PROJECT IDENTIFICATION FORM (PIF)
PROJECT TYPE: Full-sized Project
THE GEF TRUST FUND
Submission Date: January 11, 2008
Re-submission Date: February 11, 2008
PART I: PROJECT IDENTIFICATION
INDICATIVE CALENDAR
Expected Dates
Milestones
GEFSEC PROJECT ID: 3590
Work Program (for FSP)
April 2008
GEF AGENCY PROJECT ID: 3882
CEO
Endorsement/Approval
March 2009
COUNTRY: Colombia
GEF Agency Approval
May 2009
PROJECT TITLE: Mainstreaming biodiversity in the coffee sector in
Colombia
Implementation Start
July 2009
GEF AGENCY: UNDP
Mid-term Review
January 2012
OTHER EXECUTING PARTNERS: The Colombian Coffee Federation (FNC),
Implementation Completion July 2014
The Von Humboldt Institute, Regional Autonomous Corporations,
Rainforest Alliance and Fundación Natura
GEF FOCAL AREAS: Biodiversity
GEF-4 STRATEGIC PROGRAM: Biodiversity - SO2 (To mainstream biodiversity in production landscapes/seascapes and
sectors), SP5 (Fostering markets for BD goods and services).
A. PROJECT FRAMEWORK
Project Objective: To create an enabling environment for conservation and sustainable use of biodiversity in coffee productive
landscapes that contribute to both the livelihoods of the local populations and global environmental benefits
Project
Components
1. Generate
economic
incentives by
catalyzing
payments for
ecosystem
services to attract
and keep farmers
committed to
growing shade
coffee.
TA or
STA
TA
Expected Outcomes
Indicative GEF
Financing
US$



TA
2. Increased and
stable income
from certified and
non certified
products grown in
shade coffee
farms protect
biodiversity of
global importance
Expected Outputs

Increase in net earning
per shade-coffee farm
improving the
cost/benefit ratio for
shade-grown coffee
from payment for
ecosystem services
against that of
alternative land uses.
Pilot carbon
sequestration projects
placed in voluntary
markets are providing
additional long-term
income streams.
Two model systems of
payments for water
services are designed
and implemented to
improve the returns
from certified shade
coffee.
A total of 27,000
hectares of certified
shade coffee protect
biodiversity of global
importance in the
departments of
Quindío, Nariño and
Valle del Cauca.
 About 11,400 farmers

Project documentation (e.g.,
Project Idea Note (PIN) and
Project Design Document
(PDD)) for carbon sequestration
projects.
 Approved methodologies for
calculating emission reductions
and carbon stocks.
 Reduction Purchase Agreements
(ERPAs) are negotiated and
emission reductions are verified.
 Clean Development Mechanism
and/or voluntary markets accept
verified reductions and issue
credits.
 Assessment identifies and
quantifies water services in
selected municipalities.
 Study determines costeffectiveness of water services.
 Payment structure mechanism
for water services is in place for
selected municipalities.
 Incentive mechanisms (e.g.,
preferential buying from project
areas, price premiums, and
extension services) for
promoting certified products
and procedures to
operationalize these practices.
 Protocol to verify and monitor
compliance of certification
%
Indicative Cofinancing*
US$
Total
US$
%
400,000
33
799,000
67 1,199,000
800,000
27 2,200,000
73 3,000,000
1


3. Strengthened
capacities of
municipalities to
advance
landscape-based
planning in the
coffee producing
region to support
the economic and
ecological longterm viability of
shade coffee
farms.
TA



4. Successful
TA
project’s
outcomes are
replicated in other
municipalities
through strategic
partnerships with
1

are trained in standards
and procedures to get
certified.
The Colombian Coffee
Federation (FNC) and
financial institutions
develop credit models
to ensure the financial
sustainability of pilot
demonstration projects.
Identification,
differentiation and
marketing programs
for certified products
(e.g., coffee and
selected agroforestry
products) and non
certified agroforestry
products grown in
shade coffee farms are
developed and
implemented through
a supply chain
approach.
Selected municipalities
develop the capacity to
plan and implement
conservation corridors
that connect shade
coffee farms with
nearby forests.
Municipalities develop
the capacity to
determine which coffee
farms are likely to
switch to unsustainable
land uses and to plan
mitigation measures
accordingly.
Municipalities and
community level
organizations develop
the capacity to
generate, use and share
geographic, socioeconomic, and biophysical information
needed for spatial
planning and
management purposes.
Successful payment for
ecosystem services and
shade coffee models
are adopted in other
coffee landscapes
across the country.
standards.
 Guidance on the mixture of
native and commercial trees to
optimize biodiversity and
economic on-farm benefits.
 Guidance on marketing
programs for certified and non
certified products.
 Nurseries to improve farmer
access to appropriate coffee and
other agroforestry germplasm.
 Training strengthens the
farmer’s abilities to manage
their businesses (e.g., business
plan development and basic
accounting).1



Baseline and monitoring
systems measure project
impacts on biodiversity and
potential land use changes in
the coffee farms.
Biodiversity information,
monitoring, and traceability
systems are adopted and
maintained by selected
municipalities.
200,000
23
659,000
77
859,000
400,000
29
979,000
71 1,379,000
Control groups compare the
treatment of shaded coffee
versus other land-uses and the
biodiversity global benefits
that accrue through each,
including the hydrological
and carbon
sequestration/mitigation
benefits.
 A financially sustainable
extension service to review best
practices, share experiences and
support farmer adoption of the
agreed best practices and
biodiversity friendly production
models.
This output will be covered with co-financing sources.
2
 Affordable credit supports shade
coffee farms.
key stakeholders.
5. Project management
Total costs
200,000
28
513,000
2,000,000
28
5,150,000
72
713,000
72 7,150,000
B. INDICATIVE FINANCING PLAN SUMMARY FOR THE PROJECT ($)
GEF Grant
Co-financing
Project Preparation
230,000
120,000
Project
2,000,000
5,150,000
Agency Fee
223,000
350,000
7,150,000
223,000
Total
Total
2,453,000
5,270,000
7,723,000
C. INDICATIVE CO-FINANCING FOR THE PROJECT BY SOURCE ($), IF AVAILABLE
Sources of Co-financing
Type of Co-financing
Amount
Grant
4,200,000
in-kind
Grant
in-kind
403,000
20,000
527,000
Grant
120,000
Project Government Contribution
Co-financing will be provided by the
Regional Autonomous Corporations
Project Government Contribution
GEF Agency(UNDP-TRAC cash)
Private Sector
Colombian Coffee Federation
Private Sector
Colombian Coffee Federation (PPG
Co-financing)
Total co-financing
5,270,000
PART II: PROJECT JUSTIFICATION
A. THE ISSUE, HOW THE PROJECT SEEKS TO SOLVE IT, & EXPECTED GLOBAL ENVIRONMENTAL BENEFITS TO BE
DELIVERED:
1. In Colombia, coffee is grown mainly in the Tropical Andes and associated mountain ranges, which rank amongst the
most biologically diverse ecoregions or hotspots in the world. Traditionally, shade coffee farms tend to be located within an
altitudinal transect that is a globally significant storehouse of biodiversity (800-1,200 meters above sea level). The Colombian
Andean ecoregion contains 21 distinct ecosystem types each of which has produced very high endemism rates due to great
fluctuations in altitude, climate, and geology that result in geographical isolation. These outstanding ecosystems are home not
only to 8.2% of the world’s amphibian population, but also to 9 plant biodiversity centers and about 10,000 plant species.
Furthermore, 43% and 55% of Colombia’s reptile and bird species have been identified in this important ecoregion. The
natural, shade-producing canopy of shade-coffee fields provides habitat for a wide range of this flora and fauna of global
importance, and can approach levels of biodiversity found in nearby forests. For example, about 16% of the 1,750
Colombia’s bird species have been registered in the coffee landscape, which include multiple endemic, threatened, and
migratory species. The shade coffee landscape is also habitat to 877 angiosperm species, 40 species of moss, and about 185
species of butterflies, six of which are both endemic and new to science. Among mammals, this landscape is home to 30
species of bats and several threatened flagship species such as the Spectacle Bear (Tremarctos ornatus) . The shade-coffee
landscape and their biodiversity are severely threatened by: a) transformation into other unsustainable land uses such as
livestock production, and b) conversion to coffee production schemes where high yielding coffee plants are grown in full sun
and in the absence of native vegetation. This issue is compounded by the fact that this transformation process is occurring in
areas adjacent to natural forests and protected areas. This project seeks to preserve and enhance the biodiversity of global
importance found in shade-coffee farms and their surrounding landscape by: a) catalyzing payments for ecosystems services
(PES) to attract and keep farmers committed to growing shade coffee, b) certifying coffee and other agroforestry products
grown in shade-coffee farms, and c) promoting landscape-based planning measures that underscore the importance of
conservation corridors between coffee farms and the natural forest. This approach builds on the lessons of, and scales up the
3
strategy piloted under the Colombian component (i.e., one of six countries) of the regional UNDP-GEF Project “Biodiversity
Conservation in Coffee: Transforming productive practices in the coffee sector by increasing market demand for certified
sustainable coffee” . This regional project is primarily focused on the certification and marketing of coffee in one Colombian
department. The project presented here goes beyond that in a number of differences listed above and described further below
in Paragraph3.
2. Coffee is produced in Colombia in 16 departments covering 564 municipalities with a production estate of some 873,301
hectares (September 2007 data). There are about 566,230 active producers, mostly smallholders (with an average of 1.61
hectares of coffee production) who rely primarily on coffee, although in some cases they may also cultivate other crops
and/or manage small livestock herds. Historical information on the rates of change in land use from shade-grown to other
coffee production systems show that the distribution of coffee growing systems in 1997 was 33% sun-grown (i.e., coffee
plants are grown in full sun), 67% modernized and traditional shade-grown, (i.e., coffee plants have varying degrees of shade
cover, low density of plants/hectare and the use of a high number of coffee varieties) and that by 2007, these numbers had
changed to 46% sun-grown and 54% modernized and traditional shade-grown. The underlying causes to the transformation of
shade-coffee farms into unsustainable production schemes such as livestock production and more profitable sun-grown coffee
are found in: a) declining world prices of coffee prices. Over the past few decades, the global output of coffee production has
increased greatly, while the average price of coffee has steadily declined (despite periodic temporary spikes in prices). During
the past thirty years, prices for Colombian coffee have declined from US$1.76/lb to US$0.96/lb. Also, it is important to
emphasize that while sun-grown coffee is more profitable than shade-grown coffee, in the short run, sun-grown coffee farms
offer high yields, but at a cost to the farmer and the environment. Sun-grown coffee schemes usually require a high amount of
pesticides and fertilizers that increase costs and pollute water streams and aquifers. Furthermore, these higher yields may not
last. Some coffee varieties appear to “burn out” in full sun, and soils are often degraded through lack of erosion control and
exposure to sun and tropical rainfall. On the other hand, shade coffee farmers can often improve yields on a sustainable basis
without loss of biodiversity or use of chemical inputs by applying organic agriculture management techniques such as shade
management, terracing, composting and integrated pest management; b) limited knowledge about the revenue potential of
evolving biodiversity-friendly coffee certification systems and their technical production standards; and c) insufficient
information about consumer demand for biodiversity-friendly certified coffee labels such as Fair Trade, Rainforest Alliance
and Utz Kapeh in international markets. For example, consumer demand for Rainforest Alliance certified coffee has almost
doubled each year since 2003 from 7 m lb to 54.7 m lb in 2006 and it is projected to exceed 91 m lb this year.
3. The Colombian component of the regional coffee project mentioned above has shown that Rainforest Alliance
certification of coffee contributes to the economic viability of shade-coffee farms. Building on this experience, the
“Mainstreaming Biodiversity in the Coffee Sector in Colombia” project will offer an innovative and integrated approach to
shade-coffee farmers that will bring long term economic benefits not only through the Rainforest certification label of coffee,
but most importantly through payments generated from ecosystems services (e.g., watershed services and the sequestration of
carbon) and certified agroforestry products. In addition, municipal authorities will develop landscape-based planning
processes that both include payments for ecosystem services (PES) and promote the conservation and interconnectedness
between forests/parks and shade-coffee farms through conservation corridors. By bundling all of these elements together, this
integrative approach goes beyond the regional coffee project and provides farmers a greater incentive to continue growing
shade-coffee and gaining awareness of the interdependence between ecosystem services and their economic and ecological
well-being.
4. However, ensuring the conservation of shade-coffee farms and its associated biodiversity is constrained by the following
barriers: a) Sun-grown coffee is more profitable than shade-grown coffee: The motivation behind sun-grown coffee is
simple: it is more profitable than shade-grown coffee, as coffee is produced in higher volumes in the absence of shade trees
and about three times more quickly; b) Coffee producers have limited capacities to develop PES and biodiversityfriendly production schemes in shade-coffee farms: Such deficiencies include: 1) lack of knowledge on the technical and
institutional framework required to harness the economic potential of PES, 2) limited knowledge on certification standards
and best practices to certify shade-grown coffee and biodiversity-friendly agroforestry products; 3) lack of credit options to
cover certification costs; 4) limited capacity to access markets for certified and non-certified products; and 5) limited socioeconomic and bio-physical baseline information to measure long-term indicators necessary to support ongoing management
and monitoring activities. In addition, farmers have limited capacities to develop business plans for certified products due to
poor understanding of basic accounting, economic planning, production processes and quality control standards and limited
of data on national and international market preferences; c) Municipalities have limited information and capacity to
advance landscape-based planning efforts that enhance biodiversity and its services in the coffee producing landscape:
4
Municipal authorities have limited capacity to: 1) develop and implement a payment structure mechanism for PES; 2) collect,
process, monitor, and evaluate the status of biodiversity and the ecological services it generates in shade-coffee farms and
nearby forests; 3) develop and implement activities that enhance biodiversity such as conservation corridors between coffee
farms and nearby forests and 4) identify shade coffee farms that are likely to go into unsustainable land uses. Furthermore,
available technical knowledge and up-to-date information generated by organizations such as Regional Autonomous
Corporations and Von Humboldt Institute is not incorporated into municipal planning processes such as the watershed zoning
and management plan (POMCA). This is particularly true with regard to information related to biodiversity conservation and
sustainable use, as such information is not considered integral to any of the existing municipal sector-based institutions and
processes.
5. The project strategy would include the following four components in order to overcome these barriers:
6. Component 1: Generate long-term economic incentives through PES to attract and keep farmers committed to
growing shade coffee: As experience has shown PES payments need to be long term to be sustainable. The objective of this
component is to generate payments from: a) using and conserving hydrological services and the biodiversity they depend
upon, b) avoiding deforestation, and c) promoting reforestation initiatives in order to preserve shade coffee farms and their
biodiversity. The Von Humboldt Institute has successfully implemented models for the generation of income from
hydrological services in the department of Boyacá and this experience will be replicated in selected municipalities of the
project. Additional payments will be generated from the carbon already sequestered by shade producing trees and from the
emission reduction credits generated by reforestation initiatives that contribute to establishing conservation corridors between
shade coffee farms. GEF funds would be used to develop methodologies and models for pilot carbon sequestration projects
and pilot studies to determine the cost effectiveness of water provision services in selected municipalities.
7. Component 2: Increased and stable income from certified and non certified products grown in shade coffee farms
protect biodiversity of global importance: The objective of this component would be to generate short-term economic
incentives through the certification of coffee and selected agroforestry products grown in the shade coffee farms that preserve
their biodiversity. Additional income would be generated from the marketing of other agroforestry products for which no
premium is elicited from certification efforts. Such products might include fruits, vegetables and selected timber trees
harvested in a manner consistent with any carbon payment schemes described by Component 1. Guidance on such
consistency with Component 1 and on the mixture of native and commercial trees to optimize biodiversity and economic onfarm benefits would be provided by Colombian Coffee Federation’s extension services and the von Humboldt Institute. The
Colombian Coffee Federation would also provide its technical expertise and infrastructure to facilitate business development
goals (e.g., business plan development and basic accounting) and access to markets for these products in order to ensure the
economic sustainability of productive schemes. Certification efforts for shade coffee and selected agroforestry products will
be carried out by the international NGO Rainforest Alliance (RA) and its Colombian partner Fundación Natura. The RA
certification standard was selected because it certifies both biodiversity-friendly coffee and selected associated agroforestry
products grown in the shade coffee farms. In Colombia, RA together with Fundación Natura and the Colombian Coffee
Federation are currently certifying shade coffee in the department of Santander through the regional UNDP/GEF project. The
experience gained in this regional UNDP/GEF project will be applied to certification efforts of shade coffee and selected
agroforestry in the departments of Nariño, Quindío, and Valle del Cauca. It should be noted that the scope of the regional
UNDP/GEF project does not include the certification of agroforestry products. Nonetheless, the Rainforest label has been
successfully applied to the certification of these products in other countries. Pilot demonstration projects implemented in
these departments will benefit from the institutional infrastructure and extension services provided by the Colombian Coffee
Federation to: a) develop business plans, b) identify, differentiate, and market certified products through a supply chain
approach, and c) support the development of credit models to ensure the long-term sustainability of shade coffee farms. The
project strategy should ensure that the economic returns derived from certified and non-certified products grown in shade
coffee farms and payments for selected ecosystem services are higher than the opportunity costs associated with sun-grown
coffee and other land uses. Specific information regarding opportunity costs will be collected during the PPG phase.
Nevertheless, as underscored above, recent data regarding increasing international demand for certified biodiversity-friendly
coffee (not including payments generated from ecosystem services in the long run) is positive evidence that the shade-coffee
systems certified by Rainforest Alliance can generate sufficient “premium” revenues to meet the opportunity costs. In
addition, payments generated by selected ecosystem services can provide the additional incentive needed to maintain shade
coffee farms in the absence of a premium.
5
8. In the project sites, shade-coffee farms play an important role in the maintenance of biological diversity of global
importance by providing critical habitat, especially in the event of loss of natural habitats. About 230 bird species have been
counted (i.e., 13% of all Colombian bird species), including the critically threatened Yellow-eared Conure or Macaw
(Ognorhynchus icterotis), the Chestnut-bellied Flowerpiece (Diglosa gloriosissima) and the Red-bellied Grackle
(Hypopyrrhus pyrohypogaster). Additionally, the project sites provide refuge to 32 migratory bird species such as Catharus
ustulatus, Coccyzus americanus, and Wilsonia canadensis. These birds, over 20 bat species, small mammals (e.g.,
Myrmecophaga tridactyla), and over 100 species of ants and butterflies find refuge in over 30 species of trees that are
commonly used as shade for coffee production. The dominant tree families are Mimosaceae (Inga spp) and Lauracea
(Ocotea spp); including numerous threatened and vulnerable species such as Quercus humboldtii and Ceroxylon quindiuense
respectively. Furthermore, five endemic species of amphibians (i.e. Eleutherodactylus brevifrons, Eleutherodactylus
silverstonei, Eleutherodactylus w-nigrum, Eleutherodactylus palmeri and Cochranella armata) are also found in
these coffee farm habitats. It is interesting to note that scientists have found that decreases in management intensity and
coffee plant density and increases in tree richness are all correlated with increases in ant and bird species richness 2. In
conclusion, global biodiversity benefits provided by the project intervention in the proposed shade-coffee landscapes include:
a) the improvement of habitat conditions for endemic plants/animals and threatened migratory bird species; b) improved
water cycle processes, and c) climate change regulation through carbon sequestration. Furthermore, taking into account that
shade trees are generally never burned, shade coffee trees mixed with biodiversity-friendly products can provide a more
stable carbon sink than other crops and land uses (see Component 1).
9. Component 3: Strengthened capacities of municipalities to advance landscape-based planning in the coffee
producing to support the economic and ecological long term viability of shade coffee farms: A key component of the
strategy will be to generate the landscape-based planning capacity at a municipal level to: a) set up a payment mechanism for
hydrological and carbon sequestration/mitigation services; and b)ensure that the biodiversity value of shade-coffee farms is
maintained and enhanced over time. This approach will allow designing a more structurally and functionally biodiversityfriendly landscape through conservation corridors that connect shade coffee farms with nearby forests and parks such as the
Tatamá National Park in Valle del Cauca and the Patasola Reserve in Quindio. Landscape-based planning activities should be
able to generate economic analysis of land use costs and revenues to determine which shade coffee farms are at risk of being
transformed into other land uses and to overlay this information with biodiversity important areas. In addition, the project
team will create the capacity for the development of a baseline and monitoring system to measure project impacts on
biodiversity in the shade-coffee farms and to identify future land use changes.
10. Component 4: Successful project’s outcomes are replicated in other municipalities through strategic partnerships
with key stakeholders: The project’s outcomes will be scaled-up and replicated in other municipalities through strategic
partnerships established between the Colombian Coffee Federation, the Von Humboldt Institute, the Regional Autonomous
Corporations, Rain Forest Alliance and Fundación Natura. It is important to underscore that the Colombian Coffee Federation
is the oldest and most important agricultural producer’s federation in Colombia which represents all Colombian coffee
growers. The current institutional and technical support provided by the Colombian Coffee Federation nationwide is a key
element that will facilitate the replication of project’s outcomes in selected municipalities across the country. The Colombian
Coffee Federation’s extension services will continue to provide support on ways to maximize economic and biodiversity
benefits from shade coffee and agroforestry products. In addition, the Colombian Coffee Federation and other project partners
will use their influence to bring on board financial institutions that provide affordable credit to shade coffee farmers.
B. DESCRIBE THE CONSISTENCY OF THE PROJECT WITH NATIONAL PRIORITIES/PLANS
11. The Project is consistent with Colombia’s National Biodiversity Strategy and Action Plan (NBSAP). A key priority of
NBSAP is promoting the sustainable use of biodiversity through: a) sustainable management of natural resources; b)
development of the economic potential of biodiversity; and c) assessment of the economic value of biodiversity and its
ecosystem services. In addition, Colombia’s National Development Plan (NDP) for 2006-2010 identifies “conservation and
sustainable use of environmental goods and services” and “generation of income and green employment” as two of its five
strategic priorities for environmental sustainability. Furthermore, a priority line of action of the current agriculture policy
2
Philpot, S.M., P. Bichier, R. Rice, and R. Greenberg. 2007. Field-Testing Ecological and Economical benefits of Coffee Certification
Programs. Conservation Biology 21:975-985.
6
(i.e., CONPES policy) in support of the coffee sector encourages the Colombian Coffee Federation to support the cultivation
of specialty coffees such as biodiversity-friendly coffees. The proposed project supports all priority lines of action identified
in the NBSAP, NDP, and the agriculture CONPES policy.
C. DESCRIBE THE CONSISTENCY OF THE PROJECT WITH GEF STRATEGIES AND STRATEGIC PROGRAMS
12. The project will support the conservation and sustainable use of biodiversity within the Colombian coffee sector through
the promotion of biodiversity-friendly production systems. Therefore, this project is consistent with the Strategic Objective 2
(To mainstream biodiversity in production landscapes/seascapes and sectors) of the Biodiversity Focal Area. Specifically, this
project will contribute to the Strategic Program 5 (Fostering markets for BD goods and services) of the GEF strategy. The
project’s principal focus will be on promoting the production and marketing chains for shade-grown coffee and biodiversityfriendly agroforestry products (SP5).
D. OUTLINE THE COORDINATION WITH OTHER RELATED INITIATIVES
13. This proposal will complement and draw lessons learned from the regional UNDP-GEF Project “Biodiversity
Conservation in Coffee: Transforming productive practices in the coffee sector by increasing market demand for certified
sustainable coffee” that is currently being implemented in Colombia (i.e., one of six countries) by Rainforest Alliance and
Fundación Natura. This regional project just finished its first year of implementation in Colombia and some of its key lessons
that contributed to the development of the present national coffee PIF include: 1) the certification model of Rainforest
Alliance has been well received by local farmers. Therefore, the certification model for shade coffee developed by this
regional project will guide complementary certification activities sought by Component 2 of this new PIF proposal in
Colombian departments not covered by the regional coffee project; 2) when international coffee prices are low small farmers
need additional economic incentives to keep them growing shade-coffee. Component 1 of this PIF proposes generating
additional economic incentives through payments for ecosystem services; 3) the effective implementation of a coffee
certification model in Colombia needs the participation of national institutions. This PIF brings together the Colombian
Coffee Federation, the Regional Autonomous Corporations (CARs) and municipalities; and 4) albeit an important habitat,
shade-coffee is not a panacea for biodiversity conservation. Shade-coffee landscapes remain altered production landscapes,
and while many species can survive in shade-coffee habitat, some cannot. Shade-coffee habitat cannot replace protection of
remaining natural areas, and should be considered a complement to other conservation efforts carried out at a landscape level.
Consequently, Component 3 of this PIF strengthens the capacities of municipalities to implement landscape-based activities
such as conservation corridors that connect nearby forests with shade-coffee farms contributing both to the conservation of
these forests and the enrichment of shade-coffee habitats. Since both Rainforest Alliance and Fundación Natura are part of
the project team of this proposal, this would facilitate the exchange of experiences between these two projects. The regional
project would not only support certification efforts of this proposal as outlined above, but would also benefit from
experiences of Components 1, 3, and 4 not addressed by the project strategy of the regional project.
14. This proposal will also benefit from both a national Biodiversity Information System (SIB) developed by the Von
Humboldt Institute and the recently concluded World Bank-GEF project “Conservation and Sustainable Use of Biodiversity
in the Colombian Andes”. The World Bank-GEF project will provide tools and lessons learned from landscape-based
management approaches implemented by this project in coffee landscapes in order to enhance biodiversity and improve the
connectivity between ecosystems. For example, the Von Humboldt Institute implemented models for the generation of
income from hydrological services in the department of Boyacá and this experience will be replicated in selected
municipalities of the present project.
E.
DISCUSS THE VALUE-ADDED OF GEF INVOLVEMENT IN THE PROJECT THROUGH INCREMENTAL REASONING
15. An analysis of the baseline shows that without the GEF intervention coffee farmers and municipal authorities will be
unable to address the barriers described in section A that prevent generating economic incentives from payments for
ecosystem services and certified coffee/agroforestry products. Without the GEF alternative selected municipalities will be
unable to develop and implement landscape-based planning initiatives that include: a) setting up payment structure
mechanisms for water and carbon sequestration/mitigation services, and b) enhancing biodiversity present in shade-coffee
farms through conservation corridors. Furthermore, without the GEF alternative marginal areas of low productivity and high
biodiversity will be most severely affected with shade managed systems being lost to alternative uses that apply unsustainable
7
practices (slash and burn, overgrazing, etc.). In this context the destruction of the coffee landscape in the Andes will continue
to be fuelled by continued land conversion for agriculture, poor agricultural/pastoral practices, over-exploitation of montane
forests. Existing shade-coffee farms and municipalities are likely to continue to operate under unsustainable management
practices, weak markets and budgetary constraints that limit their capacity to effectively conserve biodiversity at a farm and
landscape level. In the alternative scenario, GEF funds will facilitate the adoption of technical standards and production
practices needed to ensure the preservation of the shade-coffee landscape and their global biodiversity benefits in the tropical
Andean region of Colombia.
F. INDICATE RISKS, INCLUDING CLIMATE CHANGE RISKS, THAT MIGHT PREVENT THE PROJECT OBJECTIVE(S) FROM
BEING ACHIEVED, AND IF POSSIBLE INCLUDING MEASURES THAT WILL BE TAKEN
Risk
Rating*
Lack of willingness to
cooperate among various
institutions/agencies, with
responsibility for land and
resource management in the
coffee-producing landscape
L
Lack of willingness of
municipalities to participate
in replication activities of the
proposed mainstreaming
strategy
Lack of certification
compliance
Continued declines in global
prices for coffee, and in
incomes from shade-grown
coffee production
Climate change undermines
ecosystems that are vital for
the stability of coffee
producing landscapes
Security Issues
L
Overall Risk Rating
L
L
M
L
M/L
Risk Mitigation Measure
The project will involve relevant institutional stakeholders at the outset of the PPG phase,
including CARs, municipalities, municipal technical units (UMATAs), community action
boards, farmer cooperatives, and producers’ associations, to ensure their support for and
participation in the project. In this regard, the project has the advantage of being executed by
the Colombian Coffee Federation, which is probably the most influential and well-respected
institution in the coffee-growing regions of Colombia, responsible not only for assisting coffee
growers but also for the construction of highways, bridges, sewer systems, and aqueducts.
Key partnerships and trust strengthened over many years between the Colombian Coffee
Federation and coffee growing municipalities (see previous risk mitigation measure) will
minimize this risk. In addition, economic benefits derived from the project components (i.e.,
payment for ecosystem services models and certified coffee) will encourage municipalities to
participate in replication activities.
Rainforest alliance and its partner organization Fundación Natura will develop and test a
protocol to verify and monitor compliance of certification standards in shade coffee farms.
While the project cannot eliminate this risk, it will mitigate the potential impacts by promoting
other economic incentives from selected ecosystem services and the diversification of farmer
production to include other biodiversity-friendly agroforestry products. It will also improve
productivity of existing shade-grown coffee production.
Climate change is likely to alter Andean ecosystems that are vital for the coffee industry.
However, the project can minimize this risk through the economically viable coffee landscapes
consisting of shade coffee trees mixed with agroforestry species which can provide a very stable
carbon sink.
Coffee-growing regions, including the project’s proposed sites are some of the most secure
regions in Colombia. This is due in part to the health, social and economic benefits brought by
the Colombian Coffee Federation that have benefited all inhabitants in the coffee-growing
regions.
G. DESCRIBE, IF POSSIBLE, THE EXPECTED COST-EFFECTIVENESS OF THE PROJECT
16. The premise of this project is based on cost efficiency. Removing the barriers outlined in section A that currently impede
the sustainable and efficient financial and operational management of coffee landscapes and their conservation will increase
the conservation dividend of resources invested in coffee farms. Mainstreaming the conservation of biodiversity into the
coffee sector through the market mechanism and proposed best practices represents a far more cost effective approach than
the classical approach, which would involve mainstreaming through planning and regulation. By mainstreaming biodiversity
conservation through markets, recurrent costs will be virtually eliminated, with conservation supported by payments for
ecosystem services and economic production systems that generate financial benefits for local communities. The project’s
proposed market approach will enable the economic sustainability of shade-coffee production systems and farmers will use
their own resources to replicate practices and achieve scale up well beyond what would be possible with only GEF funds.
Similarly, the project’s proposed best practices including the shade provided by coffee trees will limit weeds and protect the
soil structure. This in turn will decrease the amount of financial resources invested in pesticides normally needed under sungrown coffee conditions. These and other management standards together with payment for ecosystem services models and
access to new markets will improve the cost-efficiency of revenue-generating schemes and maximize biodiversity
conservation benefits.
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H. JUSTIFY THE COMPARATIVE ADVANTAGE OF GEF AGENCY
17. This project fits with UNDP comparative advantages as described by paragraph 109 of the GEF council document
GEF/C.31/5 “Comparative Advantages of GEF Agencies”. UNDP was selected as the GEF IA by the GoC for its experience
in mainstreaming biodiversity into national policy frameworks, production sectors and markets. UNDP Colombia will
provide cash co-financing from TRAC resources in the amount of US$20,000 to support implementation of Component 1 on
payments for ecosystems services (i.e., Component 1). In addition, UNDP Colombia will provide in-kind support through all
of the institutional capacity it has as an agency of the UN system and its relationships with different sectors of the national
government, civil society and farmer organizations.
PART III: APPROVAL/ENDORSEMENT BY GEF OPERATIONAL FOCAL POINT & GEF AGENCY
A. RECORD OF ENDORSEMENT OF GEF OPERATIONAL FOCAL POINT ON BEHALF OF THE GOVERNMENT:
Claudia Patricia Mora Pineda
Viceminister of Environment
Ministry of Environment, Housing and Territorial Development
Bogota, Colombia
Date: 10 December2007
B. GEF AGENCY CERTIFICATION
This request has been prepared in accordance with GEF policies and procedures and meets the GEF criteria for
project identification and preparation.
GEF Agency Coordinator: John Hough
UNDP/GEF Deputy Executive Coordinator a.i.
Project Contact Person: Santiago Carrizosa
Date: February 11, 2008
Tel. and Email: +507-302-4510; santiago.carrizosa@undp.org
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