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John Sununu Issues Files
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Originally Processed With FOIA(s):
FOIA Number:
1998-0004-F[2]; 2004-0734-F; 2009-1186-F
S
FOIA
MARKER
This is not a textual record. This is used as an
administrative marker by the George Bush Presidential
Library Staff.
Record Group/Collection:
George H.W. Bush Presidential Records
Collection/Office of Origin:
Chief of Staff, White House Office of
Series:
Sununu, John, Files
Subseries:
Issues Files
OA/ID Number:
29136
Folder ID Number:
29136-005
Folder Title:
Brazil Environmental Conference 1991
Stack:
Row:
Section:
Shelf:
Position:
G
15
24
6
2
Withdrawal/Redaction Sheet
(George Bush Library)
Doc. No. / Type
Subject/Title
Date
Restriction
Classification
01a. Report
Re: US Strategy for UNCED (1 pp.)
10/15/91
(b)(1)
01b. Report
Re: Strategy: General (1 pp.)
n.d.
(b)(1)
02a. Report
Re: US Strategy for UNCED (1 pp.)
10/15/91
(b)(1)
02b. Report
Re: Strategy: General (1 pp.)
n.d.
(b)(1)
03a. Report
Re: Strategy: Forests (1 pp.)
n.d.
(b)(1).
€
03b. Report
Re: Strategy: Oceans (1 pp.)
n.d.
(b)(1)
03c. Report
Re: Strategy: Climate Change (1 pp.)
n.d.
(b)(1)
&
03d. Report
Re: Strategy: Biological Diversity/BioTechnology (1 pp.)
n.d.
(b)(1)
03e. Report
Re: Strategy: Earth Charter and Agenda 21 (1 pp.)
n.d.
(b)(1
I
03f. Report
Re: Strategy: Financial Resources (1 pp.)
n.d.
(b)(t
E
03g. Report
Re: Strategy: Institutions (1 pp.)
n.d.
(b)(1)
Page 1 of 1
Collection:
Record Group:
Bush Presidential Records
Office:
Chief of Staff, White House Office of
Series:
Sununu, John, Files
Subseries:
Issues Files
WHORM Cat.:
File Location:
Brazil Environmental Conference 1991
Pinksheet Number:
DJC1450
OA/ID Number:
29136-005
Date Closed:
1/1/1998
FOIA/Sys Case #:
1998-0004-F[2]
Re-review Case #:
P-2/P-5 Review Case #:
CONFIDENTIAL
10/15/91
US STRATEGY
DRAFT
for UNCED
OVERALL
Recognizing that the preparatory process and the Rio
meeting are likely to be chaotic, highly politicized, and high
profile, we should focus our efforts on: (1) targeting
achievements that serve our interests and demonstrate an
appropriate commitment; and (2) averting bad ideas. Even if
the Conference is a mess, we will be positioned to point to
accomplishments (or at least a positive agenda we sought to
press). Moreover, having our own agenda will better position
us to block a last minute rush by Conference participants to
poor ideas. We have a good record and good proposals; we
should get credit for them. Also, it's hard to beat something
with nothing.
POSSIBLE ACHIEVEMENTS
Jook for us extrement
1.
Conclusion of a Statement of Principles on Forests
2.
Conclusion of a Statement of Principles on Oceans
. .
Focus on the conservation of species (including drawing
from our good record on habitats), including a process for
the "Inventory and Assessment of Biological Diversity".
[Note: this is not the same as a convention on biological
diversity.]
4.
Agreement on a Process for Technology Cooperation in a
market context.
5.
Endorsement of a reconstituted Global Environment Facility
as the funding mechanism for international environmental
treaties.
6.
To be completed by time of Rio Conference: a satisfactory
framework Convention on Climate Change.
NOTE: Concentration on forests and oceans, areas where we are
strong, could be the basis of a theme that we're concentrating
on approximately 75-80% of the Earth's surface (the figures
vary depending on the definition of forests).
CHALLENGES: Problems to Manage
evoling state for
mulioury
separding
help
Earth Charter and Agenda 21
Financial Resources: sources, amounts and mechanisms.
Climate Change negotiations and possible UNCED interference.
Biological Diversity: avoid restrictions on Biological
Technology.
Tropical Rain Forests: develop workable program for
Brazilian Rain Forest project endorsed by G-7.
Institutions: avoid establishing new ones; streamline
existing ones.
DECLASSIFIED
PER NSC WAIVER # 2021-02
CONFIDENTIAL
By MM NARA, Date 7/16/2021
CONFIDENTIAL
Strategy: General
DRAFT
Assessment
Chaotic, high profile and highly politicized process and
event.
USG shouldn't be reactive: can get ahead of the curve and
identify key proposals we favor that can be accomplished
(e.g. forest principles). This helps us set the terms of
the debate. We can then emphasize our positive agenda.
Difficult to control documents like Earth Charter and
Agenda 21: focus on getting USG proposals included,
stopping bad ideas and limiting the effect of any result if
it cannot be salvaged.
Keep focus on key proposals -- the list of accomplishments
we can point to. Avoid being drawn into blackhole of
wishlists. (Play offense, not defense, to the degree
possible).
USG Work
--
PCC review of PrepCom decisions: prepare reports and
recommendations for EPRG review.
Establish small group on financial resources to
develop USG proposal for changes in the GEF and to
develop strategy for working this issue with major
donor countries.
Prepare specific proposals for inclusion in Earth
Charter and Agenda 21; these ideas should promote our
themes about research, sustainable development, and
the use of economic analysis and market mechanisms.
---
Identify EC/Agenda 21 ideas we wish to stop.
External Work
Demarche key capitals through posts:
-
Reiterate our strong interest in a successful and
productive UNCED;
-
Note our general assessment of and concerns about
Prepcom process;
-
Indicate our intention to continue to move ahead
with specific proposals on forests, oceans,
technology cooperation, etc.
Target appropriate ministries in key capitals on
specific issues (e.g., finance ministries on financial
resources and GEF)
Use major international conferences and meetings to
further our objectives, e.g. OECD Environment and
Development Ministerial (Paris, December, 1991).
-- Work issues during UNGA and UNGA Second Committee
sessions (September - December, 1991).
DECLASSIFIED
CONFIDENTIAL
PER NSC WAIVER #2021-02
By NARA, Date 7/16/2021
CONFIDENTIAL
10/15/91
US STRATEGY
DRAFT
for UNCED
OVERALL
Recognizing that the preparatory process and the Rio
meeting are likely to be chaotic, highly politicized, and high
profile, we should focus our efforts on: (1) targeting
achievements that serve our interests and demonstrate an
appropriate commitment; and (2) averting bad ideas. Even if
the Conference is a mess, we will be positioned to point to
accomplishments (or at least a positive agenda we sought to
press). Moreover, having our own agenda will better position
us to block a last minute rush by Conference participants to
poor ideas. We have a good record and good proposals; we
should get credit for them. Also, it's hard to beat something
with nothing.
POSSIBLE ACHIEVEMENTS
Conclusion of a Statement of Principles on Forests
Conclusion of a Statement of Principles on Oceans
Focus on the conservation of species (including drawing
from our good record on habitats), including a process for
the "Inventory and Assessment of Biological Diversity".
[Note: this is not the same as a convention on biological
diversity.]
Agreement on a Process for Technology Cooperation in a
?
market context.
Endorsement of a reconstituted Global Environment Facility
as the funding mechanism for international environmental
treaties.
To be completed by time of Rio Conference: a satisfactory
framework Convention on Climate Change.
NOTE: Concentration on forests and oceans, areas where we are
strong, could be the basis of a theme that we're concentrating
on approximately 75-80% of the Earth's surface (the figures
vary depending on the definition of forests).
CHALLENGES: Problems to Manage
What is
purpose
will back Come To lite
Earth Charter and Agenda 21
Financial Resources: sources, amounts and mechanisms.
Climate Change negotiations and possible UNCED interference.
Biological Diversity: avoid restrictions on Biological
Technology.
Tropical Rain Forests: develop workable program for
Brazilian Rain Forest project endorsed by G-7.
Institutions: avoid establishing new ones; streamline
existing ones.
DECLASSIFIED
PER NSC WAIVER # #2021-02
CONFIDENTIAL
By NARA, Date 7/16/2021
CONFIDENTIAL
Strategy: General
DRAFT
Assessment
Chaotic, high profile and highly politicized process and
event.
USG shouldn't be reactive: can get ahead of the curve and
identify key proposals we favor that can be accomplished
(e.g. forest principles). This helps us set the terms of
the debate. We can then emphasize our positive agenda.
Difficult to control documents like Earth Charter and
Agenda 21: focus on getting USG proposals included,
stopping bad ideas and limiting the effect of any result if
it cannot be salvaged.
Keep focus on key proposals -- the list of accomplishments
we can point to. Avoid being drawn into blackhole of
wishlists. (Play offense, not defense, to the degree
possible).
USG Work
-- PCC review of PrepCom decisions: prepare reports and
recommendations for EPRG review.
Establish small group on financial resources to
develop USG proposal for changes in the GEF and to
develop strategy for working this issue with major
donor countries.
--
Prepare specific proposals for inclusion in Earth
Charter and Agenda 21; these ideas should promote our
themes about research, sustainable development, and
the use of economic analysis and market mechanisms.
-- Identify EC/Agenda 21 ideas we wish to stop.
EARTH CHARTE,I
External Work
-- Demarche key capitals through posts:
-
Reiterate our strong interest in a successful and
productive UNCED;
-
Note our general assessment of and concerns about
Prepcom process;
-
Indicate our intention to continue to move ahead
with specific proposals on forests, oceans,
technology cooperation, etc.
-- Target appropriate ministries in key capitals on
specific issues (e.g., finance ministries on financial
resources and GEF).
Use major international conferences and meetings to
further our objectives, e.g. OECD Environment and
Development Ministerial (Paris, December, 1991).
-- Work issues during UNGA and UNGA Second Committee
sessions (September - December, 1991).
DECLASSIFIED
CONFIDENTIAL
PER NSC WAIVER # #2021-02
Вушм By NARA, Date 7/16/2021
CONFIDENTIAL
Strategy: Forests
DRAFT
Objectives
Conclusion of a Statement of Principles on Forests.
Assessment
USG tabled set of principles 6/91; UNCED Secretariat draft
statement of principles largely reflects USG approach;
Prepcom draft includes all USG principles, in various
forms; forest items for Agenda 21 were not discussed during
Preparatory Committee 3 (Prepcom 3); most key countries
constructively engaged in negotiations (exceptions
Malaysia, India, Mexico).
USG Work
-- Set of Principles agreed interagency/EPRG.
-- Review text from Prepcom 3:
-
PCC Working Group to review and forward
recommendations to EPRG.
-
PCC to continue work on specific programs or
projects to implement Principles (to be included
in Agenda 21).
-
EPRG to review and approve PCC recommendations on
Principles and specific programs or projects.
External Work
-- Use forest-related international meetings to promote
our principles, e.g.:
-
World Conference on Parks & Protected Areas
(Venezuela, February, 1992).
-
Tropical Forestry Action Plan meetings (TFAP).
-
International Tropical Timber Organization (ITTO)
meeting.
-- Use UNCED Secretariat meetings to ensure discussions
during Prepcom 3 are accurately reflected.
-- Use scheduled travel of appropriate U.S. officials to
work bilaterally with key countries.
-- Demarche core capitals through posts:
-
Like-minded industrial countries (e.g. Canada,
Japan, UK, Netherlands, EC, Sweden).
-
Agree on most important principles and
possible language.
-
Develop strategy for approaching core
producer countries (e.g., Canada has been
working with Malaysia).
-- Core producer countries (Brazil, Indonesia,
Malaysia).
-- Develop strategy for approaching mid-tier producers
and others (e.g., Soviet Union, China, PNG, Thailand,
Cameroon, Ghana, Cote d'Ivoire, Ecuador, etc.).
DECLASSIFIED
PER NSC WAIVER # # 2021-02
CONFIDENTIAL
By ByMM NARA, Date 7/16/2021
CONFIDENTAL
Strategy: Oceans
DRAFT
Objectives
Reach Agreement on a Set of Principles on Oceans.
Adopt a Coherent Strategy and Plan of Action on Measures to
Address Land-Based sources of Marine Pollution.
Adopt an Agenda for Action to Conserve and Protect Ocean
Resources, through greater emphasis on Ocean Data and
Monitoring and Integrated Coastal Zone Management.
Assessment
U.S. tabled four comprehensive documents on living marine
resources, marine pollution, coastal zone management and
ocean data and monitoring, and outlined its strategy on
each subject areas 3/91; U.S. tabled its Ocean Principles
8/91; Chairman's Working Paper from Prepcom 3 contains many
U.S. initiatives and enjoys widespread support (however,
the paper also contains unilateral statements that do not
reflect UNCED discussions; the section on living marine
resources was contentious, especially for the Latins and
the EC.
USG Work
--
PCC Working Group is reviewing Chairman's Paper and
preparing positions for Prepcom 4.
--
PCC subgroup on Living Marine Resources is developing
a substitute paper that was submitted to the UNCED
Secretariat 10/15/91.
--
PCC Subgroup on Marine Pollution to follow-up on
informal meeting in Land-Based Sources of Marine
Pollution (9/30-10-4).
External Work
--
An intergovernmental meeting on Land-Based Sources of
Pollution will be held in Nairobi, December, 1991.
--
Intersessional contacts with the Latins and the EC are
anticipated to resolved Living Marine Resources Issues.
--
Intersessional contacts with Antarctic Treaty Parties
will attempt to resolve references to Antarctica
placed in the Chairman's Working Paper by Malaysia for
leverage in other UNCED issue areas.
--
AID used Central American workshop on Coastal Zone
Management to urge support for the U.S. principles on
ecosystem management (9/91).
--
Contacts with the Secretariat will continue.
-- Will demarche all capitals prior to Prepcom 4 to
outline U.S. approach on outstanding issues and urge
support.
DECLASSIFIED
PER NSC WAIVER # 2021-02
CONFIDENTIAL
By MM NARA, Date 7/16/2021
CONFIDENTIAL
DRAFT
Strategy: Climate Change
Objectives
Conclusion of a satisfactory framework convention on
climate change.
Avoid UNCED interference in negotiating process.
Assessment
At most, three International Negotiating Committee (INC)
sessions remain (December, February and possibly April) ;
negotiating text likely to be produced during or after
December session; agreement likely on general obligations
but OECD will remain split over specific commitments
(targets/timetables); developing countries will condition
their participation on provision of funding and technology.
USG Work
-- Seek interagency (Bromley Group) agreement for U.S. to
play more active role in establishing the structure
and process (like IEA country reviews) under the
convention and identify additional domestic actions to
reduce net emissions.
-
PCC Working Group to develop specific positions
on institutions/procedures and forward the
Bromley Group.
-
Bromley Group to review and approve PCC proposals.
-
Bromley Group to consider possibilities for
additional domestic actions.
:
Intensify public diplomacy to demonstrate that the
U.S. is ahead of others in most environment areas,
responsive to developing country concerns and that our
approach to climate is rooted in science and common
sense.
-
PCC working Group to finalize and publish an
inventory of U.S technology cooperation efforts
in progress.
I
Explore with USIA opportunities to promote U.S.
environmental record/climate positions and
continue domestic speaking engagements.
External Work
-- Demarche key OECD and developing country capitals on
U.S. proposals for convention structure and process.
-- Participate in informal meetings with other OECD
countries and INC Chairman to craft a structure and
organization for the convention conducive to our
approach.
-- Use meetings in related fora to push U.S. agenda.
CONFIDENTIAL
DECLASSIFIED
PER NSC WAIVER #2021-02
ByMM NARA, Date 7/16/2021
CON IDENTIAL
DRAFT
Strategy: Biological Diversity/BioTechnology
Objectives
Focus on the conservation of species (including drawing
from our good record on habitats), including a process for
the Inventory and Research of Biological Diversity.
Avoid restrictions on BioTechnology.
Assessment
Negotiations on a Convention on Biological Diversity
seriously off-track; discussions during Prepcom
unproductive; proposed focus on conservation of species not
broached.
USG Work
-- PCC Subgroup on biological diversity should prepare
proposal to establish an international process for
inventorying and research on biological diversity
(working closely with the Smithsonian).
-- AID to compile list of U.S.-funded projects related to
biological diversity (bilaterally and through
multilateral funding mechanisms).
DECLASSIFIED
CONFIDENTIAL
PER NSC WAIVER # #2021-02
Вуми NARA, Date 7/16/2021
CONFIDENTIAL
Strategy: Earth Charter and Agenda 21
DRAFT
Objectives
If there is an Earth Charter (EC), ensure it either meets
our interests or is clearly hortatory.
Assessment
Prepcom 3 produced a long compilation of national proposals
of principles grouped under 17 categories; U.S. proposals
are all included. No consensus on the form principles
should take: most developed countries favor short,
non-binding "Earth Charter"; developing countries favor
more detailed, development-oriented "Rio Declaration on
Environment and Development"; Latins favor legally-binding
instrument; Mexico proposed including the principles as the
preamble to Agenda 21 rather than having a stand-alone
document. Many of the proposed principles are problematic
for U.S.; little likelihood we can block or shape them all
to our liking. Lack of consensus on form of principles
statement gives U.S. flexibility to negotiate adequate
place for U.S. proposals.
USG Work
-- PCC Subgroup on Legal Issues to review text from
Prepcom3 and agree on negotiating position/acceptable
language for each proposed category of principles.
External Work
--
Use UNEP Legal Experts meeting (10/30-11-2) to promote
U.S. principles.
-- Consider working on margins of ongoing negotiations
(e.g., climate, biological diversity) to promote U.S.
principles.
-- Use meetings with UNCED Secretariat (and contact with
Czechoslovak Working Group Chair) to stress importance
of U.S. principles in final output of UNCED.
--
Demarche core capitals through posts:
-
Seek agreement of industrial democracies (e.g.,
Canada, Japan, EC, Nordics) to more detailed
treatment of democratic principles.
-
Approach key developing countries (China, Brazil,
India, Nigeria, Mexico, Chile, Colombia, Peru)
for support of U.S. principles.
-
State clear U.S. position on other proposed
principles.
DECLASSIFIED
PER NSC WAIVER #2021-02
CONFIDENTIAL
Вушм NARA, Date 7/16/2021
Strategy: CONFIDENTAL Financial Resources
DRAFT
Objectives
Endorsement of reconstituted Global Environmental Facility
in World Bank as the funding mechanism for international
environmental treaties; avoid establishment of multiple
funds.
No commitment to "new and additional" financial resources.
Develop guidelines for financing sustainable development.
Assessment
Proposals from developing countries emphasize providing
"new and additional financial resources" (above 0.7% GDP)
and creation of a new "Green Fund" and separate funds for
specific issue areas (e.g. climate change, biological
diversity, forests). All OECD countries, except the US,
express willingness to accept language on "new and
additional" financial resources; most prefer GEF as general
funding mechanism but have concerns about its present
operation; some may be willing to consider special funds
within the GEF to finance specific conventions (similar to
the Montreal Protocol Fund). Canada remains reluctant to
accept GEF.
USG Work
-- Task force to develop proposal for specific changes in
GEF, addressing:
-
Responsiveness of Bank to donor concerns.
-
Transparency of process
-
Integration of UNEP and UNDP in planning and
selection process.
-
Use of Scientific and Technical Advisory Panel
(STAP).
-
Participation of recipient countries.
-
Participation of NGOs.
-
Relationship of GEF to international
environmental conventions (existing and being
negotiated).
-
Overall Bank approach to sustainable
development/integration of environmental
objectives into country development strategies.
External Work
-- Review general concerns with other donor countries,
particularly G-7, during World Bank Annual Meeting.
-- Follow-up demarche with Finance Ministries in major
donor capitals.
-- Work with major donor countries to agree on specific
changes in GEF; present united front at GEF
Participants meeting (Geneva, December, 1991).
-- Work with other donor countries in OECD DAC and
preparations for Environment and Development
Ministerial (12/91) to develop guidelines for
financing sustainable development.
DECLASSIFIED
CONFIDENTIAL
PER NSC WAIVER #2021-02
By NARA, Date 7/16/2021
CONFIDENTIAL
Strategy: Technology Cooperation
DRAFT
Objectives
Assessment
USG Work
External Work
DECLASSIFIED
White House Guidelines
E.O. 13526, SEC 3.4 (b), September 11, 2006
By SCS NARA, Date 7/7/15
CONFIDENTIAL
CONFIDENTIAL
Strategy: Institutions
DRAFT
Objectives
Promote "Unitary UN" policy in regard to UN activities in
environment and development by securing UNCED decisions to
reorganize and better coordinate existing entities (e.g.,
UN Environment Program (UNEP), UN Development Program
(UNDP) )
Avoid establishing new institutions or making new financial
commitments related to institutions, especially in regard
to assessed contributions.
Assessment
The U.S. has taken the lead in developing and presenting
proposals for institutional improvements. Other countries
have received the U.S. proposals in a generally favorable
manner, but are not as far advanced in their thinking, and
seem inclined to postpone definitive decisions until the
larger UN reform process culminates in 1992. That would
unnecessarily delay practicable improvements in the UN's
efforts related to environment and development.
USG Work
--
Further refine U.S. proposals for UN system-wide
coordination among government as well as UN agencies
related to environment and development activities.
--
Integrate U.S. position on financial mechanisms and/or
institutions into this broader coordination scheme.
--
Elaborate final details of recommended changes to our
enhancements of specific UN entities, especially UNEP.
--
Define and secure interagency agreement on measures to
better promote and support environment or sustainable
development programs at regional and national levels.
DECLASSIFIED
PER NSC WAIVER #2021-02
By NARA, Date 7/16/2021
CONFIDENTIAL
07/11/91
09:31
WURLD BHNK U.S.E.D. UPPICE
THE WORLD BANK
Washington, D.C. 20433
U.S.A.
MSF / sile
7,3.91
BARBER B. CONABLE
President
" #PE; MTC', NHK
cc: cDewson state
J.Preston, tate
July 2, 1991
H. yee, TSY
Dear Colleagues:
As you know, at the Houston summit last year, the heads of state
of the Group of Seven requested that the World Bank, in cooperation with
the Commission of the European Communities (CEC), prepare a proposal for a
pilot program to counteract the threat to tropical rainforests in Brazil.
It is my pleasure to submit to you the attached proposal, prepared by the
Government of Brazil with technical input from staff of the World Bank and
the CEC. The proposal is accompanied by a cover note that reflects the
joint understanding and agreement of the management of the World Bank and
the staff of the CEC. The cover note proposes the establishment of a trust
fund under the Global Environment Facility. However, the intention is not
to exclude other options. The exact management of the fund and the
participation of various agencies will need to be considered by the donors
and the Government of Brazil.
Sincerely,
Barbar Concelle
Mr. Rosario Bonavoglia
Mr. E. Patrick Coady
Mr. Fritz Fischer
Mr. Jean-Pierre Landau
Mr. David Peretz
Mr. N. Frank Potter
Mr. Masaki Shiratori
attachment
CC: Mr. Jacques Delors, President, Commission of the European Communities
Mr. Paulo Ximenes-Ferreira, Alternate
07/11/91
09:31
WORLD BHNK U.S.E.D. OFFICE
DUD
PILOT PROGRAM TO PRESERVE THE BRASILIAN RAINFORNET
Introduction
1.
At the Houston Meeting in July, 1990 the G-7 Meads of states called for
the World Bank, in cooperation with the Commission of the European Communities
(CEC), to prepare a proposal for a comprehensive pilot program to counteract
the threat to tropical rainforests in Brazil. The Government of Brazil (GOB)
expressed its support for such an initiative and formed an Interministerial
Commission to oversee preparation of such a proposal. As part of the process
of preparing the proposal, staff of the World Bank, the CEC and the GOB held
three tripartite meetings and a series of technical missions and discussions.
World Bank staff also periodically briefed the Executive Directors of the
World Bank representing the G-7 countries, and in response to their requests,
and in collaboration with CEC staff, prepared the recommendations set out
below regarding the size and activities of the proposed program.
2.
The resulting GOB proposal for a pilot program to be executed over a
five-year period is attached. The management of the World Bank and the staff
of the CEC endorse the objective of the Brazilian proposal and support the
establishment, under the administrative umbrella of the Global Environment
Facility, of a Rainforest Fund to carry out activities to support that
objective. The program would pertain mainly to the Amazon Rainforest but
would also provide limited support to preserve the Atlantic Forest.
3.
The objective of the pilot program is to maximize the environmental
benefits of Brazil's rainforests consistent with Brazil's development goals,
through the implementation of a sustainable development approach that will
contribute to a continuing reduction of the rate of deforestation. The
attainment of this objective would: demonstrate the feasibility of
harmonizing economic and environmental objectives in tropical rainforests,
help preserve the huge genetic resources of the rainforests, reduce the
Amazon's contribution to global carbon emissions, and provide another example
of cooperation between developed and developing countries on global
environmental issues. Preservation of biodiversity, reduction in carbon
emissions, and new knowledge about sustainable activities in tropical
rainforests represent benefits that are global in scope and justify financial
transfers from the international community to Brazil.
4.
The GOB has already committed its own resources for conservation
activities in its rainforest areas, including through normal World Bank
financing, and is committed to undertaking the activities outlined in the
attached proposal with its own resources. New and largely concessional
resources would permit more rapid, wide-ranging implementation of these
activities than could otherwise be undertaken, given the government's limited
resources and other priorities.
5.
A mechanism, the Global Environment Facility (GEF), is already in place
by which to channel concessional resources to developing countries to address
global environmental objectives. Some portion of the proposed pilot program
in Brazil could be financed from the Global Environment Trust Fund (GET) under
the GEF. However, existing GET resources are inadequate to address the scope
and urgency of the threat to Brazil's rainforests, or to realize the
potentially large joint benefits to the global community of the proposed pilot
program in Brazil. The establishment of & Rainforest Fund under the GET would
permit supplemental global resources to be channeled to Brazil, while at the
same time minimizing administrative costs and ensuring close technical
07/11/91
09:32
WORLD BANK U.S.E.D. OFFICE
004
- 2 -
cooperation with other global programs. Finally, a Rainforest Fund under the
GEF could eventually be extended to cover other countries with threatened
rainforests.
Background and Rationale for Donor Support
6. Conserving the Amason and Atlantic rainforests would provide benefits to
the global community because together they represent the largest repository of
biodiversity in the world and because conservation of the Amazon forest would
lead to reduced emissions of carbon gases. These rainforests also provide
regional and local benefits through their influence on hydrological cycles and
thus local climate, the protection they afford to watersheds, and as homes to
indigenous communities with distinctive cultures.
7.
Beginning in the 1960s, public investments in roads and other
infrastructure and public policies supporting colonization encouraged
migration into the Amazon and resultant deforestation. Lacking suitable
technology, many farmers practiced an unsustainable form of alash-and-burn
agriculture with annual crops. Logging increased, squatters, miners and
loggers made frequent incursions onto indigenous lands and brought disease and
environmental damage. Investments in hydropower dams and in exploitation of
major mineral deposits also contributed to deforestation. Legislation
encouraged landholders seeking to legalise their titles to clear forest by
defining cleared land as "improved." Fiscal incentives encouraged investment
in cattle, sawmills and other enterprises without environmental restrictions.
Although new parks and other conservation units were created. the Government
lacked resources to protect and manage these areas adequately.
8. As a consequence of these activities and policies, deforestation in the
Amazon accelerated, reaching a peak in 1987 when the combination of an
unusually dry year and uncertainty over future land legislation caused an
unprecedented amount of forest clearance and burning. By 1990, an estimated
8% of the Amazon rainforests had been deforested.
9.
Folicy Changes, The years 1988-91 proved to be & watershed in the
evolution of Brasilian environmental policy. The changes in policy are set
out in detail in the attached GOB proposal (PP. 3-5).
0 In 1988 and each year thereafter the federal government has sponsored a
special program to prevent forest burning.
o In early 1989, the Nossa Natureza Frogram established 4 National
Environmental Fund (FNMA) with the participation of non-governmental
organizations (NGOS) on its board, temporarily suspended fiscal
incentives for development in the Amazon, and repealed laws encouraging
forest clearance as & way of gaining title.
0
In 1990 the GOB created an Environmental Secretariat, SHMAM, reporting
directly to the President and under it a single national environmental
agency, IRAMA, combining four separate agencies into one. All federal
ministries were given responsibility for establishing sectoral plans
consistent with environmental objectives.
o
Also in 1990, President Collor appointed an internationally known
environmentalist as Secretary of SEMAN, and the GOB established the
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National Invironmental Program with support from a large World Bank loan
to strengthen IBAMA and to protect major ecosystems nationwide.
o
over the same period, the government instituted new regulations aimed at
forest use by industry, initiated a review of federal infrastructur#
projects and greatly reduced credit subsidies for agriculture and
livestock activities (partly as a result of general fiscal
austerity).
o
In 1991 fiscal incentives for the Amazon and Northeastern regions were
officially restored. Congress rejected proposals of the executive
branch that would have set market rates of interest for credits under
the program. However, the legislation does explicitly restrict
subsidies for ranching to areas designated as appropriate on
environmental grounds, and mandates environmental licensing for all
projects benefiting from incentives.
10. Partly as a result of these changes, and partly as a result of natural
and market conditions, rainforest clearing in the Amezon has declined each
year since 1987.
11. Existing Constraints. To firmly secure for the future the environmental
benefits of the rainforests in Brazil requires that three critical constraints
be addressed.
o First, the present largely positive direction of this administration's
&
environmental policy must be consolidated at the federal level between
the administration and Congress and must h= reinforced at the state and
Political
local levels. This implies that pricing, fiscal and investment policies
at federal, state and local levels would be consistent with
support
environmental objectives. Policy in Brazil is the outcome of complex
for
interactions among the executive and the legislature at the federal
level, and among and between federal, state and local administrators and existry"
political representatives. Public opinion, a growing number of
organized interest and consumer groups, and a sophisticated press are
also important factors in Brazil's open political system. Improved
envir pro- onner
public understanding of the benefits and the costs of rainforest
direction
protection and increasing accountability of public institutions on
environmental matters are critical to consolidation of a sound policy on
rainforest issues.
D Second, relatively week state and local as well as federal institutions
that are responsible for enforcing environmental laws, require
Strongther 27
strengthening in terms of management, technical skills, and adequate
local, state
aquipment and other infrastructure.
Eed
conforcement capacity
11
Brazilian environmental legislation is advanced in other respects.
(kc.)
Farmers and ranchers in the Amazon region must obtain permits before clearing
and burning land and may not clear more than 50% of the forest on a given
property or along Watercourses or at the headwaters of streams. Loggers can
cut timber only after submitting forest management plans to IBAMA, and IBAMA
closely monitors the transport of logs and operation of sawmills.
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9 Third, continuing investments in natural and social science research and
field applications are needed (a) to ensure that the economic benefits
of genetic biodiversity in Brazil's rainforests can be realized, and (b)
Research
as a basis for the development and dissemination of sustainable
approaches to economic exploitation of the forests.
12. The pilot program is designed to address these needs. Its design
reflects concern with all three constraints. The design also represents a new
approach to development in rainforest areas in Brasil, marking a profound
change from the views and programs of just a few years ago.
The Pilot Program
13. The pilot program has two main parts: structural programs, in which the
emphasis is on strengthening of government institutions; and demonstration
projects, in which the emphasis is on support for and promotion of grassroots
initiatives. The content of each proposed activity is described in detail in
Section IV of the attached proposal. Below we describe briefly each major
activity, and indicate our recommendation for emphasis in a first phase.
(a) Conservation Units: Conservation units and indigenous areas in the
Amazon, already legally established, would be demarcated and equipped
with needed Infrastructure. These investments would complement
pay for
those financed under a World Bank loan, and those already proposed by
the GOB for financing by the GET. The first phase would include
preinvestment antivities (reconciling policy and legislation,
development of flexible mechanisms for handling land tenure
with
irregularities, and development of detailed management plans for
specific units) 1 and financing for demarcation of three indirect-use
conservation units (in which no aconomic activity is permitted); three
national forests; four extractive reserves; and six indigenous reserves.
(b) Natural Resource Management and Degraded Areas: Activities would
address production, regulation and marketing of fishing and forestry
products that are commercially viable and environmentally sustainable,
and recovery and reuse of deforested areas. The first phase would
consist of formulation of working procedures and program development,
and studies of the environmental, social and economic consequences of
any investments in recovery of degraded areas.
(c) Invironmental zoning: This program would, once follow-up enforcement
capacity is in place, help finance regional and local environmental
zoning to guide future public investments and to ensure appropriate use
of any fiscal incentives. Emphasis in the first phase would be on
support for information systems and on building capacity to carry on
zoning exercises at the state level.
L2
The proposed first phase set out in the attached proposal would be fully
assessed by staff of the international implementing agency and approved on an
annual basis in Brazil by the Coordinating Commission.
/3
Conservation units would also be supported in the Atlantic Forest, as
described in Appendix II of the attached proposal.
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(d) scientific and Technical support: Trust funds would be established
under the management of the federal Secretarist of science and
Technology to support INPA (Instituto Macional de Pesquisas AmazOnicas)
and the Museu Paraense Emilio Goaldi (also a research institute). The
purpose of the trust funds would be to provide a permanent base of
sustained support for these two existing centers of excellence of
scientific research in the Amazon Region. The trust funds would finance
infrastructure and the creation of endowed chairs or topping up of
salaries, to ensure that these institutions can attract and retain the
best possible talent worldwide as well as in Brazil. An additional
trust fund should be considered to provide similar support to other
research institutions in the Amazon region, to strengthen the
agricultural, biological and social sciences relevant to protection of
the Amazon rainforests. Emphasis would be on collaboration among local,
national and international centers. In addition, a program of support
for basic and applied research aimed at better understanding of the
Amazon environment should be established under the management of the
Secretarist of Science and Technology, similar to existing research
support programs, including PADCT (Program for the Support of Science
and Technology). Research grants would be available on 4 competitive
basis to staff at all national institutions, private and public.
International and transregional scientific cooperation in funded
research would ensure high scientific standards. Advanced training and
a scientific information system would also be financed. First phase
activities include making arrangements for trust funds, setting
priorities and appraising plans for strengthening centers of excellence,
and defining the scope and procedures for the research grants program.
(e) Monitoring and Enforcement: A set of activities is proposed to
strengthen the capacity of public agencies, especially of the nine state
environmental agencies in the Amazon region. Emphasis would be on
establishing measures and means to monitor environmental quality
including forest cover, fauna, water and air quality, and the status of
indigenous people; and to detect infractions of environmental
legislation. First phase activities include detailed planning of
training programs, design, specifications and site selection for control
posts; and development of procedures for augmented monitoring and
enforcement.
(1) Environmental Education: Support would go mainly to the Amazon region
for preparation and introduction of environmental issues to school
curricula. University-level exchanges of information, public education
campaigns, and wide dissemination of scientific knowledge are also
envisaged. First phase activities Include carrying out a diagnosis of
current practices and materials in environmental education and design of
a comprehensive program of environmental education for the Amazon
region.
(g) "Free-standing" Demonstration Projects: Support would go to projects
that would test new technologies, organizational forms or techniques to
develop sustainable production in the Amason, or improve conditions for
rural dwellers where such support can help reduce itinerant, predatory
deforestation. such projects would be proposed by local or national
NGOs, entrepreneurs, local government agencies, and research and.
extension agencies. Projects sponsored by nongovernment groups could be
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funded through one of three channels: (a) the National Invironmental
Fund (FRMA), (b) direct (bilateral) grants, and (c) a small grants fund
administered independently of the Brasilian Government. such projects
would be judged on their potential to achieve tangible results, their
sustainability without continued subsidies, and their replicability. Up
to 20 of these free-standing demonstration projects would be supported
in the first phase.
(h) "Area-based" Demonstration Projects: Support would go to projects
sponsored by consortia of government agencies and NGOs in selected
strategic areas throughout the Amazon. Emphasis in the first phase
would be on detailed "project" planning in three specified geographic
areas, one in the western Amazon, two in the eastern Amason.
14. Because this is a pilot program, heavy emphasis will be placed on:
monitoring of program inputs, with feedback to redesigning of activities,
supervision of implementation by technical staff at the international level,
and svaluation of the impacts of activities, both within Brazil, and through
an advisory group at the international level.
Recommendations
15. Initial Commitment. The management of the World Bank and the staff of
the CEC recommend that the G-7 endorse the objectives of the pilot program and
commit themselves to support on highly concessional terms/4 activities in a
first phase, estimated to dost about US$250 million. The duration of the
first phase would depend on the pace at which proposed activities can be
effectively implemented, but would probably be at least two years. Donore
should be prepared to provide USS50 million for an initial nine-month period,
to be disbursed against (a) a set of pre-investment and planning activities,
(b) implementation of selected aspects of the existing program that are ready
for implementation, (c) initial financing of two trust funds to strengthen
scientific centers of excellence and of a small grants program fund for NGO
activities, and (d) overhead for technical support functions at the
international level.
16. The Full Program. The GOB proposal describes activities to be carried
out over a five-year period at an estimated cost of US$1.6 billion. These
activities would complement those being financed through existing World Bank
loans and those proposed by the GOB for financing under the Global Environment
Trust Fund. while the precise cost and timing of specific activities require
further definition, the magnitude of the potential global and national
benefits of preserving the rainforest justifies the sustained commitment of
substantial resources.
17. However, neither the estimated costs nor the precise activities and
timing proposed by the GOB have been fully appraised by staff of the World
/4 Financing could be in the form of grants, loans on IDA terms, and debt-
for-nature swape to the extent the latter are consistent with the overall
approach of the Government of Brazil and creditors to Brasil's external debt.
The GOB would provide some counterpart funds (up to 10% for certain parts of
the program); state and local governments and residents of the Acazon would
also participate in financing.
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Bank and the CEC. Donor commitments to finance specific activities under the
first and subsequent phases should be made on a rolling basis, and should
depend on: (a) annual assessments of specific program activities and
proposals; (b) evidence that the program is administratively manageable) and
(c) continuing commitment by the GOB to a policy framswork consistent with its
own stated environmental objectives. The arrangements proposed below for
governance and administration incorporate periodic assessment of the progress
of the pilot program and of the consistency of overall policy with program
objectives, as a basis for periodic redesign of the program and renewal of
financial commitments on the part of donors.
18. Specific policy concerns are development and effective enforcement of
environmental safeguards in any new use of fiscal incentives in the Amazon
region; regulations relating to land titling and taxation, and infrastructural
policy, especially as concerns road construction, mining and power.
19. Governance and Administration. The management of the World Bank and the
CEC staff recommend that a Rainforest Fund be established under the GEF, with
an appropriate review group including representation of the Government of
Brazil and donors to the Rainforest Fund.4 Technical functions at the
international level would be carried out by an implementing agency or agencies
appointed by the donors, and would include annual programming in conjunction
with the GOB and monitoring and supervising of program activities.
20. The Government of Brazil has proposed an administrative structure and a
system of financial flows in Brazil, the outlines of which ACB acceptable to
the World Bank and CEC staff. The structure and functions of these are set
OUL in Saction V of the attached proposal. In Brasil, a coordinating
Commission (CC) composed of representatives of concerned Brazilian federal and
state agencies under the chairmanship of the Secretariat for the Environment
(SEMAM) would set policy and approve annual programs and internal evaluation
and audit reports for submission to the review group constituted for the
Rainforest Fund. Technical and operational support for the CC would be
provided by the strengthened Executive Secretariat of the National Environment
Fund (FNMA) of the secretariat for the Environment. Implementation of
specific activities of the pilot program would be undertaken by the relevant
faderal and state agencies, research institutes, local communities and NGOS.
21. Donor contributions would be credited in foreign exchange to the
Rainforest Fund. Funds for specific activities managed by government entities
and approved by the Rainforest Fund review group and the cc would be
transferred to the executing agencies in Brazil through a special account in
the Central Bank, once approved by the Executive secretariat. Funds would be
transferred from the Central Bank through one of several existing funds in
Brazil: FRMA (Fundo Nacional de Meic-Ambiente), or FNDCT (Fundo Nacional de
Ciencia e Tecnologia). Funds for approved activities managed outside of
government could be transferred through the FMMA, disbursed directly from
bilateral donors to nongovernment groups) or disbursed from a separate fund
for small grants to be managed by an independent entity in Brasil such as the
United Nations Development Program (See Figure 4 of the attached proposal).
The final details of the administrative and financial arrangements should be
/5 The review group would take on many of the functions outlined in the GOB
proposal for the "Joint Commission".
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approved by the implementing agency or agencies on behalf of the Rainforest
Fund review group.
22. The proposed governance and financing arrangements will support a
critical objective of the pilot program, i.e., to develop and implement new
approaches to managing and financing a large comprehensive program that is
also flexible and innovative. At the international level, the proposed
structure would rely on an existing mechanism. Within Brazil, the proposed
structure would not rely excessively on overburdened government institutions,
and would create new opportunities for the GOB to establish dialogue with NGOs
and concerned populations. Innovative features include: establishment of
trust funds to ensure stable support for independent science and field work of
international quality; & small grants program, managed by an independent
entity, to provide nongovernment organizations with an additional separate
source of funds; inclusion of NGO representatives on the policymaking group in
Brazil and on the Executive Secretariat of the pilot program; and involvement
of community and other groups in the design and implementation of
demonstration projects.
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FACSIMILE TRANSMITTAL
FROM
THE OFFICE OF THE U.S. EXECUTIVE DIRECTOR - WORLD BANK
1818 H street, N.W., Room D-1328
Washington, D.C. 20433
---- "FAX" NUMBER - (202) 477-2967 ----
DATE:
July 11, 1991
TO:
Mr. Eric Melby, NSC
FROM:
X
E. Patrick Coady, U.S. Executive Director - Phone: 202 458-0110
Mark T. Cox, IV, U.S. Alternate E.D. - Phone: 202 458-0115
Thomas E. Burke, Advisor to the U.S.E.D. - Phone: 202 458-0112
Brian G. Crowe, Assistant to the U.S.E.D. - Phone: 202 458-0114
Nancy Katz, Assistant to the U.S.E.D. - Phone: 202 458-1549
Nancy Adams, Assistant to the U.S.E.D. - Phone: 202 458-1350
Janice Mazur, Procurement Liaison - Phone: 202 458-0118
Sandra Shank, Senior Staff Assistant - Phone: 202 458-0119
COMMENTS:
10
Number of Pages Including Cover Sheet