Environmental and Climate Change Assessment
Transcription
Environmental and Climate Change Assessment
BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment Prepared for IFAD’s Country Strategic Opportunities Programme 2013-2015 Main report Document Date: December 12 ECCA No. 3214-BA Near East, North Africa and Europe Division Programme Management Department Environment and Climate Division Prepared by: Marco Pagliani This report is a product of staff of the International Fund for Agricultural Development (IFAD) and the findings and conclusions expressed herein do not necessarily reflect the views of its Member States or their representatives to its Executive Board. IFAD does not guarantee the accuracy of the data included in this work. The designations employed and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of IFAD concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. The designations “developed” and “developing” countries are intended for statistical convenience and do not necessarily express a judgement about the stage reached by a particular country or area in the development process. All rights reserved. © 2010 by the International Fund for Agricultural Development (IFAD) BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment Contents Annexes 4 Abbreviations and acronyms 5 Executive Summary 6 Chapter 1: The National Sectoral Framework 10 1.1. Geography and Environment 10 1.2. The State of Natural Resources 11 1.3 Main Environmental Priorities 12 1.4 Climate Change and Adaptation Measures 13 1.5 Hydrometeorological services and Disaster Risk Reduction 14 1.6 The Agriculture Sector 15 1.7 Organic farming and Non-Timber Forest Products 15 1.8 Rural Tourism 16 1.9 The Institutional and Policy Frameworks 17 1.10 The EU integration process (*) 18 1.11 Poverty in Bosnia and Herzegovina 18 Chapter 2: Baseline, Objectives and Methodologies 19 2.1 The operations of IFAD in BIH and lessons learnt 19 2.2 Objectives and Priorities of the past COSOP 20 2.3 Objectives and Methodology of the SEA exercise 20 Chapter 3: Proposed Strategy and Options 21 3.1 Constraints and opportunities in ENRM and CC adaptation from the perspective of smallholder farmers, PAs and SMEs 21 3.1.1. Agriculture, Climate Change Adaptation and Risk Mitigation ............................................. 21 3.1.2 Gender and ENRM ............................................................................................................... 22 3.1.3 Opportunities for enhancing ENRM sustainability throughout the IFAD Programme .......... 23 3.2 Areas for policy dialogue 25 3.3 Targeting 26 3.4 Partnerships and opportunities for synergies and upscaling 26 3.5 Proposed working lines for future programme development 27 3.6 Opportunities for transboundary work 37 3.7 Conclusions and Recommendations 37 3.8 Proposed set of Indicators 39 iii BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment Annexes Annex 1: Annex 2: Annex 3: Annex 4: Annex 5: Annex 6: Annex 7: List of meetings and interviews Thematic maps for geographic targeting Mainstreaming of environment, nature resource management and climate change into on-going and future IFAD interventions Analysis of national and international actors in the ERD scenario Analysis of on-going environmental and climate adaptation work in BiH Analysis of opportunities and challenges of EU alignment and integration Bibliography 4 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment Abbreviations and acronyms ARD AFRD BiH CARDS CC CORINE DAI DRR ENRM ERD EU FBiH FHMI GDP GNI HD IFOAM IOAS IMF INC IPA IUCN MAP MDG MW NEAP NMHS NP NTFP N2K OFID OK PA PFI PHARE PRSP RBDP RHMS RLDP RS SAA SIDA SME ToT UNCBD UNCCC UNCCD USAID WB WFD WMO WTO WWF Agriculture and Rural Development Agriculture Forestry and Rural Development Bosnia and Herzegovina Community Assistance to Reconstruction, Development and Stabilisation (EU programme) Climate Change Coordination of Information on the Environment Dinaric Arc Initiative Disaster Risk Reduction Environment and Natural Resource Management Environment and Rural Development European Union Federation of Bosnia and Herzegovina (Muslim-Croat) Federal Hydrometeorological Institute (FBiH) Gross Domestic Product Gross National Income Habitat Directive (EU) International Federation of Organic Agriculture Movements International Organic Accreditation Services International Monetary Fund Initial National Communication (to UNCCC) Instrument for pre-Accession (EU) International Union for Nature Conservation Medicinal and Aromatic Plants Millennium Development Goals Mega Watts National Environmental Action Plan National Meteo-Hydrological Institute National Park Non Timber Forest Products Natura 2000 (EU) OPEC Fund for International Development Organska Kontrola Producers’ Association Participating Financial Institution Poland and Hungary: Assistance for Restructuring their Economies (EU programme) Poverty Reduction Strategy Paper Rural Business Development Project (IFAD) Republic Hydrometeorological Institute (RS) Rural Livelihoods Development Project (IFAD) Republika Srpska Stabilisation and Association Agreement (EU) Swedish International Development Agency Small and Medium-sized Enterprise Training of Trainers United Nations Convention on Biological Diversity United Nations Convention on Climate Change United Nations Convention to Combat Desertification United States International Development Agency World Bank Water Framework Directive (EU) World Meteorological Organisation World Tourism Organisation World Wildlife Fund 5 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment Executive Summary Bosnia and Herzegovina (BiH) is situated in South Eastern Europe, in the central part of the Balkan Peninsula. The land is mainly hilly to mountainous with an average altitude of 500 meters and access to the River Sava and the Adriatic Sea. BiH has a complex governance structure that was established in accordance with the Dayton Peace Agreement in 1995. It consists of a state-level Government and two Entities: the Federation of Bosnia and Herzegovina (FBiH) and the Republika Srpska (SR), plus the selfgoverning Brcko District. The country participates in the Stabilisation and Association Process (SAP) and is committed to engage in reforms leading to progressively closer relationships with EU and to the potential future accession, including the need to harmonize its legislation to those of the EU. BIH has been experiencing, particularly since the 1990s, serious incidences of both droughts and flooding, with severe economic consequences. The Initial National Communication of BiH to UNCCC points out that climate change is likely to have a considerable impact on key economic sectors such as agriculture, forestry, and energy, thus threatening current development efforts and the livelihoods of the rural households and communities. The agriculture sector will be increasingly vulnerable, mainly due to higher frequency and intensity of extreme weather events and pronounced water scarcity during the summer, leading to higher economic risks for smallholder farmers and SMEs. Moreover, heat weaves and forest fires may put at risk complementary sources of revenues for poor-asset farmers and increase the risk of soil runoff erosion, water and soil pollution, while magnifying the impact of floods affecting agriculture production and taking heavy tolls on infrastructures and lives. Rural smallholders are among the most potentially vulnerable groups, thus it is important to support the adoption of agriculture systems and technologies that can increase their capacity to achieve food sufficiency and initiate new economic activities based on diversification and on climate-resilient value chains that can pave the way to new market opportunities. IFAD’s involvement in Bosnia and Herzegovina dates from 1996. Currently, IFAD’s operations include the Rural Livelihoods Development Project (RLDP) and the upcoming Rural Business Development Project (RBDP). Building on the lessons of past interventions, IFAD is currently engaged in the preparation of a new RB-COSOP, which will drive investments in the period 2013-2015. This Strategic Environmental Assessment was developed over the period October-December 2012, through a preliminary desktop review and scoping exercise, and a field mission to meet local relevant stakeholders and visit past/ongoing IFAD interventions. The SEA was supported by a GIS exercise, which delivered a map highlighting priority geographic areas for future IFAD intervention in the field of ENRM and CC, resulting from the overlapping the following layers of information: (1) Vulnerability to CC impact based on available data and projections; (2) Spatial distribution of poverty; (3) Degree of biological diversity, based on data produced in the framework of alignment to EU’s Habitat Directive/Natura2000. As the SEA exercise found out, there is considerable room for increased mainstreaming of environmental work, and especially for sustainable natural resource management, climate change adaptation and disaster risk reduction, in current and future IFAD projects. IFAD should pay increased attention to key issues such as: i) investing in the set up of short value chains linked to green agriculture and sustainable productions, through the provision of state-of-the-art technology, equipment and materials and through the construction of infrastructures and facilities that can serve producers’ associations, cooperatives and SMEs; (ii) encouraging income diversification and off-farm business initiatives with a specific environmental profile, that can boost rural employment, especially among women and youth in poor, biodiversity rich rural areas with high landscape value and tourism potential; (iii) promoting sustainable agricultural approaches and encourage the adoption of conservation agriculture, organic farming and agroforestry practices as ways to enhance the livelihoods of smallholders in rural areas and promote BiH as a high-profile supplier of quality agriculture goods and products in the European market; (iv) building specific capacity and skills for ENRM and CC adaptation among all key stakeholders, from decision makers to grassroots beneficiaries; (v) supporting the 6 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment mainstreaming of environment, agriculture, and sustainable resource management through policy dialogue in view of achieving a more conductive national framework for ENRM and CC adaptation; (vi) integrating agriculture work and the sustainable management of forests, water, or biological diversity with a special focus on CC adaptation and disaster risk reduction. On-going and future IFAD projects such as RLDP and RBDP provide an excellent baseline and opportunity to mainstream ENRM and CC through specific actions and measures targeting all the existing levels of work: At the agriculture production level: Provide investment to enable the creation of new, short, high-value added value chains on organic processed fruits, MAP, and other NTFP in the project intervention areas, as a way to diversify income sources and create employment opportunities for the poor (households with only one employed member), with a special focus on women who tend to be more involved in NTFP production (management of plant nurseries, processing and marketing NTFPs). Support the development of sustainable value chains in the livestock and dairy sector, encouraging the use of traditional breeds of cattle and other domestic animals, and supporting the production of existing, high-quality products such as typical brands of cheese. These interventions could be coupled with measures to secure an adequate and stable supply of fodder at reasonable prices, and to facilitate the access of farmers to national and regional markets through South-east Europe. Promote sustainable agricultural approaches including the introduction of new varieties of crops and breeds, changes in rotational systems to enhance winter crops, improved water management (small scale irrigation, farm ponds, wastewater treatment), improved management of organic waste from agriculture and forestry, and improved energy efficiency. Test and adapt new technologies for CA/OA farming systems through on-farm demonstration trials. Support agro-forestry through the restoration/expansion of shelterbelts and windbreaks, and the promotion of mixed exploitation systems integrating permanent and annual crops, and grazing. Assess opportunities to link intervention areas with neighbouring high value natural and cultural sites through agro-tourism schemes (food, handicraft, board & lodging and guiding services) and support poor farmers – focusing on unemployed young - to establish links with this sector and access related funding schemes. Enhance the capacity of public administrations in weather forecasting and in the timely transfer of information incorporating CC-risk to farmers, and build the capacity of farmers to make the best use of this information. Channel investment in improving infrastructures (i.e. meteorological and hydrological observation and telecommunication systems) that are outdated or were destroyed during the war. Develop extension and applied research programmes using the Field Farm Schools (FFS) approach together with a Training of Trainers (ToT) programme for extension agents, researchers, public servants and RLDP/RBDP implementation teams, based on the widespread experience of IFAD in other countries. Organize learning tours to successful cases and best practices in Europe on sustainable agriculture systems and technologies, environmental-friendly agriculture production, NTFP and bioenergy. Promote the participation of beneficiaries to international fairs on CA/OA/certified forest products in neighbouring and EU countries. Support participatory rural planning processes, assessing local vulnerability to CC-related risks and identifying adaptation measures, uses and management systems at local and territorial i.e. watershed level). Strengthen cooperation with international agencies that support forestry, bio-energy, and agrotourism and other sustainable development schemes in BiH. At the Farmers’ Association and SME level: Invest in the provision of equipment, technology and materials to farmer associations and SME to facilitate the shift to new farming systems and improve traditional value chains (i.e. the processing of imperishable and value-added products to overcome annual environmental 7 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment constraints and increase the possibility to stock and access to markets in a longer period/new markets) and new complementary value chains (NTFPs cropping, processing and marketing, high quality meat and dairy products, honey, berries and fruits – especially plums and walnuts). Invest in the introduction, testing and dissemination of state-of-the-art equipment for CA among FAs and SMEs. Support/promote associations for CA/OA (i.e. foster creation of RS and FBiH farmers federations for CA or OA) and promote networking among RS/FBiH farmer associations and CA/OA farmer associations from neighbouring countries and EU to exchange experiences and knowhow. Identify and support farm leaders among poor farmers to develop good demonstration cases on CA/OA and sustainable rural business that can trigger larger interest among farmers. At the Infrastructures level: Invest in the set up of multi-purpose plants in support to new value chains, including nurseries for the production of seedlings, saplings, and mother plants for high-quality cuttings, greenhouses, experimental plots, irrigation systems, plants for the cleaning, drying and processing of medicinal and aromatic plants, distillation plants (possibly with biomass-fed boilers), freezing and refrigeration facilities for berries and fruits, plants for the processing of honey and other bee products, and other transformation and storage facilities, serving producers’ associations, or cooperatives from one or more municipalities. Invest in infrastructure for improved water management, including small-scale irrigation schemes, farm ponds, stone and wooden dams etc. Promote the adequate land uses that can be coupled with infrastructure development in highrisk areas i.e. clearing of roadsides by supporting grazing activities in sensitive areas, support the creation of clearance belts in forest areas where fodder or herbs can be grown, or where beekeeping facilities can be installed. Invest in the set up of small-scale fish farms for the sustainable production of local species of freshwater fish, possibly linking to local agricultural production for the provision of fodder, and support short value chains for fresh fish serving local and regional markets. Support participatory planning processes to identify and GIS-map high-risk areas in territorial units – i.e. watersheds - and support decision-making about the most efficient landscape pattern distribution of infrastructures to increase rural resilience while supporting development activities. Incorporate CC-risk criteria in the environmental impact assessment of all infrastructures. Build capacity of public administrations (especially municipalities) and national/local civil works enterprises about the incorporation of CC-risks and DRR. Organize learning tours to neighbouring/EU countries to visit successful best practices in infrastructure development and management. Support the revision of national/local policies and regulations on infrastructure development to mainstream CC-related risk assessment. At the Rural Finance Level: Raise awareness and inform the business sector about CC-related risks affecting food security, and provide guidance to incorporate adequate sustainability criteria in the applications for loans. Support the revision of governmental rural development policies to incorporate CC-risks in the provision of subsidies and selection of eligible measures/equipment. Raise awareness and inform the insurance sector about opportunities for CC-risk incorporation in insurance premiums. IFAD should explore additional financing sources for the development of new projects that, while building on the core programme, have a specific ENRM and CC adaptation profile. Potential sources include the Global Environment Facility (GEF), the Special Climate Change Fund (SCCF), and Adaptation Fund. IFAD could also become engaged in dialogue with private foundations working on ENRM and CC at the global or regional level. Finally, IFAD grants could become more relevant and supportive to the IFAD Programme in BIH. 8 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment The SEA identified the following five priority lines of work that articulate environmentally sustainable and climate-resilient development pathways and interventions to address issues of poverty, vulnerability to climate change and natural disasters, and sustainable resource management in BiH: 1. Short, sustainable green value chains for high quality agriculture, meat, and dairy products, certified organic food, and NTFP, including shift from collection to cultivation; 2. Introduction of adaptation and risk reduction measures at the watersheds level with the active involvements of smallholders and rural communities; 3. Support to off-farm business and rural revenue diversification with a special focus on rural tourism and service sector in and around protected areas; 4. Promote sustainable agriculture approaches and agro-forestry; 5. Climate change mainstreaming in ENRM and ARD policies, capacity building for meteorological, hydrological and climate services to support disaster risk reduction and early warning systems. IFAD should broaden the scope of its partnerships in BiH, and develop strategic frameworks of collaboration with actors the including Ministries of Environment and Tourism, Water Agencies, Forestry Institutes, Hydrometeorological Institutes, universities and research institutes, NGOs, and stakeholders in the areas of organic farming, conservation agriculture and NTFP production. The SEA also recommends the development of a coherent system of agri-environmental indicators to capture the main positive and negative effects of agriculture on the environment and provide valuable information for assessing agriculture policy in terms of its contribution to the preservation of environmental resources on which the future of agriculture and society at large depend. 9 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment Chapter 1: The National Sectoral Framework 1.1. Geography and Environment Bosnia and Herzegovina is situated in South Eastern Europe, in the central part of the Balkan 2 Peninsula and has a total land area of 51,129 km . To the north, BiH has access to the River Sava, and to the south to the Adriatic Sea, at Neum. The land is mainly hilly to mountainous with an average altitude of 500 meters. Of the total land area, 5% are lowlands, 24% hills, 42% mountains and 29% Karst area. Most of the western part of Dinaric Alps is situated within the country, descending gradually in the northern direction and suddenly in the southern direction. The climate of BiH is temperate, but shows often extremes and high diversity level. The lowest temperature characterizes highest mountain peaks. While the average temperature in January O O on Bjelašnica Mt. is barely -7,2 C, in the city of Neum, on the Adriatic coast, it reaches +6,5 C. Annual precipitation in the country is unevenly distributed, increasing from the South towards the Dinaric massifs, and declining again towards the peri-pannonian margin. Snow occurs regularly in winter, covering mountain peaks up to 6 months a year. 2 With its high average annual precipitation - 1250 l/m compared with the European average of 2 1000 l/m - BiH possesses significant water resources. There are seven river basins - Una, Vrbas, Bosna, Drina, Sava, Neretva with Trebišnjica and Cetina - of which 75.7% belong to the Black Sea catchment and 24.3% to the Adriatic Sea catchment. The country has plenty of underground water collection, which occurs in lose depositions, around large riverbeds, karst fissures, trenches and caves. BiH has an access to the Adriatic Sea with a 22 km long coastline. Forests and forestland occupy almost half of the territory of BiH - among the highest forest coverage in Europe. Bosnian forests mainly regenerate naturally and show marked diversity. Forested areas have been shrinking rapidly due to illegal logging and mining, forest fires, and land conversion. Approximately 10% of the forest cover has been declared as mined. Karst fields are unique geological phenomena with a special, mainly underground, water circulation related to the abundance of soluble rocks (limestone, dolomite, tuff). BiH is probably the most karstic country in Europe. Karst fields tend to follow the extension direction of the Dinaric Alps, and are key endemic centres of flora and fauna. The largest karst field is Livanjsko Polje, with a size of 40,000 ha and a total length of approx. 65 km. The rich biological diversity of BiH is the result of the ecological heterogeneity of the territory, its geomorphologic, hydrological and climatic diversity, specific geological past and eco-climate diversity. The 3882 species and 5,134 taxa of higher plants identified so far place BiH among the most floristic rich countries Europe, with a great deal of paleo and neo-endemic species, tertiary and glacial relicts maintained in refugial habitats, such as cliffs, canyons and mountain cirques. Most of endemic forms are recognized within the flora of higher plants, which at current state of knowledge is estimated to have 450 endemic taxa. The fauna is characterized by the occurrence of refugia and development centres, and by the most unique fauna of karst sources, mountain torrents and canyons. Fish are relatively well investigated, with 119 species in total. The highest diversity is recognized within the family Cyprinidae (26 genera and 51 species) and Salmonidae (5/8). Birds diversity numbers 326 species belonging to 60 families. Most of them are stationary, while migratory ones are fund mainly in wetlands such as Buško Blato, Hutovo Blato, Bardača, and the Drina and Sava rivers. The persistence of extensive agriculture and the relative isolation of most of the territory have favoured the conservation of a high diversity of local breeds of domestic animals, including horses (Bosanski brdski), cattle (Buša i Gatačko), sheep (Pramenka), goats (Balkanska rogata), pigs (Šiška), dogs (Bosanski tornjak) and pigeons, and many local cultivars of fruit trees, especially cherries (Prunus avium: alice, ašlame, hašlamuše, hrušovi, crnice, bjelice); plums (Prunus domesticus: bijele, prskulje, mrkulje, savke); pears (Pyrus sp.: jecmenke, krivocke, mednjace, takiše, bijeli karamut, crni karamut, krupnjace, jeribasme); apples (Malus sp.: petrovace, golubace, šarenike, zelenike, senabije, šahmanuše, krompiruše, crvenike etc.). 10 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment 1.2. The State of Natural Resources The substantial water resources of BiH entail an important economic potential, although insufficient attention has been paid in the past to the protection of this key commodity - serious infrastructure damage of water infrastructure was caused by war activities adds up to the lack of adequate maintenance. BiH is contained within the Black Sea catchment (75.7%) and the Adriatic Sea catchment (24.3%). According to the constitution, the State of In Bosnia and Herzegovina has no competence on water management. Both Entities have Water Laws, which were passed in 2006/2007, and came into force in 2008. The Water Laws were designed to comply with international and EU principles and standards, especially the EU WFD. Two River Basin Agencies have been established in each Entity - one for the Sava/Danube Basin (Sarajevo/FBiH and Bijeljina/RS), and another for the Adriatic Basin (Mostar/FBiH and Trebinje/RS). Water pollution is a problem in areas of BiH due to the direct disposal of waste into rivers or very close to watercourses. Approximately 90% of wastewater is released in the ecosystems directly, without treatment. At present, the wastewater load of industrial origin is still considerably lower than before the war. A national plan to address pollution reduction from agriculture sources would contribute to further reduce the level of water contamination. On this direction, the development of actions plan for the implementation of the Nitrogen Directive of the EU has been identified as a high strategic priority. The total hydropower potential of BiH has been calculated at 6,1000 MW, mostly within the Drina, Neretva, and Trebisnjica basins. About 39% of this is utilized, and meets approximately 40% of the total electricity production. The expansion of hydropower is a much-debated topic in the country, and especially in the Neretva, Trebisnjica, and Livanjsko Polje basins. Several civil society organisations oppose the expansion of existing schemes or the construction of new ones, on the ground that this would lead to a substantial drop in the water table, decreasing availability for local agriculture and water consumption, as well as causing major negative impact on the species and habitats that depend on the water table. Floods control became a high priority in BiH after the disastrous floods that ravaged the country in 2010, causing enormous damage and forcing the authorities to declare a state of emergency and evacuating thousands of people from their homes. In spite of this, no mapping of floodvulnerable area is available at the moment, and no watershed management plan has been produced so far, although several initiatives are in the pipeline for the Sava and Drina rivers. Support for the production of flood management plans that entail collaboration between both Entities and build the capacity of Water Agencies are a high priority for all interviewed stakeholders. Forested areas suffered extensive war damages, and have been shrinking over the past decades, mainly as a result of clear felling, ore mining, construction of reservoirs, and forest fires, as confirmed by the latest satellite survey carried out through the CORINE Programme funded by the EU, which showed that about 40% percent of BiH (approx. 20,000 km2) is forested, which is 10% less indicated in previous figures. The first inventory of BiH forests since the sixties was recently produced through a forestry development and conservation project implemented by the World Bank, but the data have not yet been published by the Entities. It is calculated that 10% of forested lands are inaccessible because of landmines, which is significant not only in the context of exploitation of timber and other forest products, but also for the protection of forests from biologically harmful agents. Sustainable and appropriate forest management in BiH would benefit from a sound forestry development strategy; resolution of forest land property issues; control of illegal felling; improved capacity and level of equipment of the forestry institutions. Currently, there is no ongoing programme openly pursuing CC adaptation of forests and the forestry sector, although the Forestry Faculty of the University of Sarajevo is in the process of finalising a study on this subject. 11 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment The PRSP for Bosnia and Herzegovina (2004-2007) identified the following priorities to boost forest development in the country: (i) improve the forestry management system; (ii) conduct forestry rehabilitation programmes; (iii) improve forest protection; and (iv) improve capacities for the sustainable exploitation of forests. Entity laws on forests and forestland, and other accompanying legislation regulate forest management and forestry strategy in BiH. In the FBiH, a reorganisation of forestry is ongoing, pursuant to the new Law on Forests. Forest management is a shared responsibility of the public enterprise “Bosanskohercegovacke šume” (BiH Forests) and the cantonal forestry authorities are being established, with responsibility for the preservation and protection of forests. In the RS, forestry is integrated within the single public enterprise, “Srpske šume”. The network of protected areas in BiH is highly inadequate compared to the rich diversity of species, ecosystems and landscapes of the country: only approximately 1 percent of land is set aside as protected areas, the lowest level in Europe. Furthermore, existing protected areas suffer from the absence of adequate management plans and a serious lack of resources. National and nature parks are managed by public institutions, which are established by competent entity ministries. Some national parks are financed entirely or in part from the state budget, whereas others are funded from the revenues generated as part of their own sources and through national or international development projects. The National Environmental Action Plan, the Spatial Plan of Bosnia and Herzegovina and the Medium-Term Development Strategy all recommend the enlargement of the territories of protected areas. The set up of an extended and representative network of protected areas is also needed for the alignment of BiH to the HD and N2K legislation framework, a requirement for the EU accession, Currently there are three national parks in BiH: Kozara and Sutjeska NP in the territory of the Republika Srpska, and the recently established Una NP in the Federation of Bosnia and Herzegovina. FBIH hosts two Nature Parks - Blidinje and Hutovo Blato. The latter is one of the three international protected areas in the country under the Ramsar Convention, together with the wetlands of Bardača and Livanjsko Polje. Legislation in FBiH provides for opportunities to develop the system of PA at a Cantonal level. Significant progress in this direction has been made by Sarajevo Canton since 2008, with the set up of three protected areas – Bijambare, Skakovac and Vrelo Bosne. The Directorate for Protected Areas of the Canton provides management for these areas, based on individual laws and corresponding plans. Significant investment has been made in developing the infrastructure of the sites, including awareness and education programmes. Entrance fees were introduced in Bijambare, while new jobs have been created in Vrelo Bosne. The experience of Canton Sarajevo has been recommended as best practice in the management of protected areas and for further dissemination within FBiH and to SR, by the United Nations Commission for Europe. 1.3 Main Environmental Priorities The National Environmental Action Plan (NEAP) released by the Government of BiH in 2003 identified the following eight priority areas of action: (1) Water resources and wastewater; (2) Sustainable development of rural areas; (3) Environmental management (information systems, integral planning, education); (4) Protection of biological and landscape diversity; (5) Waste and waste management; (6) Economy and sustainable development; (7) Public health, and (8) Demining. Among the most urgent measures for practice implementation, NEAP mentions: (i) the need for the establishment of a river basin management system and a spatially balanced and sustainable development of rural areas; (ii) implementation of programmes for food production based on organic principles; (iii) preparation of a programme for long-term development of sustainable forestry; (iv) introduction of comprehensive environmental monitoring, integral spatial planning, and development of environmental education programmes; (v) increase the network of protected areas to cover 15-20% of the national territory; (vi) reduction of village to city migrations through the support to productive activities in rural settlements; (vii) development of potentials for eco-tourism catering for both national and international users. 12 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment 1.4 Climate Change and Adaptation Measures Bosnia and Herzegovina has been experiencing, particularly since the 1990s, serious incidences of both droughts and flooding, with severe economic consequences. According to the Initial National Communication (INC) of BiH under the UNFCC (2009), and using the EH5OM global model, the temperature in BiH is projected to increase from 0.7 to 1.6°C per 1°C of global increase for the period 2031-2060. The average forecasted rise in temperature is between 1 and 2°C along the coast, and between 2 and 3°C inland. The largest increases would occur in summer, and in inland areas. When it comes to precipitation, the EH5OM global model foresees noticeably drier summers in Southern Europe. Like the rest of the Mediterranean basin, the Balkans are expected to witness a decrease in summertime precipitation and a small decrease or no change in the other seasons during the period 20312060. The increase in dry days is likely to be lower along the coast but higher inland. It is also expected that the incidence of torrential flooding and the intensity of land erosion will increase over the next century. Based on available data and the currently available climate change scenarios projections, the INC draws the conclusion that exposure to threats from climate change will be considerable in BiH. Always according to the INC report, climate change is likely to have a considerable impact on key economic sectors such as agriculture, forestry, and energy (hydropower), thus threatening current development efforts and the livelihoods of the rural households and communities. BiH is highly vulnerable to the threats posed by climate change also because of the important economic role of “climate-sensitive” sectors, such as agriculture and forestry - and the role of hydropower in the energy sector to a lesser extent - with significant secondary impacts. According to the NEAP, the following ecosystems are the most exposed to strong pressure from changing climatic conditions: High-mountainous ecosystems (higher than 1600m above sea level); Mountain ecosystems (from 900 to 1600m above sea level); Ecosystems of highlands (from 600 to 900m above sea level) Sub-Mediterranean forests and scrublands (from 300 to 80m above sea level); Karst caves, basins and abysses; Ecosystems of Peripannonian area (from 200 to 600m above sea level); Pannonian ecosystems (until 200 m. above sea level). As far as the agriculture sector is concerned, although there no specific study is available on the expected impact of climate change in BiH, a regional analysis (Bruci, 2007) indicates the following general impacts in Southeastern Europe: Increased the development rate of winter crops such as wheat, with consequent, higher vulnerability to extreme events and a higher probability of crop failure from frost damage. More hot days and a decline in rainfall or irrigation could also reduce yields. Reduced total growing season for some crops. A lack of cold days could reduce vernalisation effects and consequently lengthen the first part of the growing season for the winter cereals. Yield reduction for stone fruits crops that require winter chilling. Livestock would be adversely affected by greater heat stress. Shortened cycle and reduced time to assimilate supply and grain-filling periods for summer crops, leading to decreasing crop yields. The INC identifies several climate change-related factors that will likely impact the health and distribution of forests. It is estimated that fires currently destroy 3000 ha of forests every year, and higher risk of forest fires due to increased temperatures and changes in precipitation patterns is expected in parts of BiH. Moreover, ecosystems with a very narrow ecological niche, such as fir-tree forests, might face decline or extinction. In terms of forest biodiversity, the changes in precipitation and water availability may have negative effects on the trophic chain 13 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment and increase forest vulnerability to pathogens such as certain insects or fungi. The INC recognises that the adoption of proactive, systematic and integrated adaptation measures is hampered by the very limited capacity of BiH to address climate risks. The main capacity constraints include the complicated governance structures, a lack of key strategic documents and supporting regulations, limited human resource capacity, and financial constraints. A second communication to UNCCC is currently being finalised with the support of UNDP, and should be released in early 2013. The report will provide climate models and vulnerability assessments, based on documented changes in temperature and precipitation, and it provide recommendations on adaptation measures in the fields of agriculture, water management, forestry, and human health. UNDP is also preparing a study on agriculture crops and adaptation, with a focus on wheat, corn and potatoes. The study is crossing crop productivity and climate change since the sixties, and will provide recommendations for adaptation, and it should be released by mid-2013. 1.5 Hydrometeorological services and Disaster Risk Reduction Floods are the most frequent major natural hazards related to weather and climate in BiH. In 2004, flooding affected over 300,000 people in 48 municipalities, destroyed 20,000 ha of farmland, washed away several bridges, and contaminated drinking water. In 2010, BiH experienced the largest amount of precipitation recorded in the last 100 years, which resulted in massive floods on the entire territory. Other major natural hazards causing significant consequences are drought, landslides, extreme temperature, storm and fires. All these are caused directly or partially by extreme weather conditions. The occurrence of landslides in the mountainous areas of BiH is very common due to the presence of underground water flows. The number of landslides has increased considerably over the last 15 years due to several reasons, including overexploitation of forests and minerals, unplanned use of forest land. The agricultural sector is also highly vulnerable to drought, in particular in the north-eastern and south-western parts of BIH. The national policy of BiH towards Disaster Risk Reduction (DRR) does not exist as a formal document but rather within the established system of decentralized responsibilities and capacities at all levels. The Ministry of Security has coordinated the development of the National Platform for DRR. At the national level, the framework is set by the Law on the Protection and Rescue of People and Material Assets from Natural and Other Disasters, which was passed in 2008 and calls for the creation of a programme that includes the development of mechanisms for DRR. In the FBiH, institutions involved in DDR are: Civil Protection Administration; Federal Hydro Meteorological Institute; Agency for Watershed of Adriatic Sea; Agency for Watershed of Sava River. In the RS, the agencies are: Civil Protection Administration; Republic Hydrometeorological Institute of Republic of Srpska; Water Agency for Sava river district; and Water Agency for Trebisnjica river district. The hydro-meteorological sector is also divided into two entities: the Federal Hydro Meteorological Institute (FHMI) in Sarajevo and the Republic Hydrometeorological Service of Republic of Srpska (RHMS RS), in Banja Luka. A recent assessment of the WMO on the DRR institutional framework and the technical capacities of the NMHS of BiH to support DRR highlight that: As there are no national level hydrometeorological services, it is necessary to promote the cooperation between the hydrometeorological services of the two entities (FHMI, RHMS RS) and with the aviation weather services as well; There are needs to promote the DRR management and clarify the roles and mandates of different sectors and technical organizations, especially the hydrometeorological services. The technical, human and financial capacities of the NHMSs are not adequate to produce sufficient services and support to the DRM; There are urgent needs to establish a hydrometeorological database at the national level. It is necessary to enhance investments in climate modelling and forecasting and analysis to support strategic and sectoral planning for at-risk sectors and investment plans of industry 14 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment in order to promote economic development. Development of Risk Assessment could also benefit from regional coordination and cooperation, leveraging expertise, resources and information across the region among IPA beneficiaries and with various regional centres in Europe. 1.6 The Agriculture Sector BIH is relatively poor in agriculture resources: large parts of the country are mountainous (66% of territory is considered mountainous or hilly), and only 20% (approx.1.0 million ha) is suitable for intensive farming. The structural of agriculture is sector is characterised by small sized family farms, which to large extent produce for home consumption – over 50% of agriculture holdings are estimated to be less than 2 ha. Agriculture is dominated by crop production, with livestock production representing less than one third of the total output. The economically most important sub-sectors are vegetables, fresh cow milk, maize and potatoes. About 80% of Bosnian farmers are smallholders constrained by the small and fragmented nature of production, lack of access to markets, lack of access to financial and insurance services and infrastructure in rural areas. Their situation is increasingly difficult as the country is transforming itself from a centrally planned to a market based economy that needs to meet EU accession requirements and compete globally. The share of the agricultural sector in the overall GDP stands around 10% and is decreasing, however agriculture remains still a key economic, providing food security for a significant part of rural population. Taking into account that rural population accounts for 60% of the total, the agriculture sector allows generating a basic income for a major part of rural population and provides a ground for a political and economic stability. On the Entity level, agriculture is more important for the economy of RS, when it is estimated to be around 13% of the GDP (2005), than for the FBiH where it stands stable at 6%. The food processing industry is recovering after a long period of under-investment over the last decade and its share in the GDP is increasing (8% in 2005). The EU and FAO have recently released a sector analysis for five strategic agriculture sectors: cereals, dairy and meat, wine, fruit and vegetables, and diversification (including NTFP, rural tourism and beekeeping). According to this analysis, and to most stakeholders, experts and donors, the agriculture sector is facing the following, main challenges: Quantitative and qualitative improvement of the production geared to the local market and reduction of the current dependency from food imports, which amount to approx. 75% of the total country needs, for a total of over 1 billion EUR/year. Improvement of the preconditions and standards that can enable the agriculture sector to trade with neighbours – including both EU and neighbouring countries of SEE. Alignment to EU legislation and requirements, especially in view of the forthcoming integration of Croatia, a major importer of BiH agricultural products, into the EU. Develop value chains for high quality products that can be competitive and gain a profitable market niche in Europe. 1.7 Organic farming and Non-Timber Forest Products There is widespread agreement that the sector of organic farming has a high potential for growth in BiH. Important progress was also achieved in this domain with the recent creation of Organska Kontrola (OK), the first organic certification agency created in SEE. OK is accredited by IOAS according to IFOAM accreditation criteria. OK also holds accreditation against ISO/IEC Guide 65 (EN45011) that is obligatory requirement in accordance to EU regulation on organic agriculture. OK was assessed in 2009 as EU equivalent body by IOAS and subsequently recognised as a Control Body for the purpose of equivalence to EU standards. In the absence of a National Law on organic agriculture, OK has developed private standards for organic certification and a conformity assessment has been done for both OK standards as well as for 15 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment certification program of OK. In 2011, 2,3 M EUR of OK-certified goods were exported from the country, although no figures are available on the global export of organic products labelled under foreign certification schemes. According to OK, the highest potential for the export of organic certified products lies with small fruits (raspberry, blueberry, blackberry etc), MAP, medical and cosmetic oils, and walnuts. The cost of certification can be a problem for smallholders, although OK has been trying to keep tariffs low by applying for grants from donors such as USAID and SIDA. According to several interviewed stakeholders priorities in the sector of OA include the set up of a transparent system of subsidies and a State-level law and action plan for OA. Currently, only RS has a Law on Organic Agriculture. A growing potential in the agriculture sector is offered by Non Timber Forest Products (NTFP, mainly berries, mushrooms, and medicinal, edible, and aromatic plants). Southeast Europe is among the most important exporting regions in the world for these products, and it is estimated that about 8% of globally exported medicinal and aromatic plants originate from the Balkans. BiH has over 700 species of medicinal and aromatic plants, of which around 200 are exploited. This list includes several threatened species that are amongst the most traded ones. BiH is mainly a producer/exporter of raw or lightly processed material. Even nowadays, the harvesting of wild plants is still one of the major human activities and an important economic factor in rural areas. People mainly collect raw materials at land areas owned by the state, where they have free access. Currently there are about 50 small and medium enterprises operating in the sector of NTFP in the country. Most of the exported produce is traded to central Europe - Germany, Austria, and Switzerland, as well as neighbouring Croatia - while secondary markets for berries are Italy and France. Although the bulk of the current produce is still harvested in the wild, an increasing number of export & import companies are considering/supporting the cultivation of NTFP - either on their private farms or by contracting farmers. This tendency is further strengthened by the increasing difficulty that processors face, for obtaining raw materials from the wild. While the demand for MAP and NTFP is growing and wild collection is on a decreasing trend, the growth of these commodities is still lagging behind the market potential, because of the production and financial risks and constraints faced by small scale producers. Currently, the main foreign-led investment to support sustainable NTFP production in BiH is FARMA (Fostering Agricultural Markets Activity), an agri-business development programme funded by USAID and SIDA with a global investment of US$ 13.6 million so far. MAP and honey are one of the three priorities for investment, together with dairy and fruits and vegetables. The objective of FARMA is rapid, sustainable and broad-based economic growth through demand-driven assistance aimed at improving competitiveness of agricultural producers and agricultural businesses in BiH. 1.8 Rural Tourism Tourism is a fast growing sector, which makes an increasingly important contribution to the economy of BiH. The country has been a top performer in recent years in terms of tourism development. Tourist arrivals have grown by an average of 24% annually from 1995 to 2000, and in 2011 the country had 686,148 tourists and 1,504,205 overnight stays - a 6,2% increase from 2010. Foreign tourism accounts for 52,7% of the business: the major sending countries in 2011 were Croatia (15,6%), Serbia (13,7%), Slovenia (8,4%), Poland (7,9%), Italy (6,5%) and Turkey (6%). According to an estimate of the WTO, BiH will have the third highest tourism growth rate in the world between 1995 and 2020. Although the figures are encouraging, the vast majority of tourism is currently concentrated in the urban areas and in Medjugorje in Herzegovina (religious tourism). In spite of the considerable potential, rural and environmental tourism are still at their infancy, and receive little or no support from the authorities. In FBiH, for instance, a new Law on tourism and hospitality is about to be adopted, which lacks specific recommendations, measures, and action plan for rural tourism. According to the Federal Ministry of Environment and Tourism, a top priority in this sector would be to channel investments on the ground, empowering grassroots entrepreneurs through equipment, infrastructure, and capacity building. Other important measures would be to build capacity in 16 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment both Entities to tap EU funds, especially IPA, and the development of by-laws on rural tourism. A few, interesting examples of rural tourism are slowly emerging through the private sector, especially in the region of Bjelaznica/Boracko Jezero (“eco-village” Lukomir) and Bijambare Nature Reserve (“eco-village” Begovo Selo), but these are still small-scale, isolated initiatives. The “Forest and mountain protected areas” GEF project implemented by the WB has helped produce management plans that provide guidance and recommendations for the development of rural and nature tourism in/around the protected areas of the country. 1.9 The Institutional and Policy Frameworks Bosnia and Herzegovina consists of a complex governance structure that was established in accordance with the Dayton Peace Agreement in 1995. It consists of a state-level Government and two Entities: the Federation of Bosnia and Herzegovina (FBiH) and the Republika Srpska (RS), plus the self-governing Brcko District. With a per capita Gross National Income (GNI) of US$ 4,700 in 2011, BiH ranks as an upper middle-income country. However, the 1992-95 conflict caused almost complete destruction of the economy, infrastructure, livelihoods and social fabric of rural life. There is estimated to be an increase in both the unemployment and poverty rates as a result of the adverse economic situation and the increase in food prices beginning in 2008. Based on the country’s constitution, agriculture management is not institutionalised at the State level, but rather at the Entity level. The responsible ministries are the Ministry of Agriculture, Water Management and Forestry in the FBiH and the Ministry of Agriculture, Forestry and Water Resources in the RS. In Brcko District the agricultural policy is a direct responsibility of the Government through its sector for agriculture and forestry. Rural farmer organisations include: (i) Cooperatives that are for-profit organisations operating under the Law of Cooperatives passed in 2003; (ii) Producers’ Associations (PA) established as non-profit organisations, created under the provisions of the law on associations to provide farmers with improved bargaining power for inputs and marketing along the value chain. The current mid-term strategy of Agricultural Sector in FBiH (2006-2010) includes, amongst others, the following priorities: (i) return of refugees and displaced people to domicile residences through agricultural and other employment; (ii) sustainable development of natural resources (land, water, forests, environment) and measures to improve efficiencies, profitability and competitiveness; (iii) strengthen cooperatives, enterprises, and other production organisations of primary agriculture and link them with the food industry; and (iv) align the agricultural sector to European laws. The “Strategy for Agriculture Development of the Republika Srpska by 2015” includes the following objectives: (i) sustainable development of natural resources and protection of the environment; (ii) balanced integrated rural development, strengthening competitiveness and productiveness, and (iii) improvement of institutional, technical, and technological capacities of agriculture for the inclusion of RS and BIH into the regional, European and world level integration processes. As for agriculture, environmental management is a responsibility of Entities. The responsible Ministries are the Ministry of Environment and Tourism in the FBiH and Ministry of Physical Planning, Civil Engineering and Ecology in the RS. In Brcko District the environmental protection policy is a direct responsibility of the Government through its sector for agriculture and forestry and the sector for communal issues. Throughout the past decade, both Entities and the Cantons of FBiH have developed a comprehensive legislation framework on environmental protection and the sustainable management of natural resources, in fields such as biological diversity, landscape protection, freshwater management, forests, wetlands etc. Most of these laws have been designed in compliance with the environmental legislation framework of the EU, especially Water Framework Directive, Habitat and Bird Directive, and Natura 2000. Recommendations and strategic priorities in these sectors are formulated in the National Environmental Action Plan (NEAP, 2003), the 2010 Biodiversity Targets National Assessments of Bosnia and Herzegovina’s Fourth Report to the UNCBD, the Initial Communication INC) of Bosnia and Herzegovina under the UNFCCC (2009), the UN MDG Update Report for Bosnia and Herzegovina (2004), the International Development Association and International Finance 17 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment Corporation Country Partnership Strategy for BiH of the WB for 2012-2015 (2011), and the IMF BiH Poverty Reduction Strategy Paper Mid-Term Development Strategy (2004). At the international level, BiH is a signatory to, or has completed the ratification processes of several International agreements concerned with environmental and natural resources protection, including UNCBD, UNCCD, UNFCCC, Ramsar Convention on Wetland Protection, Convention on the Conservation of European Wildlife and Natural Habitats (Bern Convention), Barcelona Convention for the protection of the Mediterranean Sea against pollution, and Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). Since 1997, BiH has benefited of many regional and international programmes supporting sustainable development and natural resources management, including the EU’s PHARE and CARDS programmes, the Global Environmental Facility, the Regional Environment Reconstruction Programme for South Eastern Europe (REREP, a Stability Pact programme), as well as other regional programmes, such as the Mediterranean and Danube basin plans under the auspices of the Mediterranean Action Plan (MAP), the International Commission of Protection of the Danube River (ICPDR) and the Danube-Black Sea (DABLAS) programmes under the auspices of the Danube Convention and the Black Sea Convention. 1.10 The EU integration process (*) Bosnia and Herzegovina participates in the Stabilisation and Association Process (SAP) and is committed to engage necessary political, economic and social reforms leading to progressively closer relationships with EU and to the potential future accession, including the need to harmonize its legislation to those of the EU. The negotiations on a Stabilisation and Association Agreement (SAA) were launched in 2005, and the SAA was signed in 2008. Since then, several technical regulations transposing related EU regulations/directives were adopted in all fields – including agriculture and environmental protection - although enforcement remains weak. BiH is still at the early stages of alignment with the EU acquis, and the quality and regulatory infrastructure is still being developed to meet EU requirements. In the environmental domain, alignment has mainly focused on the WFD and HD, including Natura 2000. WWF Mediterranean Programme Office, with the financial support of the Government of Norway, recently implemented two projects aimed at promoting alignment with both directives. Among the outputs, innovative work on Integrated River Basin Management was carried out in the Neretva river basin, and a first mapping for a Natura 2000 network was produced, including a draft biodiversity database. (*) A more detailed analysis of the opportunities and challenges of EU alignment and integration, with a special focus on WFD, is included in Annex 6 to this document. 1.11 Poverty in Bosnia and Herzegovina The 1992-1995 war transformed Bosnia-Herzegovina from a medium-income country within the former Federal Republic of Yugoslavia into a poor country, and caused the loss of 100,000250,000 lives and displaced nearly half the country's pre-war population of 4.4 million. War damage is estimated at more than US$100 billion. The collapse of the former socialist system and the war that followed led to physical and socio-economic devastation and loss of employment. Rural people fled to urban areas for security and survival. When the war ended many returned to the countryside and to subsistence farming to escape poverty. However, the lack of employment opportunities in rural areas is hindering economic revival and could lead to another exodus to urban areas. Poverty in BiH is characteristically a rural phenomenon. Despite the overall decreasing trend of the national poverty level, the country has witnessed an uneven progress between urban and rural development. This discrepancy results from the slow growth in the agricultural and nonfarm rural sectors against the rapid growth in the higher-wage sectors in urban areas. Many of the poor households have a high dependency ratio, lower levels of education attainment, and 18 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment limited access to a regular source of cash income from formal employment, pension or remittances. During the past recent years, poverty in BiH dropped from 17.7% to 14% in 2007, with poverty at 17.8% in rural areas, and 8.2% in urban areas. However, these achievements remain highly vulnerable to external shocks. material deprivation and 20-30% are at risk of falling into material deprivation. During the war, farmers lost 50 to 60% of their assets and 90% of their livestock. Buildings were ruined and water and electrical power facilities destroyed. Immediate reconstruction efforts after the war focused largely on urban areas. Nowadays, the issue of returnees, refugees, and internally displaced is high on the political agenda. Substantial amounts of funds have been allocated to the building of infrastructure, however most donors agree that not enough attention is being paid to invest on the creation of economic measures that can guarantee a viable future and acceptable perspectives for the returnees. Poverty also has a gender dimension: women have been particularly affected by the breakdown of social cohesion and the downward spiral into poverty. Since the war, the number of households headed by women has increased to one in four. These households are at greater risk of poverty. Women tend to lack access to land, skills training, finances and equipment. Women make up only 35 of employed Bosnians, and women who are employed face discrimination and receive lower wages. According to the INC, rural poor and smallholder farmers are the category of the population that is most threatened by the impact of climate change. The inhabitants of the mountain regions karst systems of the central part of BiH, and those who live close to areas with a high risk of flood are particularly vulnerable to the extreme events caused by CC, while small farmers and cattle raisers are highly exposed to CC-related threats such as the increased price of commodities (i.e. fodder), or by the increased incidence of pests and plant diseases. Chapter 2: Baseline, Objectives and Methodologies 2.1 The operations of IFAD in BIH and lessons learnt IFAD involvement in Bosnia and Herzegovina dates from 1996. The two first generations of projects reflected the need for emergency assistance and they were characterised by quick disbursing, short duration and a strong relief and rehabilitation focus. The second generation of projects, between 2001 and 2005, was shaped on a refocused country strategy that moved from emergency aid to long-term development, shifting the emphasis on assisting with the institutional development process, and fostering the development of new market linkages to support transition process and take production beyond subsistence needs. The Livestock and Rural Finance Development Project (LRFDP) aimed at developing a replicable model of sustainable, small-scale commercial livestock production, and strengthened market linkage along the dairy supply chain. The third generation of IFAD project started in 2005 and has being going on until today. It was born of recognition that in BiH agriculture alone is not the sole vehicle for rural revival, and that IFAD’s intervention need be increasingly linked to the wider rural economy. The new strategy also recognised that agriculture’s contribution can be markedly increased if production is upgraded from the subsistence to the commercial level, and focused on the need to stimulate growth, build the markets needed for poverty reduction, and reduce the trend of migration from rural areas to the cities and abroad. The Rural Enterprise Enhancement Project (REEP) became effective in 2007 and succeeded the LRFDP with a broader scope, expanding to new Municipalities, and covering fruit crops and SMEs. Currently, IFAD’s operations in BiH include the recently started Rural Livelihoods Development Project (RLDP) and the Rural Business Development Project (RBDP), which should take off soon. An environmental assessment of these two projects is featured in Chapter 3 of this report. 19 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment Overall, the portfolio of IFAD in BiH includes so far six projects and twelve grants, with a total cost of USD 173.7 million and total IFAD funding of USD 71.5 million. The main lessons IFAD has drawn from its country experience indicate that: (i) efforts to increase agricultural production and productivity, while essential, are not sufficient to reduce rural poverty unless there is an accessible market in which farmers can dispose of increased production at remunerative prices; (ii) credit is needed to finance agricultural investment and value addition; (iii) interventions should be forward-looking, in support of an economy aiming to enter the EU; (iv) support to the wider rural economy, including un-related rural business, facilitates the creation of employment locally and offers some of the best opportunities for stimulating growth and building the markets needed for poverty reduction. 2.2 Objectives and Priorities of the past COSOP The past Country Strategic Opportunities Paper (COSOP) was released by IFAD in 2005. The document was intended to define IFAD’s medium-term strategic framework to support income diversification and rural livelihoods in the dual context of economic transformation in postconflict situations and EU accession. The document derived from dialogue with prospective beneficiaries, Government and development community, including a workshop held in Sarajevo in March 2004. The COSOP focused on the support to the wider rural economy – including small- and mediumscale agro-processors, agricultural service providers and other types of agriculture-related and unrelated rural business – facilitating the creation of non-farm employment locally and stimulating growth while building the markets needed for poverty reduction. In this context, IFAD chose to support, inter alia, the commercialisation of smallholders’ production and various other types of commercially viable rural business and off-farm income generating activities. The supply-chain approach was identified as the best opportunity for developing enhanced commercial linkages between small-scale producers and private markets. Given the importance of the livestock sector to the livelihoods of rural people in Bosnia and Herzegovina, the COSOP chose to initially focus on dairy/meat and feed/fodder production, with a view to expand and include other commodities, such as livestock feed and horticulture. Moreover, the COSOP identified as programme goal to assist the government of Bosnia and Herzegovina with efforts to achieve the MDGs, specifically in terms of MDG1 (Eradicate extreme poverty and hunger), MDG3 (Promote gender equality and the empowerment of women), and MDG7 (Ensure environmental sustainability) through a country programme for enhancement and diversification of rural livelihoods. Building on the achievements and lessons of past interventions, IFAD is currently engaged in the preparation of a new RB-COSOP, which will drive investments in the period 2013-2015. The SEA will gather information and provide analysis and recommendations that will feed into the COSOP development process and shall ensure integration of environmental issues and criteria, including climate change adaptation, into the strategic objectives and priorities of the new document. 2.3 Objectives and Methodology of the SEA exercise The SEA aims to provide analytical underpinning for environmental sustainability through the identification and analysis of options relevant to RB-COSOP development and decision-making process. Its objectives are to: (i) detail the key environmental and CC challenges and opportunities influencing the ARD sector in BiH, with a special emphasis on the rural poor and marginalised groups; (ii) assess policies, programmes and plans in responding to challenges and opportunities related to environment and CC with a view to aligning IFAD interventions with country frameworks and IFAD’s own ENRM, CC and disaster risk reduction policies; iii) identify gaps and priorities in existing climate change and environment policy, programme and planning frameworks related to ARD for defining areas of policy dialogue IFAD should engage with; and iv) articulate environmentally sustainable and climate-resilient development pathways and 20 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment interventions to address issues of poverty, and vulnerability to climate change and natural disasters. The SEA is inspired by, and aligned with IFAD’s Environment and Nature Resource Management (ENRM) and Climate Change (CC) Strategies. The ERNM strategy underlines that “while some projects specifically target ENRM, it is relevant to all projects”, and that a priority of RB-COSOP will be to support national priorities on ENRM as reflected in poverty reduction strategy papers, relevant international guidelines, codes of conduct and relevant national strategic frameworks. According to the CC strategy, potential questions to be addressed in COSOP design are: (i) what are the latest available estimates of climate impacts on poor rural people; (ii) how could national poverty and climate change plans guide the choice of investments; (iii) are there any overall estimates on climate-related risk to the existing and planned portfolio; (v) what has been IFAD’s past experience, comparative advantage and valueadded on climate-related work in the country and what is its potential for scaling up; and (vi) what climate-related activities could be incorporated into IFAD-supported projects and policy advice. The SEA featured in this report was developed over the period October-December 2012, and was implemented in three stages: (1) preliminary desktop review, screening of relevant documents, and scoping exercise to identify the issues to be addressed, including sector and wider institutional and legislative framework in which the country programme is to be implemented; (2) field mission to Bosnia and Herzegovina to better understand on-the-ground challenges and corresponding community responses through meetings with local relevant stakeholders, and visits past/ongoing IFAD intervention to identify lesson learnt, strengths and weaknesses. The mission took place between 11 and 28 November 2012, and included meetings and interviews in Sarajevo and Banja Luka, as well as field visits to IFAD projects. A list of the meetings is featured in Annex 1 to this document; (3) drafting of the SEA report and circulation for comments; (4) delivery of the final SEA report. The SEA exercise was carried out by a team composed of a senior international consultants (Mission Leader) and two local consultants, who took care of (i) the preparation of sectoral papers on the main national and international actors and on-going work in the ERD and climate adaptation fields, and an analysis of the framework and status of the process of accession to the EU of Bosnia and Herzegovina; and (ii) the production of GIS maps of BiH featuring foreseen vulnerability and exposure to CC-induced impacts; spatial distribution of CC sensitivity, and degree of biological diversity. These layers were overlapped to produce a final map highlighting priority areas for geographic targeting. Chapter 3: Proposed Strategy and Options 3.1 Constraints and opportunities in ENRM and CC adaptation from the perspective of smallholder farmers, PAs and SMEs 3.1.1. Agriculture, Climate Change Adaptation and Risk Mitigation The agriculture sector in BiH will be increasingly vulnerable to CC impacts, mainly due to higher frequency and intensity of extreme weather events (heavy rainfall, storms, hail, floods, drought, heat weaves and frost), and pronounced water scarcity during the summer (reduction of water/snow precipitations and changes in the seasonal distribution of precipitations affecting the flowering and maturity periods). As a result of these changes, the following can be expected: Water constraints for rain-fed crops, irrigation and livestock will become higher, especially in the southern part of the country. In mountain areas and along river valleys, agriculture soils will become more vulnerable to runoff erosion, fertility loss and lower water holding capacity. Water quality will be reduced, with less oxygen and higher concentration of pollutants. 21 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment Higher incidence of forest fires caused by prolonged summer drought. Unstable weather conditions and reduced water availability will cause increased inter-annual variability of crop yields, leading to higher economic risks for smallholder farmers and SMEs. Spatial conflicts might occur in land planning, i.e. on whether to use areas as agriculture land or for flood protection. Moreover, heat weaves and forest fires – a growing threat with recent devastating consequences for the forests and wetlands of BiH – may put at risk complementary sources of revenues for poor-asset farmers – wood and Non Timber Forest Products (NTFP) – and increase the risk of soil runoff erosion, water and soil pollution, while magnifying the impact of floods and landslides affecting agriculture production and taking heavy tolls on infrastructures and lives. Numerous regional and national assessments of climate change impacts and adaptation options recommend a shift from conventional agriculture to more environmental-friendly and resilient practices based on water saving, minimal soil disturbance and reduced use of agrochemicals, and the adoption of better adapted crop types/varieties and livestock breeds. Another important adaptation measure is land use diversification and the introduction of sustainable agriculture approaches that increase the resilience of the rural economy – i.e. highquality and traditional productions, cultivation of medicinal and aromatic plants (MAP) and other NTFPs (berries or certain types of nuts), the extraction of wood to increase resilience of forests to fire and its use for bio-energy, the promotion of grazing in high fire risk areas, or the increased production of fodder to support the dairy sector in drought years. These measures mitigate territorial vulnerability to CC while increasing food security – reducing dependence to one single asset and diversifying sources of income and employment opportunities for smallholder farmers. The first INC (2009) recommends the enhancement and introduction of sustainable agricultural approaches including: (i) the promotion of drought-resistant crop varieties and livestock breeds, and the enhancement of winter crops as a measure to increase resilience to summer drought conditions; (ii) increase water availability and improve water balance in agriculture, through measures such as drainage of heavy soils, small-scale irrigation, farm ponds, and waste water recycling; (iii) the introduction of agro-forestry measures, such as restoration/expansion of shelter belts and wind breaks, and the promotion of mixed systems that integrate wood cultures, annual crops, and grazing; (iv) improved use of organic waste from agriculture and forestry practices, through the promotion of small-scale bio-fuel plants and its used as alternative fodder. In certain parts of BiH, Conservation Agriculture (CA) could represent an interesting opportunity to increase the resilience of agro-ecosystems and reduce CC-induced risks. CA includes a set of management principles such as minimal/no tillage, permanent soil surface cover with mulching and cover crops, and crop rotation. These measures offer a higher adaptability to climate change because of: (i) a more effective water infiltration and greater soil moisture-holding capacity, that help minimise the impact of extreme weather events such as water stress during drought, run off erosion and flooding during torrential rain events; (ii) the reduction of surface soil extreme temperatures and fluctuations help minimise the effect of frequent and intense heat weaves and frost periods; (iii) crop rotation and diversification have a positive effect on food security; (iv) the reduced use of fossil fuel and the increase of soil carbon has an important CC mitigation effect. The combination of organic and conservation agriculture principles can further enhance resilience, by helping minimize the use and environmental impact of agrochemicals. Additionally, any improvement in agriculture land management will help protect underground carbon stores, contributing to climate change mitigation. Rural smallholders are among the most potentially vulnerable groups to CC-induced risk in BiH. The adoption of environmental-friendly agriculture systems and technologies will increase their capacity to achieve sustainable food sufficiency and initiate new value chains based on climateadapted, higher value crops and animal production systems that can pave the way to new market opportunities. Moreover, it can help decrease the demand of labour and financial inputs, allowing farmers to become engaged in off-farm activities and pursue other livelihood options. 3.1.2 Gender and ENRM 22 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment As widely demonstrated in other countries with comparable social conditions, the promotion of the production, cultivation, processing and marketing of NTFP/MAP, including berries, nuts, mushrooms, and prepared products such as oils, liquors, jam, honey, cosmetics etc – as complementary agriculture activities can multiply employment opportunities for rural women. Women tend to be more open minded, eager and capable than men in sectors such as tree/plant nurseries, production of plants/seedlings, and management of MAP/NTFP. The adoption of sustainable agriculture practices and the diversification of revenues will allow a more efficient use of time and labour, creating good opportunities for households with more than one adult employed, which basically implies opening the labour market to more women and youth. Off-farm and complementary income-generation activities, such as agro-tourism, small bioenergy plants, or small fish farms, can also multiply job opportunities for the young population – i.e. as tour guides, workers in the bioenergy plant or fish farmers – and for women – i.e. as managers of rural guest houses and restaurants producers and marketers of NTFPs, and workers in bioenergy plants. 3.1.3 Opportunities for enhancing ENRM sustainability throughout the IFAD Programme During its past interventions in BiH, IFAD has handled environmental issues mainly by ensuring the integration of environmental concerns and considerations into the planning and evaluation of its investments, and by monitoring the environmental compliance of its beneficiaries, especially at the level of municipalities, producers’ associations and cooperatives. However, there is considerable room for increased mainstreaming of environmental work, and especially for climate change adaptation and disaster risk reduction, in current and future IFAD projects. This chapter presents concise recommendations to enhance ENRM and CC sustainability throughout the main axes of the IFAD programme, namely in the sectors of agriculture production, farmers’ associations and SMEs, infrastructures, and rural finance. A more detailed environmental assessment of present IFAD projects and concrete recommendations for mainstreaming of environment, nature resource management and climate change into on-going and future IFAD interventions are included in Annex 3 to this document. At the agriculture production level: Provide investment to enable the creation of new, short, high-value added value chains on organic processed fruits, MAP, and other NTFP in the project intervention areas, as a way to diversify income sources and create employment opportunities for the poor (households with only one employed member), with a special focus on women who tend to be more involved in NTFP production (management of plant nurseries, processing and marketing NTFPs). Support the development of sustainable value chains in the livestock raising and dairy sector, encouraging the use of traditional breeds of cattle and other domestic animals, and supporting a quantitative increase in the production of existing, high-quality products such as typical brands of cheese. These interventions could be coupled with measures to secure an adequate and stable supply of fodder at reasonable prices, and to facilitate the access of farmers to national and regional markets through South-east Europe. Promote sustainable agricultural approaches including introduction of new varieties of crops and breeds, changes in rotational systems to enhance winter crops, improved water management (small scale irrigation, farm ponds, wastewater treatment), improved management of waste from agriculture and forestry, and improved energy efficiency. Test and adapt new technologies for CA/OA farming systems through on-farm demonstration trials as part of RLDP and RBDP interventions. Support agro-forestry through the restoration/expansion of shelterbelts and windbreaks, and the promotion of mixed exploitation systems integrating permanent and annual crops, and grazing. Assess opportunities to link intervention areas with neighbouring high value natural and cultural sites through agro-tourism schemes (food, handicraft, board & lodging and guiding services) and support poor farmers – focusing on unemployed young - to establish links with this sector and access related funding schemes. 23 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment Enhance the capacity of public administrations in weather forecasting and in the timely transfer of relevant info incorporating CC-risk to farmers, and build the capacity of farmers to make the best use of this information. Channel investment in improving/enhancing infrastructures (including meteorological and hydrological observation and telecommunication systems) that are outdated or were destroyed during the war. Develop “learning-by-doing” extension and applied research programmes using the and Field Farm Schools (FFS) approach together with a Training of Trainers (ToT) programme for extension agents, researchers, public servants and RLDP/RBDP implementation teams, based on the widespread experience of IFAD in other countries. Organize learning tours to successful cases and best practices in Europe on sustainable agriculture systems and technologies, environmental-friendly agriculture production, NTFP and bioenergy. Promote the participation of beneficiaries to international fairs on CA/OA/certified forest products in neighbouring and EU countries. Support participatory rural planning processes, assessing local vulnerability to CC-related risks and identifying adaptation measures, uses and management systems at local and territorial i.e. watershed level). Strengthen cooperation with international agencies that support forestry, bio-energy, and agrotourism and other sustainable development schemes in BiH. At the Farmers’ Association and SME level: Investment in the provision of equipment, technology and materials to farmer associations and SME to facilitate the shift to new farming systems and improve traditional value chains (i.e. the processing of imperishable and value-added products to overcome annual environmental constraints and increase the possibility to stock and access to markets in a longer period/new markets) and new complementary value chains (NTFPs cropping, processing and marketing, high quality meat and dairy products, honey, berries and fruits – especially plums and walnuts). Invest in the introduction, testing and dissemination of state-of-the-art equipment for CA among FAs and SMEs. Support/promote associations for CA/OA (i.e. foster creation of RS and FBiH farmers federations for CA or OA). Identify and support farm leaders among poor farmers to develop good demonstration cases on CA/OA and sustainable rural business that can trigger larger interest among farmers. Promote networking among RS/FBiH farmer associations and CA/OA farmer associations from neighbouring countries and EU to exchange experiences and knowhow. At the Infrastructures level: Invest in the set up of multi-purpose plants in support to new value chains, including nurseries for the production of seedlings, saplings, and mother plants for high-quality cuttings, greenhouses, experimental plots, irrigation systems, plants for the cleaning, drying and processing of medicinal and aromatic plants, distillation plants (possibly with biomass-fed boilers), freezing and refrigeration facilities for berries and fruits, plants for the processing of honey and other bee products, and other transformation and storage facilities, serving producers’ associations, or cooperatives from one or more municipalities. Invest in infrastructure for improved water management, including small scale irrigation schemes, farm ponds, stone and wooden dams etc. Promote the adequate land uses that can be coupled with infrastructure development in highrisk areas i.e. clearing of roadsides by supporting grazing activities in sensitive areas, support the creation of clearance belts in forest areas where fodder or herbs can be grown, or where beekeeping facilities can be installed. Invest in the set up of small-scale fish farms for the sustainable production of local species of freshwater fish, possibly linking to local agricultural production for the provision of fodder, and support short value chains for fresh fish serving local and regional markets. Support participatory planning processes to identify and GIS-map high-risk areas in territorial units – i.e. watersheds - and support decision-making about the most efficient landscape 24 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment pattern distribution of infrastructures to increase rural resilience while supporting development activities. Incorporate CC-risk criteria in the environmental impact assessment of all infrastructures. Build capacity of public administrations (especially municipalities) and national/local civil works enterprises about the incorporation of CC-risks and DRR. Organize learning tours to neighbouring/EU countries to visit successful best practices in infrastructure development and management. Support the revision of national/local policies and regulations on infrastructure development to mainstream CC-related risk assessment. At the Rural Finance Level: Raise awareness and inform the business sector about CC-related risks affecting food security, and provide guidance to incorporate adequate sustainability criteria in the applications for loans. Support the revision of governmental rural development policies to incorporate CC-risks in the provision of subsidies and selection of eligible measures/equipment. Raise awareness and inform the insurance sector about opportunities for CC-risk incorporation in insurance premiums. 3.2 Areas for policy dialogue Adequate institutional support and policies can greatly help speed up the adoption of CC adaptation measures in agriculture, mainly by removing existing constraints and providing farmers with the required services, incentives and credit programmes for sustainable agriculture technologies and investments. IFAD can play an important role in supporting the improvement of current policies and regulations, so they can facilitate the adoption of sustainable agriculture and rural development options. The stakeholders interviewed during the SEA missions identified the following gaps and priority areas to improve the ENRM policy framework: Formulate and approve State and Entity (FBiH) laws on OA and CA; Amend existing laws on tourism and introduce bylaws in support to rural tourism and other off-farm business in rural areas; Further align national legislation to facilitate the application of EU frameworks such as WFD or HD; Improve forestry laws to facilitate CC adaptation and fire risk reduction in forest management; Improve legislation framework for the management of protected areas; Introduce specific incentives for enhancing the sustainability and climate proofing of rural economy and infrastructures, and to boost organic certification and rural entrepreneurship based on the sustainable use of natural assets. The policy revision will not only look at specific legal rules supporting agriculture development, farming and forestry approaches, but also at the coherence with existing legislation on crosscutting policy issues such as climate change (adaptation of sectoral policies to climate scenarios and predicted changes), water (water use efficiency, water pricing, floods, droughts), land degradation, pollution (sewage treatment, use of herbicides, pesticides or other chemicals), energy (use of wood and agriculture waste for bio-energy), land tenure, forestry, nature protection, transport, etc. Agriculture and agro-forestry related incentives or subsidies and credit lines should be screened and evaluated, to ensure that they do not jeopardize the farmers’ ability to adopt sustainable agriculture and sustainable non-farming complementary activities. An important policy instrument is the alignment with EU policy frameworks – i.e. Water Framework Directive (WFD), Floods Directive, Common Agriculture Policy (CAP) and agriculture directives, Habitat Directive/Natura2000. It should also look at co-ordination mechanisms across entities, ministries, governmental agencies and departments to address mainstreaming and cross-compliance, and reduce the likelihood of conflicts in the implementation of measures. The adoption of broad consultation processes in order to gather 25 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment the input and feedback of the civil society, the private sector and all concerned stakeholder is highly recommended. 3.3 Targeting The target groups for enhanced work in ENRM and CC should be (i) smallholder farmers, both men and women willing to adopt agriculture practices and value chains for OA, CA and NTFPs (ii) Producer Associations and Agriculture Cooperatives with an outreach to smallholder famers as members and co-operants (iii) women and unemployed youth interested in non-farm wage employment and enterprise development based on the sustainable use of the country’s natural assets (iv) institutions, decision-makers, and practitioners in the field of agriculture, forestry, nature resource use, and biodiversity conservation. The targeting approach will include: Geographic targeting. Geographic priority should be given to those municipalities and territories that combine high poverty, high vulnerability and risk to climate change impacts, and high levels of biological diversity. The SEA carried out a thorough geographic targeting exercise based on a GIS analysis combining the following layers: rural poverty at the level of municipalities; biological diversity, based on available information from the N2K alignment process, and vulnerability to the impacts of CC (floods, fires, drought). This component of the work is featured in Annex 2 to this document. Poverty and Gender Targeting. The selection of individuals, rural households and participating institutions will be based on criteria that ensures the inclusion of the vulnerable households and pro-poor institutions. Self-targeting. Interest in participating in ENRM/CC adaptation and sustainable agriculture project financed activities will be a pre-requisite for participation in the programme. 3.4 Partnerships and opportunities for synergies and upscaling The current scenario offers IFAD plenty of opportunities to build strategic partnerships with actors that have not, or have marginally been involved in previous phases of the programme, and to further strengthen existing collaboration, for the enhancement of ENRM and CC work in BiH. The following table describes some of the most interesting opportunity at this respect. Partner World Bank UNDP USAID Water Agencies Forestry Institutes Opportunities Build on, or explore co-financing opportunities with WB-led projects, including Neretva and Trebisnjica management project; mountain and forest protected areas project, irrigation project. Build on, or explore co-financing opportunities with UNDP-led projects like biodiversity protection in Livanjsko Polje, renewable energies and bio-fuel. UNDP supports the production of the second INC to UNCCC and can be a valuable ally in CC adaptation projects. Build on patrimony of experience, information, and contacts of the FARMA project in the design and development of projects on OA/CA, NTFP. Upscaling of FARMA work at the local level. Collaboration on CB for producers and rural entrepreneurs. Support the work of the WAs in both Entities and build partnerships for water management, watershed, CC adaptation and DDR; help build capacity and encourage cross-boundary collaboration between Entities and with neighbouring countries. Build partnerships for projects addressing sustainable forestry and forest management, CC mitigation for forests, NTFP value chains; help build capacity and encourage cross-boundary 26 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment Ministries of the Environment Hydro-meteorological institutes Authorities in charge of PA management Tourism authorities Trade Chamber of BiH Organska Kontrola NGOs/CSOs Faculties of Agriculture and Forestry collaboration between Entities and with neighbouring countries. Build partnerships on ENRM projects; support mainstreaming of environmental issues in agriculture, water, forestry, and tourism; help build capacity of ministries and protected areas agencies. Help build capacity in terms of equipment and skills; encourage partnerships with agriculture, water, forestry, and environment sectors; facilitate collaboration between entities and set up of national database; improve mechanisms for transfer of data and information to users. Build partnership to promote/encourage small rural business based on the natural and cultural values of PAs; mainstreaming of nature protection into agriculture and rural development policies; cross-boundary work. Build partnerships on pilot rural tourism projects; CB of rural population to undertake off-farm business; support integration of rural and agro-tourism in national tourism policies and strategies; build capacity to access development funds (IPA) Establish strategic partnerships for the set up of value chains on OA/CA/NTFP, especially to establish links between producers and buyers, and build capacity of producers on marketing, business and export. Develop partnership on OA/CA/NTFP projects, support policy dialogue to remove obstacles, build capacity, and raise awareness on certification among decision makers and rural entrepreneurs (producers’ associations, SMEs, cooperatives). Help build capacity of NGOs and develop partnership for education, awareness raising and communication campaigns addressing the rural population and the national society at large. Build partnerships to encourage/support research work and knowledge generation in the fields of ENRM, CC adaptation and DRR. 3.5 Proposed working lines for future programme development Beyond the allocation of approximately USD 13.376 million according to the Performance Based Allocation System (PBAS) cycles 2013-2015 and the not yet determined allocation for the cycle 2016-2018, the IFAD country programme should explore additional financing sources available through schemes such as the Global Environment Facility, the Special Climate Change Fund, the Special Adaptation Funds and others, for the development and implementation of projects that, while building on the core IFAD programme and projects, have a specific ENRM and CC adaptation focus. The SEA identified the following five priority lines of work that articulate environmentally sustainable and climate-resilient development pathways and interventions to address issues of poverty, vulnerability to climate change and natural disasters, and sustainable resource management in BiH: 1. Short, sustainable green value chains, including high quality agriculture, meat, and dairy products, certified organic food, and NTFP, including shift from collection to cultivation; 2. Introduction of adaptation and risk reduction measures at the watersheds level with the active involvement of smallholders and rural communities; 3. Support to off-farm business and rural revenue diversification with a special focus on rural tourism and service sector in and around protected areas (PAs as engines for rural development); 4. Promote sustainable agriculture approaches and agro-forestry; 27 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment 5. Climate change mainstreaming in ENRM and ARD policies, capacity building for meteorological, hydrological and climate services to support disaster risk reduction and early warning systems. A short description of these lines of work, together with an analysis of existing opportunities and constraints and recommendation on suggested approach for project development are provided in the following table. 28 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment Priority Working Line 1. Short, sustainable green value chains, including high quality agriculture, meat, and dairy products, certified organic food, and NTFP, including shift from collection to cultivation Opportunities A priority for MOFTER and Ministries of Agriculture in both Entities is to position BiH as a net exporter of high quality, value added goods to EU and other SEE countries; Marked tendency to shift from collection to plantation of NTFP, because of decreasing stocks of wild plants; High demand for NTFP especially organic from markets in D, A, CH, HR, I, F, US; The first organic certification agencies in East Europe, Organska Kontrola (OK) was recently up. OK certification is recognised by EU and CH; In 2011 2,3 M EUR of OKcertified goods were exported in BiH, and much more was exported with other certification systems; Strong tradition of NTFP production and export since former Yugoslavia times; Small but growing number of cooperatives in the field of OA, in both Entities; Growing interest of private Constraints No Law on OA at the state level and in FBiH, only RS has one; No specific subsidies for OA are available in BiH; Low awareness and capacity of farmers, producers associations, SMEs and cooperatives; The cost of organic certification is too high for single farmers and no subsidies are currently available for certification; Weak links between offer and demand in this sector, especially for export. Suggested Approach 29 Establish strategic partnership with donors active in the sector, especially USAID and SIDA (FARMA), the BiH certification agency OK, and the Foreign Trade Chamber; Remove obstacles and bottlenecks at State and Entities level to encourage green productions, especially OA/NTFP production (i.e. laws on organic farming, incentives); Mainstream available (RLDP, RBDP) and new investments for the set up of multi-purpose plants for the set up of the value chains (nurseries, drying, processing, distillation, storage and refrigeration facilities etc) and for the purchase of state o the art equipment, materials and technology; Build capacity of unions of cooperatives and producers’ associations to provide qualified TA to their members in these sectors; Encourage set up of producers’ associations, cooperatives and SMEs for OA and NTFP production and export; Focus on poorest and CC vulnerable rural areas, so as to help reverse the trend of migration to the cities, where employment is also scarce; Focus on rural women and youth; Map current and potential foreign buyers, with the help of donor agencies, embassies, trade chambers; Operate link between producers and buyers so as to maximise guarantees for smallholders and achieve adequate quantitative and qualitative production standards (build on IFAD experiences such as PAPAFPA). BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment Priority Working Line business sector for NTFP production and export; Synergies with other international donors; Build on the experience and capacity built through FARMA USAID/SIDA project; Growing focus on providing employment opportunities for returnees/internally displaced (Annex 7 Dayton Agreement); Sector analysis for five strategic agriculture sectors including NTFP, rural tourism and beekeeping) released by EU/FAO; Together with second communication to UNCCC, UNDP will release national adaptation strategy largely based on agriculture including concrete recommendations on measures; Likely available funds from the EU in the future (IPA); Build on existing and forthcoming IFAD projects (RLDP, RBDP) and on successful IFAD projects elsewhere (i.e. PAPAFPA in STP) Opportunities Constraints 30 Suggested Approach BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment 2. Introduction of adaptation and risk reduction measures at the watershed level with the active involvement of smallholders and rural communities Alignment to EU WFD is a priority policy for the authorities of BiH; Four Water Agencies in place in the two Entities; Preliminary work carried out through previous projects on IRBM and Ecological Flow; The production of flood protection management plans is a high priority for the Water Agencies, as it must be completed by 2017, but the work is proceeding slowly due to lack of funds; The fires occurred in summer 2010 have increased awareness on the importance of protecting forests and on adaption to extreme climate events; UNDP produced documents on the potential for biomass use in BiH, and fostered the creation of an association of biomass producers in BiH that is still active; Informal collaboration happens locally, at a watershed level, between forest and water management, leading to effective but informal protection of watershed forests; Awareness on need for No mapping of vulnerable riverine areas and basins has been carried out so far; No national experience on the development of IRBM and watershed plans; No existing action plan to address pollution reduction from agriculture sources and adapt to EU legislation (i.e. Nitrogen Directive); Entities are working separately on existing projects i.e. Sava river water management plan; Weak collaboration between forest and water managers, agriculture, research institutions, hydrometeorological bodies. 31 Facilitate the participation of small farmers and rural communities in watershed-level land planning to ensure that their needs are integrated in, and compatible with the new land and resources management plans and measures; Support the creation of associations of water users at the watershed level and introduce new water harvesting and irrigation technologies, including small-scale irrigation schemes and reservoirs, and the re-use of treated wastewater for agriculture; Improve sewage treatment in rural areas, promoting natural systems such as green filters; Put in place measures to control erosion, including stone and wooden dams, and restore vegetation cover in sensitive areas, favouring the creation of shelterbelts and the use of economically valuable agro-forestry species; Provide investments and facilitate access to credits and subsidies to introduce adaptation and risk reduction measures into smallholders agriculture; Facilitate collaboration between Water Agencies in both Entities by supporting the completion of required flood management plans and through joint CB programmes; Promote integration between water and agriculture sectors within the Ministries of Agriculture in both entities, in order to ensure coherence between agriculture and water management, and mainstream water, agriculture and forestry policies; Increase awareness at grassroots and decision makers levels on the need for integrated, climate-resilient management and development Build capacity of concerned actors at the level of municipalities and local communities BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment Priority Working Line 3. Support to offfarm business and rural revenue diversification with a special focus on rural tourism and service sector in and around protected areas flood protection is increasing among decision makers and the wider society; Synergies with existing and forthcoming projects and schemes (notably WB) on irrigation, wastewater management, river basin management plans, irrigation; Opportunities for cofinancing with WB: irrigation development project; Neretva and Trebisnjica Management Project; water management in the Drina Basin; Build on existing and forthcoming IFAD projects (RLDP, RBDP) Opportunities In the framework of EU accession and alignment to HD/N2K, the authorities of BiH are under pressure to expand and strengthen network of PAs; Authorities are willing to increase social acceptance of PAs and solve current financial constraints of existing parks; Rural tourism development is a high priority for both Entities; Constraints Entities lack specific action plans or by-laws addressing rural tourism and its needs; Very low capacity at all levels to access and manage available funding lines, i.e. IPA; Weak experience on off-farm business based on natural values and resources in the country; Complex governance system and inefficient funding of protected areas; Lack of dialogue and synergies between environment, tourism, and agriculture sectors. 32 Suggested Approach Mainstream available (RLDP, RBDP) and new investments in rural areas to set up small-scale sustainable business in/around protected areas, based on the results of the management and physical plans produced by the WB project, i.e. support women and youth in the development and management of tourismrelated services (board and lodging, guiding, handicrafts and high quality productions); Promote the shift to sustainable energy through investments in small-scale bio-fuel plants using agriculture waste and wood, which can generate employment while covering community energy needs and abating the cost of new off-farm business initiatives. Make available equipment, technology and BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment Priority Working Line 4. Promote sustainable agriculture approaches and agro-forestry Build on achievements of the WB-GEF Forest and mountain protected area project, finalising in 2013, which will deliver management plans for Una, Blidinje, Hutovo Blato, Sutieska, Kozara, and a tourism master plan for Una; Synergies with the Dinarides project of WWF, DAI, and other nature conservation initiatives; The private sector is slowly developing new agrotourism business, especially in FBiH; Plenty of best practices and examples in EU and neighbouring countries; Strong interest of Cantonal authorities of Sarajevo to join a project along these lines; Build on existing and forthcoming IFAD projects (RLDP, RBDP) Opportunities Sustainable agriculture and agro-forestry are a priority at the policy level (INC, NEAP etc); Good practices examples available within and outside IFAD programme in Poor access and infrastructure in many rural areas; Several mountain and rural regions in BiH are unfit for rural tourism because of land mines. Constraints No specific legislation on CA exists in BiH, no OA laws at the state level and in FBiH, only RS has one; No specific subsidies/incentives for CA/OA or sustainable agriculture practices are available in BiH; Low awareness and capacity of 33 infrastructures to support rural business diversification. Promote integration between tourism, rural development, agriculture, and nature conservation sectors in both Entities; Enhance skills and know-how of entrepreneurs and foster the set up of associations of service providers; Build national capacity to access IPA and other funds available for rural development and tourism; Develop strategic alliance with other organisations interested in promoting sustainable rural development in key biodiversity areas, such as WWF or IUCN; Build on positive experience of Canton Sarajevo and collaborate with the cantonal PA Unit for pilot agrotourism work; Support cross-boundary collaborations between BiH, SR, HR, MN (Una/Plitvice; Sutjeska/Tara/ Durmitor; Hutovo Blato/Neretva Delta; Livanjsko Polje/Sinjsko Polje). Suggested Approach Identify and map improved land management systems, practices and technologies within BiH and in neighbouring countries, building on the track record of IFAD and other agencies; Test new land management practices and technologies and produce adapted guidelines for the promotion/expansion of sustainable agriculture and agro- BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment neighbouring countries; Build on existing and forthcoming IFAD projects (RLDP, RBDP) Upcoming projects and opportunities for cofinancing (WB, UNDP, EU); Agro-forestry measures are already well established and known in the country; Low levels of pollutions and acceptable quality of the environment provide excellent baseline for sustainable agriculture farmers, producers associations, SMEs and cooperatives on sustainable agriculture; Weak links between agriculture, forestry and environment sectors of the administration. Priority Working Line Climate change mainstreaming in ENRM and ARD policies, capacity Opportunities Most concerned institutional actors at all levels are aware of the need for environmental Constraints Substantial lack of collaboration and integration within Entity (agriculture, environment, resource management) and among Entities at the moment; 34 forestry, including conservation agriculture, pastures improvement through seeding-rotating-resting, and tree planting in crop/pasture land and establishment of shelterbelts; Technical assistance for analysis of water use and distribution at landscape level in light of changing rainfall patterns to inform the design of efficient water management systems; Promote know-how and support smallholder investments on water harvesting techniques, such as low-cost groundwater recharge methods and small to mediumsize reservoirs to compensate summer water scarcity; Promote know-how and adoption of soil water storage management techniques, such as the use of mulching and the cutting of stubble at different heights to trap snow enhancing spring moisture; Promote know-how and support smallholder investments on water-use efficient irrigation systems; Promote seed collection and creation of seed banks to make available high-quality plant material from larger number of crop species and varieties well-adapted to changes in climate; Promote know-how and support smallholder investments on crop rotating systems based on well-adapted and diverse crops; Promote adjustment of cropping systems and crop varieties to the seasonal changes caused by CC. Suggested Approach Encourage mainstreaming of climate change in environment and agriculture, and the creation of institutionalised procedures and protocols for coordination and collaboration between MoAs and MoEs; BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment building for meteorological, hydrological and climate services to support disaster risk reduction and early warning systems. mainstreaming and the development of crosssectoral strategic environmental assessments (SEA) across many sectors; CB on SEA among the members of the administration, is a priority for the Ministries of Environment in both Entities; The second national report to UNCCC due to be released in early 2013 identifies main problems and suggest adaptation measures on agriculture, water management, forestry, and human health, including policy mainstreaming; Opportunities to build synergies with other international actors including EU, WB, UNDP, USAID etc; EU alignment and the adoption of legislation such as WFD and HB require high cooperation between institutional actors and environmental mainstreaming in ARD and NRM; IFAD is well positions to catalyse the process and can build on successful Weak link between research sector (universities) and institutions in charge of policy development, planning, and implementation; Lack of effective examples of mainstreaming and win-win situations in the country. No harmonisation of the information systems and poor data sharing among institutions concerned with climate and weather within Entities and among Entities; Limited capacity and technical means in the Hydro-meteorological institutes of both Entities. 35 Foster set up of intra- and inter-Entity working groups to boost communication between MoA and MoE, and create working group for the development of national Disaster Risk Reduction strategy; Facilitate the harmonisation of the information systems of weather forecast and hydro-meteorological data in both Entities and the integration the information systems of different institutions concerned with climate and weather within Entities; Create a national hydro-meteorological database; Enhance investment in climate modelling and forecasting, and support climate change downscaling; Build the technical and human capacity of Hydrometeorological institutions in both Entities and promote collaboration through joint training; Bridge knowledge gaps on CC and DRR by improving transfer of data/information to farmers and rural people, by forging partnerships between concerned institutions, NGOs, and the media; Mapping of experts and specialists involved in the sectors in BiH and the region and foster the creation of informal networks; Create small research funds, i.e. for PhD thesis on climate change adaptation and knowledge generation and management in the hydro-meteorological field. BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment experiences within its programme elsewhere in the world; BiH joined the United Nations Framework on Climate Change in 2010; BIH can significantly benefit from the new South East European Virtual Climate Change Centre (SEEVCCC), which was established in 2008 within the Serbian National Hydrometeorological Service. 36 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment 3.6 Opportunities for transboundary work The following opportunities for transboundary work with Croatia, Montenegro and Serbia have been identified: Development of transboundary initiatives for joint promotion, management, and rural development initiatives (especially tourism) between Una and Plitvice National Parks (BiH/HR), Sutjeska and Durmitor National Parks (BiH/MN), Livanjsko Polje/Sinjsko Polje (BiH/HR), and Hutovo Blato/Delta of Neretva (BiH/HR); Policy and capacity building collaboration with neighbouring countries in the framework of the South East European Virtual Climate Change Centre (SEEVCCC) led by Serbian National Hydrometeorological Service, especially on enhancement of the hydro-meteorological services, and coordination on weather forecasting and DRR; Partnership between the Forestry Institutes of FBiH and RS with Hrvatske šume and the Serbian Forestry Service; Partnerships for joint planning and implementation of Integrated River Basin Management initiatives in transboundary river basins, especially Neretva, Una, Sava (HR) and Drina (SR); Establish strategic links with OA actors and partners in Serbia and Montenegro through the Bosnian certification agency Organska Kontrola that is increasingly active in those countries; Identify best practices in the fields of sustainable agriculture, off-far rural business, management of natural resources and protected areas, and CC adaptation and risk mitigation from neighbouring countries, in view of CB programmes and for the organisation of learning visits. 3.7 Conclusions and Recommendations So far, IFAD has handled environmental issues mainly by ensuring the integration of environmental concerns into the planning and evaluation of its investments, and by monitoring the environmental compliance of its beneficiaries and partners. However, there is considerable room for increased mainstreaming of environmental work, and especially for sustainable natural resource management, climate change adaptation and disaster risk reduction, in current and future IFAD projects. IFAD should pay more attention to key issues such as: (i) investing in the set up of short value chains linked to green agriculture and sustainable productions, through the provision of state-ofthe-art technology, equipment and materials and through the construction of multi-purpose value chain infrastructures and facilities that can serve producers’ associations, cooperatives and SMEs; (ii) encouraging income diversification and off-farm business initiatives with a specific environmental profile, that can boost rural employment, especially among women and youth in poor, biodiversity rich rural areas with high landscape value and tourism potential; (iii) promoting sustainable agricultural approaches, including conservation agriculture, organic farming and agroforestry as a way to enhance the livelihoods of smallholders in rural areas and promote BiH as a high-profile supplier of quality agriculture goods and products in the European market; (iv) building specific capacity and skills for ENRM and CC adaptation among all key stakeholders, from decision makers to grassroots beneficiaries; (v) supporting the mainstreaming of environment, agriculture, and sustainable resource management through policy dialogue in view of achieving a more conductive national framework for ENRM and CC adaptation; (vi) integrating agriculture work and the sustainable management of resources such as forests, water, or biological diversity with a special focus on climate change adaptation and disaster risk reduction. The on-going and future projects covered by the allocations according to the Performance Based Allocation System, such as RLDP and RBDP, provide an excellent baseline and opportunity to mainstream ENRM and CC through specific actions and measures targeting all the existing levels of work: agriculture production, Farmers’ Association and SMEs, infrastructures, and rural finance. IFAD should explore additional financing sources for the development of new projects that, while building on the core IFAD programme, have a specific ENRM and CC adaptation profile. Potential sources include the Global Environment Facility (GEF), the Special Climate Change Fund 37 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment (SCCF), and Adaptation Fund. IFAD could also become engaged in dialogue with private foundations working on ENRM and CC at the global or regional level. Finally, IFAD grants could become more relevant and supportive to the IFAD Programme in BIH. IFAD should broaden the scope of its partnerships in BiH, and develop strategic frameworks of collaboration with actors involved in ENRM and CC adaptation, including Ministries of Environment and Tourism, Water Agencies, Forestry Institutes, Hydrometeorological Institutes, Universities and research institutes, and stakeholders in the areas of organic farming, conservation agriculture and NTFP production. A stronger dialogue should also be developed with national and local NGOs, which can become useful partners, especially in the implementation of awareness raising, education and extension work. IFAD should look at ways of using its means and work to help strengthen, and build the capacity of the civil society in Bosnia and Herzegovina. Priority should be granted to fostering transboundary collaboration between Entities, and between BiH and neighbouring countries, through the implementation of projects addressing transboundary areas (i.e. shared watersheds, neighbouring protected areas etc), and through joint capacity building and knowledge generation/management initiatives. While scaling up its work in ERNM and CC, IFAD can, and should build on existing best practices and successful examples within and outside its worldwide programme. Strategic partnerships should also be sought or strengthened with international actors active in ENRM and CC, including other UN agencies, donors, or international NGOs. 38 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment 3.8 Proposed set of Indicators It is recommended that the monitoring system for the IFAD programme in BiH integrate agrienvironmental indicators to: (i) provide information on changes in the conditions of the farmed environment at local and watershed level; (ii) track the impact of the agriculture supported measures and policy reforms on the environment; (iii) inform agriculture and environmental policy decisions, and (iv) illustrate agri-environmental relationships to the broader public. A coherent system of agrienvironmental indicators should be able to capture the main positive and negative effects of agriculture on the environment and to reflect regional differences in economic structures and natural conditions. By doing so, it will provide valuable information for assessing agriculture policy in terms of its contribution to the preservation of environmental resources on which the future of agriculture and society at large depend. The following table provides examples of possible agri-environmental indicators: Domain Policy Value chain responses Indicator Agri-environmental commitments Economic incentives CA/OA production, technology and skills Example Nº of new regulations supporting climateresilient agriculture measures Nº of subsidy schemes supporting CA/OA Nº of loans supporting the acquisition of CA/OA technologies and the set up of infrastructures and plants for the new value chains; Nº of hectares under green productions, including CA, OA and agro-forestry; Nº of hectares of new NTFP value chains (shift from collection to cultivation); Nº of extension organizations providing CA/OA services; Nº of research centres with applied research trials on CA/OA Nº of SME involved in climate-resilient processing and marketing; Production per each type of imperishable processed product; Nº of organic products exported Nº of certified products and certification licenses released by local certification bodies. Nº of water waste treatment plants in the project intervention zone; Nº of farms re-using treated water Average erosion rate per ha in the project intervention zone as from the baseline Processing and diversification Pressure Market signals and attitudes Pollution reduction Land degradation reduction Efficient input use Poverty alleviation responses Amount of changes from the baseline of mineral fertiliser consumption; Amount of changes from the baseline of consumption of pesticides; Amount of changes from the baseline of fossil fuel consumption in agriculture production; Volume of water savings in irrigation as compared with baseline consumption. Nº of household employees working on climateresilient productive activities (high quality Employment rate 39 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment productions, OA/CA, MAP and other NTFP; bioenergy; agro-tourism; etc); Nº of women employed in climate-resilient productive activities; Nº of previously unemployed beneficiaries who are employed in climate-resilient productive activities. Nº of farmers’ with increased income from climate-resilient productive activities Nº of ha of protective vegetation belts and pasture land restored; Rate of increase in soil carbon in CA/OA farm plots; Rate of increase in water soil content in CA/OA farm plots Increase of species richness in restored land. Income rate State Natural resources Biodiversity Landscape Nº of multipurpose infrastructures responding to CC-risk reduction in the programme intervention zone; Nº of vulnerable areas in the agro-landscape – watershed – with reduced CC-risk Outcome indicators will report on results such as numbers of people benefiting from membership in farmer organizations, training, market infrastructure, rural financial services and the increase in production and sales of rural products and related employment. Milestone indicators will document immediate outputs such as the number of organizations established, people trained, number and types of infrastructure constructed and number active borrowers. Output and outcome data could also be disaggregated by gender. The annual reviews could be used as an opportunity to update the log-frame based on any modifications in projects under implementation. 40 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment 41 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment Prepared for IFAD’s Country Strategic Opportunities Programme 2013-2015 Annexes Document Date: December 12 ECCA No. 3214-BA Near East, North Africa and Europe Division Programme Management Department Environment and Climate Division Prepared by: Marco Pagliani This report is a product of staff of the International Fund for Agricultural Development (IFAD) and the findings and conclusions expressed herein do not necessarily reflect the views of its Member States or their representatives to its Executive Board. IFAD does not guarantee the accuracy of the data included in this work. The designations employed and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of IFAD concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. The designations “developed” and “developing” countries are intended for statistical convenience and do not necessarily express a judgement about the stage reached by a particular country or area in the development process. All rights reserved. © 2010 by the International Fund for Agricultural Development (IFAD) BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment Annexes Abbreviations and acronyms 4 Annex 1: List of Meetings and Interviews 6 Annex 2: GIS analysis for geographic targeting 8 Annex 3: Mainstreaming of environment, nature resource management and climate change into on-going and future IFAD interventions 15 Annex 4: Analysis of on-going environmental and climate adaptation work in BiH 20 Annex 5 – Bibliography 24 3 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment Abbreviations and acronyms ARD AFRD BiH CARDS CC CORINE DAI DRR ENRM ERD EU FBiH FHMI GDP GNI HD IFOAM IOAS IMF INC IPA IUCN MAP MDG MW NEAP NMHS NP NTFP N2K OFID OK PA PFI PHARE PRSP RBDP RHMS RLDP RS SAA SIDA SME ToT UNCBD UNCCC UNCCD USAID WB Agriculture and Rural Development Agriculture Forestry and Rural Development Bosnia and Herzegovina Community Assistance to Reconstruction, Development and Stabilisation (EU programme) Climate Change Coordination of Information on the Environment Dinaric Arc Initiative Disaster Risk Reduction Environment and Natural Resource Management Environment and Rural Development European Union Federation of Bosnia and Herzegovina (Muslim-Croat) Federal Hydrometeorological Institute (FBiH) Gross Domestic Product Gross National Income Habitat Directive (EU) International Federation of Organic Agriculture Movements International Organic Accreditation Services International Monetary Fund Initial National Communication (to UNCCC) Instrument for pre-Accession (EU) International Union for Nature Conservation Medicinal and Aromatic Plants Millennium Development Goals Mega Watts National Environmental Action Plan National Meteo-Hydrological Institute National Park Non Timber Forest Products Natura 2000 (EU) OPEC Fund for International Development Organska Kontrola Producers’ Association Participating Financial Institution Poland and Hungary: Assistance for Restructuring their Economies (EU programme) Poverty Reduction Strategy Paper Rural Business Development Project (IFAD) Republic Hydrometeorological Institute (RS) Rural Livelihoods Development Project (IFAD) Republika Srpska Stabilisation and Association Agreement (EU) Swedish International Development Agency Small and Medium-sized Enterprise Training of Trainers United Nations Convention on Biological Diversity United Nations Convention on Climate Change United Nations Convention to Combat Desertification United States International Development Agency World Bank 4 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment WFD WMO WTO WWF Water Framework Directive (EU) World Meteorological Organisation World Tourism Organisation World Wildlife Fund 5 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment Annex 1: List of Meetings and Interviews Date 12/11 Person Institution Halil OMANOVIC Director, IFAD Project Coordination Unit, Sarajevo MOFTER – State Ministry of Foreign Trade and Economic Relations Zoran NESKOVIC 13/11 Enes ALAGIC, Head of Water Management Sector Ruvejda ALIEFENDIC, Finance and Private Sector Development Specialist Esma KRESO, Environment Specialist Mjriana KARAHASANOVIC, Operation Officer Benjamin TORIC, Chief of Party Bruce BROWER, Chief of Party Sava River Watershed Agency Zahira VIRANI, Deputy Resident Representative Amira VEJZAGIC-RAMHORST, Deputy Economic Development Office Director Steven MAJORS Sanela PASANOVIC Aleksandra NIKOLIC Timea MAKRA Jelena MILOS UNDP Zravko MARINKOVIC, Director, Zvonimir PAPOCI, Secretary for Agriculture and Food Processing Industry Ognjenka LALOVIC, Advisor for Multilateral Relations Tijana SLAGALO, Project Manager for Agriculture and Food Processing Industry Mehmed CERO, Assistant Minister, Environment Nedeljko BABIC, Assistant Minister, Tourism Mersida MUSABEGOVIC, Director Foreign Trade Chamber BiH Foreign Trade Chamber BiH Osman DELIC, Director Ahmet SEJDIC, Director Zeljko MAJSTOROVIC, Director Sabina HODZIC, Assistant Director for Applied Meteorology Esena KUPUSOVIC, Chief of Hydrology Department Igor PALANDZIC, National Protected Areas Unit, Canton Sarajevo FBiH Forests Institute Hydro-meteorological Institute of FBiH Hydro-meteorological Institute of FBiH World Bank World Bank World Bank FARMA Project –USAID/SIDA FARMA Project –USAID/SIDA 14/11 USAID USAID USAID Faculty of Agriculture University of Sarajevo EU Delegation EU Delegation 15/11 Foreign Trade Chamber BiH Foreign Trade Chamber BiH Federal Ministry of the Environment and Tourism Federal Ministry of Environment and Tourism Organska Kontrola 16/11 6 Hydro-meteorological Institute of FBiH UNDP BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment Programme Coordinator, Democratic Economic Governance and Water Sector 17/11 NGO/CSO Consultation Workshop Rijad TIKVESA, EKOTIM Nusret DRESKOVIC, Greenway Mato GOTOVAC, WWF Safet DAUT, ODRAZ (Foundation for Sustainable Development) Lejla HUSKIC, Melnisa BEGOVIC, LOK microcredit organization Semra FEJZIBEGOVIC, CESD Centre for Environment and Sustainable Development Radenko JEFTIC, Director IFAD/RS Agriculture Project Coordination Unit Union of Cooperatives, RS Union of Cooperatives, RS Ministry of Physical Planning, Civil Engineering and Ecology, RS 19/11 Rajko KULAGA, President Nikolina DRAGISIC, Secretary Milos JOKIC, Assistant Minister, Project Coordination and Development 20/11 Raduska KUPAC Project Manager, Climate Change UNDP Milan MATARUGA, Associate Professor Goran ZUBIC, Minister Assistant, Forests and Hunting Radenko LAKETIC, Executive Production Manager Boris ERG, Director Forestry Faculty, University of Banja Luka Field visit, Kotor Varos Municipality Dalibor VUCANOVIC (Mayor) Dukic MILENKO (member of Bee Keepers PA) Silvana STDANVIC (President Fruit Producers PA) Vladamir DRAGOLJEVIC (Municipality Agronomist) Sasa VISNJIC (Municipality Agronomist) Milanka JOVANOVIC, Senior Associate, Department of Forestry and Hunting Ministry of Agriculture, Forestry and Water Resources, RS Ministry of Agriculture, Forestry and Water Resources, RS RS Forest Institute International Union for Nature Conservation (IUCN), South East Europe 21/11 22/11 7 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment Annex 2: GIS analysis for geographic targeting As part of the SEA exercise, IFAD contracted a local expert to produce a GIS study aimed at identifying priority geographic areas for future work in Bosnia and Herzegovina, overlapping the following layers of information: (1) Spatial distribution of poverty; (2) Degree of biological diversity; (3) Vulnerability to climate change impact based on current data and available projections. The study consisted of a preliminary research exercise to identify and contact sources and providers of data and maps on the relevant topics. These included the Ministry of Physical Planning, Civil Engineering and Ecology of RS, the Ministry of Environment and Tourism of FBIH, and other governmental and nongovernmental agencies working on rural development, environmental protection and poverty alleviation. Once data had been gathered, the study used GIS technology and software to produce three preliminary thematic maps. 1. Spatial distribution of poverty. Map 1 highlights the spatial distribution of poverty in BiH, based on the most recent data on GDP per capita in all the municipalities of the country. Since the end of the war, Poverty in BiH has been investigated by different projects, most of which were based on measurements of living standard at the household level („Living Standards Measurement Survey“). The basic parameters used in most standard analyses are: demography, housing, education, employment, migration, health care, privatization, credit, welfare, consumption, non-agricultural business, and independent agricultural business. More recently, GDP per capita on the municipal level has been used for the determination of the state of poverty in BIH, based on the data of the Statistic Institutes at the entity level for the year 2010. According to these data, the mean GDP per capita for the 142 municipalities of BiH is 4,700 USD. The deviations of the mean are broad: the lowest GDP per capita is in the municipality of Sapna (Tuzla Canton) that scores just 1,005 USD, while the highest GDP per capita is in Sarajevo–Centre with a score of 26,240 USD. The mean deviation is also distinct, with a value of 3,000 USD. This study has clustered three «poverty groups» on the basis of the analysis of data on GDP per capita. According to this study, the first group consists of seven municipalities with a GDP/capita over 9,000 USD, and a mean of 13,630 USD. The second group consists of sixty municipalities (or 42.3% of the total) with a GDP/capita in the rage of 4,500- 9,000 US. The third and poorest group consists of 75 municipalities (52.8% of the total) with GDP/capita of 1,005 to 4,500 USD. The mean GDP per capita in this group is 2890 USD, with the deviation approx. 815 USD. 2. Degree of biological diversity. Map 2 highlights the biodiversity values of the different ecosystems found in BiH, based on recent data gathered in the framework of a study implemented by WWF and sponsored by the Norwegian Government, aimed at promoting the alignment of BIH to the EU Habitat Directive and Natura 2000 (N2K) framework. The project was implemented between 2008 and 2012 and focused on the identification and mapping of the habitat types and species according to the lists of the habitat types from Annex I and Annex II, IV and V of European Habitat and Species Directive – N2K. According to this study, the territory of BiH hosts 66 N2K habitat and species types, with a total 2 area of 22,345 km or approx. 43.7% of the country. The number of the priority habitat types is 16 with 2 a total area of approx. 760 km (3.4% of the total area of the all habitats). These habitat types have extreme floristic diversity: the mean number of the present floristic taxa per habitat is often over 25. BiH has 109 species included in the Annex II, IV and V of N2K: (i) vertebrates, 66 species (17 mammals, 5 reptiles, 5 amphibians, 39 fish); (ii) invertebrates, 24 species (2 crustaceans, 19 insects, 3 molluscs); (iii) plants, 19 species (12 monocots, 3 ferns, 4 moss). Taking into account that the greatest number of the mentioned species lives in one or more habitat types, this study has classified the biodiversity value of the habitats of BiH according to 3 categories. Category 1 includes priority habitat types characterised by high biodiversity and very limited special distribution. Category 2 is composed of habitat types comprised within just one or two biogeographical regions and with small total surface. Category 3 includes habitats extended on a large area (72.3% of the land) and spanning over all three bio-geographical regions of BiH (thus, with lower protection priority). 3. Climate vulnerability. Map 3 features areas of highest to lowest climate vulnerability, based on the overlapping of climate hazard maps for the principle CC-related risks in BIH: (i) Areas most exposed to forest fires; (ii) Areas most exposed to floods; (iii) Areas most exposed to drought. Vulnerability estimates to CC impact have been based on the calculation of the increase of the mean annual temperature from 0.7 to 1 °C at the continental area, and 2 °C at the Mediterranean area of the 8 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment country. According to the data available from the past 125 years, a positive trend of the average annual temperatures of 0.8 °C has been calculated for BiH. The projected changes in the annual precipitation vary depending on the geographical region and climatic season. The projected annual precipitation is positive – approx. 5% in mountain areas, while a decreasing trend of 5-7% is calculated for the Mediterranean, North-eastern and Northern regions of the country. Experts tend to agree that the most important indicators of the impact of CC in BiH are drought, floods, soil erosion and forest fires. Map 3 has clustered three basic categories of moisture deficit for the reference period of the study: 1. Strong to catastrophic drought – the moisture deficit in the soil varies from 201 to > 400 mm. It includes Mediterranean macro-region and sub-regions of North-eastern BiH. The mean monthly day frequency varies from 8 to 15 days. The spatial representatives are the cities of Mostar and Bijeljina. 2. Very mild, to mild drought – the moisture deficit in the soil varies from 51 to 200 mm. It includes the macro-region of the high Karst and Posavina-lower Vrbas-lower Bosnian sub-region. The spatial representatives are the cities of Tuzla, Banja Luka and Livno. 3. No drought – the moisture deficit varies from 0 to 50 mm. It includes the mountain macro-region and Una-Sana sub-region. The mean frequency of the day number without the drought is > 12. The spatial representatives are the cities of Bihać and Sarajevo. Spatial-temporal flood dynamics directly correlates with plain terrain and late fall or early spring precipitation maximum. The lowland areas next to the river Sava and its major tributaries (Una/Sana, Vrbas, Bosna and Drina) have been identified as the areas with the highest risk of flood. Potential flood zones include the central segments of the mentioned rivers. In the Mediterranean macro-region the main flood area is the delta of the Neretva, upstream of the border to Čapljina, including the wetland of Hutovo Blato. Forest fires are mostly a consequence of the combined increase of average and maximum daily temperatures and the very low precipitation during the climatologic summer season. Their spatial range varies from few tens to several hundred hectares of forest ecosystem. In Map 3, forest fires are classified in the following, three categories: 1. Large forest fires with a mean frequency of over 10 per season, and with a duration longer than 7 days. This category includes the Mediterranean and high Karst macro-region where the projected increase of the summer temperatures is up to 2 °C and summer precipitations are extremely low and rare. 2. Forest fires with a frequency from 5 to 9 per season and with a mean duration of 4 to 6 days. This category spatially includes North and North-eastern part of the Peripannonic macro-region of BiH with the projected increase of the summer temperatures from 1 to 1.5 °C and with a marked, decreasing trend of the precipitations. 3. Forest fires with a frequency of up to 3 big fires per season and a duration up to 4 days. These are found in valleys and depressions of BiH, and in the North-western part of the Peripannonic macroregion, where the projected trend of the increase of the summer temperatures is the lowest – up to 1 °C with stagnant seasonal precipitation. The three layers described above have been used in this study to produce a «final map» that classifies Bosnia and Herzegovina according to three levels of priority for future IFAD intervention in the field of ENRM and CC adaptation, with the highest priority given to areas combining high foreseen vulnerability from climate change, high rural poverty and higher degrees of biological diversity. The spatial level of differentiation has been done on the municipal level. 1. The «priority one» category for future IFAD interventions includes the municipalities characterised by the highest degree of poverty (GDP per capita under 4500 USD). In these areas, most of the income is generated through different forms of agriculture. More than half of the population of these areas live under the poverty line defined as 2,200 USD/year. When it comes to biological diversity, this category includes municipalities with the priority habitat types of the first and second 9 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment category of N2K, requiring a specific protection regime. From the CC point of view, this category includes municipalities with the strongest CC impact regarding floods, drought and forest fires. Most municipalities in this category are found in the Peripannonic and Mediterranean regions of Bosnia and Herzegovina. 2. The «priority two» category for future IFAD intervention includes municipalities with the mean GDP per capita which varies from 4500 to 8000 USD. The general economic profile and level of the economic development and living standard of the population in these municipalities is very similar to those of the municipalities in the previous category, except for a larger presence of industrial production mostly based on the exploitation of mineral resources. Tertiary activities, especially services, are a significant part in the economy of these areas, therefore the profile of the population has a more prominent urban features. As in the previous category, N2K habitats of the second category requiring the protection are included in this category. Municipalities with high climate change impact from floods and drought and lower danger of forest fires are included in this category. 3. The «priority three» category for future IFAD intervention includes the 15 municipalities with the highest GDP per capita in Bosnia and Herzegovina (over 8000 USD and mean GDP per capita of 10,580 USD). The economy of these municipalities is based on industry, energy and services, especially in the fields of schooling, health care and banking. Most of these municipalities are placed in the zone with lowest CC impact according to all analysed aspects, with the only exception of the municipality of Ugljevik that belongs to the sub-region of the North-eastern Bosnia identified in the first drought category. There are no priority habitat types requiring special N2K protection regime in this category. 10 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment Map 1. Geographical distribution of poverty in Bosnia and Herzegovina 11 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment Map 2. Biodiversity value of habitat types of Natura 2000 in Bosnia and Herzegovina 12 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment Map 3. Vulnerability to climate change impact in Bosnia and Herzegovina 13 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment Map 4. Geographic distribution of priority target areas for IFAD intervention, based on poverty, biological diversity and vulnerability to climate change 14 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment Annex 3: Mainstreaming of environment, nature resource management and climate change into on-going and future IFAD interventions 1. Rural Livelihoods Development Project (RLDP) Goal: Sustained improvement in the livelihoods, particularly the income and employment, of project area rural communities. Components: Agricultural Production and Farmer Organisation: (i) Improvement of Agricultural Productivity and Efficiency; (ii) Farmer Cooperatives and Associations Support Rural Enterprise Development: (i) Agribusiness and Rural SME Support; (ii) Market Linking Infrastructure Rural Finance: (i) Agriculture and Enterprise Investments; (ii) Support to Rural Finance Services Provision Project Coordination and Management: (i) Project Direction, Administration and Financial Control, (ii) Monitoring, Evaluation and Knowledge Management. 2. Rural Business Development Project (RBDP) Goal: rural poverty reduction by raising the target groups’ incomes and strengthening their resilience by building profitable farm and off-farm enterprises in BiH. Components: Rural business support - Increase in productivity and enterprise through strengthened business and advisory services. Rural business investments - Increase access to sustainable financial services. Rural market infrastructure: Increased access to market and business opportunities Project management and coordination: efficient, cost-effective and equitable use of project and resources. 15 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment Type of intervention Improve quantity and quality of agricultural production Environmental Risks Risks for Smallholders Mitigation Measures Opportunities Changes in hydrologic regime –higher concentration of rainfall in short heavy events, leading to increased risk of floods and soil erosion, causing soil fertility loss and heavy negative impact on rural livelihoods, agriculture production and infrastructures. Higher temperatures and heat waves can multiply the risk of forest fires, enhancing the impact of floods (erosion and siltation due to water runoff) and widespread crop failure. Lower precipitation and more intense and frequent drought periods in the Mediterranean part of BiH can cause widespread crop and livestock failure, and exacerbate water pollution problems due to higher water temperature and concentration of Poor-asset households are often dependent on one single source of revenue that can collapse due to CC-risks (i.e. loss of annual crop production increased price of fodder). Poor-asset farmers often produce raw and perishable products, with a very limited marginal gain and limited bargaining due to shorttime available to market the products. Unsustainable and/or conventional agriculture and grazing management practices can exacerbate CC-risks and contribute to soil erosion and fertility loss in farmland. CCinduced disturbances such as frequent and intense torrential rainfall, extreme temperature and lower precipitation under conventional ploughing conditions increase environmental risks such as soil erosion, soil fertility loss and water retention capacity. Inappropriate Promotion of sustainable agriculture systems and technologies (conservation agriculture/CA and organic agriculture/OA). CA/OA help increase the resilience of soils, crops and livestock to CC-related risks through: (i) a more effective water infiltration and greater soil moisture-holding capacity that compensates water scarcity due to drought and rainfall reduction, and prevents runoff erosion during torrential rain events; (ii) the reduction of surface soil extreme temperatures and fluctuations that help minimise the effect of frequent and intense heat weaves and frost periods; (iii) crop rotation and diversification; (iv) reduced use of fossil fuel and the increase of soil carbon that have an important mitigation effect while decreasing input costs for poor farmers; (v) Less mechanization in CA/OA implies more time for farmers to complementary income generation activities. Diversification of sources of revenues in (i) agriculture – wider range of crops, including wild fruits and MAP cropping, processing and marketing and (ii) non-agriculture – bioenergy from wood and agriculture waste; woodcutter and carpentry/handcraft; plant nurseries; agrotourism; small-scale fish farms; community based hunting reserves. Diversification increases peoples’ resilience, helping them withstand and compensate eventual crop production loss in unfavourable years. Increase the number of imperishable processed food products – i.e. dry/frozen fruits and mushrooms; dry herbs and essences; dairy products; liquors, jam, honey – these products Support the weather forecasting capacity of the administrations and the timely transfer of relevant info incorporating CC-risk to farmers. Test and adapt new technologies for CA/OA farming systems through onfarm demonstration trials as part of RLDP and RBDP interventions; Develop a “learning-by-doing” extension and applied research programme using the FFS approach together with a ToT programme for extension agents, researchers, public servants and RLDP/RBDP implementation teams. Assess market opportunities for exports (EU focus) and support the creation of new value chains on organic processed fruits, berries, walnuts, MAP, and other NTFP, as a way to diversify income sources and create employment opportunities for the poor, with special focus on women who are mostly involved in NTFP value chains (management of plant nurseries, processing and marketing NTFPs). Organize learning tours to best practices in Europe on sustainable agriculture systems and technologies, and environmental-friendly production in agriculture, NTFP and bioenergy. Promote the participation of beneficiaries to international fairs 16 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment pollutants. Changes in agroclimate conditions can lead to shifts of optimal conditions for wild species and crops, causing the loss of economically valuable plant/fauna species populations – NTFP; pastures; freshwater fish – and crop failure. Expected increase in fossil fuel costs and the need to reduce carbon emissions will have an impact on the input costs for small poor farmers and reduce they capacity to be competitive. Support creation of farmers and producers associations, and local enterprises (SME) management of potentially risky agriculture practices (i.e. uncontrolled expansion of goats) can produce environmental damage that can magnify CC-induced risks. Uncontrolled harvesting of NTFP can exacerbate the risk of natural resources/biodiversity degradation and cause the loss of complementary sources of revenues for poor rural smallholders. The lack of integration of CC risk and alert systems in weather forecast services to farmers systems will increase risk of productivity loss and lead to higher poverty. last beyond the crop year, and enhance the resilience of small farmers to market fluctuations. Focus on high environmental value niche products: these products are linked to sustainable agronomic practices that reduce CCassociated risks. Small and medium farm enterprises in rural areas can have competitive advantage vis-à-vis large companies in this niche market, and through association they have a good chance of accessing new markets – i.e. EU countries – for organic products. The cultivation of NTFPs reduces pressure on the natural populations and prevent habitat degradation, while ensuring a constant annual production, and facilitating market links. Non-agriculture economic activities – i.e. small bio-energy production plants from neighbouring wood resources to supply domestic and food processing energy needs in rural communities can create employment opportunities for poor farmers, reduce input costs, diversify income sources, and increase resilience to CC-risks (i.e. reduce forest density through thinning and pruning in high fire-risk areas). Producers associations, if not aware of CC-related environmental risks, may take inappropriate decisions about technologies, agriculture systems, and land uses. Producers associations, if not aware of CC-related environmental risks, may Increase the capacity of PAs, FAs, and SME to incorporate CC-risks and weather forecast in decision-making for planning and implementing farming operations. Increase awareness and knowledge of PAs, FAs and SME about the benefits of sustainable agriculture systems and technologies to reduce the risk of crop failures, reduce input and labour costs, and increase food security. Increase awareness and knowledge of PAs, FAs 17 CA/OA/certified forest products in neighbouring and EU countries (i.e. Biofach). Assess opportunities to link intervention areas with neighbouring high value natural and cultural sites through agro-tourism (food, handicraft, board & lodging and guiding services) and support poor farmers – focusing on unemployed youth - to access to this development sector. Support participatory rural planning processes, assessing local vulnerability to CC-related risks and identifying adaptation measures (uses and management systems at local and territorial level i.e. watershed). Develop synergies with other international agencies supporting forestry, bio-energy, and agro-tourism local development activities in BiH. Collaborate with MoA and universities to establish gene and seed banks; develop locally-relevant adaptive management practices for soil and water; monitor yields against CC. Provide extension support to FAs, PAs and SME on new farming systems and technologies to improve traditional value chains (i.e. the processing of imperishable products to overcome annual environmental constraints and increase the possibility to stock and access to markets in a longer period/new markets) and new complementary value chains (NTFPs BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment Small scale infrastructures (roads, bridges, livestock water points, sewage and water systems) not be able to demand/lobby for adequate rural development policies, measures and subsidies, or for the construction of adequate infrastructure. and SME about the opportunities to increase and diversify income sources from strategic value chains such as NTFP and organic products, as well as non-agriculture activities. cropping, processing and marketing); Promote associations on CA/OA (i.e. RS and FBiH farmers federations for CA or OA). Identify and support farm leaders among poor farmers to develop good demonstration cases on CA/OA that can trigger wider interest among farmers. Promote networking among RS/FBiH farmer associations and CA/OA farmer associations from neighbouring countries and EU to exchange experiences and know-how. Infrastructures that are built without taking into account considering CCinduced risks at an adequate scale (territorial planning at watershed or landscape level) can have a negative impact on markets and local livelihoods (i.e. predicted increase in torrential rainfall/floods can damage infrastructures and lead to higher erosion and negative impact on rural areas and livelihoods). Adequate planning of infrastructures at the landscape level – i.e. watersheds – help reduce vulnerability to CC-related disturbances, such as forest fires, soil erosion and floods while improving farming systems (i.e. establishing water points in high risk areas over large territories with the double objective of livestock beverage and fire fighting will increase resilience to disturbances while supporting pastoral development needs). The integration of environmental criteria in infrastructure development can increase resilience to CC-related risk while creating new income generation and job opportunities for poor farmers (i.e. women-run nurseries for producing freshwater plant species that will be used as green filters for low cost waste water treatment in neighbouring towns and villages, for the restoration of river banks to reduce flood risk, etc; construction of multipurpose water ponds; construction of small roads to access high-risk Support participatory planning processes to identify and map (GIS) vulnerable or high-risk areas in territorial units – i.e. watersheds - and support climate-sensitive distribution of infrastructures at the landscape level, to increase rural resilience while supporting development activities. Incorporate CC-risk criteria in the environmental impact assessment of all infrastructures. Build capacity of public administration s and national/local civil works enterprises about the incorporation of CC-risks. Promote adequate land uses that are linked to infrastructure development in high-risk areas (i.e. clearing of road sides by supporting grazing activities in sensitive areas). Organize learning tours to 18 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment areas and facilitate the harvesting of wood for bio-energy while reducing fire risk along the road network). Rural Finance Conditions for credits or agriculture insurance provision that do not incorporate local vulnerability to CC-related risk may finance inadequate equipment/investments, and may result in nonrealistic and unaffordable insurance conditions. Government subsidies for rural development that do not incorporate CC-related risks might promote maladaptive practices and hamper the successful and sustainable rural development. Incorporate CC-risk reduction in the design of agriculture subsidies. Incorporate CC-risk in the design of conditions for crediting operations supported by IFAD, favouring loans for equipment and investments that have demonstrated sustainability. Support the development of agriculture insurance incorporating CC-related risks. 19 neighbouring/EU countries to visit successful examples and best practices. Support the revision of national/local policies and regulations on infrastructure development to mainstream CC-related risk assessment. Raise awareness and inform the business sector about CC-related risks affecting food security, and provide guidance to incorporate adequate sustainability criteria in the applications for loans. Support the revision of governmental rural development policies to incorporate CC-risks in the provision of subsidies and selection of eligible measures/infrastructure/equipment. Raise awareness and inform the insurance sector about opportunities for CC-risk incorporation in insurance premiums. BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment Annex 4: Analysis of on-going environmental and climate adaptation work in BiH Most environmental and CC adaptation work in BiH is carried out through international projects, and the investments of the international donor community are on a decreasing trend in BiH since 2009. In 2010, ongoing or new projects in the fields of agriculture, food, forestry and rural development in BiH totalled an approximate amount of approx. 65 million EUR, either as non returnable international assistance (grants), loans (World Bank, IFAD) or national funds. Financial support to individuals or companies involved in ARD is provided also by microcredit organizations and banks. Although the Federal Investment Bank and the Investment Development Bank of the RS have special credit lines aimed at supporting the rural population, the lack of effective rural credit schemes are one of the causes that hamper the competitiveness of farmers and the agroprocessing industry in BiH. When analysing the financial support to ARD in the RS and FBiH during the last years, it is evident that priority measures and eligibility criteria are different. In the RS a particular attention was paid to the registration of farms and rural infrastructure development. In FbiH, the highest share of the budget for ARD has been dedicated to increase the average size of farms, investments less favourable areas, investments in farms, rural infrastructure development and land arrangement. In 2011, the agricultural budget in RS significantly decreased of more than 20 million BAM, while in BD it remained at the same levels as 2010. The 2011 budget for FBiH is not comparable due to missing of data for the Cantons. In general, the Entities did not increase their overall support for ARD, but a larger proportion of this support was allocated to rural development measures. 20 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment Main projects (other than IFAD's) dealing with agriculture, food, forestry, rural development and environment in BiH Title of the project Funding/ Implementation Sweden/SIDA, USA/USAID (Grant) Budget Duration Objectives 11.50 Million Euro 2009 - 2014 Fostering Agricultural Markets Activity - FARMA Sweden/SIDA USA/USAID (Grant) 10.00 Million Euro 2010 - 2014 Confidence Building through Agricultural and Rural Enterprise Development in Srebrenica Municipality Agriculture and Rural development Program in BiH Japan/JICA (Grant) 1.1 Million Euro September 2008− September 2013 Support sustainable economic growth, employment expansion, and increased household incomes in Bosnia and Herzegovina. FIRMA’s overall goal is to help BiH improve “the capacity to cope with competitive pressure and market forces within the European Union”, a critical component of the Copenhagen Economic Criteria for EU accession. FIRMA works with three sectors of the BiH economy: wood processing, tourism, and light manufacturing. Agri-business development program in BiH. The objective of FARMA is rapid, sustainable and broad-based economic growth through demanddriven assistance aimed at improving competitiveness of BiH agricultural producers and agricultural businesses. FARMA seeks to expand environmentally sustainable production, processing, domestic sales, export sales, and the production of value added agricultural and food products. Confidence among the targeted population is built through strengthening the capacity to manage agricultural and rural development joint activities. WB (loan) US$ 36.19 on 2007 - 2013 milli Neretva and Trebisnjica River Basin Management Project WB /GEF grant US$ 21.27 on milli Fostering Interventions for Rapid Market Advancements– FIRMA 2008 - 2013 Assist BiH inn the strengthening of the capacity of its State-level and Entity-level institutions to deliver more efficient and effective agricultural services and support programs as well as to make a substantial contribution to an acceleration of BiH's eligibility to access support under the European Union Instrument for Pre-Accession Assistance for Rural Development (IPARD). Component A: Agricultural Information and Institutional Capacity Building; Component B: Enhanced Agriculture and Rural Development Support Program; and Component C: Project Coordination, Administration and Monitoring Provide mechanisms for the efficient and equitable water allocation amongst the users of the Neretva and Trebisnjica river basin (NTRB) at the transboundary level, and for enhancing the basin ecosystems and biodiversity through improved water resources management. Strengthen the institutional capacity for the comprehensive management of the NTRB's water resources and environment through 21 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment Real Estate Registration Project WB US$ 34.10 on 2012 - 2018 Second solid waste management project – Regional sanitary landfills IDA / IBRD US$ 43.5 million 2008 - 2014 Water Quality Protection Project Forest and Mountain Protected Areas Project WB/GEF / SIDA, IPA WB /GEF (grant funds) 11,000.000, EUR 3,400.000, USD 2005 - 2013 milli 2008 - 2013 institution and capacity building; measurement, monitoring and information management and preparation of a river basin management planning. Maintain and conserve water dependent ecosystems and their associated biodiversity in the NTRB, according to requirements of the EU Water Framework Directive (WFD) through improved operation of reservoirs, hydropower plants and dams and rehabilitation of smallscale water management infrastructure. Reduce water pollution to the NTRB through high priority investments in low cost, appropriate wastewater technology improvements in three municipalities and two industrial sector investments in BiH through municipal wastewater treatment improvements, industrial pollution control and strengthening of water quality monitoring laboratories. Increase civil society participation in the decision making process for water resource management and establish an incentive mechanism for responsible, local level resource management. Support development of a sustainable real estate registration system with harmonized land register and cadastre records in urban areas of both FBiH and RS. Support land register and cadastre data harmonization on land, buildings and rights based on the actual situation in the field. Continue Land Registration Project (LRP) work in improving working conditions and infrastructure in the cadastre offices across the country. Policy and institutional development, and project management component will support policy and legal development in support of reaching the project objective. Improve solid waste services in priority areas. Increase administrative and technical capacity for solid waste management at the local and entity level, improving cost recovery, encouraging private sector involvement, addressing environmental problems, and reducing health hazards caused by inadequate waste collection and disposal systems. Reduction of ground-based pollution from municipal sources into the Neretva and Bosnia rivers. Support implementation of the proposed National Biodiversity Strategy and Action Plan (NBSAP). Create conditions for sustainable and balanced economic development and promote poverty alleviation through improved use of PAs for local livelihoods and tourism: Support the Government in meeting EU nature and biodiversity policy (Natura 2000) requirements. Preparation and implementation of communitybased initiatives to build technical skills for activities eligible for funding by EU accession instruments. 22 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment Employment and safe energy supply using biomass within the Srebrenica region. UNDP 2,588,950U SD under implementation Mainstreaming Karst Peatlands Conservation Concerns into Key Economic Sectors – KARST project GEF-UNDP 2,520, 000, USD ($ 950,000 GEF grant) 2008 - 2013 Municipal programme for solid waste management SIDA 10 mil EUR 2010 - 2014 Install biomass boilers in elementary schools in Bratunac, Milići and Srebrenica municipality and implementation of 17 infrastructure and construction projects for improved living conditions, education and employment opportunities to 6,100 people in the municipalities of Srebrenica, Bratunac and Milići. Promote conservation and sustainable management practices for maintaining the Karst Peatlands in Livanjsko Polje. Preparation of a Cantonal spatial plan. Trigger biodiversity-friendly local spatial panning at all karst-lying cantons and municipalities in BiH. Introduce municipallevel regulations for karst field biodiversity use by local population and strengthen enforcement capacity of municipal and cantonal officers and inspectors. Develop by-laws and methodological guidance on ecologically safe peat mining, and test it at 750 hectares of karst peatlands. Promote an international (HR/BiH) formal agreement and plan for cross-border water management plan. Provide support to the development of a functional solid waste management system in BiH to reduce impact on environment and health. The project is implemented at the municipality level and the municipalities have been supported to improve human resources and technical capacities. 23 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment Annex 5 – Bibliography Bosnia and Herzegovina Fourth Report to the United Nations Convention on Biological Diversity 2010 Biodiversity Targets National Assessments CEEC AGRIPOLICY – Study on Rural Vitality – First Report for Bosnia and Herzegovina (2005) Cooperazione Italiana - Ministero degli Affari Esteri. Development of Medicinal and Aromatic Plants (MAP) Sector in the Federation BIH - Red Book-Phase I (2012) Dragana Pecanac - Conceptions of sustainability in the Medicinal and Aromatic Plants Sector in Bosnia and Herzegovina. International Master Programme at Swedish Biodiversity Centre (2007) European Commission – Agriculture and Development – Bosnia and Herzegovina: Agriculture and Enlargement (2009) Federal Ministry of Environment and Tourism - Bosnia and Herzegovina – Land of Diversity, First national Report of Bosnia and Herzegovina for the Convention on Biodiversity (2008) Federal Ministry of Environment and Tourism - State of the Environment in the FBiH (2010) Foreign Trade Chamber of Bosnia and Herzegovina - Medicinal and Aromatic Plants, Mushrooms, Wild Forest Products (2006) GYZ/SIPPO - Medicinal and Aromatic Plants. Manual for collectors based on Principles of Organic Production, Bosnia and Herzegovina (2003) Government of Bosnia and Herzegovina – NEAP - National Environment Action Plan (2003) IFAD - Country Strategic Opportunity Paper (COSOP) – Bosnia and Herzegovina (2205) IFAD – Rural Livelihoods Development Project – Main Report and Working Papers (2008) IFAD – Rural Business Development Project – Main Report and Working Papers (2011) IFAD – Climate Change Policy (2010) IFAD – Environmental and Resource Management (ENRM) Policy (2012) IFAD - Strategic Environmental Assessment (SEA) of RB-COSOP in Azerbaijan 2010-2015 IFAD – Terms of Reference - Environment and Climate Change Assessment (ECCA) for the Cambodia COSOP Design IFAD – Évaluation Environnementale Stratégique pour Madagascar (2012) IFAD – Évaluation Environnementale Stratégique - Niger (2012) IFAD – Working Paper – Climate Change Analysis and adaptation Responses – prepared for informing IFAD’s COSOP for Vietnam (2012-2017) IMF - Bosnia and Herzegovina: Poverty Reduction Strategy Paper – Mid-Term Development Strategy (2004) Initial National Communication of Bosnia and Herzegovina under the United Nations Framework Convention on Climate Change (2009) MOFTER BiH - Boosting the creation of Green Jobs to reduce sources of pollution in Bosnia and Herzegovina (2012) Oxfam/WWF/Italian Aid Agency – prepared by Gavin Bell – Economic Evaluation and Recommendations for Development in Hutovo Blato Natural Park (2011) UN – Economic Commission for Europe - Committee on Environmental Policy Environmental Performance Reviews Bosnia and Herzegovina (2004) UNDP – MDG Update Report for Bosnia and Herzegovina – PRSP, Europe and Beyond (2004) UNDP – Ecotourism in Livanjsko Polje and surroundings (2012) UNDP - Project Document - GEF Medium-Size PIMS3306 “Mainstreaming Karst Peatlands Conservation into Key Economic Sectors” (2010) UNDP – Report: review of best international experience on sustainable livelihoods opportunities (Mainstreaming Karst Peatlands Conservation in Key Economic Sectors Project) (2010) UNDP - Report: recommendations for alternative income and sectoral employment opportunities (Mainstreaming Karst Peatlands Conservation in Key Economic Sectors Project) (2010) UNDP – Report – Concrete entry points for consideration and integration of gender perspectives within livelihoods opportunities (2010) 24 BOSNIA AND HERZEGOVINA Environmental and Climate Change Assessment UNDP/COAST – Green Business: rural development based on the preservation and sustainable use of natural and cultural heritage (2010) UNECE – Environmental Performance Reviews – Bosnia and Herzegovina – Second Review (2011) USAID/SIDA/FARMA Project - EU Market Access and Constraints (2010) USAID/SIDA/FARMA Project - Moving the land Market Forward in Bosnia and Herzegovina (2011) USAID/SIDA/FARMA Project – Milk Production and Purchasing (2010) USAID/SIDA/FARMA Project - Medicinal and Aromatic Plants in Bosnia and Herzegovina (2010) WHO – Bosnia and Herzegovina - Flood Hazard Distribution Map (2010) WHO – Bosnia and Herzegovina - Land Hazard Distribution Map (2010) WMO - Strengthening Multi-Hazard Early Warning Systems and Risk Assessment in the Western Balkans and Turkey: Assessment of Capacities, Gaps and Needs – Chapter 3 – Bosnia and Herzegovina Wolfgang Kathe, Susanne Honnef & Andreas Heym - Medicinal and Aromatic Plants in Albania, Bosnia Herzegovina, Bulgaria, Croatia and Romania. (WWF Deutschland / TRAFFIC EuropeGermany). (2003) World Bank - Bosnia and Herzegovina Poverty Assessment – Volume 1: Main Report (2003) World Bank - Bosnia and Herzegovina Forest and Mountain Protected Area Project (2010) World Bank – Country Partnership Strategy for Bosnia and Herzegovina for the Period FY12-FY14 (2011) World Bank - Integrating Environment into Agriculture and Forestry Progress and Prospects in Eastern Europe and Central Asia - Volume II Bosnia and Herzegovina Country Review (2007) www.agromap.net www.boletus.nu www.finvest.hr www.ifad.org www.organskakontrola.ba www.fmoit.gov.ba www.komorabih.ba www.worldbank.ba www.bosniafarma.ba www.sippo.ch www.undp.ba www.usaid.gov www.sida.se www.giz.de www.panda.org/mediterranean http://www.imo.ch http://www.ifoam-eu.org http://www.krav.se http://www.bhepa.ba 25