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Environmental Guidelines - Table 7

FORESTRY OPERATIONS: LOGGING

Forestry operations may result in substantial environmental impacts, particularly as it relates to destruction of forests and other vegetative cover, biodiversity, soil stability, siltation of waterways, pressure on human and livestock population, wild lands of concern such as known sites of rare and endangered species, wildlife breeding & feeding, bird sanctuaries and on regional microclimate. Ex Im Bank's guidelines as it relates to logging operations focus on the environmental and social objectives of ecological soundness and mitigation of socio-economic effects.

The international guidelines for Forestry presented in this Table are condensed from World Bank Group guidelines set forth applicable World Bank Group Operational Policies, most notably, OP 4.36, Forestry Operations. To the extent that projects in this sector impact a sensitive area (Annex D), submission of an Environmental Impact Assessment (Annex E) describing the environmental effects of the project and measures to mitigate the adverse impacts is required. The extent to which environmental information is required for transactions involving the expansion of an existing project in this sector will be determined on a case-by-case basis based on the scope of the proposed work, the condition and circumstances of the underlying project and the general environmental results delivered by the project. The preparation of EIAs for pulp& paper mill projects should include consideration of the potential for the occurrence of indirect impacts to near-by protected forests due to illegal logging that may be facilitated by the added capacity necessary to feed the mill.

Further information relative to the guidelines presented in this Table and a description of measures to control emissions and effluents produced by projects in this sector are found in the World Bank Group Operational Safeguard Policy (OP) 4.36 Forestry Operations, OP 4.04; Natural Habitats, OP 4.20, Indigenous Peoples; OP 4.11, Safeguarding Cultural Property, and OD 4.30, Involuntary Resettlement. These World Bank Group Operational Policies can be found at: http://www.ifc.org/enviro/EnvSoc/pollution/guidelines.htm. In the case of ambiguity between information in this Table and relevant sections of the PPAH and referenced Operational Policies of the World Bank Group, the guidelines set forth in the PPAH and Operational Policies in effect as of December 18, 2003, will prevail for purposes of Ex-Im Bank's review and its determination of a project's compliance with the applicable guidelines of the World Bank Group.

GENERAL GUIDELINES - FORESTRY OPERATIONS

A. Projects that would involve significant conversion or degradation of critical forests or related critical natural habitats, will not be supported. World Bank Operational Policies 4.36 and 4.04 provide definitions of critical forests and related critical natural habitats.

B. Projects that would involve the significant conversion or degradation of natural forests or related natural habitats (see World Bank OP 4.36 for a definition of natural forests), may be supported if it is determined that: 1) The forest and related habitats to be impacted are not critical, 2) There are no feasible alternatives to the project or its siting, 3) The overall benefits from the project substantially outweigh the environmental costs, 4) The project has incorporated appropriate mitigation measures, and 5) The project does not contravene applicable international environmental agreements.

C. Projects that involve conversion or degradation of critical natural habitats, including adjacent or downstream critical natural habitats will not be supported.

D. Commercial harvesting operations must: 1) be certified under an acceptable, independent forest certification system, or 2) adhere to an acceptable, time-bound phased action plan for achieving such a certification.

E. To be acceptable, a forest certification system must: 1) comply with relevant host-country laws, 2) include recognition of and respect for any legally documented or customary land tenure and use rights as well as the rights of indigenous peoples and workers, 3) include measures to maintain or enhance sound and effective community relations, 4) include conservation of biological diversity and ecological functions, 5) include measures to maintain or enhance environmentally sound multiple benefits accruing from the forest, 6) prevent or minimize adverse environmental impacts from forest use, 7) include effective forest management planning, 8) include active monitoring and assessment of relevant forest management areas, 9) include the maintenance of critical forest areas and other critical natural habitats affected by the operations, 10) be independent, cost effective and based on objective and measurable performance standards that are defined at the national level and are compatible with internationally accepted principles and criteria of sustainable forest management, 11) include standards developed with the meaningful participation of local people and communities, indigenous peoples, non-governmental organizations and other members of civil society, and 12) include decision-making procedures that are fair, transparent, independent and designed to avoid conflicts of interest.

F. Financial support for harvesting operations conducted by small-scale landholders, by local communities under community forest management, or by such entities under joint forest management arrangements will be provided if these operations: 1) have achieved a standard of forest management developed with the meaningful participation of locally affected communities, consistent with the principles and criteria of responsible forest management, or 2) adhere to a time-bound phased action plan to achieve such a standard.

G. Habitats of threatened or endangered species approaching high risk of extinction should not be diminished or harmed by forestry operations. Project siting should take into account and minimize to the extent practical impacts to the ecology within the project's area of influence. Care to avoid/minimize impacts must be demonstrated, particularly for (where applicable) primary forests, habitats of endangered and threatened species, wildlife migration and nesting areas, watersheds, wetlands, or other areas viewed as sensitive within the project's locale. For projects situated in sensitive locations, the EIA and Environmental Management Plan (EMP) should address the risk of direct and indirect impacts on the environment of the area of influence associated with the project as well as measures mitigating these impacts. Guidance can be drawn from the World Bank OP 4.04 on Natural Habitats.

WATER RESOURCES

• Harvesting in areas of karst terrain, unstable slopes, moderately steep slopes, highly erodible floodplain soils, or highly braided channel areas should be avoided.
• Stream crossings shall be minimized so as to reduce siltation; log suspension is encouraged for yarding across small streams.
• Areas disturbed by draglines and vehicles must be reclaimed, preferably with native species.
• Surface and ground waters should be protected from pesticide contamination. Buffer zones near watercourses should be maintained and the use of biodegradable chemicals is encouraged.
• Appropriate buffer zones (as determined by a qualified expert) should be established for streams, rivers and wetlands. Cumulative effects of logging outside the riparian zones will not be so great as to degrade the aquatic environment.
• An erosion and sediment control plan must be developed and implemented to adequately minimize sediment impacts to adjacent streams, rivers and lakes.

ROAD CONSTRUCTION

• Maximize use of existing roads and minimize penetration of new roads into forest ecosystems.
• Minimize the amount of cut and fill for roads.
• Culverts should be designed to carry anticipated flood flows and installed at natural channel grade to maintain drainage system.
• Roads construction should avoid poorly drained areas and avoid the creation of steeply sloping cuts and fills above and below the roads.
• Right of way clearings should include the placement of windrowed brush barriers on the downslope of the road to act as a sediment filter, especially in fill areas.
• Water bars or other methods should be used to rapidly divert surface runoff from road surfaces.
• Road reclamation/re-vegetation of cut and fill slopes should be completed in a timely manner to minimize erosion.

WASTE MANAGEMENT
Throughout all phases of a forestry project, proper management and disposal of waste materials will be implemented so as to avoid unnecessary soil, water and groundwater contamination. Recycling or reclamation of solid and liquid non-hazardous wastes and materials is encouraged where possible. If recycling or reclamation is not practical, wastes must be disposed of in an environmentally safe manner that incorporates best management practices, as well as in compliance with applicable local laws and regulations. Projects that include the handling, storage and disposal of hazardous materials must include a management plan demonstrating that the contamination of soil, groundwater and surface waters is minimized to the extent possible and remediated as necessary.

NOISE
Blasting will be minimized or avoided in areas inhabited by high risk endangered or threatened species so as not to harm animal life. Noise generated by equipment used in logging operations should be managed to the extent possible.

RESETTLEMENT, INDIGENOUS PEOPLES, CULTURAL PROPERTY (When Applicable)
The establishment of agro forestry operations by local residents is encouraged where appropriate. Project site selection should take into account and minimize to the extent practical adverse impacts to indigenous and other vulnerable people within the project's area of influence resulting from involuntary resettlement, land use changes, population influx due to increased access caused by the project, or effects on culturally significant artifacts or sites.

Projects must address the interest and livelihoods of indigenous and other affected local populations. Resettlements or relocation of local residents, indigenous people, and communities must be in compliance with local and national laws and address internationally accepted standards such as those of the World Bank Group. (See Operational Safeguard Policies of the World Bank: OP 4.20, Indigenous Peoples; OP 4.11, Safeguarding Cultural Property and OD 4.30, Involuntary Resettlement).

NATURAL HABITATS (When Applicable)
Project site selection should take into account and minimize to the extent practical impacts to the ecology within the project's area of influence. Care to avoid/minimize impacts should be demonstrated, particularly in the case of important and critical natural habitats as defined in World Bank Operational Policy 4.04; Natural Habitats. For projects situated in sensitive locations, the EIA should address the risk of direct and indirect impacts on the environment of the project's area of influence as well as measures to mitigate these impacts. Guidance in protecting natural habitats is provided in OP 4.04.

ENVIRONMENTAL MANAGEMENT AND MONITORING (When Applicable)
For Category A projects, an environmental management and monitoring plan (EMP), as described in Annex E, should be provided that sets forth: (a) the measures to be taken during the implementation and operation of a project to eliminate or offset adverse environmental impacts, or reduce them to acceptable levels; (b) the actions needed to implement these measures; and (c) actions required to assess the effectiveness of the mitigation measures employed. Specific requirements of the EMP will be made on a case-by-case basis according to the project's environmental sensitivities. The World Bank Operational Policy 4.01 provides guidance with respect to the preparation of an EMP.