improvements). 2.4. Climate Change Vulnerability Analysis This analysis sought to identify whether and how the Activity will affect, or be affected by, medium and longer-term climate change impacts, and how the Activity’s design should be adjusted in consideration of climate change vulnerabilities.

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BiH has been seeing some symptoms of climate change: the increase in annual air temperature ranges from 0.4 to 1.0°C, with increases in air temperature over the last fourteen years even more pronounced. In the last five years, Bosnia and Herzegovina has been facing with several significant extreme climate and weather episodes that have caused substantial material and financial deficits, as well as casualties (i.e., drought in 2012 and flooding in 2014). The most significant source of CO2 emissions is the energy sector, which in the 2002-2013 period contributed with about 53% of total CO2 emissions, followed by agriculture (14%), industrial processes (6%) and waste (5%). The projected increase in temperature and changes in precipitation (increased intense precipitation and droughts) predicted by BiH’s recent Climate Change Risk Analysis (supported by USAID) will not impact the availability of solar energy or the energy efficiency of the supported technology. Although in the long term (beyond the four years of this Activity) those changes could leave forests – sources of domestic wood pellets - more vulnerable, the Activity will support the use of only the most efficient modern pellet boilers in those systems utilizing both pellet boilers and solar energy, boosting the productivity by volume and thereby minimizing the required wood inputs and reducing the usage of nonrenewable energy sources. This activity contributes to the diversification of BiH’s energy supply and increases the country’s security, becoming only more promising as a source of power generation as the effects of climate change progress in BiH. Energy efficiency will remain critical to minimize BiH’s contributions towards climate change and the impact of climate change on the energy sector.

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Analysis of Potential Environmental Impact

2.5. Climate Change and Component 1: Promoting sustainable domestic production

Defined/Illustrative Activities Potential Impacts

Potential Climate Risk Climate Risk Rating

Opportunities for Climate Resiliency

1.1 New solar plate collector: Certification costs and training for 20 SMEs (including raw materials for 40 units produced in training to be donated to 1st borrowers under Component 2)

Improper disposal of waste or failure to mitigate emissions associated with production could lead to environmental impact to water, land, air,

In the last 50 years, BiH’s average annual air temperatures have increased, and a 1 degree Celsius increase in seasonal average temperatures is anticipated by 2030. More extreme weather (floods and droughts) is also expected.

BiH currently depends largely on coal (whose combustion exacerbates climate change) and hydropower for energy; its ability to produce hydropower may be put at risk by changes in water levels following precipitation changes. Rising temperatures may increase the demand for energy for air conditioners in summer months.

Low Increased use of efficient solar energy systems could reduce reliance on hydropower (at risk due to CC) and coal (contributing to CC).

1.2 Training/capacity building covering: development of new delivery channels for the new produce; voluntary environmental certifications; marketing strategy/public relations; and, sales skills.

None

As above, also noting that the risks that CC poses to forests given increased temperature and potential flooding and drought, where BiH domestic wood pellets are sourced – however this would not be anticipated to effect availability in the next 5 years.

Low Increased use of efficient solar and biomass energy systems could reduce reliance on hydropower (at risk due to CC) and coal (contributing to CC)

1.3 Promotional activities for domestically produced renewable energy resources

None

Same as above. Low Increased use of efficient solar and biomass energy systems could reduce reliance on hydropower (at risk due to CC) and coal (contributing to CC); evidence of risks of CC may make campaign more effective and generate

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Defined/Illustrative Activities Potential Impacts

Potential Climate Risk Climate Risk Rating

Opportunities for Climate Resiliency

demand.

2.6. Climate Change and Component 2: Facilitating finance for end-users

Defined/Illustrative Activities Potential Impacts Potential Climate Risk Climate Risk

Rating Opportunities for Climate Resiliency

2.1 Subsidies for loans facilitating investment in renewable, efficient energy systems (solar and pellet boilers)

Waste impacts to land and water due to improper disposal practices; note that pellets financed through these loans will be locally produced pellet certified as A1 or A3 quality level (with neutral effect to environment)

In the last 50 years, BiH’s average annual air temperatures have increased, and a 1 degree Celsius increase in seasonal average temperatures is anticipated by 2030. More extreme weather (floods and droughts) is also expected.

BiH currently depends largely on coal (whose combustion exacerbates climate change) and hydropower for energy; its ability to produce hydropower may be put at risk by changes in water levels following precipitation changes. Rising temperatures may increase the demand for energy to power air conditioners in summer months.

Forests are vulnerable to CC, given increased temperature and potential flooding and drought, where BiH domestic wood pellets are sourced – however this would not be anticipated to effect availability in the next 5 years.

Low Increased use of efficient solar and biomass energy systems could reduce reliance on hydropower (at risk due to CC) and coal (contributing to CC); evidence of risks of CC may generate demand.

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3. Recommended Environmental Actions

3.1. Recommended Mitigation Measures

Component 1 – Promoting sustainable domestic production

Defined/Illustrative Activities Potential Impacts Mitigation Measures Recommended Threshold Determination

1.1 New solar plate collector: a. Certification costs associated with testing and approving of the new solar plates b. Training in production technics of new solar plates for 20 SMEs c. Purchasing of raw materials for 40 solar plate units (to be donated to 1st borrowers under Component 2) d. Training/capacity building covering: development of new delivery channels for the new produce; voluntary environmental certifications; marketing strategy/public relations; and, sales skills. e. Promotional activities for domestically produced renewable energy resources – e.g. branding, information sharing, advertising

- Improper disposal of waste or failure to mitigate emissions associated with production during training sessions could lead to environmental impact to water, land, air. - Failure to obtain necessary environmental permits and certificates may affect the sales.

Prior to initiating activities that have the potential to result in significant adverse environmental, health, and safety impact, the IP shall prepare an ERC/EMMP(s) in the format provided in the Annex 1 of this IEE. The COR/AOR, MEO, and BEO shall approve the ERC/EMMP(s) prior to implementation. For each site-specific activity, the ERC/EMMP shall be attached to the signed Certification of No Adverse or Significant Effects on the Environment (See ERC/EMMP Annex 1). This should be signed by the IP, COR/AOR, MEO, and BEO. After the IP has finalized its activities at a specific site, the IP shall sign a Record of Compliance with the ERC/EMMP (see ERC/EMMP Annex 2) certifying that the organization met all applicable ERC/EMMP conditions and submit it to the COR/AOR. The COR/AOR shall keep the original for the project files and provide a copy to the MEO and BEO.

216.3(a)(2)(iii) Negative Determination with Conditions

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Component 2 – Facilitating finance for end-users

Defined/Illustrative Activities Potential Impacts Mitigation Measures Recommended Threshold Determination

2.1 Subsidies for loans facilitating investment in renewable, efficient energy systems (solar and pellet boilers). Loans will be disbursed by the MCO Partner after the possible impacts and effects are evaluated.

Waste impacts to air, land and water due to improper installation and/or waste disposal practices; All impacts will be evaluated by the professional environmentalists prior to loan approval. (note that pellets financed through these loans will be locally produced pellet certified as A1 or A3 quality level (neutral effect to environment)

Prior to initiating activities that have the potential to result in significant adverse environmental, health, and safety impact, the IP shall prepare an ERC/EMMP(s) in the format provided in the Annex 1 of this IEE. The COR/AOR, MEO, and BEO shall approve the ERC/EMMP(s) prior to implementation. For each site-specific activity, the ERC/EMMP shall be attached to the signed Certification of No Adverse or Significant Effects on the Environment (See ERC/EMMP Annex 1). This should be signed by the IP, COR/AOR, MEO, and BEO. After the IP has finalized its activities at a specific site, the IP shall sign a Record of Compliance with the ERC/EMMP (see ERC/EMMP Annex 2) certifying that the organization met all applicable ERC/EMMP conditions and submit it to the COR/AOR. The COR/AOR shall keep the original for the project files and provide a copy to the MEO and BEO.

216.3(a)(2)(iii) Negative Determination with Conditions

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EE.BEU Standard Form: IEE.v3

3.2. Recommended Environmental Determination:

Categorical Exclusions: A categorical exclusion is recommended for the following identified activities under 22 CFR 216.2(c)(2):

Activity 1.2 and 1.3 under §216.2(c)(2)(i) Education, technical assistance, or training programs except to the extent such programs include activities directly affecting the environment (such as construction of facilities, etc.);

Negative Determination with Conditions:

Under §216.3(a)(2)(iii), a negative determination with conditions is recommended for activities 1.1 and 2.1. Specific terms and conditions are presented below in Section 3.3.

3.3. Terms and Conditions:

3.3.1. Prior to initiating activities that have the potential to result in significant adverse environmental, health, and safety impact, the IP shall prepare an ERC/EMMP(s) in the format provided in the Annex 1 of this IEE. The COR/AOR, MEO, and BEO shall approve the ERC/EMMP(s) prior to implementation. For each site-specific activity, the ERC/EMMP shall be attached to the signed Certification of No Adverse or Significant Effects on the Environment (See ERC/EMMP Annex 1). This should be signed by the IP, COR/AOR, MEO, and BEO. After the IP has finalized its activities at a specific site, the IP shall sign a Record of Compliance with the ERC/EMMP (see ERC/EMMP Annex 2) certifying that the organization met all applicable ERC/EMMP conditions and submit it to the COR/AOR. The COR/AOR shall keep the original for the activity files and provide a copy to the MEO and BEO.

3.3.2. ERC/EMMPs shall be captured in annual work plans, and therefore budgeted for and reviewed for adequacy at least annually.

3.3.3. Changes in activities and their associated ERC/EMMPs shall necessitate amending the IEE or issuing a Memo to the File (depending on extent and potential impact of the changes).

3.4. USAID Monitoring and Reporting

3.4.1. The AOR/COR, with the support of the MEO, is responsible for monitoring compliance of activities by means of desktop reviews and site visits.

3.4.2. If at any time the activity is found to be out of compliance with the IEE, the AOR/COR or MEO shall immediately notify the BEO.

3.4.3. A summary report of Mission’s compliance relative to this IEE shall be sent to the BEO on an annual basis, normally in connection with preparation of the Mission’s annual environmental compliance report required under ADS 203.3.8.5 and 204.3.3.

3.4.4. The BEO or his/her designated representative may conduct site visits or request additional information for compliance monitoring purposes to ensure compliance with this IEE, as necessary.

3.5. Implementing Partner (IP) Monitoring and Reporting

3.5.1. If an individual activity is found to pose significant adverse environmental effects that have not been identified and addressed in the attached EMMP(s), or EMMPs that were subsequently approved for the activity, new EMMPs shall be developed to include environmental safeguards for such effects.

3.5.2. IPs shall report on environmental compliance requirements as part of their routine activity reporting to USAID.

4. Mandatory Inclusion of Requirements in Solicitations, Awards, Budgets and Workplans

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4.1. Appropriate environmental compliance language, including limitations defined in Section 6, shall be incorporated into solicitations and awards for this activity and the activity’s budgets shall provide for adequate funding and human resources to comply with requirements of this IEE.

4.2. Solicitations shall include Statements of Work with task(s) for meeting environmental compliance requirements and appropriate evaluation criteria.

4.3. Environmental mitigation and monitoring requirements, when available, shall also be included in solicitations and awards.

4.4. The IP shall incorporate conditions set forth in this IEE into their annual work plans. 4.5. The IP shall ensure annual work plans do not prescribe activities that are defined as limitations, as

defined in Section 6. 4.6. The USAID Mission will include an indicator for environmental compliance as part of the

activity’s performance monitoring plan. [If an IEE has a threshold determination of negative determination with conditions, then a possible indictor is if the IP did the ERC/EMMP.]

5. Limitations of the IEE: This IEE does not cover activities (and therefore should changes in scope

implicate any of the issues/activities listed below, a BEO-approved amendment shall be required), that: 5.1. Normally have a significant effect on the environment under §216.2(d)(1) [See

http://www.usaid.gov/our_work/environment/compliance/regulations.html] 5.2. Support project preparation, project feasibility studies, engineering design for activities listed in

§216.2(d)(1); 5.3. Affect endangered species; 5.4. Result in wetland or biodiversity degradation or loss; 5.5. Support extractive industries (e.g. mining and quarrying); 5.6. Promote timber harvesting; 5.7. Provide support for regulatory permitting; 5.8. Result in privatization of industrial or infrastructure facilities; 5.9. Lead to new construction of buildings or other structures; 5.10. Assist the procurement (including payment in kind, donations, guarantees of credit) or use

(including handling, transport, fuel for transport, storage, mixing, loading, application, cleanup of spray equipment, and disposal) of pesticides or activities involving procurement, transport, use, storage, or disposal of toxic materials and /or pesticides (cover all insecticides, fungicides, rodenticides, etc. covered under the Federal Insecticide, Fungicide, and Rodenticide Act); and

5.11. Procure or use genetically modified organisms.

6. Revisions 6.1. Under §216.3(a)(9), if new information becomes available that indicates that activities covered by

the IEE might be considered major and their effect significant, or if additional activities are proposed that might be considered major and their adverse effect significant, this environmental threshold decision will be reviewed and, if necessary, revised by the Mission with concurrence by the BEO. It is the responsibility of the USAID COR/AOR to keep the MEO and BEO informed of any new information or changes in the activity that might require revision of this IEE.

DCN: 2018-BOS-001


7. Recommended Environmental Threshold Decision Clearances:

Approval :

_______________________________________ Peter Duffy, Mission Director

_____________________ Date

Clearance:

___________________________________________ Samir Dizdar, Mission Environmental Officer

_____________________ Date

Clearance :

___________________________________________ Ankica Gavrilovic, Prospective COR/AOR

_____________________ Date

Concurrence:

___________________________________________ Mark Kamiya E&E Bureau Environmental Officer

_12/6/2017_______________ Date

Distribution: IEE File MEO (to also provide a copy to AOR/COR) Drafted by: Lee Williams, EE/TSO/EG, x5515, [email protected], August 8, 2017

DCN: 2018-BOS-001


ENVIRONMENTAL REVIEW CHECKLIST (ERC) for Identifying Potential Environmental

Impacts of Project Activities and Processes/ ENVIRONMENTAL MITIGATION AND

MONITORING PLAN (EMMP)

ERC/EMMP

for [Activity Name]

Implemented under: [Project Name]

DCN: [of Parent IEE]

Prepared by: [Implementer]

Mission / Project 1 EE.BEU Standard Form: IEE.v3

ENVIRONMENTAL REVIEW CHECKLIST FOR IDENTIFYING POTENTIAL ENVIRONMENTAL IMPACTS OF PROJECT ACTIVITIES AND PROCESSES

The Environmental Review Checklist for Identifying Potential Environmental Impacts of Project Activities and Processes (ERC) and Environmental Mitigation and Monitoring Plan (EMMP) is intended for use by implementing partners to: assess activity-specific baseline conditions, including applicable environmental requirements; identify potential adverse environmental effects associated with planned activity(s) and processes; and develop EMMPs that can effectively avoid or adequately minimize the identified effects. This ERC/EMMP may be substituted for other ERC/EMMP versions that may have been attached to previous initial environmental examinations (IEE). If implementing partners are in doubt about whether a planned activity requires preparation of an ERC, they should contact their Contracting Officer’s Representative (COR)/Agreement Officer’s Representative (AOR) for clarification. In turn, the COR/AOR should contact their Mission Environmental Officer (MEO) if they have any questions. In special circumstances and with approval of the BEO it is possible to have one very comprehensive ERC/EMMP for multiple projects if they are similar in scope. (When preparing the ERC/EMMP, please indicate “not applicable” for items that have no bearing on the activity. The ERC/EMMP should be completed by an environmental specialist. The ERC/EMMP must be completed and approved prior to the activity beginning.)

A. Activity and Site Information Project Name: (as stated in the triggering IEE)

Mission/Country:

DCN of Most Recent Triggering IEE or Amendment:

Activity/Site Name:

Type of Activity:

Name of Reviewer and Summary of Professional Qualifications:

Date of Review:

B. Activity Description 1. Activity purpose and need 2. Amount of activity 3. Location of activity 4. Beneficiaries, e.g., size of community, number of school children, etc. 5. Number of employees and annual revenue, if this is a business 6. Implementation timeframe and schedule 7. Detailed description of activity, items that will be purchased (This section should fully

describe what funds are being used for.) 8. Detailed description of site, e.g., size of the facility or hectares of land; steps that will be

taken to accomplish the activity;

DCN: 2018-BOS-001


9. Existing or planned certifications, e.g., ISO 14001 EMS, ISO 9000, HCCP, SA 8000, Global Gap, Environmental Product Declarations, Eco Flower, EcoLogo, Cradle to Cradle, UL Environment, GREENGUARD, Fair Trade, Green Seal, LEED, or various Forest Certifications

10. Site map, e.g., provide an image from Google Earth of the location 11. Photos of site, items to be purchased, engineering construction plans (when available)

C. Activity-Specific Baseline Environmental Conditions 1. Population characteristics 2. Geography 3. Natural resources, e.g., nearby forest/protected areas, ground and surface water resources 4. Current land use and owner of land 5. Proximity to public facilities, e.g. schools, hospitals, etc. 6. Other relevant description of current environmental conditions in proximity to the activity

D. Legal, Regulatory, and Permitting Requirements 1. National environmental impact assessment requirements for this activity 2. Applicable National or local permits for this activity, responsible party, and schedule for

obtaining them:

Permit Type Responsible party Schedule Zoning Building/Construction Source Material Extraction Waste Disposal Wastewater Storm Water Management Air Quality Water Use Historical or Cultural Preservation Wetlands or Water bodies Threatened or Endangered Species Other

3. Additional National, European Union, or other international environmental laws, conventions, standards with which the activity might be required to comply a. Air emission standards b. Water discharge standards c. Solid waste disposal or storage regulations d. Hazardous waste storage and disposal e. Historical or cultural preservation f. Other

E. Engineering Safety and Integrity (for Sections E. and F., provide a discussion for any of the listed issues that are yes answers and likely to have a bearing on this activity)

DCN: 2018-BOS-001


1. Will the activity be required to adhere to formal engineering designs/plans? Have these been or will they be developed by a qualified engineer? If yes, attach the plans to the ERC/EMMP.

2. Do designs/plans effectively and comprehensively address: a. Management of storm water runoff and its effects? b. Reuse, recycling, and disposal of construction debris and by-products? c. Energy efficiency and/or preference for renewable energy sources? d. Pollution prevention and cleaner production measures? e. Maximum reliance on green building or green land-use approaches? f. Emergency response planning? g. Mitigation or avoidance of occupational safety and health hazards? h. Environmental management of mobilization and de-mobilization? i. Capacity of the host country recipient organization to sustain the

environmental management aspects of the activity after closure and handover? 3. Are there known geological hazards, e.g., faults, landslides, or unstable soil

structure, which could affect the activity? If so, how will the project ensure structural integrity?

4. Will the site require grading, trenching, or excavation? Will the activity generate borrow pits? If so, how will these be managed during implementation and closure?

5. Will the activity cause interference with the current drainage systems or conditions? Will it increase the risk of flooding?

6. Will the activity interfere with above- or below-ground utility transmission lines, e.g., communications, water, sewer, or natural gas?

7. Will the activity potentially interfere with vehicle or pedestrian traffic? 8. Does the activity increase the risk of fire, explosion, or hazardous chemical

releases? 9. Does the activity require disposal or retrofitting of polychlorinated biphenyl-

containing equipment, e.g., transformers or florescent light ballasts?

F. Environment, Health, and Safety Consequences 1. Potential impacts to public health and well-being

a. Will the activity require temporary or permanent property land taking? b. Will activities require temporary or permanent human resettlement? c. Will area residents and/or workers be exposed to pesticides, fertilizer, or other

toxic substances, e.g., as a result of farming or manufacturing? If yes, then there should be an approved, current PERSUAP on file and discuss how it will be used in this situation. If so, how will the project:

i. Ensure that these chemicals do not contaminate ground or surface water? ii. Ensure that workers use protective clothing and equipment to prevent

exposure? iii. Control releases of these substances to air, water, and land? iv. Restrict access to the site to reduce the potential for human exposure?

DCN: 2018-BOS-001


d. Will the activity generate pesticide, chemical, or industrial wastes? Could these wastes potentially contaminate soil, groundwater or surface water?

e. Will chemical containers be stored at the site? f. Does the activity remove asbestos-containing materials or use of building

materials that may contain asbestos, formaldehyde, or other toxic materials? Can the project certify that building materials are non-toxic? If so, how will these wastes be disposed of?

g. Will the activity generate other solid or hazardous wastes such as construction debris, dry or wet cell batteries, florescent tubes, aerosol cans, paint, solvents, etc.? If so, how will this waste be disposed of?

h. Will the activity generate nontoxic, nonhazardous solid wastes (subsequently requiring land resources for disposal)?

i. Will the activity pose the need to handle and dispose of medical wastes? If so, describe measures of ensuring occupational and public health and safety, both onsite and offsite.

j. Does the activity provide a new source of drinking water for a community? If so, how will the project monitor water quality in accordance with health standards?

k. Will the activity potentially disturb soil contaminated with toxic or hazardous materials?

l. Will activities, e.g., construction, refurbishment, demolition, or blasting, result in increased noise or light pollution, which could adversely affect the natural or human environment?

2. Atmospheric and air quality impacts a. Will the activity result in increased emission of air pollutants from a vent or as

fugitive releases, e.g., soot, sulfur dioxide, oxides of nitrogen, volatile organic compounds, methane.

b. Will the activity involve burning of wood or biomass? c. Will the activity install, operate, maintain, or decommission systems containing

ozone depleting substances, e.g., freon or other refrigerants? d. Will the activity generate an increase in carbon emissions? e. Will the activity increase odor and/or noise?

3. Water quality changes and impacts a. How far is the site located from the nearest river, stream, or lake?(Non-yes/no

question) b. Will the activity disturb wetland, lacustrine, or riparian areas? c. What is the depth to groundwater at the site? (Non-yes/no question) d. Will the activity result in increased ground or surface water extraction? If so,

what are the volumes? Permit requirements? (Non-yes/no question) e. Will the activity discharge domestic or industrial sewage to surface, ground

water, or publicly-owned treatment facility? f. Does the activity result in increased volumes of storm water run-off and/or is

there potential for discharges of potentially contaminated (including suspended solids) storm water?

DCN: 2018-BOS-001


g. Will the activity result in the runoff of pesticides, fertilizers, or toxic chemicals into surface water or groundwater?

h. Will the activity result in discharge of livestock wastes such as manure or blood into surface water?

i. Does the site require excavation, placing of fill, or substrate removal (e.g., gravel) from a river, stream or lake?

4. Land use changes and impacts a. Will the activity convert fallow land to agricultural land? b. Will the activity convert forest land to agricultural land? c. Will the activity convert agricultural land to commercial, industrial, or

residential uses? d. Will the activity require onsite storage of liquid fuels or hazardous materials in

bulk quantities? e. Will the activity result in natural resource extraction, e.g., granite, limestone,

coal, lignite, oil, or gas? f. Will the activity alter the viewshed of area residents or others?

5. Impacts to forestry, biodiversity, protected areas and endangered species a. Is the site located adjacent to a protected area, national park, nature preserve, or wildlife

refuge? b. Is the site located in or near threatened or endangered (T&E) species habitat? Is there a

plan for identifying T&E species during activity implementation? If T&E species are identified during implementation, is there a formal process for halting work, avoiding impacts, and notifying authorities?

c. Is the site located in a migratory bird flight or other animal migratory pathway? d. Will the activity involve harvesting of non-timber forest products, e.g., mushrooms,

medicinal and aromatic plants (MAPs), herbs, or woody debris? e. Will the activity involve tree removal or logging? If so, please describe.

6. Historic or cultural resources a. Are there cultural or historic sites located at or near the site? If so, what is the distance

from these? What is the plan for avoiding disturbance or notifying authorities? b. Are there unique ethnic or traditional cultures or values present in the site? If so, what

is the applicable preservation plan?

G. Further Analysis of Recommended Actions (Most activities will have a threshold determinations of negative determination with conditions..

1. Categorical Exclusion: The activity is not likely to have an effect on the natural or physical environment. No further environmental review is required.* (This is rarely used in the ERC/EMMP.)

2. Negative Determination with Conditions: The activity does not have potentially significant adverse environmental, health, or safety effects, but may contribute to minor impacts that can be eliminated or adequately minimized by appropriate mitigation measures. ERC/EMMPs shall be developed, approved by the Mission Environmental Officer (MEO) and the BEO prior to beginning the activity, incorporated into workplans, and then implemented. For activities related to the procurement, use, or training related to pesticides, a PERSUAP will be prepared for BEO approval, PERSUAPS are considered amendments to the IEE and

DCN: 2018-BOS-001


usually Negative Determination with Conditions. See Sections H and I below.* 3. Positive Determination: The activity has potentially significant adverse environmental

effects and requires further analysis of alternatives, solicitation of stakeholder input, and incorporation of environmental considerations into activity design. A Scoping Statement (SS) must be prepared and be submitted to the BEO for approval. Following BEO approval of the SS an Environmental Assessment (EA) will be conducted. The activity may not be implemented until the BEO clears the final EA. If the Parent IEE does not have Positive Determination as one of the threshold determinations, the IEE needs to be amended.

4. Activity Cancellation: The activity poses significant and unmitigable adverse environmental effects. Adequate ERC/EMMPs cannot be developed to eliminate these effects and alternatives are not feasible. The project is not recommended for funding.

*Note regarding applicability related to Pesticides (216.2(e): The exemptions of §216.2(b)(l) and the categorical exclusions of §216.2(c)(2) such as technical assistance, education, and training are not applicable to assistance for the procurement or use of pesticides.

H. EMMPs (Using the format provided belowlist the processes that comprise the activity, then for each, identify impacts requiring further consideration, and for each impact describe the mitigation and monitoring measures that will be implemented to avoid or adequately minimize the impacts. All environment, health, and safety impacts requiring further consideration, which were identified in Section F., should be addressed)

1. Activity-specific environmental mitigation plan (Upon request, the MEO may be able to provide your project with example EMMPs that are specific to your activity.)

Processes Identified Environmental

Impacts

Do the Impacts Require Further Consideration?

Mitigation Measures

Monitoring Indicators

List all the processes that comprise the activity(s) (e.g. asbestos roof removal, installation of toilets, remove and replace flooring) A line should be included for each

A single process may have several potential impacts—provide a separate line for each.

For each impact, indícate Yes or No; if No, provide justification, e.g.,: (1) There are no applicable legal requirements including permits or reporting and (2) There is no relevant community concern and (3) Pollution prevention is not feasible or practical and (4) Does not pose a risk because of low

For each impact requiring further consideration, describe the mitigation measures that will avoid or adequately minimize the impact. (If mitigation measures are well-specified in the IEE, quote directly from IEE.)

Specify indicators to (1) determine if mitigation is in place and (2) successful. For example, visual inspections for seepage around pit latrine; sedimentation at stream crossings, etc.)

DCN: 2018-BOS-001


Processes Identified Environmental

Impacts

Do the Impacts Require Further Consideration?

Mitigation Measures

Monitoring Indicators

process. severity, frequency, or duration

2. Activity-specific monitoring plan Monitoring Indicators Monitoring and

Reporting Frequency Responsible

Parties Records

Generated Specify indicators to (1) determine if mitigation is in place and (2) successful (for example, visual inspections for seepage around pit latrine; sedimentation at stream crossings, etc.)(Taken from column 5 of the environmental mitigation plan above.)

For example: “Monitor weekly, and report in quarterly reports. If XXX occurs, immediately inform USAID COR/AOR.”

Separate parties responsible for mitigation from those responsible for reporting, whenever appropriate,

If appropriate, describe types of records generated by the mitigation, monitoring, and reporting process.

DCN: 2018-BOS-001


ERC/EMMP ANNEX 1

Certification of No Adverse or Significant Effects on the Environment

I, the undersigned, certify that activity-specific baseline conditions and applicable environmental requirements have been properly assessed; environment, health, and safety impacts requiring further consideration have been comprehensively identified; and that adverse impacts will be effectively avoided or sufficiently minimized by proper implementation of the EMMP(s) in Section H. If new impacts requiring further consideration are identified or new mitigation measures are needed, I will be responsible for notifying the USAID COR/AOR, as soon as practicable. Upon completion of activities, I will submit a Record of Compliance with Activity-Specific EMMPs using the format provided in ERC Annex 2.

_________________________________________ Implementer Project Director/COP Name

_____________________________ Date

Approvals:

_________________________________________USAID COR/AOR Name

_______________________________ Date

_________________________________________Mission Environmental Officer Name

_______________________________ Date

Concurrence: _________________________________________Mark Kamiya, Bureau Environmental Officer

_______________________________ Date

Distribution:

Project Files IEE Files

DCN:tobeassignedbyBEU


ERC/EMMP ANNEX 2 RECORD OF COMPLIANCE WITH ACTIVITY-SPECIFIC

ENVIRONMENTAL MITIGATION AND MONITORING PLANS (EMMPs)

Subject: Site or Activity Name/Primary Project IEE DCN: To: COR/AOR/Activity Manager Name Copy: Mission Environmental Officer Name Date: The [name of the implementing organization] has finalized its activities at the [site name] to [describe activities and processes that were undertaken]. This memorandum is to certify that our organization has met all conditions of the EMMPs for this activity. A summary and photo evidence of the how mitigation and monitoring requirements were met is provided below.

1. Mobilization and Site Preparation

2. Activity Implementation Phase

3. Site Closure Phase

4. Activity Handover Sincerely, _________________________________________Implementer Project Director/COP Name

____________________________ Date

Approved: _____________________________________ USAID/COR/AOR/Activity Manager Name

____________________________ Date

Distribution:

Project Files MEO Bureau Environmental Officer

BiHCDCS er te Risk M tA Part I ~

DO or IR Summary of Risk to DO, IR, or supporting Integration into Next steps Accepted risks Potential Climate sectors strategy Is monitoring and/or

Impacts (Refer to Screening Output further analysis of risks What climate risks

for Details) How does the needed to inform does the Mission project planning, accept? Why? strategy address the design, and

risks? Include page implementation? What number. Note if a needs to be done at the

DO, IR, or sub-IR PAD and/or mechanism

specifically addresses levels to address the

the risks. risks?

. May be difficult to increase Potential impact on Mission activities: • No further analysis is . Risks to achieving

public confidence in the low/low . The Mission will consider needed results arc low for rule of law when citizens monitoring this IR for current and future arc focusing on meeting Adaptive Capacity: Institutional capacity is potential future climate time frames basic needs in times of low; financial resources arc not readily risk throughout the climate-related hazards available; complex administrative structure; Program Cycle, as leading to low levels or climate change awareness but appropriate. emergencies/disasters high motivation; ongoing conflicts across . Case backlog will increase political party lines

IR I. I : Justice sector during times or climate-r~(ormed in line with related hazards that lead to Timeframc: 10-15 years EU accession emergencies/disasters, principles . Possibility that funds for Mission Opportunities:

this IR would be realigned -National Satisfaction survey questions

to meet climate-related related to climate change to establish baseline

disaster response needs -Climate change (CC) adaptation integrated into PPPs/GDAs -include climate change language in RFAs/RFPs on raising awareness, considering CC impacts in proposals and applications -leverage trends with regards to CC issues . Climate change-related Potential impact on Mission activities: . The Mission will consider • No further analysis is • Risks to achieving

impacts could lead to low/low • monitoring this IR for needed results arc low for IR 1.2: More lower quality or potential future climate current and future e.ff'ective. accountable interrupted public service Adaptive Capacity: Institutional capacity is risk throughout the timcframes and representative delivery, resulting in low; financial resources are not readily Program Cycle, as governance at all greater dissatisfaction with available; complex administrative structure; appropriate. levels the government. low levels of climate change awareness but . Ineffective government high motivation; ongoing conflicts across

planning for climate- political party lines related hazards could lead

2

to increased dissatisfaction Timcframc: I0-15 years with government . Polls show that 64% of the Mission Opportunities: population would depart -National Satisfaction survey questions BiH immediately if an related to climate change to establish baseline opportunity existed to do -provide CC information to all levels of so; a poorly-functioning government to raise awareness social welfare system in a -help to establish CC adaptation networks country with --46% official -CC adaptation integrated into PPPs/GDAs unemployment rate could -discuss with donor community (in lead to "brain drain" and particular, DRR planning) migration at the first -include climate change language in opportunity; climate RFAs/RFPs on raising awareness, impacts would exacerbate considering CC impacts in proposals and this migration applications . Possibility that funds for -consider how to re-engage with the Green this IR would be realigned Party (although opportunities for to meet climate-related training/assistance need to be provided disaster response needs equitably to all political parties)

-lcvcra!!e trends with rcl!ards to CC issues . Citizens will be less Potential impact on Mission activities: . The Mission will consider engaged in governance if low/low • No further analysis is • Risks to achieving monitoring this IR for trying to afford/meet basic potential future climate

needed results arc low for the

needs for food, water, Adaptive Capacity: Institutional capacity is risk throughout the current timcframc

shelter, and low; financial resources are not readily Program Cycle, as and potentially low to

heating/cooling. available; complex administrative structure; appropriate. moderate for the

Hydropower may decrease low levels of climate change awareness but future timcframes

in future due to higher high motivation; ongoing conflicts across temps/regularly occurring political party lines droughts thereby increasing electricity costs. Timeframe: I0-15 years Droughts may result in

IR 1.3: Increased lower crop production, Mission Opportunities: engagement of leading to a reduction in -work with Civil Society on public policies citizens in food supply and higher relating to the environment and climate governance prices. change . Possibility that funds for -opportunities for professional media to

this IR would be realigned consider reporting on CC issues including to meet climate-related BiH government national adaptation plan disaster response needs and Low Emission Development Strategy

-National Satisfaction survey questions related to climate change to establish baseline -provide CC information to CSOs for potential advocacy opportunities; send via c-mail lists -help to establish CC adaptation networks -CC integrated into PPPs/GDAs -discuss with donor communitv (in

3

particular, DRR planning) -include climate change language in RFAs/RFPs on raising awareness, considering CC impacts in proposals and applications -consider how to engage environment and climate-change advocacy and research organizations -leverage trends with regards to CC issues

. Winter tourism is starting Potential impact on Mission activities: . The Mission will consider . No further analysis is . Risks to achieving to suffer due to warm low/low-moderate monitoring this IR for needed results arc low for winters potential future climate current timcframc . Shorter reservations in the Adaptive Capacity: risk throughout the and potentially low to mountain resorts whereas - Information: every other year information Program Cycle, as moderate for future before they used to stay I report is sent to the UN; government docs appropriate. timcframcs. Mission week+ have capacity to collect the information will conduct . Increase in temps is a big - Financial: funding is marginalized; there additional analysis as risk; biodiversity will be arc other priorities; environment and climate needed if monitoring affected change arc something they've been pushed indicates risks arc . Wood processing industry- into increasing. weather patterns -Human Capacity: responsibility at higher changing; outbreaks of level of the govt (Ministry of Security-bark beetles Agency for Civil Protection) . Water shortages and water -Social and Institutional Capacity: budgets quality arc worsened arc low for institutions; not well-trained during periods of drought staffers particularly at the lower level of the

IR 2. 1: Improved . Human health impacted government; questionable how much time capacity o.f private due to water shortages; they invest in the capacity of the staffers; sector to compete in hygiene impacts; nutrition equipment is lacking market economy effects; impacts to health

infrastructure Timcframc: 5-15 years . Landmincs being Mission Opportunities: uncovered by farmers

during landslides and -Promote summer tourism (e.g., rafting

flooding; 15% of forests programs); cultural tourism; ccotourism-

have landmincs from the protected areas and national parks -Increased tourism from the Middle East as war warming increases - Agriculture: diversify to crops that require less water and drought-tolerant varieties; facilitate irrigation systems - Growth in PPPs in energy, tourism - New suppliers and distributors in the energy sector -Workforce: new industries could pop up - Stakeholder consultations with those that can brine money or resources to the table

4

. Energy- moderate risk Potential impact on Mission activities: low- . The Mission will consider . No further analysis is . Risks to achieving {now and in future) moderate/moderate monitoring this IR for needed at this time. results arc low-. Operational costs will be potential future climate Mission will include moderate for current increased which could Adaptive Capacity: risk throughout the relevant climate change timcframc and decrease workforce - Information: every other year information Program Cycle, as impacts and potentially moderate . Decreased income to utility report is sent to the UN; government docs appropriate. opportunities in new for future companies have capacity to collect the information PAD and activity-level timcframcs. Mission . Increasing temperatures - Financial: funding is marginalized; there documents, as well as CC will conduct will lead to increase in arc other priorities; environment and climate impact language in additional analysis as cooling {which requires change arc something they've been pushed related RFAs/RFPs to needed if monitoring more energy, increases into ensure that new activities indicates risks arc costs) -Human Capacity: responsibility at higher arc sensitive to these increasing.

level of the govt {Ministry of Security- potential impacts and Agency for Civil Protection) actively seeking to adapt -Social and Institutional Capacity: budgets to/mitigate those impacts. arc low for institutions; not well-trained staffers particularly at the lower level of the government; questionable how much time

IR 2.2: Regulations they invest in the capacity of the staffers;

and policies.foster equipment is lacking

private sector Timcframc: 10-15 years

development and investment

Mission Opportunities: -Promote RE, investment in solar, biomass, wind resources - Promote water management policies to benefit ag, tourism, energy (country is rich in water) -Promote transnational cooperation due to shared climate impacts {water, energy, disease vectors) -Leverage solicitations, RFAs/RFPs for adaptation/mitigation - Develop procedures to ensure that the energy supply is not interrupted; these should be updated as needed; helps protect businesses - Speak more with partners about climate change effects in their activities

Cross-culling: //I/er- . It may be difficult to make Potential impact on Mission activities: . The Mission will consider • No further analysis is • Risks to achieving ethnic reconciliation: progress in the areas of low/low-moderate monitoring these cross- needed; mission will results arc low for women's inter-ethnic reconciliation, cutting issues for include relevant climate current timcframc

5

empowerment: youth; women's empowerment, Adaptive Capacity: Institutional capacity is potential future climate change impacts and and low to moderate anticorruption: CVE youth empowerment and low; financial resources arc not readily risk throughout the opportunities in PAD and for the future

development, available; complex administrative structure; Program Cycle, as activity-level documents, timcframc. The anticorruption and low levels of climate change awareness but appropriate. A potential as well as CC impact mission accepts the Countering Violent high motivation; ongoing conflicts across opportunity is during the language in related low to moderate risk Extremism when people political party lines mid-term strategy RFAs/RFPs to ensure for the future are struggling to meet review. that new activities arc timcframc as they do basic needs of food, Timeframc: 10-15 years sensitive to these not have any I Rs shelter, water and potential impacts and specifically focusing heating/cooling. Mission Opportunities: actively seeking to on these cross-cutting Hydropowcr may decrease -consider advocacy for an inter-ethnic mitigate those impacts. issues. in future due to higher disaster response team to facilitate inter-temps/regularly occurring ethnic reconciliation droughts thereby -National Satisfaction survey questions increasing electricity costs. related to climate change to establish baseline Droughts will also result in -provide CC information to CSOs for lower crop production, potential advocacy opportunities; send via e-leading to a reduction in mail lists food supply and higher -help to establish CC adaptation networks prices. with various groups . Possibility that funds for -CC integrated into PPPs/GDAs related cross-cutting -discuss with donor community (in activities would be particular, DRR planning) realigned to meet climate- -include climate change language in related disaster response RFAs/RFPs on raising awareness, needs considering CC impacts in proposals and

applications -leverage trends with regards to CC issues

6

BiH Climate Risk Management CDCS Annex Part II: Greenhouse Gas Mitigation

What are the major sources ofGHG emissions (e.g., personal cars, power plants, landfills, industry, agriculture sector, deforestation, etc.)? How has the distribution and composition of the OHO emissions profile changed over time historically and how is the profile expected to change in the future considering the major emitting sectors and/or sources? How are the sectors and sources that contribute to OHO emissions contributing to the growth and development of the economy and to meeting development objectives? What climate change mitigation or low emissions development plans, targets, commitments, and priorities has the government (national, state and local) articulated? Which of these sectors is USAID planning to program in? What opportunities exist to reduce emissions in those sectors? What opportunities exist to reduce emissions associated with USAlD activities?

BiH's OHO emissions are dominated by emissions from energy. Within the sector, production of electricity and heat comprises 66% of energy emissions, transportation 14%, manufacturing and construction and other fuel combustion subsectors each account for 7%, and fugitive emissions 6%.

Primary energy supply in 2012 consisted of coal (66%), oil (23%), hydro (5%), natural gas (3%), and biofuels/waste (3%). The majority of power generation is from coal, with a substantial amount from hydro, and small contributions from gas and oil.

The lack of a clear trend in OHO emissions in BiH precludes the ability to confidently assess whether the country is becoming more or less carbon intensive. According to the Biennial Update Report, post-war economic recovery has been much slower than anticipated, with the 2012 share of GDP by sector as follows: 6% agriculture, forestry, and fishery; 22% industry and construction; and 56% services.

In future, BiH plans to reduce its projected growth in emissions by 2%, i.e., reduce the projected OHO increase from 20% to 18% relative to 1990 emissions by 2030. With international support, the country will reduce its projected emissions by 3% compared to 1990 levels.

BiH has a Climate Change Adaptation and Low Emission Development Strategy (developed with EU framework in mind), available at: http://www. ba. undp.org/content/bosnia and herzegov ina/ en/home/libra1y/ environment energy/climate-change-adaptation-and-low-emission-development-strategy-.html

The Economic Growth DO will promote renewable energy sources through its REAP activity, which closely aligns with BiH's Low Emission Development plan for a "green economy." In addition, this DO will also promote sustainable agricultural practices in targeted regions by considering flood and drought-resistant crop varieties.

Does the strategy incorporate ways to I (Mission to .fill in once strategy is drafted) reduce OHO? Reference the page number in the strategy. Note in particular if a Goal, the DO, or an IR

r

7

or sub-IR specifically incorporates mitigation. What are the next steps at the PAD (Mission to fill in once strategy is drafted) and/or mechanism levels to reduce greenhouse gases?

Documents

US Agency for International Development (USAID) Bosnia and ...DCN: 2018-BOS-001 BiH/ SME Energy 1 EE.BEU Standard Form: IEE.v3 US Agency for International Development (USAID) Bosnia