The pampas supports high levels of biodiversity and is considered one of the most globally significant areas for endemic birds. The Pampa contains 3,000 species of plants, more than 60 mammal species, 210 birds, 30 reptiles, 20 amphibians and 40 freshwater fish.

“This project is key to balance economic growth and environmental conservation, and it is an important part of Rio Grande's long-term development strategy,” said Yeda Crusius, Governor of Rio Grande do Sul. “This would enable the poorer regions to advance economic development without a deterioration of their natural resource base.”

Rio Grande do Sul's primary economic activities are in the agricultural and forestry sectors, including livestock production. These activities have spread into natural habitats, including areas that are environmentally fragile. Currently, about 2.6% of the State's territory is protected. Conservation efforts face complex challenges such as accelerated land conversion due to forestry; extensive livestock activity and unsustainable agricultural practices.

“This project is a great example of how local actions can be essential from a global perspective. The lessons learned here from communities and people, of how to integrate production with conservation in a sensitive environment, can revert into huge returns for biodiversity conservation,” said Makhtar Diop, World Bank Brazil Country Director. “There is considerable potential for replicating the project's innovative approach elsewhere in Brazil and abroad.”

The project will leverage state resources, support the development of economic incentives, and promote the participation of the private sector in biodiversity conservation. Specifically, it will:

· Assist farmers to restore and maintain priority areas for biodiversity conservation;

· Improve management systems and production practices, including creating awareness and building institutional capacity; and

· Consolidate the network of protected areas.

A participatory process was used to establish priority areas for the project, defined as areas of high importance for biodiversity conservation. The criteria include the existence of threatened ecosystems or species, and the existence of legally protected areas. Rural communities living in proximity to protected areas and within the priority areas will actively participate in the planning and implementation of strategies and conservation efforts. The four priority sites selected encompass 11.8% of the State's population, and 22.5% of its territory.

“One of the most important features of the Government's environmental strategy, recognized and supported by this grant, is its strong focus on involving all relevant players around key issues in the sector,” said Bernadete Lange, Project Manager for the World Bank.

Total cost for the program is projected to be US$11.10 million over five years, of which US$5 million from the GEF and the remaining US$6.10 million from the Rio Grande do Sul State Government.

The project has two main types of activities:

*On-Farm Biodiversity Integration. Rationalize land conversion processes by promoting the adoption of biodiversity conservation practices in the main productive systems of the grasslands.
*Biodiversity Management. Strengthen the capacity of the State institutions which are responsible for biodiversity conservation.

The Global Environment Facility (GEF) is an instrument for providing grant and concessional funding to achieve global environmental benefits in the six focal areas - climate change; biological diversity; international waters; persistent organic pollutants; land degradation; and ozone layer depletion. GEF also supports the work of the global agreements to combat desertification.

The World Bank Group is one of GEF's implementing agencies and supports countries in preparing GEF co-financed projects and supervising their implementation. The Bank plays the primary role in ensuring the development and management of investment projects. The Bank draws upon its investment experience in eligible countries to promote investment opportunities and to mobilize private sector, bilateral, multilateral, and other government and non-government sector resources that are consistent with GEF objectives and national sustainable development strategies.#