ConsultationEnvironmentalandSocialStandardsoftheLandDegradationNeutralityFund
BothENDS/theNetherlands
Contactperson:NathalievanHaren([email protected])
06November2016
Generalremarks
TheLandDegradationNeutralityFund(LDNFund)hastheambitiontobeanimpactinvestmentfund,whichis
aboutinvestmentsmadeintocompanies,organizations,andfundswiththeintentiontogeneratesocialand
environmentalimpactalongsideafinancialreturn.Wewelcometheambitiontogeneratefinancialmeansto
ensuresustainablelandmanagementpractices.Thisisalsoespeciallyneededassomanysustainable
initiatives,whichareeffectiveonthelong-term,startsmallbyindigenouspeoples,small-scalefarmers,
women,pastoralistsandnomadicpeoplewholackaccesstofunds.
Smallisbeautiful
ThewebsiteoftheFundspeaksofmanysmall-scaleprojectswhicharedemonstratingthatsustainable
landscapemanagementismoreprofitablethantheunsustainablealternative.However,thereactionofthe
Fundistofocusonlarge-scalerehabilitationofdegradedland(12millionhectares/year:approximatelythe
sizeofarablelandinGermanyorthesizeofMalawi),forsustainableandproductiveuse,withlong-term
privatesectorfinancing.Wenoticeagreatdiscrepancy.
Thereisagapbetween(i)theambitionandlongtermpotentialofmanylocallanduserstoproduce
sustainably,bydoinggoodtotheland,tothepeopleandbeprofitableatthesametimeand(ii)investmentsof
theFundinlarge-scalerehabilitationschemesofdegradedland,wherenotnecessarilythelong-term
sustainableuseofthelandbyindigenouspeoples,small-scalefarmers,women,pastoralistsandnomadic
peopleisthefirstpriority.TheLDNFundshouldaskforadviceofsmallgrantfundslikeGlobalGreenGrants
Fund(https://www.greengrants.org),CasainBrazil(http://www.casa.org.br/en/),PeopleandNatureFundin
India(http://keystone-foundation.org/people-and-nature-fund/),etc.
Remembergender
Inaddition,thedocumentlacksreferencetogenderandtherecognitionthatevidencestronglysuggeststhat
womenloseoutonthebenefitsoflarge-scaleinvestmentsandbearadisproportionateshareofthenegative
impacts.Womenoftenusethelandandensurefoodisharvestedtofeedtheirfamilies,yetinmanycasesthey
donothavetheformalorcustomaryrightsovertheland,neithertheownershiptodecidewhatneedsto
happenwiththeland.Beinggenderneutralisnotenough:investorsneedtoadoptexplicitgenderpoliciesand
takeaproactiveapproachtoensuringthatpoliciesandpracticeshelptoovercomeratherthanreinforcepreexistinggenderinequalities.ThestandardsandproceduressetupbytheFundshouldincludeawaytoassess
theactualland(user)rightsandtheuseoftheland.Thismeansthatgendershouldbemadeexplicitinall
proceduresrelatedtoinvestments:
• Assessingtherisksoftheinvestment:foreveryinvestment,itisimportanttoaskwhatkindsofrisks
arebeingtakenandwhowillassumethepotentialcosts(landuser,gender,age)
• Assessingtheoutcomesoftheinvestment:itisimportanttobeabletoassesspotentialinvestmentsin
termsoftheirimpactongenderequalityandthelocalprioritiesandneedsofthepoorestpeople.
Withregardstogender,theFundshouldlookatthewaysfundsdedicatedtowomenfunction,e.g.Fondo
CentroamericanodeMujeresforCentralAmerica(http://fcmujeres.org/),MamaCash
(http://www.mamacash.org/)etc.
Governance
ItisnotclearhowtheFundwillbegoverned.Whowilltakedecisionsonfundinvestments?Whowilloversee
thattheinvestmentsarecontributingtothe3objectivesoftheFund?WhatwilltheroleofUNCCD,GMand
UNCCDcountriesbeintheLDNFund?WhatistheroleoftheFundmanager?Whatistheroleoftheboardof
directors?Whatisthecompositionoftheboard?Willinvestmentproposalsbepresentedtotheboard?Will
theboardactuallygiveagoornogototheinvestmentproposalsoristhedecisiontakenbytheboardjusta
formality?WhatkindsofaccountabilityprocedureswithintheFundareputinplace?Howistheseparationof
dutiesensured?Dothirdpartieshavearoleininvestmentproposalsadheringtothestandardsand
procedures?Willtherebeabodythatcanassessproposedprojectsagainsttheagreedstandardsand
procedures,e.g.anethicalcommitteethatconsistsofdifferentindependentstakeholders?Dothirdparties
havearoleinmonitoringtheimpactoftheFund?
Whereistherest?
IntheintroductionoftheEnvironmentalandSocialStandardsoftheLDNfund(E&Sstandards),itismentioned
thattheE&SStandardsareaddressingriskmanagementandaretogetherwithE&Srequiredpositiveimpacts
part,oftheE&SManagementSystem,whichispartoftheLDNFundpolicyframework.Weapplaudthefact
thatGMandMirovaareinvitingCivilSocietytogivetheirviewsontheE&Sstandards,butweseriouslyregret
thatwearenotabletoassessthewholesetofpolicies,thustheE&Srequiredpositiveimpactsdocument,the
E&SManagementsystemdocumentandtheLDNFundpolicyframeworkdocument.
Inthatwayonlywecangiveasincereadviceonthedo-goodandavoidharmagendaoftheFund.Forinstance,
wewouldliketoknowhowtheFundanditsborrowers(clientsandpartners)willdealwithtopicslike:
• Financial,socialandenvironmentalduediligence(criteria,principles,andrulesofduediligence),like
environmentalandsocialimpactassessments(lookforinstanceatAsianDevelopmentBank)
• FreePriorandInformedConsentforindigenouspeopleandothercommunitiesneedstobe
operationalized(FAOGovernanceofTenureTechnicalGuide:Respectingfree,priorandinformed
consent-apracticalguidanceforgovernments,companies,NGOs,indigenouspeoplesandlocal
communitiesinrelationtolandacquisition)
• Meaningfulconsultationbytimelypublicdisclosureofinformationanddialoguewithlocallandusers
likeindigenouspeoples,small-scalefarmers,women,pastoralistsandnomadicpeopleonthe
possibilitiesforinvestmentinsustainablelandmanagementandrehabilitationoftheland,the
outcomesofenvironmentalandsocialassessments120daysbeforeaproject(lookforinstanceat
AsianDevelopmentBank)ispresentedforapprovalbytheboard,
• Compliancewiththestandardspriortotheapprovalofaproject(lookforinstanceatAsian
DevelopmentBank)
• Complaintsmechanism&ombudsman(lookforinstanceatAsianDevelopmentBank)
• Compensation
Accountability
Howwillborrowers(clientsandpartners)actuallyadheretothestandards,andhowwilltheybeheld
accountablebeforeaprojectisapprovedof?Whatkindofverificationdocumentswilltheyneedtohandover?
Wewouldliketoadviceactualengagementwithlocalpeopleandcommunities,withindigenouspeoples,
small-scalefarmers,women,pastoralistsandnomadicpeopleaboutpossibleinvestmentsintheirlands,before
andafteraprojectisapproved,intheprojectdesignandimplementation,duringmonitoringandevaluationof
theprojectimpacts.Actualengagementcanbeverifiedbytranscriptsofdialogueswithlocalpeopleand
communities,byinterviewswithlocalpeopleandcommunities.
Existingagreements
Therearemanyinternationallyandregionallyagreeddocumentsthatprovideguidanceondifferentkeyissues
intheLDNFundsuchasgovernance,ownership,accesstolandandsecurityoftenure,investment,genderand
equity.WithorwithoutLDNFund,wewouldliketostressthatthesearetobefollowed,implementedand/or
enforcedbyallstakeholders.Someoftheseinternationallyagreeddocumentsare:
–
ParisAgreementofthepartiestotheUnitedNationsConventiononClimateChange(2015)
–
PrinciplesforResponsibleInvestmentinAgricultureandFoodSystems(2014)
–
FAOGovernanceofTenureTechnicalGuide:Respectingfree,priorandinformedconsent-apractical
guidanceforgovernments,companies,NGOs,indigenouspeoplesandlocalcommunitiesinrelation
tolandacquisition(2014)
–
VoluntaryGuidelinesonResponsibleGovernanceofTenureofLand,FisheriesandForestsinthe
contextofnationalfoodsecurity(2012)(http://www.fao.org/nr/tenure/voluntary-guidelines/en)
–
OECD’sGuidelinesonMultinationalEnterprises(updatedin2011)
(http://www.oecd.org/corporate/mne/oecdguidelinesformultinationalenterprises.htm)
–
UNGuidingPrinciplesonBusinessandHumanRights(2011)
2
–
–
–
–
–
–
–
GuidingPrinciplesonBusinessandHumanRights,endorsedbytheUNHumanRightsCouncil(2011)
(https://www.unglobalcompact.org/library/2)
BusanPartnershipforEffectiveDevelopment(2011)
(http://www.oecd.org/development/effectiveness/busanpartnership.htm)
UNDeclarationontheRightsofIndigenousPeoples(2007)
(http://www.un.org/esa/socdev/unpfii/documents/DRIPS_en.pdf)
UNBasicPrinciplesandGuidelinesondevelopment-basedevictionsanddisplacements(2007)
(http://www.ohchr.org/EN/Issues/Housing/Pages/ForcedEvictions.aspx)
VoluntaryGuidelinestosupporttheprogressiverealizationoftherighttoadequatefoodinthe
contextofnationalfoodsecurity(2004)(http://www.fao.org/docrep/009/y7937e/y7937e00.htm)
ConventionontheEliminationofAllFormsofDiscriminationagainstWomen(CEDAW)(1979)
(http://www.un.org/womenwatch/daw/cedaw)
InternationalCovenantonCivilandPoliticalRights(1966)
(https://treaties.un.org/pages/ViewDetails.aspx?src=IND&mtdsg_no=IV-4&chapter=4&lang=en)
Newinsights
ThetextmentionsthattheE&SmanagementsystemoftheLDNFundwillbeevolvingasworldwideE&S
systemsareevolving.Willtherebeamonitoring&evaluationsysteminplacethatwillserveasthebasefor
revisionoftheE&Smanagementsystem?WillarevisedE&Smanagementsystembeopenforpublic
consultation?
Notsufficient
Finally,organizingapublicconsultationonlyontheE&SstandardswithouthavinginsightinLDNFundoverall
policyframework,liketheprocedures,governanceandcriteriatopromoteapositivecontributiontostabilizing
andreversinglanddegradation,isnotsufficient.Itislikegettingatasteofthecherryofthepudding,whilethe
proofofthepuddingisineatingit.WethereforestronglyurgetheLDNfundtoorganizeaconsultationover
thewholeLDNFundpolicyframework(includingtheE&SrequiredpositiveimpactsandtheE&SManagement
System).
Specificremarks
Websiteoftheconsultation
‘TheLDNFundEnvironmentalandSocialStandards(ESS)definetheframeworkuponwhichallprojectsthatwill
befinancedbytheFundmustadhereto.Oncefinalized,theESSwillbeintegratedintoallaspectsoftheLDN
Fund’sprojectinvestmentcycle,andbecomepartoftheLDNFund’soverallriskmanagementanddue
diligenceapproachtoensuretheresponsiblehandlingofsocialandenvironmentalrisk.Inparticular,theESS
willbeintegratedintotheinvestmentpolicyoftheLDNFund,andtheFundManagerwillhaveresponsibility
forconductingadetailedESSassessmentofeachprojectbeforeinvestment.OtherFundgovernancebodies
willsupportandregulatetheFundManager’sworkonESSissues.Committeeswillbeestablishedtohavea
consultativeroleonESS,providingadviceandexpertisewhenrequired.OtherFundgovernancebodies,
responsiblefortheestablishmentoftheinvestmentguidelines(e.g.BoardofDirectors),willberesponsiblefor
thesupervisionoftheFundManagertoensurecompliancewiththeESS,andwillhavetheauthoritytorequest
aninvestigationfromathirdpartyconsultanttoverifythattheFundisincompliance.’
ItisimportanttoclarifybeforehandwhowillberesponsibleforthesupervisionoftheFundManagertoensure
compliancewiththeEnvironmentalandSocialStandards,theEnvironmentalandSocialrequiredpositive
impactsandtheEnvironmentalandSocialManagementSystemasawhole.Tasks,responsibilitiesand
authoritieswhicharerelatedtothesupervisionofthecompliancewiththeEnvironmentalandSocialStandards
needtoincludethemonitoringofinvestors’andprojects’compliancewiththeEnvironmentalandSocial
StandardsandtheauthoritytodecideonhowtheprojectmustimplementtheEnvironmentalandSocial
Standardsandwhethertheprojectcancontinue.IftheBoardofDirectorshasthisauthority(asisbeing
suggested)itisquestionablewhetherthisboardcandecideindependentlyonthecompliancewiththe
EnvironmentalandSocialManagementSystemingeneralandtheEnvironmentalandSocialStandardsandthe
EnvironmentalandSocialrequiredpositiveimpactsspecifically.
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Wesuggest,inorderguaranteeingindependency,toestablisha‘monitoringandcompliance
committee’thatconsistsofEnvironmentalandSocialexpertsfromthirdparties(includingCSOs).
EnvironmentalandSocialStandardsoftheLDNFund
P2:
Introduction:EnvironmentalandSocialManagementSystemoftheLandDegradationNeutralityFund
‘Lastly,itisimportanttorecognizethattheE&Ssystemsfromaroundtheworldareevolving,andthustheLDN
FundwillregarditsStandardsas“modular”.Thatis,asbestpracticeschange,theLDNFundwillreviewitsE&S
ManagementSystemandexchange“modules”fromavarietyofinternationalfinancialanddevelopment
institutionsasnewexperiencemakeschangesadvisable.TheLDNFundwillthuscontinuetolearnfromthe
experiencesofotherinstitutionsandadoptnewandinnovativepracticesaccordingly.’
WesuggesttheLDNFundtoevaluateitsEnvironmentalandSocialManagementsystemoneyearafter
itsstart,followedbyatwo-yearlyevaluation.HerebytakingintoaccounttheimpactoftheFunds’activitieson
locallandusersandgoodpractices,standardsandproceduresbyotherfundsincludingsmallgrantfundslike
GlobalGreenGrantsFund(https://www.greengrants.org),FondoCentroamericanodeMujeresforCentral
America(http://fcmujeres.org/),CasainBrazil(http://www.casa.org.br/en/),PeopleandNatureFundinIndia
(http://keystone-foundation.org/people-and-nature-fund/),MamaCash(http://www.mamacash.org/)etc.
LDNFundE&SStandardsIntroduction
P3:
‘AfteradetailedanalysisofE&SsystemsthatexistinavarietyoforganizationsitwasdecidedthattheLDN
Fund’sE&SStandardsshouldbebenchmarkedagainsttheInternationalFinanceCorporation(IFC)’s
PerformanceStandards2012.Itisimportanttorecognize,however,thattheLDNFund’smandatenecessitates
thatitsE&SStandardsincludeelementsthatspecificallyaddressissuesrelatedtolandtenureandlanduse.‘
Wesuggestincludingafterlandtenureandlanduse:and(in)formalland(user)rights.Thesentence
thanwouldread:Itisimportanttorecognize,however,thattheLDNFund’smandatenecessitatesthatitsE&S
Standardsincludeelementsthatspecificallyaddressissuesrelatedtolandtenure,landuseand(in)formalland
(user)rights.
‘Assuch,adedicatedStandardexplainingtheLDNFund’sobligationsasrelatedtolandtenureisincludedinthe
LDNFund’sE&SStandards.FortheelaborationofthisStandardtheLDNFunddrewmostlyontheVoluntary
GuidelinesontheResponsibleGovernanceofTenure(VGGT)aswellasonrelevantotherdocumentsand
experiences.
WeregretthattheLDNFundexplicitlymentionsthatitdoesnotadopttheCFSVoluntaryGuidelinesforthe
ResponsibleGovernanceofTenureofLand,FisheriesandForestsinthecontextofnationalfoodsecurity
(VGGTs).Thesearethestateoftheartguidanceforstakeholdersdealingwithland,includinglandusers,
governmentsandinvestors.Also,thesearerecognizedasthebasisforresponsiblegovernancetowardsinthe
LandDegradationNeutralitydiscussionsregardingtheUNCCD,theSDGsetc.
Wesuggesttoreplacethefootnote‘NotethattheLDNFundisnotadoptingtheVGGTbutratherusing
theVGGTasguidanceinconstructingtheenvironmentalandsocialstandardsonlandtenure’with‘TheLDN
FundisusingtheVGGTtojudgewhetherproposedactionsandtheactionsofothersconstituteacceptable
practices.’
P4:
‘Additionally,theStandardsproposedfortheLDNfundareorderedalphabetically.’
Ifthisisthecase,thanLDNStandard3:CommunityHealth,SafetyandSecurityshouldbeplacedbeforeLDN
Standard2:CulturalHeritage.
WesuggestswitchingStandard2andStandard3inordertomakethealphabetwork
LDNStandard1:BiodiversityConservationandSustainableManagementofLivingNaturalResources
(CorrespondstoIFCPS36)
4
P5:
‘LDNStandard1recognizesthatprotectingandconservingbiodiversity,maintainingecosystemservices,and
sustainablymanaginglivingnaturalresourcesarefundamentaltosustainabledevelopment’
Weagreeonthissentenceingeneral,butwouldliketospecificallystressthatbiodiversityisfundamentaltothe
righttofoodoflocalpeopleandcommunities.
Wesuggestaddingaftersustainabledevelopmentthephrase‘andtotherighttofoodoflocalpeople
andcommunities’.Thesentencewouldread:LDNStandard1recognizesthatprotectingandconserving
biodiversity,maintainingecosystemservices,andsustainablymanaginglivingnaturalresourcesare
fundamentaltosustainabledevelopmentandtotherighttofoodoflocalpeopleandcommunities.
P6:
‘Standard1requiresthatallProjectsapplythemitigationhierarchy,i.e.totakeappropriatemeasurestoavoid,
minimizeorrehabilitate/mitigateimpactsthatmaydamagebiologicaldiversity.Whereresidualadverse
impactsonbiodiversityremain,theprojectspromotersmayproposebiodiversitycounterbalancingmeasures,
whereappropriate.’
Thistextistoooptional.
Wesuggesttomakethesentencemorecommittal:Whereresidualadverseimpactsonbiodiversity
remain,theprojectspromotersproposeandapplybiodiversitycounterbalancingmeasuresinconsultationwith
localpeopleaffectedbytheproject.
LDNStandard2:CulturalHeritage(CorrespondstoIFCPS#8)
P7:
‘Inadditiontocomplyingwithapplicablelawontheprotectionofculturalheritage,includingnationallaw
implementingthehostcountry’sobligationsundertheConventionConcerningtheProtectionoftheWorld
CulturalandNaturalHeritage,theProjectImplementerwillidentifyandprotectculturalheritageasidentified
bylocalpeopleandcommunitiesbyensuringthatinternationallyrecognizedandlocallyacknowledged
practicesfortheprotection,field-basedstudy,anddocumentationofculturalheritageareimplemented.’
Wemissthelinkwithlocalpeopleasguardiansofculturalheritage.
Wesuggesttoadd‘culturalheritageasidentifiedbylocalpeopleandcommunities’andlocally
acknowledgedpractices’Thesentencewouldread:‘Inadditiontocomplyingwithapplicablelawonthe
protectionofculturalheritage,includingnationallawimplementingthehostcountry’sobligationsunderthe
ConventionConcerningtheProtectionoftheWorldCulturalandNaturalHeritage,theProjectImplementerwill
identifyandprotectculturalheritageasidentifiedbylocalpeopleandcommunitiesbyensuringthat
internationallyrecognizedandlocallyacknowledgedpracticesfortheprotection,field-basedstudy,and
documentationofculturalheritageareimplemented.
‘TheProjectImplementerwillalsoadheretotheConventiononBiologicalDiversitytoinformhowtheProject
usesculturalheritage.ForthepurposesofthisStandard2,culturalheritagerefersto:
1. Tangibleformsofculturalheritage,suchastangiblemoveableorimmovableobjects,property,sites,
structures,orgroupsofstructures,havingarchaeological(prehistoric),paleontological,historical,
cultural,artistic,andreligiousvalues;
2. Uniquenaturalfeaturesortangibleobjectsthatembodyculturalvalues,suchassacredgroves,rocks,
lakes,andwaterfalls;
3. Certaininstancesofintangibleformsofculture,suchasculturalknowledge,innovations,andpractices
ofcommunitiesembodyingtraditionallifestyles.’
Localpeopleandcommunitiesdeterminetheirformsofcultureandiftheyareintangibleornot.Wewouldlike
toseethisrecognitionofself-determination.
Wesuggestunderbullet3thefollowingtext:3.Intangibleformsofculture,suchascultural
knowledge,innovations,andpracticesoflocalcommunitiesembodyingtraditionallifestyles,asidentifiedby
localpeopleandcommunities.’
LDNStandard3:CommunityHealth,SafetyandSecurity(CorrespondstoIFCPS#5)
‘LDNStandard3:CommunityHealth,SafetyandSecurity(CorrespondstoIFCPS#5)’
5
ThereferencetoIPFPSshouldbe#4as#5isaboutLandAcquisitionandInvoluntaryResettlement.
WesuggestchangingthewordingofPS#5intoPS#4
‘Whileacknowledgingthepublicauthorities’roleinpromotingthehealth,safety,andsecurityofthepublic,
Standard3addressestheProjectImplementer’sresponsibilitytoavoidorminimizetherisksandimpactsto
communityhealth,safety,andsecuritythatmayarisefromProject-relatedimpacts,withparticularattentionto
vulnerablegroups.’
Wesuggestspecifyingpeoplewhoarespecificallyvulnerableinthecaseoflarge-scaleprojects,namely
indigenouspeoples,small-scalefarmers,women,pastoralistsandnomadicpeople.Thesentencewouldread:
‘Whileacknowledgingthepublicauthorities’roleinpromotingthehealth,safety,andsecurityofthepublic,
Standard3addressestheProjectImplementer’sresponsibilitytoavoidorminimizetherisksandimpactsto
communityhealth,safety,andsecuritythatmayarisefromProject-relatedimpacts,withparticularattentionto
vulnerablegroupssuchaswomen,indigenouspeople,small-scalefarmers,pastoralists,nomadicpeople,youth
andpoor.’
P8:
‘TheriskthataProjectcouldexacerbateanalreadysensitivelocalsituationandstressscarcelocalresources
shouldbeconsideredduringtheProjectDesignandMonitoringPlan.’
Aslarge-scaleprojectshavetheinherentriskofstartingorexacerbatingconflictsoverland,wewouldliketo
stressthattherisksforconflictareexplicitlyassessedbeforeanyprojectisapproved.
Wesuggesttoaddthefollowing:‘TherisksthataProjectcouldexacerbateanalreadysensitivelocal
situationandstressscarcelocalresourcesareassessedinaparticipatorywaybeforetheprojectisactually
approved,monitoredduringtheimplementationoftheprojectandevaluatedwhentheprojectisimplemented.’
LDNStandard4:IndigenousPeoplesandVulnerableGroups(CorrespondstoIFCPS#&)
‘Standard4alsorecognizesthatIndigenousPeoplesandVulnerableGroupsareoftenamongthemost
marginalizedandvulnerablesegmentsofacountry’spopulation.Inmanycases,theireconomic,social,and
legalstatuslimitstheircapacitytodefendtheirrightsto,andinterestsin,landandnaturalandcultural
resources,andmayrestricttheirabilitytoparticipateinandbenefitfromdevelopment.’
Wewouldliketoaddpoliticalstatus.Thesentencewouldread:‘Inmanycases,theireconomic,social,
political,andlegalstatuslimitstheircapacitytodefendtheirrightsto,andinterestsin,landandnaturaland
culturalresources,andmayrestricttheirabilitytoparticipateinandbenefitfromdevelopment.’
P9:
‘Asaconsequence,IndigenousPeoplesandVulnerableGroupsmaybemorevulnerabletotheadverseimpacts
associatedwithanLDNFundProjectthannon-Indigenouscommunities.Thisvulnerabilitymayincludelossof
identity,culture,andnaturalresource-basedlivelihoods,aswellasexposuretoimpoverishmentanddisease.
LDNFundProjectsthatmayimpactindigenousproplesandvulnerablegroupsmustthuscarryouta
participatoryassessmentconductedbyanindependentspecialistwhoisagreeduponbyalllocalstakeholders
andverify:
a. Whetherindigenouspeoplesorvulnerablegroupsinhabitorusetheproposedprojectarea(s)(thus
havingformalorinformalrightstotheland)and,ifso,includedisaggregateddatabyindigenousgroup
andgeographicallocation;and
b. Whetherprojectactivitiesmayimpact(evenindirectly)indigenouspeoplesorvulnerablegroupsliving
outsidetheprojectarea.’
Inthisparagraphthereisatypo,namely‘proples’insteadof‘peoples’.
Wewouldliketostresstheriskofexacerbatingthepositionofindigenouspeopleandvulnerablegroupswhen
thereisaninterestofaninvestorinthelandforlarge-scalerehabilitation.
Wesuggesttoaddmoreparticipatoryelementsintheinitialriskassessment:LDNFundProjectsthatmay
impactindigenouspeoplesandvulnerablegroupsmustthuscarryoutaparticipatoryassessmentconductedby
anindependentconsultantwhichisagreeduponbyalllocalstakeholdersandverify:
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a.
Whetherindigenouspeoplesorvulnerablegroupsinhabitorusetheproposedprojectarea(s)(thus
havingformalorinformalland(user)rights)and,ifso,includedisaggregateddatabyindigenousgroup
andgeographicallocation;and
‘Standard4requiresthat,beforeadoptingandimplementingprojectsandprogrammesthatmayaffect
indigenouspeoplesorvulnerablegroups,aprocessofFree,PriorandInformedConsent(FPIC)isfollowedand
consentgivenbytheindigenousorvulnerablecommunity.’
FreePriorandInformedConsentmustbeobtainedfromallindigenouscommunitiesthatarepossiblyaffected
bytheproject.
Thereforewewouldliketosuggestincludingthepluralformaswell.Thesentencewouldread:Standard
4requiresthat,beforeadoptingandimplementingprojectsandprogrammesthatmayaffectindigenous
peoplesorvulnerablegroups,aprocessofFree,PriorandInformedConsent(FPIC)isfollowedandconsentgiven
bytheindigenousorvulnerablecommunity/communities
Inaddition,FPICcanbe(andis)explainedindifferentways.
WesuggesttakinguptheFPICdefinitionfromtheFAO2014reportRespectingfree,priorandinformed
consent-Practicalguidanceforgovernments,companies,NGOs,indigenouspeoplesandlocalcommunitiesin
relationtolandacquisition:
Freeimpliesnocoercion,intimidationormanipulation.
Priorimpliesconsentissoughtfarenoughinadvanceofanyauthorizationorcommencementofactivities,and
thetimerequirementsofindigenousconsultationandconsensusprocessesarerespected.
Informedimpliesthatallinformationrelatingtotheactivityisprovidedtoindigenouspeoplesandthatthe
informationisobjective,accurateandpresentedinamannerorformthatisunderstandabletoindigenous
peoples.Relevantinformationincludes:
1. thenature,size,pace,duration,reversibilityandscopeofanyproposedproject;
2. thereason(s)orpurposeoftheproject;
3. thelocationofareasthatwillbeaffected;
4. apreliminaryassessmentofthepossibleeconomic,social,culturalandenvironmentalimpacts,including
potentialrisksandbenefits;
5. personnellikelytobeinvolvedintheimplementationoftheproject;
6. proceduresthattheprojectmayentail.
Consentimpliesthatindigenouspeopleshaveagreedtotheactivitythatisthesubjectoftheconsultation.
Indigenouspeoplesalsohavetheprerogativetowithholdconsentortoofferitwithconditions.Consultation
andparticipationarekeyelementsofaconsent-seekingprocess.Consultationmustbeundertakeningood
faith,which,amongotherthings,requiresthatindigenousviewsareaccommodatedintheprocessorobjective
justificationsareprovidedastowhysuchaccommodationisnotpossible.Thepartiesmustestablishadialogue
allowingthemtoidentifyappropriateandworkablesolutionsinanatmosphereofmutualrespectandfulland
equitableparticipation,withampletimetoreachdecisions.Indigenouspeoplesandlocalcommunitiesmustbe
abletoparticipatethroughtheirownfreelychosenrepresentativesandcustomaryorotherinstitutions.The
participationofwomen,youthandchildrenispreferablewhereappropriate.
LDNStandard5:LabourandWorkingConditions(CorrespondstoIFCPS#2)
P10:
Thereare8ILOfundamentalconventionsandthereisonlyreferencetoILO138onminimumageandILO182
onchildlabour.Whyistherenoreferencetotheother6ILOfundamentalconventions?Theseare:Forced
Labour(ILO29)FreedomofAssociation(ILO87),RighttoOrganizeandCollectiveBargaining(ILO98),Equal
Remuneration(ILO100),AbolitionofForcedLabour(ILO105),Discrimination(111).
Suggestion:referallILOfundamentalconventionsinintheLDNStandard5.
LDNStandard6:LandAcquisitionandInvoluntaryResettlement(CorrespondstoIFCPS#5)
‘LDNStandard6recognizesthatProject-relatedlandacquisitionandrestrictionsonlandusecanhaveadverse
impactsonProject-AffectedParties.Involuntaryresettlementrefersbothtophysicaldisplacement(relocation
7
orlossofshelter)andtoeconomicdisplacement(lossofassetsoraccesstoassetsthatleadstolossofincome
sourcesorothermeansoflivelihood).ResettlementisconsideredinvoluntarywhenProject-AffectedPartiesdo
nothavetherighttorefuselandacquisitionorrestrictionsonlandusethatresultinphysicaloreconomic
displacement.Thisoccursincasesof:
1. Lawfulexpropriationortemporaryorpermanentrestrictionsonlanduse;
2. Negotiatedsettlementsinwhichthebuyercanresorttoexpropriationorimposelegalrestrictionson
landuseifnegotiationswiththesellerfail.’
Expropriationandresettlementaremostofallalegalissue,governedbyamplelegalguidanceand
jurisprudenceespeciallyfromhumanrightslaw(seeOHCHRonevictions:
http://www.ohchr.org/Documents/Publications/FS25.Rev.1.pdf).Throughoutthetext,thereseemstobean
assumptionthatfailednegotiationscanjustifydisplacement,whichisclearlynotacceptablefromahuman
rightsperspective.Whetherexpropriationislawfulmustbeseeninthelightofinternationalhumanrightslaw.
WesuggesttoadoptPart4oftheVGGTsgiveguidanceregardingTransfersandotherchangesto
tenurerightsandduties.Itaddressesthegovernanceoftenureofland,fisheriesandforestswhenexisting
rightsandassociateddutiesaretransferredorreallocatedthroughvoluntaryandinvoluntarywaysthrough
markets,transactionsintenurerightsasaresultofinvestments,landconsolidationandotherreadjustment
approaches,restitution,redistributivereformsorexpropriation.Especially12.11,12.12and12.13arerelevant:
• 12.11Contractingpartiesshouldprovidecomprehensiveinformationtoensurethatallrelevant
personsareengagedandinformedinthenegotiations,andshouldseekthattheagreementsare
documentedandunderstoodbyallwhoareaffected.Thenegotiationprocessshouldbenondiscriminatoryandgendersensitive.
• 12.12Investorshavetheresponsibilitytorespectnationallawandlegislationandrecognizeand
respecttenurerightsofothersandtheruleoflawinlinewiththegeneralprinciplefornon-stateactors
ascontainedintheseGuidelines.Investmentsshouldnotcontributetofoodinsecurityand
environmentaldegradation.
• 12.13ProfessionalswhoprovideservicestoStates,investorsandholdersoftenurerightstoland,
fisheriesandforestsshouldundertakeduediligencetothebestoftheirabilitywhenprovidingtheir
services,irrespectiveofwhetheritisspecificallyrequested.
‘Unlessproperlymanaged,involuntaryresettlementmayresultinlong-termhardshipandimpoverishmentfor
theProject-AffectedParties,aswellasenvironmentaldamageandadversesocio-economicimpactsinareasto
whichtheyhavebeendisplaced.Forthesereasons,involuntaryresettlementshouldbeavoided.Where
involuntaryresettlementisunavoidable,however,itshouldbeminimizedandappropriatemeasuresto
mitigateadverseimpactsonProject-AffectedPartiesshouldbecarefullyplannedandimplemented.‘
Evictionandreplacementisnever“unavoidable”.Evictionandreplacementmayberequiredforaproject,in
whichcaseitiseitherjointlyagreed,oritislegallypermitted.Ifthereisnojointagreement,norlegalbase,then
evictionandreplacementareoutofthequestionandtheprojectcan’tproceed.Therefore,‘involuntary
resettlementisunavoidable’isawrongchoiceofwords.Thequestiontoaskhereiswhethertheevictionand
resettlementisreallynecessaryANDwhatarethealternativestotheproposedinvestmentproject,whichwill
addresslocallandusers’needs?
‘Thegovernmentoftenplaysacentralroleinthelandacquisitionandresettlementprocess,includingthe
determinationofcompensation,andisthereforeanimportantthirdpartyinmanyinstances.Direct
involvementofProject-AffectedPartiesinresettlementactivitiesisencouragedbecauseitcanresultinmore
cost-effective,efficient,andtimelyimplementationoftheseactivities,aswellasintheintroductionof
innovativeapproachestoimprovingthelivelihoodsofProject-AffectedParties.‘
Thewayofhowtocalculatecompensationisextremelyprecariousandinvolvesallstakeholders,whichincludes
localpeople,communitieswhohave(in)formalland(user)rightsandknowledgeabouttheland,aswellaslocal
CSOs,governmentandinvestors.Compensationshouldincludetherealcostsofeviction,takingintoaccountnot
onlythemarketvalue,butalsotheindirectcostsofbeingevicted(relatedtotherighttofoodandtenure
rights),aswellastheemotional,social,culturalandreligiousvalue.Thereisalsoaneedtolookatdynamic
compensation–notjustreturningpeopletothestaticpositioninwhichtheyarein,buttheneedtolookatthe
prospectstheyhavehadbeforetheproject,andwhatthesewilldotothemovertime,includingasaresultof
theeconomicchangeswhicharebeingintroducedbytheproject.
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‘TheoverarchinggoalsofStandard6areto:
1. Toavoid,andwhenavoidanceisnotpossible,minimizedisplacementbyexploringalternativeproject
designs;
2. Toavoidforcedeviction;
3. Toanticipateandavoid,orwhereavoidanceisnotpossible,minimizeadversesocialandeconomic
impactfromlandacquisitionorrestrictionsonlanduseby
i.Providingcompensationforlossofassetsatreplacementcost;land-for-landcompensation
shouldbeconsideredandfavouredwhenrelevantandpossible,takingintoaccountnotonly
thequantitybutthequalityoftheland(productivity)
ii.Ensuringthatresettlementactivitiesareimplementedwithappropriatedisclosureof
information,consultation,andtheinformedparticipationofProject-AffectedParties;
4. Toimproveorrestorethelivelihoodandstandardoflivingofdisplacedpersons;totheextent
possible,toconsiderofferingpossibilitiessuchasjobcreationorprofitsharingplans
5. Toimprovelivingconditionsamongphysicallydisplacedpersonsthroughtheprovisionofadequate
housingwithsecurityoftenureatresettlementsites.’
Seeremarkabove:evictionandreplacementisnever“unavoidable”.Evictionandreplacementmayberequired
foraproject,inwhichcaseitiseitherjointlyagreed,oritislegallypermitted.Ifthereisnojointagreement,nor
legalbase,thenevictionandreplacementareoutofthequestionandtheprojectcan’tproceed.Therefore,
‘avoidanceofevictionisnotpossible’isawrongchoiceofwords.Thequestiontoaskhereiswhetherthe
evictionandresettlementisreallynecessaryANDwhatarethealternativestotheproposedinvestmentproject,
whichwilladdresslocallandusers’needs?
LDNStandard7:LandTenure
ThelanguageusedinLDNStandard7onlandtenureisdifferentfromtherestofthetext.Thetextusesin
generalanactivetoneofvoice.InStandard7theword‘must’iscopiouslybeingused.E.g.“LDNFundprojects
mustensurethatactionsaffectedlandtenureareconsistentwithStateobligations”.Thelattermaysuggest
thattheactionsarenotyetconsistentwithStateobligations,whilewhenusingamoreactiveform:“LDNFund
projectsensurethatactionsaffectedlandtenureareconsistentwithStateobligations”itissuggestedthat
theseactionsarefromthebeginningconsistentwithStateobligations.Ifthelatterinterpretationisthecorrect
meaning,wewouldliketosuggestforthesakeofcoherencetousetheactivevoicethroughoutthisStandard7
(lines1,3,5,6,7,9,12,14,16).
P12:
‘TheLDNFundrecognizesthatsmallholderfarmersprovidealargeshareofagriculturaloutputinthe
developingworld,andthuscontributesignificantlytofoodsecurity,nutrition,povertyeradication,and
environmentalresilience.‘
Itisnotonlyaboutsmallholderfarmers,butalsopastoralistsandnomadicpeople.Inaddition,theword
smallholdersuggeststhatthefarmeristitleholderoftheland,whichisoftennotthecase.
Wesuggesttoaddindigenouspeoples,small-scalefarmers,women,pastoralistsandnomadicpeople
Thesentencewouldread:TheLDNFundrecognizesthatindigenouspeoples,small-scalefarmers,women,
pastoralistsandnomadicpeopleprovidealargeshareofagriculturaloutputinthedevelopingworld,andthus
contributesignificantlytofoodsecurity,nutrition,povertyeradication,andenvironmentalresilience.
‘LDNFundProjectsthereforesupportinvestmentsinsmallholdersaswellaspublicandprivatesmallholdersensitiveinvestments.’
Seeourcommentsbefore.
Wesuggestthefollowingtexttoreplacethissentence‘AllLDNFundProjectsrecognizeandrespectthe
righttofoodofindigenouspeoples,small-scalefarmers,women,pastoralistsandnomadicpeople.Theprojects
supportbothpublicandprivateinvestmentsinindigenouspeople,small-scalefarmers,women,pastoralistsand
nomadicpeople.’
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