The impact of UK overseas aid on environmental protection and climate change adaptation and mitigation

 

Written evidence submitted by DfiD office Mozambique

 

1. Following Mozambique's economic collapse in 1986, the country began a wide-ranging process of reform, with the support of the international community. Mozambique has faced numerous challenges since the end of civil war and first elections in 1994, including more then 15 years of adjustment and reform. Mozambique remains one of the poorest countries in the world, with a GDP rank of 169 and a Human Development Index of 172 (UNDP 2009). Median income was 10 percent lower in 2008 than 2002, and was lower for most income groups. Most people live in poverty and rely on subsistence farming that is highly dependent on rainfall that is often erratic and unpredictable. As a result, there is overexploitation of the natural resources to meet their daily needs. The economy of Mozambique is based on agricultural production, sea and mineral resources. Agriculture is a key sector for economic growth and poverty reduction giving work to more than 70% of the workforce, and being the main activity for 95% of the people living in rural areas.

2. Mozambique is well-endowed with natural resources. Increased but appropriate exploitation of natural resources will be a key factor in whether Mozambique attains the Millennium Development Goals. This will have to be done however with minimal long-term environmental impact. Mega-projects have contributed up to 25% of economic growth over the last years. Expected changes in climate change, and how these may affect mega-projects, are already taken into account in the design, and economic evaluation of the large dam projects.

3. Environmental awareness is increasing in Mozambique, although it is recognised that the level of environmental awareness is still low at provincial and sub-district level. Although Mozambique’s environmental legislation is comprehensive, enforcement and implementation of its policies remains weak largely because of weak capacity of government institutions (both in terms of number of staff but also in terms of their qualifications and expertise/experiences). Overall there is also a need for better integration and coordination amongst government agencies. Most government institutions are under equipped in terms of human capacity and financial resources. The obvious solution, would be to increase training programmes and, if means allow, to recruit more and better trained staff. Some important tasks can also be commissioned to "external" or private agents. This strategy is actually already being used in the processes of territorial planning, where the regulation on district land-use planning implies that the territorial planning has to be done by licensed consultancy companies or consultants.

4. As most developing countries in Africa, Mozambique has evolved substantially over the past decade with introduction of legal requirements or general procedures for Environmental Impact Assessment (EIA). Compared to Tanzania and Kenya, Mozambique has the oldest legislation (Decree 76/98 of 29 December) and Tanzania has the most recent legislation (The Environmental Management Act, 2004 and EIA regulations at the end of 2005). In Kenya, the legal requirements of EIA appeared first in the Environmental Management and Coordination Act (EMCA) of 1999 and then in the Environmental (Impact Assessment and Audit) Regulations of 2002. All projects listed in the Appendix of Decree no. 76/98 are subject to an EIA study. All activities not covered by the Appendix and capable of causing a significant environmental impact will be subject to a pre-assessment by the Ministry for Environmental Coordination (MICOA). When the pre-assessment indicates that an activity’s environmental impact is already known, MICOA will issue the respective environmental license.

5. The legal framework, i.e. laws, regulations and policies are all adequate and generally comprehensive enough for dealing with the environmental issues at stake. However, the area that is still not well developed is climate change. It is however a theme that is gaining interest at policy level. The Government of Mozambique faces however great difficulties when it comes to implementing policies and enforcing laws.

6. Increased occurrence of droughts, floods and cyclones as a consequence of climate change pose a direct and immediate threat to the development of Mozambique. Currently, there is no overall strategic vision on how to deal with these changes nor is there an adequate legal or institutional framework for coping with these challenges. So far two institutions that have been most active in relation to climate changes issues. These are the Ministry for Environmental Coordination (MICOA) and the National Institute for Disaster Management (INGC). There is however need for clarifying institutional responsibilities as there are a number of complex donor funded projects related to climate change. The World Bank has estimated that in the case of no policy changes the impact of climate change on GDP would range, depending on the climate change scenarios, between 3.5% and 13.6% of the GDP.

7. Mozambique, with a coastline of about 2,700 km and more than 60% of its population living in coastal areas, has a high vulnerability to tropical cyclones and sea level rise. Mozambique is one of the sub-Saharan countries that would be most affected by a sea level rise of 4 to 5 m. Several areas of the country will be affected by future sea level rises. The port of Nacala, in the north, might need more coastal defences to protect against extreme sea levels and the likely increase in intensity of the most intense tropical cyclones. The city of Beira, in the centre, is under threat from extreme sea level events. An analysis of the hydrology and river basin has concluded that Mozambique and surrounding countries will be facing several significant challenges. These include increased risk of drought and increased frequency of crop failure during the growing season from October to December in the area centred over Zimbabwe and covering parts of Zambia and central Mozambique. This will have a very severe impact on Mozambican food security, as around 80% of the population is dependent on subsistence agriculture. The watershed in central Mozambique could see increases in magnitude and frequency of flooding. Increasing populations will exert more water demand, and current per capita water usage rates would not be able to be sustained in most basins in southern Mozambique. Such situations could lead to conflicts related to water access and to the displacement of many communities, creating "climate refugees".

8. DFID Mozambique’s approach is to support Mozambique’s ambition to complete its transformation from a poor, post-conflict nation to a thriving, regional trade and investment gateway which is independent of aid by 2025. As mentioned in country’s BAR offer, with this approach DFID also intends to help ensure that a country which has been the fastest-growing non-oil economy in SSA in the last 15 years, develops in a way which allows all Mozambicans, particularly girls, women and the poorest, to benefit from the potential that the country has, which includes abundant natural resources (minerals, gas, coal and now oil), 30 million hectares of unused arable land, and a strategic location which could link four landlocked countries to global shipping routes. DFID priorities will be Wealth creation and governance, as well as continued emphasis on the social sectors. Wealth creation and Governance are the two areas upon which the success of the programme most depends. Without accelerated job creation and agricultural productivity, stability will be threatened. Without progress in tackling corruption and strengthening accountability, future gains will be jeopardised. The plan therefore prioritises funding in these areas. It manages the risk of resource curse from expected oil and gas discoveries, specifically, by making future growth and poverty reduction grants conditional on hard-edged policy reforms to improve transparency. Progress in these areas will make investment in social sectors and climate change mitigation affordable, progress in these areas sustainable and graduation from aid a realistic target.

9. DFID’s contribution to Mozambique has been notable through its ability to interact with government and other major donors to bring about greater harmonisation. DFID has been also of a flexibility that has allowed DFID greater influence through strategic interventions and technical assistance.

10. DFID Mozambique has not yet undergone a Strategic Climate Programme Review. It is intended that one will be carried out within the next year.

11. Until 2010, all projects over £1.0m had to carry out and ESN. It included also projects of less than £1.0m, that were of a sensitive nature. In this case an ESN would be carried out (example: With the ESN DFID intended to identify what would be the main environmental impact of the project and what measures could be taken to avoid to jeopardise the environment, making also our interventions environmental friendly). From 2011 all interventions will be assessed for their relevance to climate change and the environment, to comply with corporate obligations, and make development climate and environment smart.

12. We have providing a list of projects funded by multilateral donors in Mozambique. We are happy to provide any additional information on specific projects:

The project’s rationale and objectives

The project’s environmental impact

Whether these environmental impacts were deliberate or unplanned

A breakdown of the project’s funding

(£)

Any requirements placed upon / standards required of the government of Moz.or other aid recipient agencies.

Who is implementing the projects

The environmental screening notes for the respective projects

Sector budget support to national integrated road programme (113468) & Integrated road sector programme technical support (104001)

To improve rural accessibility and poverty. The project focus on the road sector through support to the government of Mozambique specifically to the road institutions to enhance their focus on delivering improved rural accessibility so that poor rural communities gain access to markets and services. The project started as a £4.8m project which was increased to 19.7m. (See QUEST Doc 1240021 for more details)

Project main activities are rehabilitation and maintenance of rural roads. Due to the limited nature of the work involved, an EIA is not required according to the local lesgislation. However if an EIA is needed, then they must be submitted to the Ministry of Environment (MICOA). Possible env. Impacts could include: dust, noise, people’s and animals’ displacement, disturbing natural and sensitive ecosystems such as forestry, protected areas, river courses to extract sand

In case these impacts occur, they are identified and an environmental action plan is prepared and implemented under Ministry of Environment’s supervision for compliance.

19,700,000.00

In General, Moz. has general procedures for EIA. According to the procedures, any EIA (Environmental Impact Assessment) that is prepared must be submitted to the Ministry of Environment (MICOA). They are responsible to review the EIA and approve

Roads Fund at the Ministry of Public Works and Housing (MOPH)

An initial ESN was prepared, see Quest docs 69894

UK/Moz support to the national institure for mitigation of the effects of severe floods in central Mozambique – Grant 2010 (200992)

Emergency funds to Support the National Institute for Disaster Management in its coordination role for emergency response, disaster preparedness and in mitigating the effects of severe floods in the Zambezi Valley, Central Mozambique, mostly in the districts of Mutarara, Tambara, Caia, Mopeia, Morrumbala, Sena, Chemba, and Marromeu.

(see Quest Doc Nr 3933832 for more details )

This was an emergency project intended to save peoples’ lives from the flooded to safer areas. Expected env. Impacts included: planning, soil clearance, bush fire, pressure on diverse natural resources (e.g. land, fishery, forestry, etc)

To minimise this impacts, before peoplle’s resettlement, INGC works with a multidisciplinary team includ ing the Ministry of Environment to plan for the resettlement area location, and provisions to be taken

500,000

N/A

INGC- the National Institute for Disasters Management

No ESN was completed

AG Save the Children: Floodplain management [Zambezi] (200273)

Enable communities living in four districts in the flood-prone areas of the Zambezi valley to develop resilient livelihood options. The main goal is to enhance the resilience of communities along the Zambezi valey to the impact of flooding disasters. Around 26,620 people in the districts of Mopeia, Morrumbala, Caia and Tambara will benefit from the project, assuring that they develop resilient livelihoods and minimise their exposure to risks, and also allowing them develop flood plain management strategies based on operational research ( See Quest doc 1889948 for more details).

The expected impacts on the environment are small but positive as farmers adopt better practices. The main issues are those of risk as the Zambezi is prone to catastrophic flooding and is also predicted to dramatically reduce its flow as global warming dries out major parts of the catchment

Unplanned impacts

1,235,000.00

N/A

Save the Children

An ESN was prepared. See Quest Doc Nr 2126004

Biofuels technical support to Ministry of Energy (200340)

The aim of the project is to support the Government of Mozambique to implement its biofuels strategy, that will lead to the development of Biofuels sector in Mozambique. (See QUEST Doc Nr 1756201 for more details)

Sensitivity of the issue, main environmental issues identified: use of water, land use issues, conflicts betweens food production vs biofuels production

450,000.00

N/A

Ministry of Energy (ME)

Total fund less <£500K therefore no ESN completed

Smallholder food security programme (113253)

To contribute to improved food security for 6,000 smallholder farming families in 24 communities in the Districts of Gorongosa, Gurue, Matola, Namaacha and Mossuril. (SEE QUEST DOC 604652 for more detail)

485,567.00

N/A

TROCAIRE

Total fund less <£500K therefore no ESN completed

Land rights for small farmers (104093)

This project intends to improve livelihoods of poor small farmers in Mozambique through strengthening the existing Mozambican small farmer movement (UNAC) to enforce land rights, with a specific focus on increasing the participation of women in leadership positions in the movement. (SEE QUEST DOC 2924197 for more detail)

234,709.00

N/A

War on Want

Total fund less <£500K therefore no ESN completed

Integrated road sector programme technical support (104001)

This is a component for technical support of the Sector budget support to national integrated roads programme, Nr 113468, which intends to provide the needed technical support to the programme

Component of project 113,468

N/A

Roads Fund at the Ministry of Public Works and Housing

Community Land Use Fund (103993)

To enhance the capacity to secure land tenure and natural resource rights of local communities in Gaza, Manica and Cabo Delgado and increase the sustainable management and utilisation of these resources for poverty reduction and economic growth. (See QUEST Doc 126464 and 2558660 for more details)

Issues identified: Access to land, predominant production form is the slash and burn system with fallow land, increasing pressure on land resources, the allocation of large areas of forest land for timber exploitation, the lack of a transparent and up-to-date land cadastre, systematic alienation of the better-located and more fertile lands, often to the detriment of local users.

Unplanned impacts

2,995,000.00

N/A

KPMG

Yes, an ESN was prepared. See Quest Doc Nr 126469

8 February 2011