PROJECT DEVELOPMENT FACILITY
REQUEST FOR Pipeline Entry and PDF Block B APPROVAL
AGENCY’S PROJECT ID:
GEFSEC PROJECT ID:
COUNTRY: MEXICO
PROJECT TITLE: Protection of environmental
services of coastal wetlands in the Gulf of Mexico
to the impacts of climate change.
GEF AGENCY: World Bank
OTHER EXECUTING AGENCY (IES): National
Institute of Ecology, INE/SEMARNAT
DURATION: 5 years
GEF FOCAL AREA: CLIMATE CHANGE
GEF OPERATIONAL
PROGRAM: SPECIAL
CLIMATE CHANGE FUND
GEF STRATEGIC PRIORITY: Adaptation
ESTIMATED STARTING DATE: May 2006
ESTIMATED WP ENTRY DATE:
PIPELINE ENTRY DATE: APRIL 2006
RECORD OF
FINANCING PLAN (US$)
GEF ALLOCATION:
4,500,000
Project (estimated)
13,500,000
Project
Co-financing
9,000,000
(estimated)
PDF A*
PDF B**
PDF C
Sub-Total GEF PDF
PDF CO-FINANCING (details
in Part II, Section E – Budget)
Government
Contribution
Others
Sub-Total PDF Cofinancing:
Total PDF Project
Financing:
300,000
300,000
provided
200,000
180,000
380,000
680,000
* Indicate approval date of PDFA N/A
** If supplemental, indicate amount
and date of originally approved PDF
N/A
ENDORSEMENT ON BEHALF OF THE GOVERNMENT:
Claudia Grayeb, Director of International Financial
Organizations (Ministry of Finance)
Dr. Adrian Fernandez Bremauntz, President of the National
Institute of Ecology (Ministry of Environment)
Date: (Month, day, year)
Letter of endorsement has been
received from the Ministry of Finance
(August 19, 2005)
Letter of endorsement has been
received from INE (March 21, 2006)
This proposal has been prepared in accordance with GEF policies and procedures and meets the standards
of the GEF Project Review Criteria for approval.
Jocelyne Albert
Sr. GEF Regional Coordinator
Latin America and the Caribbean, World Bank
Steve Gorman
GEF Executive Coordinator, World Bank
Date: July 11, 2006
Tel. and email: (202) 473-3458
Jalbert@worldbank.org
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PART I - PROJECT CONCEPT
A - SUMMARY
The objective of the project is to reduce vulnerability to the anticipated impacts from climate
change on the country's water resources, with a primary focus on coastal wetlands and
associated inland basins. Specifically, the project seeks to identify national policies to address
the impacts of climate change on water resources at the national level (global overlay), to
evaluate current and anticipated effects of climate change on the integrity and stability of the
Gulf of Mexico wetlands, and to implement pilot adaptation measures to protect their
environmental services from the impacts of climate change.
Key Development Issue
The Global climate is changing rapidly. The 2001 Third Assessment Report of the
Intergovernmental Panel for Climate Change (IPCC) concluded that, with the continuing
emission of GHG (greenhouse gases), the mean surface temperature may increase between 1.5
and 5.8 degrees Celsius during the next 100 years. Documentation being used in the
preparation of the Fourth Assessment Report, due to be released by the year 2007 corroborates
the range of the projected increase.1 A change of this magnitude is unprecedented and will
result in significant impacts to be felt at a global scale. Along with changes in mean climatic
conditions, the biosphere potentially faces irreversible and catastrophic system impacts
associated, for example, with the reduction of thermo-haline circulation, the melting of the
Greenland ice sheet (Epstein 2005), the subsidence of small islands and coastal wetlands,
increases in intensity of hurricanes (Webster et al. 2005), acidification of oceans and others.
Global warming will affect all species and exacerbate the stresses already being experienced by
ecosystems. Climate change is the most serious challenge being faced by the global ecosystem.
Mexico has been identified as particularly vulnerable to the impacts of global climate
change (First and Second Communication, NC1/NC2 to the UNFCCC), many of which are
irreversible. These impacts include continuous increase in the sea surface temperature of the
Gulf of Mexico, continuous sea level increase affecting coastal areas in inland basins,
intensification of hurricanes, changes in water precipitation cycles, net decreases in water run
offs and others. Given the long term irreversible character of these changes and the nature of
the impacts, it is imperative for Mexico to start a process of adaptation. The NCs have
assessed the vulnerability to climate change focusing in areas and sectors seen as particularly
fragile to climate impacts: water resources, forestry, agriculture, coastal zones, in particular
wetlands, drought and desertification. Key areas of concern are: a) the impact on water
resources and b) specifically, impacts on the coastal region of the Gulf, seen as most vulnerable
to the combined impacts of climate change:
Mexico is already confronting a serious water crisis. The nation is already facing
severe threat to droughts. At the same time demand for water continues to grow and in
some areas it is already a bottleneck for economic activity, limiting growth and
improvements in welfare to local communities. Current water use is not sustainable in
1
The reference emission scenarios (SRES) have been criticized for overestimating future emissions. However, the post-SRES
literature shows an even higher emission range (IPCC, FAR workshop, February 2005).
2
many basins and aquifers in the central and northern parts of the country. For example,
half of the water consumed from underground sources is extracted from 102 already
overexploited aquifers. In three out of 13 hydrologic-administrative regions water
availability values fall below 1,700 m3 per capita per year, which is considered
insufficient to meet human and environmental needs. Surface water resources are also
overexploited resulting in reduced water for the environment, including wetlands.
Climate change is predicted to exacerbate this water balance conundrum because of
anticipated decreases in precipitation and runoff in these same areas.
The situation is anticipated to worsen because of climate change impacts, as per
conditions analyzed by the IPCC, under the SRES (Standard reduction of emission)
scenarios. Results from recent studies2 on the vulnerability of hydrologic regions in
México suggest that potential changes in air temperature and precipitation may have a
dramatic impact on the pattern and magnitude of runoff, on soil moisture and
evaporation. Runoff generally is equal to the difference between precipitation and
evapo-transpiration and, hence, from a resource perspective, runoff is a measure of
sustainable water availability. Data just published on projected forced hydro-climatic
changes, as part of IPCC assessments3 indicate that Mexico may experience significant
decreases in run offs, of the order of minus 10 to 20% nationally, and up to 40% over
the Gulf Coast wetlands, as a result of global climate change. These impacts from
climate change would further aggravate the water budget of the country.
Figure 1. Relative change in runoff in the twenty-first century mean of relative change
(percentage) in runoff for the period 2041–60 compared to 1900-1970. (P. C. D. Milly1
2005)
Coastal regions, and in particular wetlands, are very vulnerable to sea level
increases, intensification of hurricanes, fluctuations in water regimes and storm
surges. Wetlands in the Gulf of Mexico have been identified by INE as the most
Mendoza, Victor, Elba Villanueva, and Julián Adem. “Vulnerability of basins and watersheds in Mexico to global climate
change.” Climate Research, Vol. 9: 139-145, 1997. Conde C, D Liverman, M Flores, et al, “Vulnerability of rainfed maize
crops in Mexico to climate change.” Climate Research, Vol. 9: 17-23; 1997.
3 P. C. D. Milly1, K. A. Dunne1 & A. V. Vecchia. Global pattern of trends in streamflow and water availability in a changing
climate. Nature: November 17, 2005 pp
2
3
critical and most threatened by anticipated climate changes. The NC1 and NC24 and
other studies have documented ongoing changes in the wetlands of the Gulf of Mexico
and have raised urgent concerns about their integrity. Other studies have indicated that
the Gulf of Mexico wetlands are particular vulnerable to subsidence and saline
intrusion, both forced by climate change. The Gulf of Mexico coast is flanked by 27
major systems, estuaries, bays and coastal lagoons that serve as shelter, feeding, and
reproduction areas for numerous species that represent the most important riverside
fisheries. These wetlands perform very important environmental functions that are
critical to economic activity over a wide area of the country.
Figure 2. Vulnerability of Coastal Wetlands to Sea Level Rise
Source: Ortiz Pérez y Méndez Linares. 1999.5
The threat is particularly worrisome as the Gulf of Mexico possesses one of the
richest, more extensive and productive ecosystems on Earth6: Located in the lower
reach of the Gulf’s main water tributaries, the Gulf wetlands are considered the most
productive ecosystem in the country7.
Changes in the distribution and
characteristics of river flows will affect the biological functioning of the wetlands,
4
National Communications to the UNFCCC one and two, 2001, 2004.
5
Ortiz Pérez, M.A. y A. P. Méndez Linares. 1999. Repercusiones por ascenso del nivel del mar en el litoral del Golfo de
México. En: Gay García, C. (Editor y Compilador) México: una visión hacia el siglo XXI. El cambio climático en México.
6
The Gulf of Mexico is home to more than 75% of all coastal wetlands in Mexico. In these geo-forms originate 45% of all
shrimp caught, 90% of the country’s oysters and no less than 40% of commercial fishing volume. Total mangrove surface
calculated for the Gulf of Mexico reaches 545 000 Ha, in 2000; and it is being lost at a rate of at least 1% annually since 1976
(higher estimates reach 2.5% per year; INE, September 2005:“Evaluación preliminar de las tasas de pérdida de superficie de
manglar en México”). Global circulation models coincide on identification of the Gulf of Mexico as the most vulnerable
coastal region for impacts from climate change. While other coastal areas will also be prone to similar impacts, the limited
resources available and the higher concentration of impacts justify the selection of this zone as focal point for the proposed
project.
7 Caso, M., I. Pisanty y E. Ezcurra 2004: Diagnóstico ambiental del Golfo de México. Vol. I y II. INE/Semarnat
4
impacting the economy of coastal areas. Wetlands provide many environmental
services, including regulation of the hydrological regime; human settlement protection
through flood control, protection of the coastal region, help in mitigating storm impacts;
control of erosion; conservation and replenishing of coastal groundwater tables;
reduction of pollutants; regulation and protection of water quality; retention of
nutrients, sediments, and polluting agents; providing sustenance for many human
communities settled along the coast; and habitats for waterfowl and wild life. The
functionality and conservation of the wetlands depend on the environmental and water
management in the extended areas around the wetlands. Sea level increases in the Gulf
of Mexico are modifying the saline equilibrium forcing sea water into the boundary
layer of freshwater. Anticipated modifications in precipitation patterns in the North of
Mexico will affect natural drainage systems, further deteriorating the natural water
balance of these systems. Further, weakened marshlands and mangroves will be less
likely to stand increased weather variability in the Gulf of Mexico. Increases of 40% in
the number of high intensity hurricanes and landfalls in the Gulf of Mexico over the
baseline period of 1961-1970 have been registered during the last ten years, with the
potential to cause serious ecosystem disruption, property and human losses.
At present, water resources planning and management at the basin and aquifer
level is inadequate in Mexico, but the necessary building blocks are in place
including a monitoring network for collecting surface and groundwater and climate
data, assessments of water availability, a complete water rights registry, and some
basin-level and aquifer level planning studies. The water law (revised in 2004) includes
the environment as a legal water use and mandates the establishment of Basin
Organizations (under CNA) and Basin Councils with representatives from federal, state
and municipal governments, and other stakeholders.
Urgent actions are thus required to formulate adaptation policy actions and measures
that can protect the environmental services of the Gulf of Mexico wetlands. The Federal
and regional governments are thus focused on the need to formulate and implement
development plans that take into account the impacts of climate change in coastal wetlands and
protect the environmental services provided for these ecosystems, including water supply,
fisheries and agriculture. Work on adaptation measures in these wetlands will illustrate how to
address wider policy issues in the water sector.
The project development objective is to reduce vulnerability to the anticipated impacts from
climate change on the country's water resources, with a primary focus on Gulf of Mexico
coastal wetlands and associated inland basins and to specifically formulate and implement pilot
adaptation actions and specific measures in order to protect their environmental services from
climate change related impacts.
B - COUNTRY OWNERSHIP
1.
COUNTRY ELIGIBILITY
Mexico ratified the UN Framework Convention on Climate Change (UNFCCC) on March 11,
1993, and presented the First National Communication in 1997 at the Kyoto Conference of the
Parties (COP) meeting. It has also submitted the Second National Communication (2001) and it
5
is in the process of preparing the Third, with the economic support of the UNDP-GEF.
Mexico's congress ratified the Kyoto Protocol (April 2000) by unanimous consent. Mexico has
also launched an effort to strengthen its institutional capacity through the development of a
Climate Change Office (CCO). The CCO has been supported through an IDF (Institutional
Development Fund) grant. The IDF also supported the identification of economic instruments
for the internalization of climate change concerns in economic planning. Mexico signed the
Ramsar treaty in 1986 in recognition of the need of preserving its wetland ecosystems. It also
ratified the Convention on Biological Diversity in 1993.
2.
COUNTRY DRIVENESS
The First and Second Communication to the UNFCCC identified Mexico as particularly
vulnerable to the impacts of global climate change. These impacts include continuous increase
in the sea surface temperature of the Gulf of Mexico, continuous sea level increase, more high
intensity hurricanes, changes in water precipitation cycles, net decreases in water run offs and
others. The areas and sectors seen as particularly fragile to climate impacts include water
resources, forestry, agriculture, coastal zones, in particular wetlands, drought and
desertification. Key areas of concern are: a) the impact on water resources and b) specifically,
impacts on the coastal region of the Gulf, seen as most vulnerable to the combined impacts of
climate change. Data just published on projected forced hydro-climatic changes, as part of
IPCC assessments8 indicate that Mexico may experience significant decreases in run offs, of
the order of minus 10 to 20% nationally, and up to 40% over the Gulf Coast wetlands, as a
result of global climate change. These impacts from climate change would further aggravate
the water budget of the country. Wetlands in the Gulf of Mexico have been identified by INE
as the most critical and most threatened by anticipated climate changes with serious
consequences for the environmental services they provide, including water regulation, water
quality, fisheries and agriculture. This project is responding to national priorities and needs as
outlined in the National Communications.
The water law (revised in 2004) includes the environment as a legal water use and mandates
the establishment of Basin Organizations (under CNA) and Basin Councils with representatives
from federal, state and municipal governments, and other stakeholders.
The Resolution VIII.3 of the 8th Meeting of the Conference of the Contracting Parties to the
Convention on Wetlands (Ramsar) regarding “Climate change and wetlands: impacts,
adaptation and mitigation” calls upon Contracting Parties to manage wetlands such as to
increase their resilience to climate change and extreme climatic events, and to reduce the risk
of flooding and drought in vulnerable countries by, inter alia, promoting wetland and
watershed protection and restoration. It invites Contracting Parties to pay special attention to
the need for building and strengthening institutional capacity and synergies between related
instruments at the national level in order to address the linkages between climate change and
wetlands, and to report to COP9 on progress in this matter, including achievements and the
identification of difficulties encountered.
8
P. C. D. Milly1, K. A. Dunne1 & A. V. Vecchia. Global pattern of trends in streamflow and water availability in a changing
climate. Nature: November 17, 2005 pp
6
In April of 2003, the Official Mexican Norm NOM-022-SEMARNAT-2003 came into force,
establishing specifications for the sustainable use and restoration of coastal wetlands in swamp
areas. This norm enables the implementation of measures and programs for the protection of
the integrity of coastal wetlands. These measures include the protection and, where necessary,
the restoration of their functions with regard to hydrology, contiguity, water supply, and coastal
stabilization. This is being realized through re-establishing their vegetation cover and
hydrological flow, preventing their deterioration from the change in land use, indiscriminating
canalization which result in an increase in salinity, the reduction of productivity, and the loss of
habitat for the reproduction and economically important fisheries.
At the beginning of 2005, the National Committee on High-priority Wetlands was created in
the CONANP. With the help of the INE and the CNA, it is in the process of completing the
National Wetlands Inventory by 2007.
C – PROGRAM AND POLICY CONFORMITY
1.
PROGRAM DESIGNATION AND CONFORMITY
Strategic Priorities: The ninth session of the Conference of the Parties to the UN Framework
Convention on Climate Change (UNFCCC) in December 2003 provided guidance to the GEF
for the operation of the Special Climate Change Fund (SCCF). In particular, the guidance
provides that the fund should give priority to supporting activities related to adaptation and
technology transfer.9
With regard to adaptation, the guidance identifies activities in priority areas, such as water
resources management, land management, agriculture, health, infrastructure development,
fragile ecosystems (including mountain ecosystems) and integrated coastal zone management.
The SCCF is also to support capacity building for preventive measures, planning, preparedness
and management of disasters relating to climate change, including contingency planning. The
proposed project is in line with the SCCF’s objectives by formulating and implementing
adaptation policy actions and specific measures in the identified priority areas. For example,
the project will address water resources management through the identification of national
policies to address the impacts of climate change on water resources at the national level, as
well as through implementing specific adaptation measures to maintain water supply for
productive sectors. It will also protect the economic services provided by coastal wetlands from
the impacts of climate change. Moreover the proposed Project will serve as a catalyst to
leverage additional resources from bilateral and other multilateral sources. The activities to be
funded under the proposed Project are country-driven, cost-effective and integrated into
national priorities as expressed in the 1st National Communication and NAPA.
In addition to the above, the proposed Project will help to address some of the Poverty
Reduction Strategic Plan (PRSP) and Millennium Development Goals (MDG) targets
9
The decision also provides that activities under paragraph 2(c) and (d) in decision 7/CP.7 are also to be funded
by the Special Climate Change Fund and to this effect invites Parties to submit to the Secretariat, by September
15, 2004, further views on activities, programs and measures in these areas, for further consideration by the
Subsidiary Body for Implementation, at its twenty-first session, in order for the Conference of the Parties to take a
decision on this matter at its tenth session. The GEF will propose steps to respond to any additional guidance after
such guidance is approved by the COP.
7
(especially targets 9 and 10)10, The project will also support the GEF Operational Programs 12
(Integrated Approach to Ecosystem Management) and 15 (Sustainable Land Management) by
promoting adaptation measures aimed at improving the resilience of the coastal region of the
gulf of Mexico Gulf to the effects of hydro-meteorological events.
2.
PROJECT DESIGN
The project would support activities addressing the key sector issues through each of the three
components as described below. Activities to be financed by the Grant are estimated at US$ 4.5
million, co-financing by other donors is estimated at US$ 5.0 million, with counterpart
financing of approximately US$ 8.5 million.
Project Description. Components and Activities
a) Identification of national policies to address the impacts of climate change on water
resources at the national level (global overlay). This component will complement efforts
–supported by the Bank and other IFI- to assess current and feasible policy options and
measures that could be adopted at a national level to incorporate the anticipated impacts of
climate change on existing water supply and water quality (global overlay). Based on
projected impacts of climate change on water availability at the annual and seasonal level,
the component will update the diagnosis of current impacts and produce an analysis of
alternative options and recommended policy measures.
b) Evaluation of current and anticipated effects of climate change on the economic
services provided by the Gulf of Mexico wetlands. The project would support efforts
for: i) Inventorying the present state of the wetlands, in both their biophysical and socioeconomic aspects; ii) Evaluating the impact that climate change may have on their hydrodynamic characteristics and on changes in the estuary systems and the extension of the
wetlands, iii) Comparing climate change impacts on wetlands with the impact on wetlands
caused by land use change and poor water management strategies; iv) Determining the
impact on surface drainage, availability of fresh water for productive uses, including
fisheries and agriculture, due to the quality and quantity of water at each of the selected
sites, and, v) Identifying high-priority wetlands critical to economic activity within the area
of study which are currently protected, as well as those most likely to be impacted by
climate change and other multiple stressors.
c) Implementation of pilot adaptation measures. The project would support:

Planning and implementing wetland restoration strategies and preparing plans
of action in which climate change adaptation measures and resource management
programs are integrated for the protection of economic services provided by coastal
wetlands.

Restoring of environmental services (agriculture, fisheries, water quality) by
establishing adequate management programs. This would include the restoration of
areas which may have been affected by economic activities or by the sedimentation of
soils, the implementation of activities for restoration of mangrove hydro-dynamics, and
10
Target 9: Integrate the principles of sustainable development into country policies and program and reverse the loss of
environmental resources; Target 10: Halve, by 2015, the proportion of people without sustainable access to safe drinking water
and basic sanitation
8
restoration of mangrove that would result in a protection of environmental services for
agriculture, fisheries, water quality.

Implementing pilot adaptation measures to maintain water supply for
productive sectors. This will involve the adoption of water conservation and use
measures for communities and municipalities around rivers and wetlands on water
supply, water quality; urban, suburban and industrial waste water management in areas
adjoining wetlands. During project preparation alternative specific adaptation measures
will be analyzed, including among others the following: (i) improved water demand
management, by increasing awareness, adjusting economic signals, developing
incentives, restricting the use of inefficient fixtures and controls,. (ii) improvements in
local management capacity and development of better operating and monitoring tools;
(iii) pilot projects for the restoration of surface hydrology to allow optimal functioning of
wetlands water regulation functions; (iv) restoration of storm surge protection
functionality through pilot reforestation of key coastal mangroves; and, (v) application of
water allocation schemes that optimize development impact while maintaining the
integrity of environmental services from the wetlands. The implementation of specific
measures will follow cost-effectiveness criteria and would include consultation efforts
with local communities for management and surveillance, as well as a process of routine
assessment of the impacts of any implemented activities.

Developing mechanisms to promote sustainable land-use patterns that
maintain the functional integrity of wetland ecosystems in the region. Promoting the
sustainable use for wetlands and keeping the environmental and ecosystem services for
sustainable economical activities tuned to the specific characteristics on each area. A
balance will be sought between the competing use of land for agriculture and for wetland
management. A coherent management plan of wetlands and surrounding areas to
produce the social, economic and environmental functions benefits will be developed.

Additional cost reasoning.
Without SCCF Involvement: Without SCCF resources, the adoption of specific measures to
overlay climate change considerations on the development of national water policies and
measures will not take place. To date, climate change considerations are not mainstreamed into
the long-term planning of national water resources and are not expected to be without the
project. Without the proposed measures on the Gulf Coast wetlands, the region will be facing
more severely the anticipated impacts of climate change. Even with the implementation of
adaptation measures the impacts of global climate change will affect the coastal zones and the
water resources of Mexico. Also, without SCCF resources, efforts to identify and commit cofinancing for adaptation would be difficult. The suggested measures would help mainstreaming
climate change consideration in the national water resources management planning, reducing
vulnerability to the climate change impacts and piloting adaptation measures. GEF funding is
required as it is unlikely that similar adaptation project design and development funding would
be made available under a business as usual scenario, where other multiple local and regional
challenges demand all available technical and financial available resources.
9
Currently, a number of Government programs in water management are being implemented.
These constitute the current baseline to which the project would add the global overlay. These
include the PMIR (Sustainable irrigation district management in the Rio Grande/Bravo) that
influences the delta of the river as well as the Laguna Madre in Tamaulipas. There is also an
Agroforestry project on the coastlines of Sonora seeking the restoration of degraded coastal
desert. The project will also benefit from the Second Programmatic Environment Development
Policy Loan (Aug. 2005; P079748) which seeks to create an enabling environment for
improved water resources planning and management, and complement the Water Programmatic
AAA studying the economic value of water, and the Integrated Management of Basins and
Aquifers Project improving the conditions for sustainable integrated water resources
management. However, these activities do not include climate change consideration in their
design. A close linkage will be developed between this project and the Integrated Management
of Basins and Aquifers Project (GICA) that is presently under preparation.
With SCCF Financial Support: The suggested adaptation measures would be significantly
bolstered with SCCF support and would benefit from pilot experiences implemented under
GEF in the region and on themes relevant for Mexico (e.g. Disaster Management in Central
America). The funds given by SCCF would help finance the additional costs of achieving
climate resilient sustainable development. SCCF support will also help linking water resource
management to coastal ecosystem management by addressing downstream impacts of water
resource management on ecological systems. The project would promote synergies and a
greater exchange of information between the various institutions dealing with this issue, such
as INE, CONANP, CONABIO, SEMAR, CNA, ZOFEMAT and CONAFOR. Besides the local
and global benefits, the lessons from the implementation of measures will have a global
information and dissemination value that may guide future efforts at GEF and other nations.
The proposal seeks funding from the SCCF on a 1 to 4 ratio with local and other donors
cofinancing, as indicated in section D Financing Plan. The project is requesting $4.5 million
from SCCF to finance one quarter of the $18m project cost, which is justified under a sliding
scale range for project under $5 million defined by the SCCF Programming paper. If
successful, the project will achieve the necessary incorporation of climate change impact and
adaptation capacity and mainstreaming initiatives within Poverty Reduction Strategic Plans
(PRSPs) and Millennium Development Goals (MDGs).
3.
SUSTAINABILITY (INCLUDING FINANCIAL SUSTAINABILITY)
Selected adaptation initiatives will complement ongoing or planned government programs in
the sectors vulnerable to climate change. These programs still do not take adaptation aspects
into consideration. The project will add on to these government activities by incorporating
long term climate change considerations in planning, designing and implementing the specific
actions with special emphasis on the water sector. Such a design guarantees mainstreaming
climate change consideration in the selected areas and sectors toward integrating climate
change adaptation in the sustainable development efforts in those selected areas. Strengthened
integration and mainstreaming of climate change adaptation measures and appropriate
adaptation mechanisms in national initiatives related to their Poverty Reduction Strategic Plans
(PRSPs) and MDG Goals is expected as an outcome of the project thus strengthening the
sustainability of the project.
10
The project will be supported through co-financing from international institutions. The project
will have strong intra-regional and inter-agency coordination with domestic and international
partners. Project synergies between countries that currently prepare or implement adaptation
measures will allow for mobilization of additional technical resources and expertise. The
selected adaptation measures in wetlands will illustrate how to address wider policy issues in
the water sector. National water policies are a top resource management priority in the country.
On the ground measures in coastal wetlands will help to inform and influence climate resilient
water resource policies. The consideration of adaptation measures in the water sector ensures
that national priorities are addressed in the long term. The objective of the first component is to
mainstream adaptation into the long term planning of national water resources. Adaptation
measures implemented under this project will also provide useful practical examples on how
climate change impacts can be incorporated and mainstreamed into regional and municipal
government Development Plans and programming frameworks, and into poverty alleviation
strategies.
Local communities dependent on wetland ecosystems will be involved in the selection,
implementation and monitoring of specific adaptation measures thus guaranteeing the buy-in at
the local level. The selection of the pilots will very much depend upon the workability of local
institutional arrangements.
4.
REPLICABILITY
The implementation of adaptation pilots will provide substantive lessons observed and learned
regarding climate impact and adaptive practices. Dissemination of lessons learned, public
education and outreach initiatives will ensure ongoing and effective knowledge exchange of
accrued adaptive expertise. Projects will be used to disseminate adaptation knowledge. The
proposed project is one of the first efforts to implement adaptation measures in wetlands. The
information to be obtained and the lessons learned will be of significant value to the
community of nations at large. The Gulf of Mexico is an international border for Mexico, the
United States and Cuba, the region of the Greater Caribbean in the north western tropical,
subtropical and temperate region of the Atlantic Ocean. The problems are, in their majority,
common to the different coastal nations and, in specific cases, the solutions may be similar for
the different Mexican states on the Gulf of Mexico. There are studies in other countries focused
on: identification of the effects of hurricanes on mangrove ecosystems (IPCC results indicate
that these type of storms will not be as frequent but will be more intense) and the identification
and documentation of the interrelation of the responses of freshwater-wetland and coastalmarine ecosystems to past and present disturbances, both natural and human imposed. In 1995,
el U.S. Geological Survey (USGS11) began a series of studies to identify and monitor
hydrologic information, into northeastern Florida Bay and the southwestern estuaries of
Everglades National Park (ENP), required for the development of restoration strategies and for
future evaluation of restoration results. By combining the results of this project with existing
studies in other countries, it will be possible to formulate, develop and implement specific
adaptation measures that are beneficial to wetland ecosystems and water resources in the face
11
http://www.usgs.gov
11
of major impacts from climate change. The knowledge and experience acquired will be of
significant value to other nations attempting to anticipate the impacts of climate change.
5.
STAKEHOLDER INVOLVEMENT/INTENDED BENEFICIARIES
The present proposal was made based on the expert opinions of different specialists in coastal
ecosystems and the impacts of climate change. The INE, CONANP, scientific community
(UNAM, Inst. of Engineering), CNA, CONABIO, and communities dependent on wetland
ecosystems also participated, and in the part of environmental policies, the PROFEPA is
included.
The intended beneficiaries will be the neighboring communities, all users of the environmental
services from the wetlands (water, fisheries, agriculture, storm protection) and also
communities that depend on the recharging of groundwater tables. Most of the communities
around Gulf of Mexico wetlands are poor and depend on the services provided by wetlands for
their daily sustenance. Thus climate impact on the wetlands will have a disproportionate effect
on these fishing and rural areas. A global benefit will be caused by keeping and conserving the
wetlands as carbon sinks, maintaining the link in the life cycle of different species of
commercial importance. The incorporation of climate concerns in overall water planning will
eventually benefit all Mexicans.
D.
FINANCING
1) Financing Plan
Components
1. Identification of national
policies to address the impacts
of climate change on water
resources at the national level
(global overlay).
2. Evaluation of current and
anticipated effects of climate
change on the integrity and
stability of Gulf of Mexico
wetlands.
3. Implementation of pilot
adaptation measures.
TOTAL
SCCF
(US$K)
INE (US$K)
Other
Donors
(US$K)
Total
Cost
(US$K)
0.5
1.0
2.5
4.0
0.5
1.0
0.5
2.0
3.5
2.0
2.0
7.5
4.5
4.0
5.0
13.5
E.
INSTITUTIONAL COORDINATION AND SUPPORT
1)
CORE COMMITMENTS AND LINKAGES (Also see E2)
Core Executing Agency: The inter-agency National Committee on High-priority Wetlands in
the Gulf of Mexico region (CNHP) will execute the PDF-B in coordination with INE and the
CNA, the National Water Board, the highest agency for planning and coordination of water
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resources policies and regulations. Actual funds management will be done by the Universidad
Autonoma de Mexico on behalf of the Committee and INE. It is envisioned, following Mexico
institutional structure, that most adaptation measures will be implemented by local agencies
and stakeholders, with support from the federal and state governments. If new regulation or
policy option is adopted by the Federal government as result of project preparation, funds will
be made available for policy implementation and enforcement, as required. The project
implementation arrangements will be finalized during the PDF-B stage.
Other GEF Project Links: Project formulation and implementation will be coordinated with
INAP and Caribbean SPA, as well as with the following GEF projects: National Protected
Areas (Sian Kaan; Ría Lagartos and Centla); Mesoamerican Biological Corridor, Sian Kaan;
and the following Bank funded projects: PROMMA (Water Management Modernization
project) 1st stage concluded, second stage in preparation, specifically aiming at developing a
global overlay to national water conservation policies; PMIR (Sustainable irrigation district
management in the Rio Grande/Bravo) that influences the delta of the river as well as the
Laguna Madre in Tamaulipas. Linkages will also be sought with the Agroforestry project in the
coastlines of Sonora seeking the restoration of degraded coastal desert. The project will also
liaise with the Second Programmatic Environment Development Policy Loan (Aug. 2005;
P079748) which seeks to create an enabling environment for improved water resources
planning and management, and complement the Water Programmatic AAA studying the
economic value of water, and the Integrated Management of Basins and Aquifers Project
improving the conditions for sustainable integrated water resources management.
Linkage with Colombia’s INAP and Caribbean SPA: This project is intended for support
under the SCCF. Thus, emphasis is being given to the implementation of specific adaptation
measures that internalize climate adaptation and promote climate resilient development. It will
also bring value added in terms of global learning and not duplicate activities under
implementation or preparation. In this context the Project would coordinate its work with
activities being developed under the Colombia Integrated National Adaptation Project (INAP),
and the Dominica, St. Lucia and St. Vincent Adaptation in Coastal Zones Project (SPA) with
CARICOM’s Community Climate Change Centre (CCCCC), both being implemented through
the World Bank GEF.
Linkages will be considered with the Organization of the Amazon Cooperation Treaty - OTCA
project “Integrated and Sustainable Management of Transboundary Water Resources in the
Amazon River Basin” which aims to strengthen the institutional framework for planning and
executing activities for the protection and sustainable management of the land and water
resources of the Amazon River Basin in the face of ongoing climatic changes being
experienced in the Basin. This Project has the support of the Organization of American StatesOAS.
Linkage with Trinidad and Tobago’s Nariva wetland restoration project. Project formulation
activities will also be linked to the experience being gained at the Nariva project, where
wetland restoration is being planned with the use of carbon finance resources. A joint meeting
of implementation agencies is planned during the formulation stage.
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2)
CONSULTATION, COORDINATION AND COLLABORATION BETWEEN
AND AMONG IMPLEMENTING AGENCIES, EXECUTING AGENCIES, AND
THE GEF SECRETARIAT, IF APPROPRIATE (Also see E3)
Consultations and coordination will be undertaken to ensure that efforts supported by other
implementing agencies in the region are integrated into the rationale of the project and overlaps
are avoided. In particular, UNDP-supported efforts in Central America on risk assessment and
vulnerability reduction will be considered as well as work under the enabling activities window
of the GEF in each of the participating countries.
3)
IMPLEMENTATION/EXECUTION ARRANGEMENTS (Also see E1)
The inter-agency National Committee on High-priority Wetlands in the Gulf of Mexico region
(CNHP) will execute the PDF-B in coordination with INE. Oversight of the PDFB and the
project will be responsibility of a steering committee that will ensure coordination with other
ongoing and related activities. This committee will also include water and environmental
representatives from the state and local municipalities where the specific pilots are located and
key agencies including: Semarnat. INE, CNA, CONANP; CONABIO; CONAFOR; the
Director of CICY; a representative of the Mexican Institute of Water Technology, IMTA,
representatives from CNA, INEGI, Sectur, Sagarpa, and from Sedesol. The institutional
arrangements will be reviewed during appraisal. Universities and research institutions will be
involved in this process. State and municipal governments will be also involved during
implementation. To facilitate disbursements during the PDF-B stage, the funds management
will be coordinated by the Universidad Autonoma de Mexico acting on behalf of the interagency National Committee on wetlands and INE.
PART II - PROJECT DEVELOPMENT PREPARATION
A - DESCRIPTION OF PROPOSED PDF ACTIVITIES (see D1 Financing Plan)
PDF-B grant funds are requested for project preparation, including a detailed assessment of the
investment and technical assistance needed under each component of the project. The PDF
grant will finance the costs for national, regional, and international consultants, and provide
logistic support for the following priorities and activities. All PDF-B funded components will
be coordinated by INE.
PDF-B Project Components
Activity I: Institutional arrangements and assessment of management needs
The objective is to reach close coordination with local environmental authorities and
communities in component 2 and 3, and with CNA on national level issues in component 1.
The selection of the pilots will very much depend upon the workability of local institutional
arrangements. In addition the project intends to involve the secretary of tourism in the measures
in Yucatan, and the local CNA authorities in the measures in Rio Bravo.
Activity I will thus assess the institutional arrangements and management framework required
for implementation of the proposed project. This assessment would identify the roles of the
project participants, evaluate the needs for achieving project success and recommend the
management structure for project implementation on the regional and national level.
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Activity II: Technical Studies
The technical studies will provide the information needed to identify specific adaptation
measures for immediate implementation. Specifically, this activity will assist in defining the
criteria for selection of project sites and will result in a short list of proposals to be funded
during project implementation. Gaps in existing information will be identified through
literature review and documentation analysis. This will be done in coordination with
international research institutions working on assessing the CC impacts on Mexico’s water
resources as well as on the coastal wetlands. This activity will support hiring international
experts to provide knowledge and information to the project preparation team, and participating
institutions. Workshops and learning trips will be carried out in the following areas: (i)
identification and assessment of existing studies on this field; (ii) modeling of GCC (or GCM)
impacts with respect to national water resources, changed water flows and their impact on
downstream ecosystems, and GCC impacts on coastal wetlands; (iii) Coordination of efforts
with other adaptation projects such as INAP and SPA, and the adaptation project in Central
America; (iv) identifying ongoing and planned government interventions in sectors highly
vulnerable to climate change.
Activity III: Stakeholder analysis and identification of sources of co-financing.
A stakeholder analysis will be undertaken to identify beneficiaries, partners and other potential
stakeholders at the proposed project sites. Partners and interested agencies and institutions for
the co-financing of the specific adaptation activities as well as for the studies supported under
component 1 will also be identified. The analysis will also collect and evaluate information and
technical resources available form partners, stakeholders, and other sources at international,
national, and local levels and therefore provide the basis for possible resources of co-financing.
Activity IV: Consultations
The project team will carry out various consultative meetings with core adaptation stakeholders
thereby incorporating stakeholders’ input in the project design and implementation process.
Workshop discussions will focus on: Project components, core inputs & outputs, institutional
and financial resource requirements, governance, sectoral and vulnerability scoping,
clarification of prime beneficiaries (indigenous inhabitants, vulnerable municipalities) and
target sectors as per NCs, and Project timelines. Stakeholder consultations will take place
within the workshop framework, and off-line through National Communications desk-top
research and remote stakeholder enquiries.
Activities V: Preparation of Cost Estimates and Financing plan
Prepare detailed cost estimates for project implementation involving preparation of detailed
cost estimates and procurement specifications for all project activities, together with a
financing and investment plan needed to implement the project. The plan will include an
incremental cost analysis.
Activities VI : Formulation of Project Proposal
The technical team will write the final project brief and all supporting annexes and documents,
obtaining needed approvals and request endorsements by respective governments.
B - PDF BLOCK B OUTPUTS
15
The main output is a project document that complies with all the requirements of the Bank and
GEF. The following specific outputs are expected:
 Identification of pilot sites and priority areas of highest interest and of greatest
vulnerability.
 Preparation of cost estimates, management and financing plan for adaptation activities.
 Identification of (co-)financing sources for project activities.
 Preparation of operational manual.
 Establishment of institutional arrangements for project implementation with strong
participation of local environmental authorities and communities for components 2 and 3,
and of CNA at the local and national level, that ensures coordination between the local and
the national level and that has sustainable capacity to implement pilot adaptation measures.
 Establishment of mechanisms to incorporate stakeholders input, as well as identification of
local capabilities to develop project activities.
C - JUSTIFICATION
PDF-B grant funds will be requested for Project preparation, including a detailed assessment of
the investment and technical assistance needed under each component of the project. The PDFB is required as it is unlikely that similar funding would be made available elsewhere. Also,
PDF-B resources are key to efforts to identify and commit co-financing for the project. Thus,
incremental funding will be secured to obtain the critical mass and capital formation necessary
to have broad-based impact at the national and local level. The PDF-B grant would finance the
costs for national and international consultants for referenced activities. The effects of climate
change on Mexico’s water resources and coastal wetlands are recognized as a high priority for
the country. The reduction of the vulnerability will also address the Millennium Development
Goals 9 and 10. By considering adaptation in development approaches at the Regional, host
national, and community level, human settlements will be safer, infrastructure and eco-systems
better managed, and livelihoods more sustainable.
D - TIMETABLE
PDF-B: Summer 2006 over 8 months, following grant signature.
Project: Start June 2007 over 4 Years.
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E – BUDGET
The following table summarizes the project preparation costs estimates. A total of
USD$680,000 is required to formulate the project adaptation options, out of which, the
Mexican Government, through INE, CNA, CONAFOR, CONABIO, IMTA, etc. will fund
USD$ 200,000, mostly the cost of public officials responsible for coordination and preparation
of the project.
Co-financing Sources
Name
of
Co- Classification
financier (source)
GEF
INE/SEMARNAT Requesting
agency
WB
Other
Mexican
government
agencies
GEF/UNDP
Sub-Total Co-financing
Type
Amount (US$)
Grant
In kind
300,000
200,000
Grant
Federal fund
50,000
55,000
Grant for Third 75,000
National
Communication
studies
680,000
PDF-B Financing Plan
Components
PDF
(US$K)
1. Institutional arrangements
and
assessment
of
management needs
2. Technical Studies
3. Stakeholder analysis and
identification of sources of
co-financing.
4. Consultations
5. Preparation
of
Cost
Estimates and Financing
plan
6. Formulation of Project
Proposal
TOTAL
80
B INE (US$K) Other
Donors
(US$K)
40
20
Total
Cost
(US$K)
140
50
50
50
20
60
20
160
90
50
40
40
10
10
50
100
100
30
40
20
90
300
200
180
680
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Part III – Response to Reviews
GEFSEC Comments
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