1. Mainstreaming Environment for the MDGs and Pro-poor Development in Europe and CIS Podoroghin Inga Head of the Foreign Affair and European Integration Division

2. PRESENTATION OUTLINE 2 The nexus between poverty and environment in RM 3 Overview of RM’s institutional, legal and policy frameworks 4 National mechanisms for integration of environmental concerns into other sector policies 5 National mechanisms for environmental protection funding 1 General description of the Republic of Moldova and context of poverty evolution

3. Republic of Moldova Total area: 33.843 km 2 Population - 4.264.300 residents Density – 111,2 person/km2 Rural area – 58,6% Urban area - 41,4% GDP per capita : 548 US $ Life expectancy: 67.7 years

4. Indices of poverty level depth and severity in 1997-2002 (in %) Indices and sources19981999200020012002 POVERTY LEVEL (POVERTY INCIDENCE) Poverty line (Lei p.c.per month) Poverty Incidence Poverty gap Poverty severity 128.9 52.9 19.5 9.8 179.2 73.0 43.3 17.7 234.8 67.8 27.0 13.7 257.3 54.6 19.3 9.1 270.7 40.4 12.4 5.2 EXTREME POVERTY LEVEL Extreme poverty line (Lei p.c.per month) Extreme poverty Incidence Extreme poverty gap Extreme poverty severity 101.0 37.4 12.4 5.9 140.4 59.7 22.7 11.4 183.9 52.2 17.6 8.2 201.5 38.0 11.6 5.1 212.0 26.2 6.6 2.4 International line $2.15 per day (value in Lei p.c. per month) Poverty incidence 91.6 52.7 127.6 70.8 167.5 64.5 183.9 52.4 193.7 39.8

5. Evolution of absolute poverty rates during 1998-2006 and targets for 2010 and 2015, %

6. Evolution of extreme poverty during 1998-2006 and targets for 2010 and 2015, %

7. Major Environmental Issues and Poverty nexus Most urgentModerate Urgent Land degradationConservation of biodiversity Forest depletionDesertification Water PollutionGround water depletion Solid WasteEnvironmental infrastructure Air Pollution

8. Land degradation

9. Economic and social aspects of land degradation Economic  75% of national economy is based on use of land resources  The eroded land area covers 858,564 ha or 33.9 per cent of agricultural land  it is increasing annually by 0.9 per cent, causing a loss of 26 million tons of fertile soil  The annual estimated production loss and damage costs to the national economy from soil degradation are about 3.1 billion lei (US$ 251 million).

10. Economic and social aspects of land degradation Social: -Affects the rural population that live on hand grown products -Affects the revenues of families who practice subsistence agriculture -Harmful effect on rural population’s health of pesticides use -Landslides affect the livelihoods

11. Tasks to cope with soil degradation To prevent and reduce the degradation of natural resources: reduce the rates of soil degradation  developing and realizing anti-erosion protection measures for soils and rehabilitation of degraded land;  developing and implementing pilot projects for rational use and irrigation of soils, including protection of wetlands;  training of farmers land owners in issues of soil processing and use of mineral fertilizers and pesticides;  planting forestry belts for agricultural land protection;  rehabilitating communal pastures, and improving their management.

12. The undertaken measures  Program for Processing New Lands and Increase Land Fertility for 2003-2010  Law on Fertilizers and Products for Phytosanitary Use (2005)  National Concept on Organic Framing, Production and Marketing of Organic and Genetically Unmodified products  National Action Program for Combating Desertification

13. Economic and social costs of water issue Social  In rural areas only 17 % have access to central supply sources  Decrease the water use for hygiene supply  Polluted water is the cause of 950-1850 premature deaths annually and loss of 2 mil. working days as result of water related diseases

14. Evolution of the share of population with access to improved water sources between 2000 and 2006 and targets for 2010 and 2015, %

15. Evolution of the share of population with improved access to sanitation between 2000 and 2006 and targets for 2010 and 2015

16. Undertaken measures in water sector  Strategy for water supply and sanitation of localities in the RM  State Programme “Moldovan village” (until 2015)  Concept of National Policy in Water Resources for 2003-2010 years  Environmental Management Plan of Water, Mineral Resources and Forestry Fund  National Policy Dialogue on Water (EUWI for EECCA countries)  ENVSEC Initiative (security of transboundary waters)  Pilot project on reduction of nutrient pollution on water resources  Etc.

17. Overview of institutional and policy frameworks  Institutions: - Government Apparatus (Department of policies and technical assistance coordination) - Ministry of Economy and Trade -Ministry of Finance -Other sectoral ministries (Ministry of Ecology and Natural Resources,Ministry of Agriculture and Food Industry, Ministry of Health, Ministry of Construction and Territorial Development )  National Council for Sustainable Development and Poverty Reduction  Inter-ministerial Committee for the Sustainable Development and Poverty Reduction  Interministerial Committee for Strategic Planning

18. Overview of institutional and policy frameworks  National development policy framework: 1 st phase: Economic Growth and Poverty Reduction Strategy Paper (2004-2007) Objectives : 1)to prevent and reduce the degradation of natural resources and increase efficiency of their use; 2) 2) to maintain the quality of the environment as a factor that ensures health and quality of life; and 3) 3) to create an effective natural disaster monitoring, prevention and damage compensation system. 2 nd phase: Strategy on National Development (2008-2011) (Action plan) (environment is seen in the SND as the component of regional development rather than an element of sustainable development).

19. Overview of institutional and policy frameworks Concept of environmental protection National environmental action plan Concept on development of hunting administration National Concept on Organic Farming, Production and Marketing of Organic and Genetically Unmodified Products National Action Programme for Combating Desertification Environmental Policy Concept National Strategy and Action Plan for Protection of Biodiversity National Action Plan to Combat Desertification National Programme on Energy Conservation for 2003-2010 Strategy of the Sustainable Development of the Forest Fund 1995 1997 2000 2001

20. Overview of institutional and policy frameworks Concept of National Policy in Water Resources for 2003-2010 years National Strategy for Sustainable Development of Forestry Fund and State Program on Forest Fund Areas Regeneration and Forestation for 2003-2020 Environmental Management Plan of Water, Mineral Resources and Forestry Fund National Programme on Utilization of Land and Improvement of Soil Fertility for 2003-2010 National Programme for Recovery and Recycling of Refrigerants Economical Growth and Poverty Reduction Strategy Paper National Strategy for Elimination of POPs in Moldova National Action Plan for Implementation of Stockholm Convention on POPs National Program on Environmental Security Strategy on water supply and sewerage systems in settlements of Republic of Moldovan 2003 2004 2007

21. National mechanisms for integration of environmental concerns into other sector policies  Legal Law on legal and normative acts (1994) Law on ecological expertise and EIA (1996) Law on SEA (in the nearest perspective)  Regulatory impact assessment /Strategy for Social and Economic impact analysis of politic documents (not approved yet)  Plan for institutional development  Public participation  Institutional: establishment of Working Groups  Technical assistance

22. National mechanisms for integration of environmental concerns into other sector policies  Examples: The Energy Strategy of the RM until 2020 cam into force in August 2007, it includes a special chapter on environmental protection. The Strategy on industrial development until 2015 was approved in October 2006. It includes a chapter on environmental security and sustainable use of natural resources. The Strategy on sustainable development of agro industry in the RM was approved in March 2008. It includes relevant aspects of soil conservation, desertification, The Strategy on terrestrial transport infrastructure. Was approved in February 2008. It contains a special chapter on environmental impact.

23. National mechanisms for environmental funding  State Budget allocations Central environmental protection body maintenance (salary for employees, offices rent, etc.) Investments for environmental protection (protection of water protection, sustainable use of lands, preventing air pollution, etc.)  Local public authorities budget allocations  National Environmental Fund  Local administration budget allocations  National Environmental Funds

24. Challenges Povertyalleviation A B C Legal and Policy Other Institutional Enhance political will Enhance political will Establish mechanisms of mainstreaming Establish mechanisms of mainstreaming environment (units in the minsitries) Intensification of environmental mainstreaming into other sector policies Intensification of environmental mainstreaming into other sector policies Establish mechanisms of mainstreaming the environment Establish mechanisms of mainstreaming the environment i Strengthen capacities in budget planning Strengthen capacities in budget planning Sectoral coordination Sectoral coordination Raising awareness and consciousness on the need for mainstreaming environment and poverty aspects into development planning at policy formulation stage

25. CONCLUSIONS Despite the fact that there are no clear linkages of “poverty-environment” set up in the national development and poverty reduction policy papers, however, the national planning documents are based on sustainable development principles