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F I N A L R E P O R T 2 0 1 7
Financing Sustainable Landscapes:
Acre,Brazil
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CitationAuthors: Luciana Rocha, Simone Carolina Bauch, and Gleice Lima.Please cite as: Rocha, L., Bauch, S.C., and Lima, G. 2016. Financing Sustainable Landscapes: Acre, Brazil. Final report. Global Canopy Programme and CDSA, UK.
AcknowledgementsThis publication is the end product of collaborative work of the Unlocking Forest Finance partnership. We thank CDSA and IMC, the Unlocking Forest Finance partners in Acre, Brazil for collecting the data and coordinating the project.We also appreciate the support of all our technical partners and consultants who provided significant contributions for the analyses that led to this report. The report was edited by Arthur Girling at GCP and designed by Yannis Meletios.
FundingThis project is part of the International Climate Initiative (IKI). The Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB) supports this initiative on the basis of a decision adopted by the German Bundestag.
About UFFUnlocking Forest Finance (UFF) brings together NGOs, environmental and social sector safeguarding institutes, financial sector experts and strategic advisors including Credit Suisse, European Investment Bank and Althelia Ecosphere. UFF is managed by the Global Canopy Programme, a UK nonprofit with a strong track record of implementing international projects to address tropical deforestation.The project relied on a number of local partners: Environmental Services Development Company (CDSA) in Acre, Brazil, the Amazon Environmental Research Institute (IPAM), in Mato Grosso, Brazil, and the Centre for Development and Research in Upper Amazonia (CEDISA) in San Martin, Peru.
Other implementing partners and subcontractors are: The National Agricultural University of La Molina (UNALM) in San Martín, World Wide Fund for Nature (WWF-UK, and other WWF offices), Climate Bonds Initiative (CBI), Vivid Economics, Helmholtz Centre for Environmental Research (UFZ), the International Institute for Sustainability (IIS), the International Institute for Applied Systems Analysis (IIASA), the National Institute for Space Research – Centre for Earth Systems Science (INPE-CCST).
About CDSAThe Acre Environmental Services Development Company (CDSA) was created under the State System of Incentives for Environmental Services (SISA). It works towards the sustainability of productive systems, as well as the protection of the forest and environmental assets. CDSA aims to do this through innovative mechanisms to finance a low carbon economy and high social inclusion in the state of Acre.
About The Global Canopy ProgrammeThe Global Canopy Programme is a tropical forest think tank working to demonstrate the scientific, political and business case for safeguarding forests as natural capital that underpins water, food, energy, health and climate security for all. Our vision is a world where rainforest destruction has ended. Our mission is to accelerate the transition to a deforestation free economy. To find out more about our work visit www.globalcanopy.org
© The Global Canopy Programme and CDSA 2016.The contents of this report may be used by anyone providing acknowledgment is given to the Global Canopy Programme and CDSA. No representation or warranty (express or implied) is given by the Global Canopy Programme, CDSA, or any of its contributors as to the accuracy or completeness of the information and opinions contained within this report. ‘The Global Canopy Programme’ is a trading name of The Global Canopy Foundation, a United Kingdom charitable company limited by guarantee, charity number 1089110.
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Executive summary 4
1. Introduction 7
2. Methodology for portfolio selection 8
3. Methodology for social and environmental safeguards 9
4. The transition in sustainable supply chains 11
Açaí 13
Rubber 16
Brazil nuts 18
Sustainable hard wood extraction: State public forest concessions and community managed forests 20
Forest plantations on degraded land 24
Aquaculture 25
5. The transition in conservation 28
6. The transition in sustainable livelihoods 31
7. Estimated effects on deforestation and greenhouse gas emissions in Acre 34
8. Conclusions 36
References 37
Appendix A: Example of Code of Conduct for Timber Concession 38
Index
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Executive Summary
The Brazilian state of Acre offers numerous opportunities for sustainable investments in a range of activities. These include opportunities in productive supply chains, forest conservation and the promotion of sustainable livelihoods.
This summary presents results of the financial analyses of these investment opportunities:• Seven supply chains: açaí, rubber, brazil
nuts, timber from forest concessions, timber from community-managed forests, forest plantations on degraded land and aquaculture. The state government has invested in these activities since the 2000s, using state funds as well as funding from the National Development Bank (BNDES), Inter-American Development Bank (IDB) and KfW;
• Two forest conservation projects through the reorganisation of the State System for Protected Natural Areas (SEANP) and the recuperation of the Rio Acre Areas of Permanent Protection (APPs).
• Two further projects to support sustainable livelihoods for indigenous communities: the development of Indigenous Land Management Plans (ILMPs) and Community Development Plans (CDPs).
The UFF team considered the costs and benefits of each of the interventions.
In order to evaluate the financial, environmental and social viability of these investments, the UFF team analysed cash flows and social and environmental data. This allowed them to calculate the costs associated with the sustainable scenario. This analysis has been used to propose financial mechanisms that can be used to channel investments and disburse funds to producers.
The following table shows the proposed interventions according to each activity. For each, it lists the Net Present Value (NPV), Internal Rate of Return (IRR) and period of repayment (payback):
A portfolio of sustainable investments in supply chains, forest conservation and supportfor livelihoods in Acre, Brazil.
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Productive supply chains
ACTIVITY TRANSITIONNPV(BRL
million)
NPV(USD
million)1
IRR(%)
Payback Period (years)
AçaíTo increase the average annual production from 30,000 tonnes/year to 120,000 tonnes/year using an agroforestry system.
21.67 6.45 12.9 9
Aquaculture
To increase the production of Tambaqui, Pintado, Piracuru and Prapitinga fish using 5,000 hectares of degraded land, and to offer training for producers.
35.67 10.62 10.1 11
Brazil nutsTo increase the annual harvest of 6,000 tonnes to 8,000 tonnes in sustainably managed forest areas.
5.19 1.55 98 2
Forest concessions
A total of 240,000 hectares of state forest with sustainable management plans.
0.68 0.20 9 13
Forest plantations on degraded land
To reforest 20,000 hectares with eucalyptus to produce biomass for energy.
11.73 3.49 9.8 14
Rubber
To increase annual production from 5,000 tonnes/year to 10,000 tonnes/year in rubber plantations and to encourage more modern extractive practices.
8.60 2.56 8.6 17
Timber from community-managed forests
180,000 hectares of forests designated for community management projects.
0.42 0.13 8.2 13
TOTAL 83.96 24.99
Conservation
ACTIVITY TRANSITION COSTS(BRL million)
COSTS(USD million)
Revitalisation of the Rio Acre area
To support restoration of 10,000 acres of forest in conservation areas in the Rio Acre basin. In addition, to empower 900 rural and riverside producers and partners in the water resource management programme in restoration of conservation areas.
99.91 29.73
State system for protected natural areas (SEANP)
To draw up management plans for 30 conservation units and to strengthen their monitoring capacity.
82.22 24.47
TOTAL 182.13 54.20
1 Exchange rate USD 1 = BRL 3.3905 (current as of 19 December, 2016).
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Sustainable livelihoods
ACTIVITY TRANSITION COSTS(BRL million)
COSTS(USD million)
Community Development Plans (CDPs)
To prepare and implement 400 community development plans and offer places on 4,300 community training courses.
115.15 34.27
Indigenous Land Management Plans (ILMPs)
To prepare and implement 118 ILMPs and qualify 100 indigenous agro-forestry officers.
42.93 12.78
TOTAL 158.08 47.05
Table 1, above, demonstrates that all productive supply chains offer positive rates of return for private investors. Some of these results depend on public incentive policies or blending policies, using funds from concessions or donations to make them attractive, as in the case of community forest management.
This report aims to portray Acre’s diverse investment portfolio, where positive rates of return allied with social and environmental safeguards can contribute to sustainable development in the state.
Table 1: Activities, interventions and economic factors
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1. Introduction
Development and sustainability working together
Supply chains in the Brazilian state of Acre offer a number of sustainable investment opportunities, with positive financial, social and environmental returns.
Organising and strengthening the sustainable development of supply chains that ensure positive social and environmental impacts is a key focus of the state of Acre.
Funding from loans, partnerships and the state has been channelled into• Infrastructure and processing• New equipment and vehicles• Personnel for rural and forest technical assistance,• Training• Market stimulation.
The results of these efforts to structure the state’s production base can be seen in several different areas, including the brazil nut and rubber processing industries managed by COOPERACRE (the Acre State Central Trade Cooperative), primary production units on private properties, fish farming, feed and Amazon fish processing, and the infrastructure of timber processing centres.
Within this developmental context, this paper puts forward business opportunities with strong environmental benefits in a variety of the state’s production and conservation activities. This portfolio was developed and refined by the Unlocking Forest Finance project (UFF, known in Brazil as Desbloqueando Finanças para as Florestas). This project, which has been funded by the International Climate Initiative (IKI) since 2013, is led by GCP (Global Canopy Programme) and 12 other partners, including CDSA, the local partner in Acre. The partnership also includes the Institute for Climate Change and Regulation of Environmental Services (IMC) and the State Environment Secretary of Acre (SEMA). The investment opportunities presented comprise three themes:
1. Strengthening sustainable supply chains: specifically aquaculture, rubber, açaí and brazil nut production, as well as reforestation, sustainable management of tropical timber in community forests and state forest management.
2. Forest conservation: strengthening the State Protected Natural Areas System (SEANP) and the programme for restoration of altered areas in the Acre River basin.
3. Sustainable livelihoods: management plans for indigenous territories and community development.
Some of these supply chains are already well developed, but there is still room for improvement in terms of efficiency and sustainability. Other supply chains have strategic benefits such as conserving biodiversity, mitigating climate change and limiting deforestation. While not all supply chains produce significant economic returns, businesses may still be interested in investing due to their strong positive social and environmental impacts.
For many of the interventions considered in this report, there are potential environmental risks. These are considered in the safeguarding framework (section 3). The possible environmental benefits are considered separately, in sections 4 to 6.
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2. Methodologyfor portfolio selection
This section describes how the portfolio of investments was chosen and refined.
This process was an intensive research exercise, involving members of state and federal governmental bodies, companies, cooperatives, civil society organisations and representatives of industry associations that have all been vital in collecting and organising data. They have also provided information that has helped the UFF project team to understand the economic structure of Acre. From this, financial projections have been made for key supply chains which contribute to sustainable livelihoods and successful biodiversity conservation.
Planned interventions in supply chains were selected based on considerations such as the proportion of farmers in a given supply chain who are members of a producer association, available technology, land tenure status, associated ecosystem services, environmental risks and benefits, and strategies available to each supply chain or key activity.
We analysed the potential costs and benefits of implementing these interventions. This process identifies priority actions, resources and deadlines, and expected benefits and impacts, as well as any barriers to transition.
Data
The UFF team prepared cash flow models and economic feasibility studies for each supply chain. This required information for each chain or activity on:
1. Annual production and processing revenues (supply, price, productivity, demand);
2. Annual production and processing costs (operational, fixed, variable and expenses);
3. Investments required for the transition towards sustainability (equipment, technologies, production systems, technical assistance personnel, training, promotions, etc.);
4. Bottlenecks and challenges;
5. State government targets.
The cash flows incorporated relevant costs and set out a suitable investment period for the investment cycle of each supply chain, forest conservation activity or sustainable livelihood activity. While the last two categories do not generate any revenue, they should still be included in the portfolio for their important environmental and social effects.
To estimate the economic viability of the transition as a whole for each supply chain, relevant costs were incorporated into cash flow data. The financial attractiveness of each chain was graded on the following indicators:
• Net Present Value (NPV);
• Internal Rate of Return (IRR);
• Repayment period.
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3. Methodology for socialand environmental safeguards
The state of Acre has reached a high standard in safeguarding people and the environment. In 2015, it was the first region to complete a 10-step safeguarding process for REDD+ projects (REDD+ SES, 2015). While this process should ensure the Environmental Carbon Services Incentive Programme within the region (known as Isa Carbono) meets a high standard, the UFF project created a complementary safeguarding framework tailored to the particular interventions in the area. This aimed to ensure that the investment portfolio has maximum social and environmental benefits.
As a first step, the UFF team carried out a series of impact analyses on the socio-economic and environmental effects of the interventions.
The environmental impact assessments of the proposed interventions in Acre helped identify the activities that could cause the degradation of ecosystems and the services they provide. This process identified risks which should be considered when designing the interventions.
To understand the social benefits of the transition activities, three indicators were analysed: the number of families that would be positively affected (in terms of additional income and capacity building), the average amount of income generated per family, and the expected increase in jobs.
The table below shows that from a social perspective, aquaculture is the supply chain with the potential to generate the highest income for the families involved in the transition. The improved management practices proposed for brazil nut would generate a moderate increase in income. Rubber would have the lowest increase in income, but could benefit the highest number of families. From the environmental perspective, interventions in açaí could have the most benefits.
Codes of Conduct for farmers
With the above risks in mind, the team designed Codes of Conduct to mitigate these risks and reduce the overall environmental impact of production processes. As a first step, the project reviewed several existing standards created by other organisations, ranging from global political agreements, such as ILO Conventions, to standards or codes of conduct for projects or agricultural production on the ground.
The Codes of Conduct are an important safeguarding element aiming to ensure that these interventions can be implemented in a way which addresses the environmental risks identified in the impact assessment of the interventions. The Codes of Conduct should be part of a monitoring strategy guaranteeing environmental and social targets are met at the landscape level, maintaining high levels of biodiversity and the ecosystems services provided by the forest areas and regenerating degraded lands.
The Codes of Conduct will focus especially on the indicators with negative or no significant impact. For the timber concession, for example, the three environmental indicators (carbon, biodiversity and hydrology) appear to have negative or no significant impact when compared to the current situation (table 2). Therefore, the Code of Conduct for timber concessions has stringent requirements to mitigate or improve the current practices by protecting rare and
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Socialindicators
Environmentalindicators
Sector
Nu
mb
er
of
po
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s (
by
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ase
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Inc
om
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se
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nc
e
inv
estm
en
t tu
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osit
ive
(B
raz
ilia
n
Re
ais
)
Inc
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in
em
plo
ym
en
t o
ve
r th
e
ac
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ity
’s t
ran
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pe
rio
d
Ca
rbo
n b
ala
nc
e
Bio
div
ers
ity
Hyd
rolo
gic
al
eff
ects
(w
ate
r q
ualit
y a
nd
q
uanti
ty)
Init
ial
pro
po
sa
l
Wit
h s
afe
gu
ard
s
Init
ial
pro
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l
Wit
h s
afe
gu
ard
s
Init
ial
pro
po
sa
l
Wit
h s
afe
gu
ard
s
Açaí 3,000 3,206 970
Aquaculture 1,000 44,060 15,000
Brazil Nut 2,500 3,997 2,422
Rubber 4,000 1,658 1,341
Timber Concession 0* 0 432
Community Timber 1,800 0
TOTAL 12,300 20,165
threatened species in the management unit and adopting measures to protect water sources from sedimentation through the implementation of buffer strips along rivers and streams in the concession area. To ensure the requirements included in the Codes of Conduct are followed, the project includes a monitoring plan for the transition phase. Continuing with the example of timber,
implementation will be monitored through certification standards already in use in the region, such as FSC standards that require the operator to go through an audit process every five years.
See Annex I for the Code of Conduct prepared for Timber Concessions, that seeks to mitigate the negative impacts of the proposed intervention.
Table 2: Social and environmental indicator analysis of productive supply chain interventions
* This number refers to families directly engaged in the activity. While an increase in employment is expected, this number is zero here because investment will come from companies, not families
Positive impact compared to today’s situation
Very positive impact compared to today’s situation
No significant impact
Positive and negative impacts broadly balance each other out
Negative impact compared to today’s situation
Very negative impact compared to today’s situation
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4. The transition in sustainable supply chains
This section describes the farming, forestry and aquaculture supply chains included in the investment portfolio.
Productive supply chains
ACTIVITY TRANSITIONNPV(BRL
million)
NPV(USD
million)*
IRR(%)
Payback Period (years)
AçaíTo increase the average annual production from 30,000 tonnes/year to 120,000 tonnes/year using an agroforestry system.
21.67 6.45 12.9 9
Aquaculture
To increase the production of Tambaqui, Pintado, Piracuru and Prapitinga fish using 5,000 hectares of degraded land, and to offer training for producers.
35.67 10.62 10.1 11
Brazil nutsTo increase the annual harvest of 6,000 tonnes to 8,000 tonnes in sustainably managed forest areas.
5.19 1.55 98 2
Forest concessions
A total of 240,000 hectares of state forest with sustainable management plans.
0.68 0.20 9 13
Forest plantations on degraded land
To reforest 20,000 hectares with eucalyptus to produce biomass for energy.
11.73 3.49 9.8 14
Rubber
To increase annual production from 5,000 tonnes/year to 10,000 tonnes/year in rubber plantations and to encourage more modern extractive practices.
8.60 2.56 8.6 17
Timber from community-managed forests
180,000 hectares of forests designated for community management projects.
0.42 0.13 8.2 13
TOTAL 83.96 24.99
* Exchange rate USD 1 = BRL 3.3905 (current as of 19 December, 2016).
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Conservation
ACTIVITY TRANSITION COSTS(BRL million)
COSTS(USD million)
Revitalisation of the Rio Acre area
To support restoration of 10,000 acres of forest in conservation areas in the Rio Acre basin. In addition, to empower 900 rural and riverside producers and partners in the water resource management programme in restoration of conservation areas.
99.91 29.73
State system for protected natural areas (SEANP)
To draw up management plans for 30 conservation units and to strengthen their monitoring capacity.
82.22 24.47
TOTAL 182.13 54.20
Sustainable livelihoods
ACTIVITY TRANSITION COSTS(BRL million)
COSTS(USD million)
Community Development Plans (CDPs)
To prepare and implement 400 community development plans and offer places on 4,300 community training courses.
115.15 34.27
Indigenous Land Management Plans (ILMPs)
To prepare and implement 118 ILMPs and qualify 100 indigenous agro-forestry officers.
42.93 12.78
TOTAL 158.08 47.05
Table 3: Activities, interventions and economic factors
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Açaí
Bringing together extraction and production inagro-forestry systems
The state of Acre can become involved in a rapidly growing market through the planting of açaí. The
crop can be intercropped with other forest fruits and species and processed by the agro-industries
COOPERACRE and CAET (the Tarauacá Agro-Extractive Cooperative).
In the Amazon region, açaí pulp is extracted from two species: Euterpe oleracea and Euterpe precatoria.
The first grows in clumps, with several stems on the same plant, while the second has just one stem. The
two species fruit at different times of the year1. This means that although the first produces more fruit,
productivity is increased by combining the two.
Pulp production from the açaí fruit has both nutritional and socioeconomic value for riverside and
traditional populations in the Amazon. In these communities, people use many parts of the plant – they use
the stones as an organic fertiliser and in crafts, the palm hearts for food, and the leaves as roofing material.
More than just a food
Demand for açaí has increased in the Amazon, as well as in São Paulo, Rio de Janeiro and the Southern
and Midwestern parts of the country. It has also increased abroad, due to the discovery of its nutritional
benefits and the fact it can be frozen. The açaí berry is widely considered to be a ‘superfood’, and is used
as an ingredient by major food, pharmaceutical and cosmetic industries both in Brazil and further afield.
The national production of açaí in 2014 was 198,149 tonnes. The states of Pará and the Amazon accounted
for almost 90% of production. Acre produced just 2% of the total. Although small compared to other states,
Acre’s total production of açaí, driven by an increase in local consumption and prices, reached 4,020 tons
in 2014 (IGBE, 2015).
The municipality of Feijó in Acre, has increased its market share to produce over a third of this total.
Strengthening the supply chain within the region by managing wild açaí groves and plantations could
reduce environmental degradation, forest fires and the extraction and sale of palm hearts, which
necessitates cutting down the palms.
1 The species Euterpe precatoria (most common in Acre) bears fruit in the first part of the year; whereas Euterpe oleracea is harvested in the second half.
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Fruit pulp (açaí)
Açaí processing capacity -
Input(tonnes/year)
Production Açaí -
Output (tonnes/year)
Processing capacity of other fruit -
Input (tonnes/year)
Production of other fruit
output (tonnes/year)
Cooperacre (Rio Branco) 144 72 ND(*) ND(*)
Caet (Tarauacá) 144 72 30(**) 17(**)
Total 288 144 30 17
Table 4. Current capacity for pulp processing
General Investments
With funds from the Department of National
Integration, since 2013 the government of Acre
has been: (i) mapping the potential for açaí
management and cultivation in the state; (ii) looking
at technical assistance and training to implement
agro-forestry systems; (iii) preparing business plans
and promotional events. Agro-industries in Rio
Branco and Tarauacá have been constructed with
funds from the BNDES.
In addition to pasteurised frozen Açaí pulp,
COOPERACRE also produces pulp from other
fruits including cupuaçu, cajá, pineapple, passion
fruit, cashew and soursop, while CAET produces
pulp from açaí and cupuaçu. Both aim to sell these
products in local, regional and national markets.
The intervention to strengthen the açaí supply chain
in Acre involves planting 10,000 hectares alongside
other fruit species and trees, which should mean
the state’s average annual production will approach
60,000 tonnes/year.
Investment from the BNDES may support
agribusiness generally, for example in processing.
The proposed investment here builds on this by
aiming to increase the supply of raw material.
It will do this by adding value to local products,
empower extractive industries and family farmers.
For farmers, it aims to support good management
practices in areas including planting, harvesting and
post-harvesting. It will offer technical assistance at
all stages of production, including delivery of the
açaí to processors, and facilitate research and the
technological development for the supply chain.
Economic feasibility
Without any intervention, demand for açaí is
likely to continue to grow, but state production
does not increase fast enough to meet demands
from consumers and local agro-industries. In the
sustainable scenario, 10,000 hectares of açaí is
planted in agro-forestry systems with other fruit
and plant species over 20 years. This is expected
to increase state production to an annual average
of 60,000 tonnes. After the sixth year of planting
it is expected to fully supply the two fruit pulp
processing companies that are already established
in the State.
This will cover 2,500 hectares per year over
a transitional period of four years and involve
approximately 3,000 farmers in the project, at least
50% of whom will be family farmers. After year
nine (in a 20 year analysis horizon), the transitional
Source: Research data.
(*) No data available.
(**) calculation in relation to cupuaçu supply.
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NPV will become positive, and should generate a total NPV for the supply chain of BRL 21 million (USD 6.2
million), with an IRR of 12.9%. The full benefits of this transition are detailed below.
Transition benefits:
Expected socio-economic benefits:• 970 additional jobs created during the transition period.
• Stable income for producers with a yearly crop;
• Added value through agro-industry production already established in the state;
• Training for over 3,000 producers and family farmers in good management practices, including
planting, harvesting and post-harvesting.
Expected environmental impact: • Reduction of environmental degradation, slash and burn, and deforestation, through the use of
previously deforested areas and their surroundings;
• Increase in biodiversity through the implementation of agroforestry systems;
• Reduction in the use of fertilisers, reducing soil and water contamination.
• Non-timber extractivism adds value to the forest
• An alternative to the extraction and sale of palm hearts, which has higher negative environmental
impacts;
• Crop can be grown together with other fruit species and plants in agroforestry systems;
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Rubber
A traditional supply chain
Rubber has long been a symbol of the Amazon and
Acre’s economic history, as well as of the struggle
of the rubber tappers to create forest reserves.
Acre is currently looking to increase this chain’s
productivity so as to improve its market share of
natural rubber, and to expand and diversify the
production of Natex male condoms.
Native to the Amazon, Hevea brasiliensis produces
latex, which is the raw material used to make
natural rubber. However, in 2012, Thailand,
Indonesia, Malaysia, Vietnam and India accounted
for approximately 80% of the world’s rubber
production. In the same year, Brazil contributed a
mere 1.5% of this total and provided less than half of
national consumption from plantations in São Paulo,
Mato Grosso and Bahia (IAC, 2016).
Rubber is primarily used by the tyre industry, which
consumes about three-quarters of total production.
The remainder goes to civil construction, shoes,
toys, car parts, military and medical equipment,
agricultural machinery and other rubberised
products.
In Acre, the majority of latex extracted from
native rubber goes to the Xapuri condom factory2
(NATEX), to processing plants for pressed virgin
rubber (PVR), one of the raw materials in tyre
manufacturing, and to the production of smoked
liquid latex sheets that are used for shoe soles and a
range of other rubber products.
Natural rubber extraction in the Amazon Region,
which does not meet domestic demand, is currently
supported by economic policies including minimum
price mechanisms set at federal, state and municipal
levels.
Rubber tree plantations together with extraction
In Acre, rubber has been a protected species since
July 1995 under Article 10 of Decree no. 48. With
the aim of reinvigorating rubber plantations, the
Acre government has worked with NATEX and
technical assistance providers over the last decade,
and has created subsidies for rubber extraction.
This means that the current state production of
latex comes from native rubber trees, through a
production practice known as “rubber holding”. It
mainly takes place in Extractive Reserves (RESEX)
and Agro-Extractivist Settlement Projects (PAE).
NATEX is managed by FUNTAC (the Acre
Technology Foundation), and is able to produce
100 million condoms a year; it is the only condom
factory in the world that uses native rubber latex as
a raw material. The entire current output is bought
by the Brazilian Ministry of Health. Present demand
for natural rubber shows the need to encourage
the planting of new rubber trees, so as to increase
production, productivity and the supply of raw
material.
The forecast is for monoculture plantations to
provide 30% of the total area for rubber and for
agro-forestry systems to cover the remaining 70%.
In the latter system, farmers will grow rubber trees
alongside açaí, cupuaçu, cashews, acerola, soursop,
bananas, papayas, passion fruit and coffee, thereby
diversifying crops under production.
2 Xapuri is the birthplace of Chico Mendes, the renowned rubber trade unionist.
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General Investments
In the proposed model, which includes funding from the Inter-American Development Bank (IDB), planting
will be a minimum area of three hectares per farmer. The state will provide the land and seedlings, and the
farmer will meet the costs of planting, maintenance and harvesting.
To reduce the chance of blight, 15 homogeneous, resistant and highly productive latex clones have been
selected by the Brazilian Agricultural Research Corporation (EMBRAPA-Acre) for the plantations, with the
hope of offering better and more reliable economic returns.
Economic feasibility
In the absence of investment, Acre’s extractivist rubber production is likely to remain low and be unable
to meet even state demands. In the sustainable scenario, it is envisioned that the rubber supply chain is
enhanced by planting 10,000 hectares of rubber trees, located in accordance with the state’s ecological-
economic zoning. This will require 2,000 hectares per year over a transitional period of five years, and will
involve nearly 4,000 family farms. The time span for the agricultural phase of the project is 30 years, with
the aim of being able to generate an average of 11,000 tonnes/year of latex after the sixth year of planting.
The NPV for the transition is BRL 8.6 million (USD 2.6 million), with an IRR of 8.6%, which will become
positive in year seventeen.
Transition benefits:
Expected socio-economic benefits:• 1,341 additional jobs created during the transition period.
• Expansion of income sources for extractivist producers and farmers;
• Over 1,341 producers receiving technical assistance to produce in mixed forestry systems.
Expected environmental impact: • Reduced pressure on native forests;
• Support for restoration of degraded land;
• Support for mitigation of environmental risks in areas where native rubber production sits alongside
other forest species;
• Supporting ecological services such as water, biodiversity and carbon sequestration.
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Brazil nuts
A model value chain
The extraction of brazil nuts in Acre proves that
with careful cooperative management it is possible
to combine forest conservation, social inclusion and
income generation.
In Acre, it is estimated that over 2,500 families are
currently involved in brazil nut production. However,
this has not always been the case. Local cooperative
associations and the strengthening of COOPERACRE
as a commercial hub have been crucial elements in
developing the state’s supply chain over the past 15
years.
Since 2000, with investments in production, storage
and the construction of three processing units in the
state has allowed brazil nut production in Acre to
grow by 70%, reaching approximately 14,000 tonnes
in 2014. This has meant that Acre is now the national
leader and accounts for over a third of the country’s
brazil nut production, closely followed by the states
of Amazonas and Pará (IBGE, 2015). Despite this
success, deforestation and the conversion of forests
into pasture and agricultural areas continue to be major
threats to the process.
In order to maintain this upward trajectory and the
associated environmental and economic benefits for
the state, a set of best management practices for brazil
nut production has been developed by EMBRAPA,
technical assistance professionals and extractivists.
Small investments, great results
After the state began to prioritise this supply chain,
COOPERACRE was able to access public marketing
support policies and started to invest in brazil nut
storage and processing facilities, thereby expanding
its ability to negotiate with buyers after harvest
season, when market prices rise. In addition to a
setting a per kilogram price for brazil nuts, which
was determined at the associate assembly over ten
years ago, COOPERACRE offers extra benefits to
extractivists, such as investment in infrastructure
improvements.
COOPERACRE manages three companies capable
of processing 10,000 tonnes of unshelled brazil nuts
per year. This is roughly 75% of the average amount
processed in the state, which is between 12,000 and
14,000 tonnes per year, which includes nuts from
the states of Rondonia and Amazonas, as well as
Bolivia. The remainder of the state’s production is
processed by four private companies in the state.
Associate extractivists have already received
training in good management practices. Therefore
to increase their productivity by 30%, investments
in this chain are focused on storage, distribution
and transport (vehicles and beasts of burden).
Type of investment QuantityTotal cost over 10 years (BRL)
Total cost over 10 years (USD)
Investments to implement transition
Construction of warehouses 3 546,307 162,580
Purchase of boats and engines 3 84,400 24,522
Purchase of beasts of burden 20 4,850 1,443
Purchase of utility vehicles 12 202,900 60,383
Total - 838,457 249,524
Table 5. Investments needed for the transition in brazil nuts Source: COOPERACRE, SEAPROF, CDSA, 2016.
19
Economic feasibility
Brazil nut extractivism is intrinsically sustainable, as it requires that forests are maintained and able to
provide a balanced set of ecosystem services.
There is already a structured supply chain in Acre, from harvesting to processing and marketing the nuts.
The supply chain currently generates satisfactory socio-economic returns when compared to Brazil nut
production in other regional states.
In the sustainable scenario, the supply chain’s sustainability and benefits increase over 30 years. Brazil
nut production is optimised, increasing production by 30%. Production of the extractive industries linked
to COOPERACRE (encompassing over 80% of the total state) could increase from the current average of
6.5 tonnes/year to approximately 8.4 tonnes/year over a five-year transitional period, and supply the 3
processing plants in the state. This increased productivity would be the result of new vehicles and building
warehouses in strategic locations.
In this scenario, the NPV per producer is BRL 12,000 (USD 3,571) with an IRR of 21%. This contributes to
a total NPV for the chain of nearly BRL 5.2 million (USD 1.5 million), with an IRR of 98%. The repayment
period for the cash flow is two years.
Transition benefits:
Expected socio-economic benefits:• 2,422 additional jobs created in the transition period.
• Training more than 2,500 families in optimal Brazil nut harvest practices.
• Increase in revenue from the harvest, due to higher prices paid for the product;
• Greater appreciation of the links between brazil nut plantations and forest maintenance;
• Improved quantity and quality of the Brazil nut harvest, reducing processing costs;
• Expansion of the state’s storage and distribution infrastructure;
• Higher employment and income in the processing plants and production areas;
• Economic incentives via associations and cooperatives;
Expected environmental impact: • Strengthened provision of ecological services, including water, biodiversity and carbon stock
enhancement.
• Improved forest management in the collection areas.
• Maintenance and enhancement of the local biodiversity and the services provided by the forest
ecosystem.
20
Sustainable hard wood extraction:State public forest concessionsand community-managed forests
Sustainable forest management: a source of opportunities
Whether in public forests or in community areas,
forest management can ensure the sustainability of
the timber industry in Acre.
The Acre government’s strategy to expand the
supply of legal timber in the local market is
based on two opportunities: (i) the expansion
and consolidation of state public forests through
the concession of areas for private companies to
manage sustainably, and (ii) the support for small-
scale management by communities in local forests.
To enable this, a model was drawn up to develop
legal frameworks and technical capacities, timber
management and marketing for both extractive
scales, with the aim of creating socioeconomic
and environmental sustainability for Acre’s timber
supply chain.
The standard that guides forest concessions
According to the Federal Law on Public Forest
Management (no. 11.284/2006), forest concession
is a right that the government grants through
tender, so that national companies or communities,
organised as legal entities, can manage a predefined
public area, be that state, municipal or federally
owned. These entities can use forest products and
services in a sustainable manner. Organisations that
participate in forest concession processes must
meet the conditions of a public tender and show
that they are able to continue working the area for a
predefined time period of 25 to 30 years.
The selected organisation must return the public
area under the conditions described in the
previously signed contract. The concessions do
not change the ownership of the land, meaning
therefore that the forests remain public.
In Acre, timber extraction in forest concession areas
is undertaken through Enterprise Management3,
with a harvest cycle of 30 years and an average
permitted timber volume of 15 m3/ha over this
period.
If a concession is granted for 240,000 hectares
of state forest, with an Annual Operational Plan
(AOP) of 8,000 hectares per year, we estimate that
the average volume of annual production will be
120,000 m³/year:
3 In Brazil, this management can be corporate, community or individual.
21
Description Unit Number
Area of Sustainable Forest Management Plans (SFMP) in State Forests Hectares 240,000
Extraction cycle Year 30
Annual Operational Plan Hectares 8,000
Average volume m³/ha/year 15
Average volume of annual production m³/year 120,000
Description Unit Number
Area of Sustainable Forest Management Plans (SFMPs) in Community Forests
Hectares 180,000
Extraction cycle Year 10
Annual Operational Plan Hectares 18,000
Average volume m³/ha/year 10
Average volume of annual production m³/year 180,000
Table 6. Silviculture parameters for forest concessions
Table 7. Silviculture parameters for community forest management
Source: Preliminary study
Source: Preliminary study
Community forest management
Community Forest Management includes a set of technical and management procedures to produce timber
and non-timber products with minimal damage to the forest. In this model, the community commits to
managing forest extraction with the aim of conserving biodiversity and generating revenue to invest in
projects that benefit the community through environmental, social, economic and legal means.
Community forest management in Acre has an extraction cycle of ten years, with an average timber
volume of 10 m3/ha. As the area granted for this activity is 180,000 hectares of forest, with an Annual
Operational Plan (AOP) of 18,000 hectares per year, we estimate that the average volume of annual
production will be 180,000 m³/year:
22
General Investments
Using state and IDB funds to expand and consolidate
state and community forests for the sustainable
production of hard wood, the government of Acre has
been carrying out a number of activities, including
• Investing in land tenure regulation
• Developing management plans for state public
forests
• Creating basic infrastructure for forest production
• Researching and developing the supply chain
• Training workers
• Financing forest management plans and annual
operational plans
• Providing forest certification for community
management
• Undertaking technical feasibility studies for forest
management in isolated areas.
The goal is to involve over 1,000 families in this
activity.
In addition, transporting products from concession
areas requires roads and a communications system
to issue Forestry Origin Documents which detail
the provenance of forest products. In certified
areas, it is also important to be able to trace the
supply chain from the trees selected in the forest.
In addition, in order for community management to
generate collective benefits, it is essential to invest
in management training to help participants manage
activities and negotiate timber prices.
To attract wood processing firms, the Acre
government - with funds from BNDES - has
invested in two industrial bases, and in paved roads,
electricity supplies and offices. This includes 15
private warehouses and a sawmill shared between
all companies in the town of Cruzeiro do Sul which
produces wooden boards for decks, doors, and so on.
In the municipality of Tarauacá there are 12 individual
plants that produce plywood.
Economic feasibility
In the absence of investment, forest extraction is
expected to still be irregular and uncoordinated,
timber production is poorly standardised, land
is used for cattle and/or agriculture, and public
community areas are illegally appropriated with
false tenure documentation.
In the sustainable scenario, investment is directed
at strengthening the tropical timber supply chain
over a transition period of five years, through two
coordinated lines of action:
1. The areas designated for the forest concession
are expanded to 240,000 hectares in state
public forests, allowing for sustainable and
certified forest management over a time span
of 36 years. The NPV is BRL 675, 000 (USD
200,475) and the IRR 9%. The repayment
period for the cash flow is 13 years.
2. 180,000 hectares are enabled, certified and
operated under Community Forest Management
Plans, with a time span of 17 years, involving
over 1,000 families. The NPV is BRL 41,000
(USD 12,000) and the IRR 8.2%. The repayment
period for the cash flow is 13 years. These
results include subsidies necessary to attract
private investors.
23
Transition benefits:
Description Community forest management Forest Concession
Environmental
• Reduction in damage to the forest during harvest;
• Reduction in forest fires;
• Improved conservation of ecosystem functions, forest diversity and climate regulation.
• Reduced forest damage;
• Monitoring of the dynamics of forest growth and recovery;
• Increased diversity of extracted species, thus reducing pressure on the most common species.
Social
• Additional employment and revenue for communities;
• Around 800 families receiving training in forest management practices;
• Professional training;
• Reduction in work-related accidents;
• Stronger community organisations.
• 432 jobs created in forest concession during the transition period;
• Investment in infrastructure;
• Planned use of public land.
Economic
• Increased value of forest products;
• More raw materials for local industry;
• Reduction in waste
• Improved timber control and inspection.
Table 8: Benefits of sustainable hardwood management Source: COOPERACRE, SEAPROF, CDSA, 2016.
24
Forest plantations on degraded land
Biomass Production for Green Energy
Public and private investment in Eucalyptus
plantations will help to change Acre’s energy matrix
Approximately 650,000 hectares of land have been
degraded through extensive agricultural activity
and livestock farming in Acre. Much of this land has
potential for recovery and use. To this end, possible
activities include reforestation using species like
Eucalyptus. Biomass from these trees can be used
as a source of clean and renewable energy, thereby
reducing dependence on diesel in the state’s energy
mix.
The wood from plantations represents an
alternative to exploitation of Acre’s native forests. In
addition to generating jobs, plantations can enable
local industries that currently use wood for power
generation to become more competitive. These
include:
• Cold-stores and abattoirs in the area around the
state capital Rio Branco, which use firewood
to heat the water used to sanitise spaces and
equipment daily;
• Ceramic and brick producers - demand for bricks
and ceramic blocks in Acre is growing. This has
boosted production and therefore demand for the
firewood needed for kilns;
• The logging industry - Acre’s two major timber
companies are installing boilers to use production
waste for power generation, which offers the
option of selling on the surplus if excess power is
generated.
General Investments
With the aim of planting 20,000 hectares of
Eucalyptus on degraded land in Acre, the state
government has been conducting studies of local
production systems and innovative business models
for the supply chain.
The first production cycle will need initial
investments to establish the plantation and train
the local workforce in reforestation activities. This
is because overall, the state is relatively unfamiliar
with silviculture. It is also necessary to take into
account the state’s limited transport infrastructure,
especially in the rainy season.
Economic feasibility
If nothing changes, the processes of erosion and
soil degradation will continue to intensify in pasture
areas. In the sustainable scenario, planting 20,000
hectares of degraded land with eucalyptus could
generate significant biomass for energy production
over a time-span of 36 years.
This will entail planting an average of 2,000
hectares per year over a transitional period of ten
years, and will primarily involve large and medium-
sized farmers. The NPV for this activity is 12 million,
with an IRR of 9.8%. The repayment period for the
cash flow is 14 years.
Transition benefits:
Expected socio-economic benefits:• A strengthened forestry sector can reduce
pressure on native forests through synergy and
complementary production;
• Increased employment opportunities, forestry
qualifications and training for workers;
• Biomass generation, which will have a positive
impact on diversifying the state’s energy mix.
Expected environmental impact: • A significant contribution to restoring degraded
land, coupled with reduced pressure on native
forests;
• Monoculture plantations of eucalyptus can have
negative impacts on biodiversity and water
availability. The project aims to mitigate these
impacts through a Code of Conduct specifying
buffer zones around farms and water bodies,
and measures to control water extraction.
25
Aquaculture
Low carbon animal protein
Two modern processing units in the state have increased the attractiveness of aquaculture, making it a good
investment opportunity
Aquaculture decreases fishing pressure on natural stocks and is an alternative source of animal protein that has
the same nutrients as red meat and lower levels of cholesterol and saturated fat. Increasing aquaculture also
has the potential to increase exports. Therefore, aquaculture is capable of generating both socioeconomic and
environmental benefits, using significantly smaller areas than those required for cattle rearing.
However, in 2013, Acre produced less than four tonnes of fish (IBGE, 2015). In general, this low productivity was
due to the low levels of aquaculture technology in the state, the use of inadequate tanks, the high mortality rate
for fry and an inadequate diet for the fish.
Given this record, the Acre government aims to encourage aquaculture by investing in verticalising production
in small, medium and large properties, constructing tanks in accordance with technological standards
appropriate to the region, using technical assistance expertise, organising centres for the production and
standardisation of the quality and quantity of feed and fry. It will focus on the species pirarucu, tambaqui,
pintado and pirapitinga.
Investing in change
Between 2012 and 2015, funds from the state, BNDES and private investors were used to build two
nurseries for the priority species, a feed factory to meet the state’s demand and two fish processing units.
In addition, an aquaculture zoning exercise has defined suitable areas for the activity in accordance with
the State Water Resource Plan. The aim is to produce 20,000 tonnes per year in the Rio Branco area in five
years.
Table 9: Projections for the annual production of fish
per species/per year, in the State of Acre
Total projected production Year 1 Year 2 Year 3 Year 4 Year 5
Estimated annual production (tonnes/year) 6,500 9,000 13,000 17,000 20,000
Tambaqui 45% 40% 40% 35% 30%
Pintado 35% 35% 30% 30% 30%
Pirarucu 10% 15% 20% 25% 30%
Secondary species (pirapitinga, etc.) 10% 10% 10% 10% 10%
Total (%) 100% 100% 100% 100% 100%
Source: Acre State Government internal documents.
26
The Rio Branco industrial complex “Peixes da
Amazônia” sells cleaned, filleted and frozen fish to
the local market, the Southeast region of Brazil, and
the international market, including Asia, the USA and
Europe.
Due to its tradition in local fish production and its
distance from Rio Branco, the Cruzeiro do Sul unit
“Juruá Peixes” usually markets its production to
the states of Acre and Amazonas (80%) and at the
international market, particularly at Pucallpa, Peru.
Investing in production standards
To enable the transition to higher sustainable
production, the portfolio includes investments in
constructing nurseries and fattening tanks, together
with associated water filtration installations over
1,000 hectares/year over five years. This would give
a total of 5,000 hectares of surface water, managed
according to high standards in fish farming to
improve productivity.
These investments will need to be linked to suitable
technical assistance. It is expected that the
investments will create a demand for local business
to provide fry and feed, generating economic
incentives for rural producers to invest in this area.
This may reduce the need to clear new areas of
forest for cattle rearing. It is also hoped that the
intervention will reduce wild fishing.
Economic feasibility
Without interventions to change this industry, the
incipient feed and fry production and the limited
processing technologies are likely to continue
to hamper regular fish provision in Acre. In the
sustainable scenario, aquaculture productivity
improves due to construction of 5,000 hectares of
standardised tanks over a five-year transition period.
This requires approximately 1,000 producers to be
involved in the project, at least 50% of whom should
be family farmers. The NPVs per hectare varies
between priority species: from BRL -79,000 (USD
-23,000) for Tambaqui to nearly BRL 220,000 (USD
65,000) for Pirarucu after 20 years.
Over 20 years, the sustainable scenario shows its
viability, generating a total NPV of approximately BRL
36 million (USD 10.7 million), with an IRR of 10%. The
repayment period for the cash flow is 11 years.
Main Products Annual capacity
Cold store 20,000 tonnes
Feed factory 40,000 tonnes
Nursery centre (tam-baqui, pintado and pirarucu)
10,000,000 units
Main Products Annual capacity
Cold store 20,000 tonnes
Nursery centre (tam-baqui, pintado and pirarucu)
10,000,000 units
Table 10. The industrial complex “Peixes da Amazônia”
Table 11: Juruá Peixes Industrial Complex
Source: Acre State Government internal documents.
Source: Acre State Government internal documents.
27
Transition benefits:
Expected socio-economic benefits:• 60,000 jobs created in the transition period.
• 1,000 producers trained in sustainable production, reducing water and soil contamination risks.
• Increased productivity and profitability per hectare
• Improved urban and rural food security;
• A healthier diet, substituting meat for fish.
Expected environmental impact: • Tanks will be built in areas which are already cleared;
• Reduced pressure on native forests;
• Improved water and soil quality by using best practices specified in the Codes of Conduct.
• Reduction of wild fishing.
28
5. The transition in conservation
Strengthening the State System for Protected Natural Areas (SEANP)
The State System for Protected Natural Areas
(SEANP), created by State Law No. 1.426 of
27/12/2001, is enacted through state and municipal
Protected Areas (PAs). The law also recognises
federal PAs and Indigenous Reserves (IRs). This
represents about 47% of the territory of Acre, with
31.10% made up of PAs (9.52% is designated as
integral protection PAs and 21.58% are sustainable
use PAs) and 14.55% for IRs. In 1998, PAs in
Acre encompassed 3.075 billion hectares, which
increased to 7.498 billion hectares in 2010, showing
a growth of 144%.
Data from SEMA showed, PAs contributed 3% and
IRs 1% to the total area deforested in 2014. SEMA
suggested that this was caused by the opening of
new roads and highways causing illegal logging,
settling and agricultural expansion, exacerbated by
a lack of enforced land tenure. See the table below.
General Investments
To keep deforestation rates as low as possible, an
investment of BRL 82 million (USD 24.3 million)
over a transitional period of ten years is needed to
strengthen and manage SEANP and contribute to
environmental sustainability throughout Acre’s 22
PAs, through actions such as:
• The creation and/or implementation of
Management Councils;
• The preparation and/or review of management
plans;
• Monitoring and supervision of PAs;
• The creation of a new state-wide PA;
• The creation of a SEANP website and database,
• Minimum team, infrastructure and operating
budget for SEANP.
A continuous funding stream for environmental conservation and recovery
Investing in forest conservation and restoring degraded land is vital to reduce the impact of production
activities on biodiversity, improve living standards for the population and maintain forest carbon stocks.
The following are the proposals from the government of Acre to strengthen the state’s protected natural areas
and restore the altered areas within the Rio Acre basin. Maintaining the high conservation value of Acre’s forest
reserves will require investment in management tools, infrastructure, forest restoration and training.
29
Category Area (km2)
Percentage of the State (%)
Managing Body
I – Strict Protection
Serra do Divisor National Park 7,840.79 4,77 ICMBio
Acre River Ecological Station 843,87 0.51 ICMBio
P.E. Chandless 6,953.03 4.23 SEMA
Subtotal 15,637.69 9.52
II - Sustainable Use
Igarapé São Francisco Environmental Protection Area 300.04 0.18 SEMA
Lago do Amapá Environmental Protection Area 52.24 0.03 SEMA
Raimundo Irineu Serra Environmental Protection Area 9.09 0.01 SEMA
ARIE Seringal Nova Esperança 25.76 0.02 ICMBio
Alto Juruá Extractive Reserve 5,384.92 3.28 ICMBio
Chico Mendes Extractive Reserve 9,302.03 5.66 ICMBio
Alto Tarauacá Extractive Reserve 1,511.99 0.92 ICMBio
Cazumbá-Iracema Extractive Reserve 7,336.80 4.47 ICMBio
Riozinho da Liberdade Extractive Reserve 3,201.18 1.95 ICMBio
Macauã National Forest 1,770.47 1.08 ICMBio
Santa do Purus National Forest 1,525.75 0.93 ICMBio
São Francisco National Forest 191.39 0.12 SEMA
Antimary State Forest 456.39 0.28 SEMA
Mogno State Forest 1,438.97 0.88 SEMA
Rio Liberdade State Forest 773.03 0.47 SEMA
Rio Gregório State Forest 2,160.62 1.32 SEMA
Subtotal 35,440.67 21.58
III - Indigenous Reserves 23,901.12 14.55
Total Protected Natural Areas 74,979.48 45.66
Table 12: Protected natural areas in the state of Acre, 2006 Source: Acre State Government, 2013
30
Restoration Programme for Altered Areas in the Rio Acre Basin
Approximately 13% of Acre’s 164,220 km² territory
is deforested. Of this area, 72% is concentrated in
the Rio Acre basin. This is mainly due to population
demographics, as the capital Rio Branco and other
municipalities within the basin are home to over
60% of the state’s population.
Approximately 60,000 hectares of areas of
permanent preservation (APPs), including water
sources, riverbanks and streams have already been
lost in this area, increasing the vulnerability of the
population during extreme weather events such as
major droughts or floods. It is clear that water levels
in the state have changed dramatically over the
years, and this has had a negative impact in causing
extreme droughts, hindering transport and reducing
the amount of treated water. Flooding has also
affected urban areas.
This makes it fundamental to fund the restoration
of the Rio Acre Basin, revitalise native species and
promote sustainable use and local biodiversity so
as to reverse current levels of land degradation,
increase water availability and quality and improve
environmental conditions in the region.
General Investments
Over a 10 year transition period, this project aims to
invest BRL 100 million in actions such as:
• Promoting engagement with 2,000 families
living around and bordering the Acre River and
the priority sub-basins (water reservoirs);
• Drawing up a plan for social communication and
mobilisation;
• Supporting the reforestation of 10,000 acres in
the APP within the Rio Acre basin;
• Enabling 900 farmers and riverside producers
to manage water resources, restore the APP,
support agro-ecology and mitigate climate
change.
SEANP Rio Acre
Environmental
• Encouraging research and raising awareness of biodiversity in protected areas;
• Sustainable use of biodiversity;
• Monitoring and enforcement tools for the territory;
• Reduced greenhouse gas emissions from deforestation and environmental degradation in protected areas;
• Land regulation in the PAs;
• Restoration/protection of protected areas.
• Gradual recovery of the ecological services of APPs from the Rio Acre river basin;
• Reduced erosion processes in the Rio Acre river channel;
• Connectivity between forest fragments, allowing movement of organisms, seeds and pollen, thereby benefiting species’ reproduction.
Social
• Participation in the Managing Councils of protected areas;
• Change from current patterns of soil use to sustainable alternatives.
• Provision of environmental services such as water quality enhancement, erosion control;
• Access to public services and technical assistance;
• Reducing urban migration.
Economic• Identifying value chains with potential
to be developed within the PAs.• Implementing agroforestry systems in
APPs, increasing family income.
Table 13: Benefits of conservation activities
31
6. The transition in sustainable livelihoods
Bringing together climate change mitigation, sustainable biodiversity, and improved living standards in rural areas
Empowering indigenous peoples and traditional communities through management plans for their areas
can support decisions related to biodiversity, conservation and climate change mitigation.
Indigenous peoples, traditional communities and family farmers make up the majority of Acre’s rural
population, and are, in general, highly socio-economically vulnerable. Therefore they have limited ability to
cope with the impacts of climate change on food security, production and income.
The ILMPs and CDPs described below are proposals by the government of Acre to identify alternatives
and implement actions to improve the quality of life of indigenous peoples and traditional populations. The
process of design should be participatory and adapted to each community context.
Indigenous Land Management Plans (ILMPs)
Indigenous Land Management Plans can help enhance material and non-material indigenous heritage and
conserve and restore biodiversity. This can have the effect of improving living standards, supporting the
cultural diversity of indigenous peoples and mitigating climate change.
Their main purpose is twofold:
• To give a foundation for indigenous groups to plan biodiversity-friendly land use.
• To serve as a reference for public policies geared towards this audience. Moreover, to identify financial
and technical help needed for to make these policies work.
The ILMPs are founded on the following principles of sustainability:
• Environmental: to promote the sustainable use of biodiversity (non-wood forest products, agriculture,
fishing, hunting, etc.) allowing for its regeneration, and mitigating climate change;
• Economic: to generate sufficient revenue from the sustainable use of biodiversity to meet the needs of
all the inhabitants of indigenous territory;
• Social: to carry out the Indigenous Land projects based on balanced internal and external social
relationships (with neighbours, public bodies, other institutions, etc.);
• Cultural: to ensure that multiple cultural practices - rites, language, religion, social organisation,
clothing, transmission of knowledge - can be reproduced.
32
• Expanding dialogue with governmental and non-governmental organisations
• Strengthening indigenous organisations to reduce internal conflict within villages.
The participatory process, based on consultation with leaders, indigenous agents and other actors with influence in the decision-making process, is the principal element in constructing ILMPs, and ensures consent and legitimacy for their implementation.
Thus, over a time-span of ten years, and with an investment of around BRL 43 million (USD 13 million), this project aims to help achieve the following goals:
Goal 01: Preparation and review of ILMPs: • Preparation of 118 ILMPs
Goal 02: Implementation of ILMPs: • Implementation of 36 ILMPs;• Training and remuneration for 100 Indigenous
Agroforestry Officers; • Provision of three professionals for Technical
Assistance and Rural Extension for Indigenous Lands.
To guarantee protection for the environment and indigenous territories;
To stimulate socioeconomic development for indigenous peoples;
To help organise resource use and production, not only now, but also in the mid to long-term future;
To help define technical and financial assistance to meet indigenous needs;
To set out these needs and seek partnerships to solve infrastructural problems in the villages;
To present socio-economic alternatives;
To help identify inherent problems in economic practices, and potential impacts;
To reflect on ways of ensuring quality food production;
To contribute to reflections on cultural revitalisation development;
To assist with land titling processes such as demarcation, identification and delineation reviews for indigenous lands;
To identify villages’ technological and administrative demands;
To identify management training requirements;
To identify actions that will contribute to achieving greater benefits from the economic potential of indigenous lands;
To help consolidate debates and cooperative practices, and to enrich learning and innovation mechanisms.
Source: SEMA (2010).
Source:
SEMA (2010).
The guidelines that govern the preparation of ILMPs
in Acre are:
The result of ILMPs are Letters of Intent or Collective Agreements that include, but are not limited to, the following: • Safeguarding, protection planning and zoning
of the territory• Land use planning permission• Sustainable use of biodiversity for income
generation• Making use of the traditional knowledge and
culture of indigenous peoples and assisting in its inter-generational diffusion
• Demanding improvements in the areas of education, health and social promotion
Figure 1: Construction process for ILMPs
Preliminary
meetings
and logistical
preparation
Logistical
preparation
1st Stage- Diagnosis• Socioeconomic study;
• Participatory mapping;
3rd Stage- Publishing the Management Plan• Distribution to public officials and
general stakeholders;
• Distribution of the Management
Plan to indigenous families;
2nd Stage- Planning• Revision of management measures;
• Internal discussions in villages;
• General meeting to prepare the
Management Plan;
• Agreeing the “editorial team”
33
Community Development Plans (CDPs)
Large and medium-sized farmers have been the main drivers of deforestation and land use change in the Amazon. However, the involvement of small farmers must not be ruled out. The expansion of subsistence farming to expand production or take possession of land is relevant when there is any geographical concentration of human settlement.
Estimates made by Acre Economic-Ecological Zoning (EEZ) indicate that, at the beginning of this century, 60% of deforestation was in areas of up to ten hectares, 35% in areas between ten and 60 acres, and 5% in areas over 60 hectares (Acre State Government, 2010b).
Considering that 27% of the population of Acre - approximately 40,000 farming families - are extractivist, riverside, rural and forest farmers, a socio-productive inclusive strategy should guarantee the sustainable use of biodiversity in isolated and vulnerable regions, in addition to providing an income. This is why the state government has been promoting the development of planning and management tools for rural communities, known as CDPs.
A CDP is a planning tool that takes into account the economic vocation and organisational capacity of each community and then seeks to identify local expectations and requirements within a given time frame. CDPs seek to describe the life-style of the community, their cultural heritage, food security and nutritional, socioeconomic and environmental conditions, the available infrastructure and the ability to adapt to extreme events such as droughts and floods. They also assess communities’ potential pathways, needs and concerns, thus allowing a base on which to implement public policies.
Putting this into practice will require an investment of just over BRL 115 million (USD 34 million) over 10 years. This will finance the creation and implementation of CDPs in 400 communities throughout Acre, as well as to monitor and evaluate results of these plans. Doing this will require training of 400 Community Development Officers. These Officers will work with the support of technical assistance specialists to guide local groups in accordance with what is set out in the PDCs.
PGTI CDP
Environmental
• Territory monitoring, enforcement and management (awareness of surroundings and increased monitoring);
• Management of natural resources;
• Restoration of degraded land using native species.
• Diagnosis of the current state of the environment;
• Identification of strategies to adapt to extreme events such as droughts and floods;
• Control over deforestation and changes in land use.
Social
• Access to technical assistance personnel;
• Training for indigenous agro-forestry officers;
• Increased value give to traditional knowledge.
• Access to technical assistance;
• Training of community development officers.
Economic
• Training for associations in project preparation, accountability and product marketing;
• Participation in trade fairs for forest and family-farmed products;
• Plantations of fruit trees to supply agro-industries;
• Increase in the value of indigenous products.
• Training for associations in project preparation, accountability and product marketing;
• Participation in trade fairs for forest and family-farmed products;
• Plantations of fruit trees to supply agro-industries.
Table 14: Benefits of sustainable livelihoods activities
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7. Estimated effects on deforestation and greenhouse gas emissions in Acre
Compared to business-as-usual, the transition plan is expected to lead to a reduction in deforestation of approximately 275,000 hectares, which would subsequently reduce greenhouse gas emissions from the state by almost two thirds. This section explains how this estimate was calculated.
Methodology
In the transition plan, several activities occur inside the forest. These include forest concessions and community-managed areas. Other activities are
planned to expand on already degraded land. These include açaí and rubber extraction areas. For purposes of land use analysis, they are assumed to lead to negligible degradation. The main impact of the transition plan comes from strengthening the non-timber, forest-product supply chains.
Investing in the non-timber forest products sector can increase the value of the standing forest, from a land-use-competition point-of-view. Our analyses assume precisely that: the intended increase in area of the non-timber products could lead to a reduction in the agricultural expansion, and ultimately, a reduction in forest converted to farmland.
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In Acre, the assumption is arguably reasonable, since it will occur against the background of ongoing initiatives of cattle-ranching intensification in the whole country. Strengthening the forest sector may provide the additional incentives to make cattle-ranching intensification preferable over horizontal expansion of ranching areas.
The maps above show the results of the landscape modelling performed for the project’s environmental impact assessment. On the first panel the landscape of the state is shown as it was classified by the TerraClass project in 2010. On the second panel, the deforestation caused by agricultural and beef production expansions by 2030 are shown for the baseline scenario (business as usual, BAU), in pink, and for the transition plan (sustainable ecosystem management, SEM), in red. Therefore avoided deforestation is visualised in the second panel as the pink areas, which are projected to remain forests under the transition plan.
Given an increase in demand for a given product, driven by a combination of population growth and, possibly, dietary changes, a supply chain will produce enough to meet that demand at market equilibrium. This is accomplished by either expansion of the production area (horizontal expansion), or increase in the supply chain’s productivity (vertical expansion).
In computing the avoided deforestation, we assume that the increase in value of the forest supply chains in the transition plan will lead to a vertical expansion of beef production, as shown in the table below. This is a rather strong assumption to make, but one that can be reasonably made given the current circumstances in the region and conclusions from previous analyses.
To compute the additionality of the transition plan we assume that the enabling conditions for cattle ranching intensification in both BAU and SEM scenarios are there, but in the BAU scenario the beef producers will still choose to expand horizontally, since it is cheaper to do so in circumstances where there is little to no competition for the land-use. In the SEM scenario, however, the forest-products supply chains are organised and competitive, making it cheaper for the beef producer to invest in vertical increases in production area rather than horizontal expansion.
Two categories of supply chains are assumed to drive the land-cover changes in the region: cattle ranching (beef), and food production for internal consumption (diverse). We compute estimates for the production area of these two supply chains. In the case of beef this is based on FAO data for beef production in Brazil (OEC/FAO, 2016), extrapolated from 2025 to 2030 following the country’s projected population growth for the period. Projections of growth of diverse agricultural production are based on estimated population growth.
Supply chain BAU SEM Spared land (BAU - SEM)
Diverse 162,953 162,953 0
Beef 1,741,703 1,303,685 438,018
Forest concessions, community-managed 125,979 545,979 not applicable
Açaí, Rubber, Timber 4,707 44,707 -40,000
Total production 2,035,432 2,057,324 not applicable
Non-forest production area 1,909,363 1,511,345 398,018
Table 15: Deforestation from agricultural production under various scenarios
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Results
Approximately 275,000 hectares of forest is saved overall by implementing the SEM scenario, according to estimates. Specific areas of avoided deforestation are cross-referenced with their current carbon stocks, using the biomass map of Baccini et al. (2012). The total avoided deforestation amounts to approximately 14.6 million tonnes of carbon dioxide equivalent (CO2eq) between the base year (2012) and 2030. This is equivalent to an emisions reduction of approximately 64% compared to business-as-usual.
Avoided loss of habitat
Forests are also the natural habitat of many species, collectively making up its biodiversity. Loss of habitat through deforestation can lead to local extinctions, loss of resilience, and vulnerability of the ecosystem to external shocks from extreme events.
To compute the biophysical impact of the project in the region’s biodiversity, we used rarity-weighted species richness as a metric to measure the overall biodiversity value in each scenario. Instead of simply computing the number of species per hectare in each parcel of the forest, each species in a rarity-weighted species richness is weighted based on the inverse of its remaining habitat area. This aims consider both the quantity of vulnerable or endangered species in each parcel, and also the endemism – how specific the species is to that region.
Over the course of the next 15 years, according to the land-use projections, the SEM scenario will reduce biodiversity loss by approximately 1% compared to business-as-usual.
A note on sustainable cattle intensification
This estimate only assumes mitigation caused by differences in the land-use change between the two scenarios. There is still some dispute over the emissions effect of the most common cattle-intensification model.
This model is based on improved conditions for the animals, including reduced distance to water sources and increased area of shade. It also includes better pasture management (soil correction, rotation), instead of the extensive practice of letting the cattle graze the whole area simultaneously. Combined, these improvements can increase daily weight gain, allowing each individual animal to reach its culling weight at an earlier age, thus liberating pasture space earlier and allowing for more animals to be raised in the same period of time. As a consequence, the total amount of emissions per hectare of managed pasture increases (as more animals are in average raised in the same hectare per year), but the amount of emissions per tonne of beef is reduced (since a quicker culling cycle means a decrease in the individual emissions of each animal over the course of their lives). Bustamante et al. (2012), and Guedes-Pinto et al. (2016), discuss in better detail the ongoing research on the impact of the proposed sustainable intensification mechanisms on the greenhouse gas emissions. Guedes-Pinto reports that pilot farms undergoing such transitions can mitigate up to 35% of their emissions. The exact amount is still up to debate, and would probably be vary spatially, so we choose not to include such effects on our carbon estimates. Nonetheless, this discussion should highlight the fact that the emissions savings described above may be more conservative than the reality.
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8. Conclusions
The state of Acre has made a significant effort to promote sustainable development over almost two decades. The state has actively promoted sustainable forest management for timber and non-timber forest products, as well as smallholder agricultural supply chains. Now the state is actively pursuing ways to expand these policies to include more families and supply chains. This is no easy feat, considering the lure of business as usual with deforestation as a main input, the relative remoteness of the state and the lack of funding to achieve these aims. The Unlocking Forest Finance project has been working in Acre since 2013 to assess sustainable investment opportunities in the State, developing a business case for these investments and promoting an investment plan. The next step is to identify investors interested to unlock the necessary capital for the proposed sustainable landscape transition.
This study presents the results of the business cases developed by the UFF project. They are based on cash flow analyses for seven supply chains and two conservation activities in Acre, complemented with assessments of social and environmental impacts and appropriate safeguards. The selection of the transition activities were based on government priorities and data was gathered in interviews with different stakeholders from the State government, NGOs, academia, and research institutions. Results show potential for some positive financial returns on investment for most supply chains, although in some cases the results depend on blending market-rate capital investments with grants or concessional finance to guarantee the necessary incentives for sustainable production methods.
Environmental benefits hinge on environmental safeguards, including codes of conduct for sustainable agricultural production.
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References
Acre State Government (2010a). State Plan for Prevention and Control of Deforestation in Acre. Rio Branco: SEMA.
Acre State Government (2010b). Ecological and Economic Zoning, Phase II. Rio Branco: SEMA.
Acre State Government (2013a). Acre in Numbers. Rio Branco: SEPLAN.
Acre State Government (2013b). Challenges and opportunities for agriculture: Acre DRAFT 05/12/2013 (only available internally).
AMARAL, P., Veríssimo. M., Souza Junior, C., Souza, H. de. (2007). Guide for community forestry management. Belém-PA: Imazon
IAC (2016) Centro de Seringueira e Sistemas Agroflorestais. Sao Paulo. [Online]. Available from: http://www.iac.sp.gov.br/areasdepesquisa/seringueira/importancia.php [Accessed on 05/01/16].
IGBE, (2007) Censo agropecuário 2006. Rio de Janeiro, 2007. [Online]. Accessed from: http://www.ibge.gov.br/home/estatistica/economia/agropecuaria/censoagro/ [Accessed on 05/01/17].
IGBE (2015) Produção da Extração Vegetal e da Silvicultura (PEVS) 2015. Rio de Janeiro. [Online]. Available from: https://sidra.ibge.gov.br/pesquisa/pevs/quadros/brasil/2015. [Accessed on 06/01/17]
IBGE (2016). Agricultural statistics. [Online]. Available from: http://www.sidra.ibge.gov.br [Accessed 16/12/16].
IPEA, GIZ, CEPAL (2014). Evaluation of sustainable development policies in the state of Acre (1999-2012). Rio Branco.
MDIC (2016). Research tools. [Online]. Available from: http://www.mdic.gov.br/comercio-exterior/estatisticas-de-comercio-exterior/aliceweb-aliceweb-mercosul-radar-comercial. [Accessed on 16/12/16].
REDD+ SES (2015). REDD+ SES International review. State of Acre, Brazil. [Online]. Available from: http://www.redd-standards.org/images/Executive_summary_international_review_Acre_FINAL_ENG.pdf [Accessed on 16/12/16].
Salimon C., Putz, F., Menezes-Filho, L., Anderson, A., Silveira, M., Foster Brown, I., and Oliveira, L. (2011). Estimating state-wide biomass carbon stocks for a REDD plan in Acre, Brazil. Forest Ecology and Management 262 (2011) 555–560.
SEDENS 2014. State Secretary of Forest Development, Industry, Trade and Sustainable Services, Acre. Business plan. Documents not publically available. SEMA (2010) Natural resources: Biodiversity and environments of Acre. ZEE/AC, phase II, scale 1:250.000 / Rio Branco: State Programme of Ecological Zoning.
SEMA, Special Advisory on Indigenous Peoples, FUNAI, GIZ (2010) Constructing plans for the management of indigenous lands in Acre: Guidelines and roadmap. Brasilia and Rio Branco.
WWF (2013) Incentive system for ecological services inthe state of Acre, Brazil: Policy Lessons Programmes and Strategies for Jurisdictional REDD. Brasilia: WWF.
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Appendix A: Example of a Codeof Conduct for Timber Concession
Proposal for a UFF code of conduct for sustainable Forest Concessions
In order to ensure the sustainability of forest concessions in Acre, the UFF mechanism aims to support operators who commit to a baseline level of social and environmental sustainability. This Code of Conduct encourages and supports them in working towards more ecologically-sound production systems. This Code of Conduct is expected to apply to concessions covering an area of 240,000 ha. Operators are eligible for support if they commit to
• refrain from the unacceptable practices
• meet the minimum social and environmental standards (as defined below, in yellow)
• undertake continued efforts to improve towards aspirational goals (as defined below, in green)
Operators will be supported by technical assistance to help them meet the requirements of the Code of Conduct. In addition, they will need to verify:
• The legal status of the management unit, including tenure and use rights, and that its boundaries are clearly defined.
• If the organisation takes measures to protect the management unit from unauthorised or illegal resource use, settlement and other illegal activities.
• Compliance with national and local laws, ratified international conventions and obligatory codes of practice related to transportation and marketing of products from the management unit.
• If the organisation identifies, prevents and resolves disputes over issues of statutory or customary law.
Code of Conduct
Unacceptable practicesHow will execution be supported (technical assistance, verification, monitoring, etc.)?
Social dimension
UFF does not work with producers who (1) apply worst cases of child labor as defined in ILO Convention 182, (2) apply any form of forced labor as defined in ILO Conventions 29 and 105, (3) engage in human trafficking, (4) prohibit workers from membership of or representation by a trade union, (5) use any sort of forced eviction without appropriate compensation, (6) do not provide adequate housing where required for workers, or (7) fail to provide potable water to all workers.
The verifier will check for compliance before giving initial approval to support. Regular monitoring will ensure continued compliance.
Environmental dimension
UFF does not work with operators who (1) are not a registered organisation authorised by legally competent authority to manage a forest concession area, (2) destroy any form of natural resources that are designated by national and/or international legislation (protected areas), or (3) do not designate at least 5% of the total forest concession area to biodiversity conservation, evaluation and monitoring of the impact of forest concession activities. The area must be representative of the ecosystem in the managed forest.
The verifier will check for compliance before giving initial approval to support. Regular monitoring will ensure continued compliance.
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Code of Conduct
Production standards**All social and environmental production standards apply for the entire farm, that is, not only for the part of the land that is used for producing a specific commodity.
How will execution be supported (technical assistance, verification, monitoring, etc.)?
CriteriaMinimum requirements for support (year 0)
Further development aspirations (year 1 - 3)
Social dimension
1.1 Discrimination (ILO conventions 110, 111, 100)
Awareness to secure equal rights is raised and concrete steps to develop positive action programmes are evident.
Positive action programmes to secure equal rights are implemented.
Technical assistance determines equal rights measures.
1.2 Right to childhood and education (ILO convention 182,138 1999)
Deliberate efforts to remove children from work and get them into education are evident. Children are only allowed to work on the family farm if:• The work does not involve
health or security risks.• Education and development
are not negatively affected.• Children are supervised.
Children’s rights to childhood and education are fully implemented.
Technical assistance supports in determining – and verifies – acceptable form of child labor on family farms and suggests measures to improve education.
1.3 Freedom of association and right to collective bargaining
The right to found, belong to and to be represented by an independent organisation of free choice is accepted and easy access to it exists. Trade Unions and/or worker’s organisations can bargain collectively. Bargaining results are applied to some workers.
Resources, information and institutional structures are available to improve representation of workers and farmers by their organisation. Collective bargaining results are applied to all workers.
Technical assistance supports in determining – and verifies - measures to ensure rights to representation and collective bargaining.
1.4 Fair working conditions
Informal but transparent contractual agreements are used and implemented.
Working hours comply with national laws/international conventions and working hours are recorded individually.
Wages comply with existing national minimum wages or sector agreements.
Seasonal and piece rate workers receive at least minimum wage.
An occupational health and safety programme is in place.
All workers receive written labour contracts. Contractual agreements are adhered to.
Working hours comply with national laws/international conventions and/or collective bargaining and overtime is fully remunerated.
Living wages or wages above existing national minimum wages or sector agreements are paid.
Seasonal and piece rate workers are equitably treated.
A health and safety programme is fully implemented and a monitoring system is in place.
Technical assistance supports in determining – and verifies – measures to ensure fair working conditions.
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Code of Conduct
Production standards**All social and environmental production standards apply for the entire farm, that is, not only for the part of the land that is used for producing a specific commodity.
How will execution be supported/(technical assistance, verification,
monitoring, etc.)
CriteriaMinimum requirements for support(year 0)
Further development aspirations(year 1 - 3)
Environmental dimension
2.1 High Conservation Values
The Management Unit (MU) engages with affected and interested stakeholders and experts to assess and record in the MU land use map the presence and status of High Conservation Values (HCV), in order to develop effective strategies and actions that maintain and/or enhance the identified HCVs. The organisation shall demonstrate that periodic monitoring is carried out to assess changes in the status of HCVs and shall adapt its management strategies to ensure their effective protection (FSC Principle 9).
There are measures and actions in the conservation or restoration of natural vegetation and fauna and protection of sensitive areas (slopes, river banks, wetlands). The organisation analyses the results of monitoring and evaluation of the environmental impacts and changes in its environmental condition. The organisation feeds the outcomes of this analysis back into the planning process.
The control manager verifies the identified HCVs in the management unit and the measures implemented to conserve and restore them. The control manager also ensures that the monitoring activities are being recorded and used in management strategies of the MU.
2.2 Conservation of Biodiversity
The organisation protects rare and threatened species and their habitats in the management unit through conservation zones, protection areas, connectivity and/or other direct measures for their survival and viability. The existence of naturally occurring native species and genotypes are maintained and biological diversity losses are prevented through habitat management in the MU. The organisation shall demonstrate that effective measures are in place to manage and control hunting, fishing, trapping and collecting. Representative sample areas of native ecosystems are identified, protected and when needed, restored to more natural conditions (FSC Principle 6)
The MU has an inventory of wildlife and wildlife habitats identified in the management unit are protected or restored. MUs have a program and activities for regenerating and restoring ecosystems important to wildlife. Hunting, capturing, extracting and trafficking wild animals are not allowed (SAN Principle 3)
The control manager verifies actions taken to protect and restore rare and threatened species and the measures taken to protect the MU from illegal hunting and collection of wild animals.
2.3 Soil conservation
Reduced impact logging techniques are applied to protect soil productivity. This includes measures to minimise soil compaction by harvesting machinery and protect the soil from erosion after harvesting operations are implemented (ITTO Sustainable Management - Criteria 6).
The organisation must execute a soil erosion prevention programme that minimises the risk of erosion, reduces the loss of nutrients and the negative impacts on water bodies (SAN Principle 9).
The control manager ensures that the organisation is using reduced impact logging techniques to protect the soil from harvesting operations.
2.4 Water sources
Measures to ensure adequate water management (drainage) during and after wood harvesting are implemented and buffer strips along streams and rivers are maintained and enhanced to protect water retention capacity and downstream catchment values (ITTO Sustainable Management - Criteria 6).
The organisation has a water conservation programme with measures to prevent water contamination caused by the run-off of sediments (SAN Principle 4).
The control manager ensures that the organisation is implementing water management practices to protect water quantity and quality.
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Code of Conduct
Procedures for approval, monitoring, and reporting
Proposal and baseline
Producers present a proposal document describing as baseline 1) their current management system (including environmental management), 2) the territory including area for production and non-production (including a detailed map), and 3) an inventory of ecosystems and species.
The verifier assists with the specification of the baseline and the map. The verifier evaluates the proposal document and decides on eligibility.
Action plan Producers formulate an action plan outlining how they will further improve their social and environmental performance. The plan also indicates when the activities will be undertaken and who is responsible for execution.
The verifier approves of the action plan and monitors implementation of the specified activities.
Self-reporting and monitoring
Producers self-assess and report on their improvements according to the action plan on an annual basis.
The verifier monitors and reviews performance on an annual basis.
Changes and new activities
The producer will communicate any significant changes to the management system, new buildings or routes, or expansion of the area.
The verifier evaluates proposed changes and decides whether they are acceptable in terms of the Code of Conduct.
Exclusion Producers will be excluded from support if they no longer comply with the Code of Conduct.
The verifier will monitor implementation of the practices included in the management plan of the MU.
Source:
FSC, https://ic.fsc.org/preview.fsc-std-01-001-v4-0-fsc-principles-and-criteria-for-forest-stewardship.a-516.pdf
ITTO guidelines for the sustainable management of natural tropical forests, http://www.itto.int/policypapers_guidelines/
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financingsustainablelandscapes.org