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### Viewing cable 06BRASILIA870, GEF FUNDING CONCERNS AND THE CERRADO

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
06BRASILIA870 | 2006-05-04 18:50 | 2011-07-11 00:00 | UNCLASSIFIED | Embassy Brasilia

`

    VZCZCXRO4523
    RR RUEHRG
    DE RUEHBR #0870/01 1241850
    ZNR UUUUU ZZH
    R 041850Z MAY 06
    FM AMEMBASSY BRASILIA
    TO RUEHC/SECSTATE WASHDC 5286
    INFO RUEHBU/AMEMBASSY BUENOS AIRES 3978
    RUEHSG/AMEMBASSY SANTIAGO 5469
    RUEHLP/AMEMBASSY LA PAZ 4542
    RUEHPE/AMEMBASSY LIMA 2966
    RUEHQT/AMEMBASSY QUITO 1795
    RUEHBO/AMEMBASSY BOGOTA 3720
    RUEHAC/AMEMBASSY ASUNCION 5394
    RUEHGE/AMEMBASSY GEORGETOWN 1045
    RUEHMN/AMEMBASSY MONTEVIDEO 6212
    RUEHPO/AMEMBASSY PARAMARIBO 1071
    RUEHCV/AMEMBASSY CARACAS 3223
    RUEHRG/AMCONSUL RECIFE 4704
    RUEHSO/AMCONSUL SAO PAULO 6873
    RUEHRI/AMCONSUL RIO DE JANEIRO 1997
    RUEATRS/DEPT OF TREASURY WASHDC
    RHEBAAA/DOE WASHDC
    RUEHC/DOI WASHDC
    RUEAWJA/DOJ WASHDC
    RUEAEPA/HQ EPA WASHDC
    RUEANAT/NASA WASHDC
    RUCPDC/NOAA WASHDC
    RUMIAAA/USCINCSO MIAMI FL
    RUEHRC/USDA WASHDC
    RUCPDO/USDOC WASHDC

` `

    UNCLAS SECTION 01 OF 02 BRASILIA 000870

    SIPDIS

    SIPDIS

    DEPT FOR OES/ENV JMATUSZAK
    STATE PLS PASS TO USAID LAC/RSD, LAC/SAM, G/ENV, AND PPC/ENV
    STATE PLS PASS TO NSF/INTL FOR HSTOLBERG
    TREASURY FOR USED IBRD AND IDB AND INTL/MDB
    USDA TO FOREST SERVICE FOR MZWEEDE
    USDA TO ARS/INTERNATIONAL RESEARCH FOR G FLANLEY
    INTERIOR TO DIR INT AFFAIRS FOR KWASHBURN
    INTERIOR TO FWS FOR TRILEY
    INTERIOR PASS TO USGS/INTERNATIONAL/JWEAVER
    JUSTICE TO ENVIRONMENT AND NATURAL RESOURCES FOR JWEBB
    EPA FOR INTERNATIONAL/HILL-MACON

    E.O. 12958: N/A
    TAGS: SENV EAGR EAID ECON SOCI BR
    SUBJECT: GEF FUNDING CONCERNS AND THE CERRADO

    ¶1.  SUMMARY:  During the Meeting of the Parties of the Commission on
    Sustainable Development in Curitiba in March, Marina Silva, Brazil's
    Minister for the Environment, announced the intention of the
    Government of Brazil to increase legal protection of the Cerrado
    ecosystem.  Part of this new focus on the Cerrado will involve the
    creation of the Sustainable Cerrado Initiative which will use GEF
    funding to improve the sustainable development of this biome.
    Recent changes to the GEF, including the new Resource Allocation
    Framework and the level of USG funding for the fourth replenishment,
    have created concerns within the GOB over whether this initiative
    will receive enough funding to remain viable.  END SUMMARY.

    -----------
    The Cerrado
    -----------

    ¶2.  Currently considered the richest savannah in the world in terms
    of biodiversity, the Brazilian Cerrado combines over 10,000 plant
    species and 1,575 animal species.  This unique ecosystem covers an
    area of two million square kilometers, a quarter of the Brazilian
    national territory.  It occupies the whole of central Brazil and
    extends through thirteen Brazilian states and the Federal District.
    Threatened by the loosely regulated advance of the agricultural
    frontier (primarily for soy bean and sugar cane production), which
    has already advanced over more than fifty percent of the region,
    only two percent of the Cerrado is protected in conservation units
    such as national parks and biological reserves.  Beyond the
    devastation of its abundant biodiversity, the destruction of the
    Cerrado endangers a region that feeds the aquifers of the principal
    river basins of Brazil.

    ---------------------------------------
    The National Commission for the Cerrado
    ---------------------------------------

    ¶3.  Impressed by the speed at which the landscape of the Cerrado is
    being converted into pasture and farmland - 30,000 square kilometers
    per year - Brazilian civil society and the government are debating
    conservation strategies for the biome.  These conversations resulted
    in the creation of a National Commission for the Sustainable Cerrado
    Program (Comissao Nacional do Programa Cerrado Sustentavel -
    CONACER).  CONACER will be presided over by Joao Paulo Capobianco,
    head of the Biodiversity and Forests Secretariat of the Ministry of
    the Environment (MMA).  In addition, CONACER will be composed of 26
    members from a wide array of government, academic, and civil society
    representatives.  The Commission will be the focal point for
    coordinating public policies related to conserving the Cerrado.  One
    of the top priorities of CONACER is to convince the Brazilian
    parliament to approve a constitutional amendment proposal (PEC) to
    include the Cerrado as a National Heritage Site.  Brazil's 1988
    Constitution only includes the Amazon, Atlantic Rainforest, and the
    Pantanal as areas of national interest.

    ---------------------------
    GEF Projects in the Cerrado

    BRASILIA 00000870  002 OF 002

    ---------------------------

    ¶4.  The GOB submitted the GEF Sustainable Cerrado Initiative project
    which is a joint effort by the Government of Brazil, MMA, States of
    Goias, Tocantins, Federal District and EMBRAPA (Agricultural
    Research Agency) to support the conservation and sustainable
    development of the Cerrado biome in central Brazil. The GOB project
    proposal requested US$ 27 million although only US$ 13 million was
    approved.
    ¶5.  The GEF Sustainable Cerrado Initiative project would support the
    strategy and priorities established by the multi-stakeholder
    CONACER- Cerrado Biome Working Group and help establish a biome-wide
    coordinated program of action to protect and use in a sustainable
    manner the remaining Cerrado.  According to the Cerrado Directory of
    the Ministry of Environment, this GEF project is still under
    negotiation despite the fact that they received positive indications
    that the project was approved by the GEF council. They are still
    waiting for the financial resource guarantee.

    -------------------------------------------
    The GEF Resource Allocation Framework (RAF)
    -------------------------------------------

    ¶6.  The GOB Ministry of Planning and Budget which coordinates the
    GEF procedure affirmed that the new RAF in particular is helpful and
    will force governments to focus and prioritize the projects creating
    more holistic country strategies.  However, the transition in
    implementation of the RAF is creating concerns because the GOB
    doesn't know which current projects have money from GEF 3 and which
    are to be put off to GEF 4.  The biggest concern is that if the U.S.
    funding levels decrease for GEF 4, there will be fewer resources to
    promote GOB GEF projects.  In addition, due to the changes in the
    GEF brought on due to the RAF, the GOB is trying to find out what a
    reasonable expectation of funding for this and future projects could
    be, given the desire by the GEF to allocate a base level of funding
    for each country.
    ¶7.  Having answers to these questions will enable the GOB to
    allocate more efficiently the resources that are or will be provided
    to it. In addition, the GOB will be creating a new vetting and
    review procedure for GEF proposals as the new RAF will force the GOB
    to focus more closely on national priorities rather than those of
    any particular stakeholders.  Mr. Carlos Lampert, General
    Coordinator for International Affairs of the Ministry of Planning
    and Budget also thought that it might be instructive for the GEF to
    coordinate and host a regional meeting for countries to present and
    share their strategies for dealing with the new RAF procedures.
    According to Mr. Lampert, while Brazil has a strong interagency
    process for dealing with GEF proposals and coordinating the national
    strategy, many other countries in the region still lack the
    institutional ability to do this and thus could find themselves in a
    position of losing GEF funding through the new RAF.

    CHICOLA

`