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Ministry of the Environment of Brazil Forests and Sustainable Development Secretariat 1 federative republic of brazil President Jair Messias Bolsonaro Vice-President Antônio Hamilton Martins Mourão MINISTRY OF THE ENVIRONMENT OF BRAZIL Minister Ricardo de Aquino Salles EXECUTIVE SECRETARIAT Executive Secretary Luís Gustavo Biagioni DIRECTORATE OF EXTERNAL RESOURCES Director Marcelo Donnini Freire FORESTS AND SUSTAINABLE DEVELOPMENT SECRETARIAT Secretary Joaquim Alvaro Pereira Leite DIRECTORATE OF FORESTS Director Marta Lisli Ribeiro de Morais Giannichi Ministry of the Environment of Brazil Forests and Sustainable Development Secretariat National Program of Payment for Environmental Services Floresta+ Brasília - DF MMA 2020 Table of Contents Introduction .................................................................................................................5 Floresta+ Program .......................................................................................................6 Payment for Environmental Services ....................................................................6 Environmental Services ............................................................................................. 7 Landholding Categories ............................................................................................. 7 Origin of the Resources .............................................................................................8 Payment Initiatives ......................................................................................................8 Regulations ....................................................................................................................9 Strategic Objectives ..................................................................................................9 Pilot Project Floresta+ Amazon .............................................................................10 Consultations with Interested Parties ...............................................................10 Desired Projected Results .....................................................................................10 Conclusion ....................................................................................................................11 5 Introduction During the decade of the 1930s, the first payments for environmental services appeared in the United States based on the conservation of soil and water resources in areas under planting. At present, the Conservation Reserve Program of the US Department of Agriculture devotes robust allocation of its resources for payments for environmental services to American farmers. By the end of the 1990s in Latin America, payment programs for environmental services had become a standard and were implemented by countries such as Costa Rica and México. In Brazil, in July of 2020, the National Program of Payment for Environmental Services Floresta + was launched, as the largest program of this kind in the world, focused on the conservation of native vegetation. When society realizes that the poor use of soil could be avoided by an agricultural activity that could instead protect it, the benefits generated by environmental services are recognized. When it is understood that it is cheaper to protect a river source rather than provide waste treatment for a water supply then the importance of payments for environmental services is fully appreciated. When the world recognizes the economic value of a standing forest then it is ready for a market for environmental services. 6 Floresta+ Program The Floresta+ Program is an initiative by the Ministry of the Environment of Brazil designed to create, develop and consolidate a market for environmental services, recognizing and valuing the environmental activities that are carried out and providing monetary and non-monetary incentives in all Brazilian biomes: Amazon, Cerrado, Caatinga, Mata Atlântica, Pantanal and Pampa. Another highlight of the program is its exclusive focus on the area of native vegetation. We should recognize the good agricultural and livestock practices that lead to important environmental services in the areas under cultivation, generating benefits such as ensuring water supply and soil conservation, the maintenance and absorption of carbon, amongst others. Payment for Environmental Services The Payment for Environmental Services consists of a remuneration for individuals or organizations, public or private, either national or international, to environmental service providers, directly or indirectly, in a monetary or non- monetary form. Environmental Services Benefits Market Monitoring Water supply Financial Surveillance Carbon credits Consumer goods Fire fighting Biodiversity Technology Research Conservation Oil & Gas Planting native trees Wildlife watching Food & Beverage Agroforestry system Soil protection Farmaceutical Environmental inventory Climate effects Electricity Water treatment Payment Conservation Unit Indigenous Lands Area of Permanent Conservation Legal Reserve Surplus from Legal Reserve Area with Restricted Use 7 Environmental Services Within the Floresta+ Program environmental services are a collection of defined, effective and long-lasting activities, that generate significant environmental benefits, resulting in an improvement, conservation or protection of native vegetation. These diverse environmental services activities include territorial surveillance, protection and monitoring, combat and subsequent restoration of wildfires, soil, biodiversity and water resources conservation, environmental inventories, use of an agroforestry system, reforestation with native trees, natural regeneration and ecological restauration, amongst others. These activities may be undertaken by individuals or legal entities, with public or private control, by family groups or communities, directly or through third parties. When undertaken in an appropriate manner these activities contribute in a significant way to an improvement of ecosystem benefits generated by nature. The benefits include the maintenance and increase of carbon stocks, preservation of biodiversity, pollination, climate control, the observation of fauna, regulation and availability of water resources, nutrient cycle, fertility and prevention of soil erosion, and appreciation of the natural landscape. Landholding Categories The Program extends to all landholding categories: conservation areas, indigenous lands, settlements and private properties (areas of permanent protection, legal land reserves or their surplus entitlements and land with restricted use), with native vegetation cover in all biomes. Native Vegetation Biomes millions of hectares millions of km2 Amazon 350.6 3.5 Cerrado 106.8 1.1 Caatinga 50.9 0.5 Mata Atlântica 30.9 0.3 Pantanal 12.1 0.1 Pampa 8.7 0.1 Total 560.1 5.6 8 Origin of the Resources The monetary and non-monetary resources coming from international cooperation or private sector will be fundamental for the consolidation of the Market for environmental services and to reach the scale desired for all the biomes. Payment Initiatives The Program will accelerate the initiatives of the Market for environmental services on various fronts: • The instrument REDD+ (Reduction of Emissions from Deforestation and Forest Degradation, conservation of forest carbon stocks, management of sustainable forestry and an increase in forest carbon stock), recognized by the United Nations Framework Convention on Climate Change (UNFCCC) and sustained by donations calculated on a payment for results basis, is one of the principal forms to capture international resources for the development of national public policies and subnational initiatives to combat deforestation. • The Voluntary Market for native forests carbon credits, not associated with the UNFCCC, is already a reality in other countries and the Federal Government recognizes it as potentially an important source of resources, principally from private entities, to pay for environmental services. • Green debentures and impact investing, as seen within the financial sector, have an important role in the development of the market for environmental services. • The aggregation of ecosystem benefits to products and services offers the consumer the best perception of the value from conserving natural resources, while demonstrating to companies, industries, farmers, agricultural cooperatives and communities that they can produce while protecting the environment. • Private projects, especially in infrastructure, that pay for environmental services located near to their operations, can generate a positive environmental impact within the areas affected. 9 Regulations The regulation of the Voluntary Market for Environmental Services will provide the credibility necessary so that the projects will have the legal guarantees and an assurance of the development of their full potential. Strategic Objectives In accordance with the Portaria nº 288i, of July 2, 2020, that instituted the National Program of Payments for Environmental Services Floresta+, the strategic objectives are: • Form partnerships with organizations and entities, public or private, national or international, seeking to support projects incorporating payments for environmental services; • Encourage sectorial agreements to generate a demand for environmental services; • Support actions involving international cooperation to promote the awareness and payment of environmental services; • Promote the capture of international resources on a payment for results basis to generate public policies designed to strengthen the market
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