Land Degradation Offset and Mitigation in Western Mongolia Project Overview

This project in Western Mongolia aims to address land degradation issues caused by mining activities by implementing offsetting principles, supporting pasture restoration, and enhancing biodiversity conservation. With a total funding of 6,569,863$, the project targets to conserve ecosystem integrity and resilience in the region while reducing negative impacts on rangelands. Through a mitigation hierarchy approach, the project seeks to integrate mitigation and offset strategies into landscape-level planning to promote sustainable land management practices.

• Land Degradation
• Mongolia Project
• Ecosystem Conservation
• Mitigation Hierarchy
• Biodiversity

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1. Land Degradation Offset and Mitigation in Western Mongolia Project introduction May 25, 2015 1

2. Outline Overview Threats, root causes and solutions Offsetting principle Project goal, objective, outcomes and outputs Project indicators Funding summary Project implementation arrangement Risks Project social and environmental risk screening checklist

3. Overview Project pilot sites Project implementation period: 2015-2019 Implementing agency: MEGDT Executing agency: UNDP Project funding: GEF: 1,289,863$ UNDP: 850,000$ Government of Mongolia (MEGDT, MM): 4,430,000 $ WWF: 80,000 $ TNC: Mongolian National Mining Association Total 6,569,863$ 150,000 $ 50,000 $ Pilot sites: Uvs province Zavkhan province - Durvuljin soum Khovd province Bukhmuren soum Darvi soum

4. Threats, root causes and solutions Issues and challenges: Mining development related issues: Ecological imbalance Land degradation Habitat loss Solutions: Applying offsetting to land degradation Pasture restoration Rural livelihoods support Biodiversity conservation Strengthening legal framework Strengthening national and local governance

5. Net Positive Approaches

6. Mitigation Hierarchy for Net Positive Approaches Additional Conservation Actions (ACA) Net Positive Impact Biodiversity Value Offsets (Off) Offsets (+) (-) PBI PBI PBI PBI Predicted Biodiversity Impact Restore (Rs) Residual Impact Reduce (Re) Reduce Avoid (Av) Avoid Avoid (after Rio Tinto 2004) Where NPI = PBI + (Av + Re + Rs) + Off + ACA

7. Project goal and objective Project goal Conservation of ecosystem integrity and resilience, biodiversity and livelihoods in Western Mongolia s productive landscapes Objective To reduce negative impacts of mining on rangelands in the western mountain and steppe region by incorporating mitigation hierarchy and offset for land degradation into the landscape level planning and management

8. Project outcomes Land degradation mitigation and offset framework operationalised, through eco- regional land use planning and capacity development Land degradation mitigation and offsets applied through SLM landscapes within selected

9. Outcome 1: Land degradation mitigation and offset framework operationalised, through eco-regional land use planning and capacity development Land degradation mitigation and offset procedures and guidelines developed, integrated in the mining concession planning and licensing system and operationalized Participatory science-based eco- regional assessment conducted In western Mongolia and applied provincial (landscape-level) land use planning and Capacity of key stakeholders developed to apply mitigation and offsetting at the national, aimag and soum levels, and public awareness raised to

10. Outcome 2: Land degradation mitigation and offsets applied through SLM within selected landscapes Integrated land management plans operationalised in selected landscapes with full participation of key stakeholders Capacity of local stakeholders developed through demonstration and application of innovative SLM approaches Land degradation mitigation and offsets piloted in selected landscapes

11. Project indicators: Outcome 1 Indicator Baseline End of project target Resolution of legal contradictions and adoption of new guidelines / regulations / mechanisms to strengthen the mitigation /offsetting framework Incomplete - Relevant provision of law to incorporate offsetting in land use plans at national, aimag and soum levels; - Guideline for the implementation of offsetting hierarchy through SLM and mitigation Area of priority conservation areas identified for protection by eco-regional assessment and expansion of new national and local protected areas Capacity scorecard Total 13,43 mln ha (NPA- 11,35 mln ha, LPA- 2,08 mln ha) 10 % increase (= 12.45 million ha) Score - 41 25% increase

12. Project indicators: Outcome 2 Indicator Baseline End of project target Area of pastoral production system and natural habitats, applying integrated planning, management and offsetting 0 ha at least 100,000 ha, with at least one offset agreement signed Increased investments in SLM actions by mining companies Khotgor mine $29,323 Bayan Airag mine $19,600 Khushuut mine $118,000 A 50% increase on the 2015 EMP budgets of partner mining companies in the pilot landscapes Not less than 50 % of households % pilot site herder/farmer families applying innovative SLM technologies To be confirmed during the inception phase Area of grazing/forested land (ha) and # springs/wells in pilot landscapes subject to innovative SLM interventions To be determined during the inception phase 30% of the total grazing/forested area or degraded springs/wells in the pilot landscapes

13. Summary of Funds - 1 Period Source Total (US$) 1,289,863 Year 1 450,050 Year 2 397,200 Year 3 223,100 219,513 Year 4 GEF GoM 750,000 1,000,000 1,200,000 1,200,000 4,150,000 UNDP 250,000 200,000 200,000 200,000 850,000 TNC 37,500 37,500 37,500 37,500 150,000 WWF Mongolian National Mining Association 20,000 20,000 20,000 20,000 80,000 12,000 12,000 13,000 13,000 50,000 Total (US$) 1,519,550 1,666,700 1,693,600 1,690,013 6,569,863

14. Summary of Funds - 2 Period Project components Total (US$) Year 1 Year 2 Year 3 Year 4 1. Legal framework, capacity building 266,050 202,100 48,750 56,100 573,000 2. LD offset piloting 144,800 168,900 148,150 138,150 600,000 Project management 39,200 26,200 26,200 25,263 116,863 Total (US$) 450,050 397,200 223,100 219,513 1,289,863

15. Project management Project implementation modality NIM Project implementing partner MEGDT, ensuring the delivery of outcomes and coordination of all relevant stakeholders, UNDP the GEF Implementing Agency, provision of technical assistance, quality assurance of the project

16. Project organizational structure

17. Project risks Insufficient knowledge on offsetting, especially among local level government organizations Unwillingness and lack of commitment of mining companies to provide additional funds for offsetting Parliamentary election and Government restructuring in 2016 Project implementation period is not sufficient for mitigation measures for land degradation

18. Project social and environmental screening checklist Project social and environmental risk screening checklist Positive impact on environment and society: Reduction of negative impact of mining, mitigation of land degradation, restoration of habitat Improvement of livelihood of local communities Easing of tension and better relations between mining companies and local communities

19. Thank you for your attention