Promoting Economic and Sustainable Use of Forests

Ministry of Agriculture, Livestock and Food Supply According to the new government structure the Brazilian Forest Service now reports into the Ministry of Agriculture, Livestock and Food Supply (MAPA). Thus, forest concessions, the National Forest Inventory, the Rural Environmental Registry, implementation of the Brazilian Forest Code and actions related to production issues in forests are now an integral part of MAPA’s agenda. As a result, we have increasingly been able to bring environmental discussions into the agricultural arena, thereby demonstrating that there are great opportunities for synergies between production and conservation.

A Word by the Minister The Brazilian Forest Code is a strategic and fundamental agenda for the Brazilian agriculture, and as such is a priority for the new of Agriculture, Livestock government. A dynamic analysis of the Rural Environmental Registry (CAR), implementation of the Environmental Compliance and Food Supply Programs (PRA) and issuance of Environmental Reserve Certificates (CRA) will be great options for farmers to achieve legal compliance.

Under forest concessions, over the next 4 years we plan to expand the forest area under concession from just over 1 million to 4 million hectares. To this end, we intend to roll out a set of initiatives such as regulatory simplification to fast track forest concession processes, establish financing mechanisms and put in place a computerized concession contract management system that is based on procedure manuals.

Certainly this synergy between agriculture and the environment is a great opportunity for Brazil to actually be able to follow its path of a sustainable, productive and competitive agriculture.

Tereza Cristina Corrêa da Costa Dias, Minister of Agriculture, Livestock and Food Supply

Photo: André Dib 6.1% of the GDP. Planting forests is one of the best practices for preventing native forests from being logged unsustainably.

The Brazilian Forest Service is in charge of implementing and managing, at national level, the Rural Environmental Registry System (SICAR) and the Rural Environmental Registry (CAR), a fundamental instrument for the enforcement of the Brazilian A word by the Forest Code. The registry has, currently, a total of 6.1 million recorded properties on a declared area of 527.6 million hectares. The CAR provides farmers to engage themselves into Director General the Environmental Compliance Program (PRA), and into the Environmental Reserve Certificate (CRA) market. Its database contains: 21 million hectares of permanent preservation areas; 123.7 million hectares of legal reserves and 205 million hectares of remaining native vegetation in private properties. The Brazilian Forest Service - SFB is linked to the Ministry of Agriculture, Livestock and Food Supply and The National Forest Inventory (IFN) is developed and managed faces a number of challenges in terms of sustainable by the Brazilian Forest Service, and is intended to produce and productive management of Brazil’s forests. forest information for the entire Brazilian territory. It is one of the primary tools for producing information about Brazilian In order to put this agenda in operation, SFB handles different forest resources. To date, 417.7 million hectares have been tools for the promotion of sustainable timber production chains, inventoried, which corresponds to 49 percent of Brazil’s planted forests, forest concessions, national forest inventories, territory. The work has been completed in 18 states of Brazil. and implementation of the Rural Environmental Registry. Other main goals for the Brazilian Forest Service in the coming Forest concessions are intended to create a business years include the expansion of areas under forest concession to 4 environment conducive for sustainable forest management million hectares; the implementation and analysis of CAR and PRA and for enabling forest investments and production over a at the state level; the completion of the IFN nationwide; the support period of 40 years, and as such, capable of providing lower to increasing the use of biomass as a source of renewable energy; and risks and greater legal security to the productive use of a wide the strengthening of research and seedling production programs network of public forests under the concession mechanism. for native forest plantations, aiming at restoring our native forests and making them sustainable and environmentally compliant. The Brazilian Forest Service’s forest concession scheme currently covers 1.05 million hectares across 18 contracts in force in Valdir Colatto, the states of Rondônia and Pará. The forest concession regime Director General, Brazilian Forest Service protects these forest areas against fires, land invasions, timber thefts, and contributes to eliminating illegal timber trade and to generating jobs and revenues at the state and municipality levels.

Planted forests currently occupy 10 million hectares, or 1.2 percent of the national territory, and they account for 90 percent of the timber traded in Brazil, representing 3.9 percent of Brazilian exports and generating 3.7 million jobs, and accounting for Photo: André Dib BRAZIL IS A FOREST-ORIENTED COUNTRY FORESTS IN BRAZIL

Brazil is a forest-oriented country. The country’s relationship with Table 1 - Es�mated Forest Areas in Brazil in 2017 forests begins with its own name, which refers to a tree species — Type of Forest Total Area (ha) % of Forests % Na�onal Territory Brazil Wood (Paubrasilia echinata Lam), which was abundant at Natural Forests 490.251.864 98,03 57,5 the time the Portuguese settlers landed here. Planted Forests* 9.839.686 1,97 1,2 Total 500.091.686 100 58,8 *Source: PEVS/IBGE (2017) The country covers approximately 850 million hectares, and more than half of its territory is covered with forests. This is the largest Table 2 - Es�mated area of natural forests in Brazil’s biomes in 2017 rainforest and the second largest forest area in the world, just Biomes Area (ha) second to Russia’s. Amazon 335.445.992 Caa�nga 36.387.925 Cerrado 90.607.473 Understanding the economic mechanics underlying this natural Atlan�c Forest 19.499.592 resource is key to the promotion of sustainable development. Pampa Fields 2.683.852 Pantanal Wetlands 5.267.030 Brazil has enormous potential for the development of a sustainable Total 490.251.864 economy that reconciles production and conservation of natural Source: SFB (2018) resources. We are the only country in the world where rural properties allocate 20-80 percent of their lands to environmental protection.

Forests are a strategic asset for Brazil. Through sustainable forest management, for example, timber and non-timber products such as fibers, fruits, seeds, essences, and other chemical resources are generated. Forestry is a driving force for sustainable development, especially in remote areas from major cities.

Forests also provide environmental and climate benefits – the so- called ecosystem services, which are essential for the development of the Country’s economic activities, especially the agricultural and industrial sectors, which are the backbone of the nation’s economy.

Photo: André Dib The Brazilian Forest Service is linked to the Ministry of Agriculture, Livestock and Food Supply (MAPA) and its mission is to promote knowledge, sustainable use and expansion of the forest cover as a strategic agenda for the Country’s economy.

The Brazilian Forest Service is headquartered in Brasilia and has regional offices in Santarém (PA), BR-163 Sustainable Forest District Regional Office; Porto Velho (RO), the Purus Madeira The Brazilian Forest Regional Office; and Natal (RN), the Northeast Regional Office, in Service addition to the Arboretum Sustainable Forest Development Center in Teixeira de Freitas (BA).

Its main duties are: • Fostering sustainable forestry; • Producing and disseminating knowledge about forests; • Implementing and monitoring concessions in federally managed forests; • Managing the National Registry of Public Forests (CNFP); • Managing the National Forest Inventory (INF); • Managing the National Forest Information System (SNIF); • Managing the National Forest Development Fund (FNDF); • Fostering conservation and expansion of the forest cover; • Managing the National Environmental Registry System (SICAR).

Board of Directors Director-General Valdir Colatto Director of Administration and Finance Cláudia Pereira Cunha Director of Forest Concessions and Monitoring Paulo Henrique Marostegan e Carneiro Director of Forest Registration and Development Jaine Ariély Cubas Davet Director of Forest Research and Information Photo: Archive/SFB Joberto Veloso de Freitas Forest concessions in Brazil were established and are regulated by Law No. 11,284/2006, the same law that established the Brazilian Forest Service.

The public policy on forest concessions seeks to reconcile forest conservation with socioeconomic development by authorizing sustainable forest management in certain areas of public forests under concession through a bidding process after a broad-based Forest Concessions public consultation process.

Concessions help boost local economies, generate jobs and income, fight deforestation and public land grabbing, market legally sourced timber, and especially maintain forest cover and the ecosystem services provided by forests.

In 2010-2019, the Brazilian Forest Service firmed 18 forest concession contracts for areas in six National Forests in the states of Rondônia and Pará. During this time, 913 thousand cubic meters of timber were produced, which generated approximately 62 million reais in taxes, which were allocated to the Brazilian Forest Service itself, to the Chico Mendes Institute for Biodiversity Conservation (ICMBio), the National Forest Development Fund (FNDF), and those states and municipalities where forest concessions are in place.

Photo: Evie Negro PRODUCTION PER YEAR IN CONCESSIONS and transportation of timber logs for processing at the initial processing plant. The SCC helps trace the exact origin of each log 221.657 Volume of logs produced (m³) produced in the forest concessions.

174.143 167.117 In addition to the CCS, concession monitoring also relies on remote

122.579 sensing instruments such as the Selective Logging Detection System

96.046 (Detex) and Light Detection and Ranging mapping.

49.972 49.639 CCS APP 35.478

To further enhance the transparency and social governance of 2011 2012 2013 2014 2015 2016 2017 2018 forest concessions and to provide an easy-to-use tool to legal timber Volume Toras Produzidas (m³) buyers, the Brazilian Forest Service has developed a mobile and SUSTAINABLE FOREST MANAGEMENT tablet app – the Chain of Custody System (CCS) App.

Sustainable forest management is a productive practice that The CCS App is based on information from the Chain of Custody greatly minimizes the impacts of forest production in order to System and can be downloaded to Android phones from the ensure environmental conditions for managed forests to maintain Google Play store. In order to track the timber produced under the their wood stocks, biological diversity and the ecosystem services concession schemes, a user must have the QR Code provided by the provided. forest concessionaire for timber logs or lumber originating from a forest concession area. The app also provides access to reports on Forest management fosters the sustainable use of forest resources, the production in federal forest concessions. in addition to generating jobs and income and helping boost the local and state economies that are often in need of private investment and have scarce production alternatives.

MONITORING OF FOREST CONCESSIONS

The Brazilian Forest Service has developed a computerized Chain of Custody System (CCS) to monitor timber production from federal forest concessions from the forest all the way to sawmills and finally to end consumers.

The CCS is a set of procedures for tracking timber forest products from areas under forest concession, ranging from felling, sectioning Photo: Archive/SFB The National Forest Inventory (IFN) is a key sampling survey conducted by the federal government to produce information about the Country’s forest resources. The IFN is unique in that it collects data directly from forest areas with natural vegetation cover, in planted forests, in farming areas and in cattle ranching areas.

Plant and soil samples are collected from these sites, tree measurements are taken and interviews with local residents are The National Forest Inventory conducted in order to assess the quality and state of forests and their importance to the local people.

Implementation of the IFN relies on collaboration of several environmental state government institutions, as well as universities and research institutions.

Forest Information Biophysical and socioenvironmental data are collected to produce regular, detailed information on aspects such as: - Extension of forest resources; - Biological diversity of forest resources; - Health and vitality of forests; - Forest stocks; - Use of forest products and services; - Forest products as a share of household income. This information is assessed both qualitatively and quantitatively to help develop strategic public policies and projects for the use, conservation and restoration of forest resources.

IFN coverage Up to now, 417.7 million hectares have been inventoried, i.e., 49 percent of Brazil’s territory. Field data collection has now been completed in 18 states (AC, AL, CE, DF, ES, GO, MA, PB, PE, PR, RJ, RN, RO, RR, RS, SE, SC, and TO), and has been launched in another 6 states (AM, BA, MS, MT, PA, and PI). Photo: André Dib THE NATIONAL FOREST INFORMATION SYSTEM

The National Forest Information System (SNIF) is used to identify, record and analyze information related to Brazil’s natural and planted forests. This systematically gathers forest information from Sampling system various governmental and non-governmental organizations. Relying on national coverage and a unique methodology for all biomes, data collection is performed at spots located every 20km across the Country, and there The purpose of SNIF is to collect and produce, organize, store, may be more spots in specific areas in relevant cases. process, and disseminate data, information and knowledge about forests and the forestry sector in order to support projects and policies that reconcile the use and conservation of Brazil’s forests.

Expected impacts and applications: Standard grid 20km x 20km •Public policies for the forestry sector designed and implemented Sample intensity 10km x 10km based on relevant, accurate and current information; Key: Schematic representation of the National Grid of Sample •Forest resource management based on information that takes Units (GNUA) illustrating the distribution of sample units for the into consideration regional characteristics, unique features and collection of biophysical data from the IFN-RJ. potentialities; •Identification of priority studies and research programs to expand Biophysical Data Collection the forest information and knowledge base; The biophysical data collected from the clusters are vitally important •Identification of opportunities related to forestry sector as they are directly related to forest resources, such as soil, dead development. biomass, litter, land and vegetation use classes, which will serve as a basis for obtaining more complex information about the main forest attributes across Brazil.

Socioenvironmental Survey The purpose of the socioenvironmental component is to generate information about the use and perception of rural communities regarding the use and conservation of forest resources, if any. The methodology involves interviews with residents within a radius of up to 2km from the spots in order to gather information about the use of forest products and services, environmental perception, importance of planted forests (if any), use of bamboo, knowledge of Photo: André Dib forest policy and perception of climate change. FOREST PRODUCT LABORATORY LPF Contributions to Public Agendas Solid Waste The Forest Products Laboratory (LPF) is a specialty center - Thermal power generation from wood residues from tree pruning established in 1973 as part of the Brazilian Forest Service, and it in the Federal District. A pilot project in cooperation with CEB/DF develops technological solutions to support sustainable growth of to generate 1 MW of power; the forestry sector. - Production of engineered items (sheets and panels) from wood/plastic composites. Use of sawmill or wood residues from The LPF provides technical and scientific support to demands construction and low melting point polyethylenes from selective arising from the use of timber and non-timber forest products by collection. conferring scientific rigour and bringing innovations to the market. Throughout its history, the Laboratory has built a rich body of Sanitation knowledge. Highlights include: - Activated charcoal production system for wastewater treatment. Research to reduce activated carbon production cost. - Physical-mechanical characterization of 300 species of tropical woods; National Rural Housing Program - Database of Brazilian forest species that make up an electronic - Existing architectural designs and prototypes of social buildings timber identification key, available from the Brazilian Forest (low-cost housing, health clinics, schools, community centers) with Service’s website; timber seized by IBAMA or other federal authorities. - Technological support to the Brazilian forestry sector through specialized services; Wood Identification - Publication of scientific papers in specialized journals; - Wood identification by reading its chemical spectrum using - Education and training of undergraduate and postgraduate near infrared (NIRS). This methodology is capable of improving students on wood sciences. inspection performance; it is currently in the field testing phase; - Macroscopic identification of timber using the analytical key, Domains: available from the internet. - Wood anatomy and morphology; - Wood drying; Training - Timber and non-timber forest products; - On-site and distance education and training for public officials in - Wood engineering and physics; macroscopic identification of woods. - Biodegradation and preservation of wood; - Chemistry, adhesives and natural rubber.

Photo: Archive/SFB The Rural Environmental Registry (CAR) is a national electronic public register that is mandatory for all rural properties. It is intended to bring together the environmental data of rural properties and possessions so as to form a database for environmental and economic control, monitoring, and planning, and to help combatting deforestation.

The CAR relies on digital tools that provide georeferenced spatial Rural Environmental Registry representations of environmental data from rural properties through high-resolution satellite images and the integration of the environmental data generated, which supports environmental landscape assessments and public policy making in Brazil.

RURAL ENVIRONMENTAL REGISTRY DATA IN BRAZIL

6,1 million 1,8 million 21 million etares rral prperties delared permanent registered ater sres preseratin areas

527,6 million 205 million 123,7 million Photo: André Dib delared etares etares residal etares natie egetatin legal reseratin

The data refers to a survey carried within the CAR system in early august of 2019. CAR Analysis For the bodies in charge of managing the CAR: The information provided in the Rural Environmental Registry • Facilitate monitoring of native vegetation and the fight against must be reviewed by the relevant state/district agency in order to deforestation. assess environmental compliance of rural properties. To make the • Inform rural environmental licensing of properties. analysis of this information effective and quick, the Brazilian Forest • Assist in the public policymaking process. Service developed a streamlined flow of analysis. • Improve environmental management in rural areas.

The streamlined flow of analysis will help to reduce the financial CAR Opportunities and operational costs of CAR analysis and to minimize subjective • Promotion of rural production in tandem with environmental analysis processes, and it will also provide rural property holders conservation with access to tools that make it easy to revise existing data, thereby • Input for government and non-governmental land use and cutting down on the number of stages in the process and speeding management policies, programs and projects up the overall analysis stage. • Input for control, monitoring, environmental and economic planning activities and for combating deforestation. Proper implementation of the CAR analysis is conducive of the • Strengthening of policies for environmental compliance of rural implementation of other mechanisms in the Brazilian Forest Code properties and payment for environmental services. (Law No. 12,651/2012), such as the Environmental Compliance • A model of public and technological, methodological and Programs (PRA) and the Environmental Reserve Certificates strategic innovation policymaking for other countries. (CRA).

Advantages and Benefits of the CAR

For Property Owners • Access to Environmental Compliance Programs (PRA), thus allowing administrative sanctions for wrongful suppression of vegetation in Permanent Preservation Areas, Legal Reserves and Restricted Use Areas perpetrated until 07/22/2008 to be lifted • Access to the Environmental Reserve Certificate (CRA) market • Access to agricultural credit • Access to market certifications • Exemption from registration of the Legal Reserve at the Real Estate Registry Office • Environmental and economic planning for rural properties

Photo: André Dib NATIONAL REGISTRY OF PUBLIC FORESTS

The National Registry of Public Forests (CNFP) is a planning tool that gathers georeferenced data on Brazilian public forests to provide public managers and the general population with a reliable base of maps, images, and data that are relevant for forest management.

The data from the CNFP support public forest allocations to community use, creation of protected areas and development of forestry concessions. The Registry promotes transparency, social participation and standardization of information on public forests.

The CNFP is comprised of the Federal Registry of Public Forests, the state, district and municipal public forest registries, and is being interconnected with the National Rural Registration System (SNCR) of the National Institute for Colonization and Agrarian Reform (Incra).

Type A (darker, allocated) and Type B (lighter, non allocated) public forests entered in the CNFP up to 2018. The area of allocated public forests entered in the CNFP by 2018 accounts for approximately 82 percent of the total registered public forests.

Photo: André Dib SUSTAINABLE FOREST DEVELOPMENT CENTER - FOREST KNOWLEDGE PORTAL ARBORETUM PROGRAM The Forest Knowledge Portal is a distance learning platform The Arboretum Program is a Sustainable Forest Development Center launched by the Brazilian Forest Service with the goal of expanding (CDFS) located in the far south of Bahia. Its mission is to contribute access to knowledge on forest-related topics. to the conservation, restoration and enhancement of diversity in the Atlantic Forest through the production, dissemination and The courses available cover topics related to non-timber forest application of traditional and technical-scientific knowledge. product management, such as Brazil nuts and acai, and low- impact timber forest management, management of community The Program brings together various institutional actors and seeks organizations (associations and cooperatives), forest concessions, to disseminate knowledge and promote the sustainable use of forest native forest species management, and community forest resources by acting on three fronts: seed production, seedling management. production and planting. The courses use interactive language that seeks to blend technical The Arboretum CDFS is based in the municipality of Teixeira de knowledge with traditional knowledge and regional features. Freitas. Its facilities consist of a nursery, seed laboratory, storage chambers, herbarium, library, classrooms, and arboretum. These The learning environment is geared towards extension technicians, facilities provide technical and logistical support to seven seed social and environmental leaders, government managers, teachers, collection centers and six seedling nurseries. students, and forest workers, and aims to disseminate information about Brazilian forests and promote good sustainable management The work involves collecting seeds from over 500 species and practices. producing seedlings for over 300 forest species.

VISIT:

Photo: André Dib INTERNATIONAL PROJECTS FIP RURAL LANDSCAPES PROJECT - Grant Funding: 21 million dollars KFW CAR PROJECT - Effective until 2023 - Grant Funding: 33 million Euro - Coverage Area: 53 watersheds in 9 states in the Cerrado biome - Effective until 2020 - Implementation shared between the Secretariat of Innovation, - Coverage Area: 75 municipalities in the states of Pará, Mato Rural Development and Irrigation (SDI) and MAPA’s Brazilian Grosso and Rondônia Forest Service. Other organizations involved include the National - Implementing entity: Brazilian Forest Service - MAPA Service for Rural Learning (SENAR), the National Institute for Space Goal: To support a decrease in deforestation and greenhouse gas Research (INPE), the Brazilian Agricultural Research Corporation emissions through the implementation of the Forest Code (CAR (EMBRAPA), and the German Cooperation Agency (GIZ). and PRA) and environmental compliance technologies focused Goal: To promote environmental compliance in tandem with the on generating income for farmers and certifying compliance with implementation of production technologies for pasture recovery environmental laws. in 4,000 cattle ranching properties in selected watersheds in the Cerrado biome. KFW FOREST MANAGEMENT PROJECT - Grant Funding: 15 million Euro PROJECT FOR STRENGTHENING ENVIRONMENTAL - Effective until 2020 COMPLIANCE - GERMAN TECHNICAL COOPERATION - - Coverage Area: 24 National Forests in the region under the GIZ influence of the Sustainable Forest District of the BR-163 road and - Grant Funding: 5.8 million Euro the Purus and Madeira rivers - Effective until 2024 - Implementing entity: Brazilian Forest Service - MAPA - Priority Area: Acre, Rondônia and Amazonas Goal: To support the management of public forests for sustainable Implementing entity: Brazilian Forest Service – MAPA production; to foster forest management and forestry with native Goal: To strengthen environmental compliance and management species. of rural properties in order to reduce deforestation and associated emissions, and also contribute to the conservation of biodiversity. FIP CAR PROJECT - Concessional Loan Funding: 24.5 million dollars The National Forest Development Fund (FNDF) is managed by the Brazilian - Effective until 2020 Forest Service and its mission is to foster the development of sustainable - Coverage Area: 11 states in the Cerrado biome forestry in Brazil and to promote technological innovation in the sector. It is an - Implementing entity: Brazilian Forest Service - MAPA accounting public fund established under the Public Forest Management Law Goal: To boost the capacity of the Brazilian Forest Service (Law No. 11,284/2006), and it is regulated by Decree No. 7,167/2010. (SFB) and that of state agencies from eleven states to review Rural Environmental Registry applications and support the FNDF funds come from forest concession revenues. In addition, the Fund may implementation of the Environmental Compliance Program (PRA)

Photo: André Dib André Photo: receive grants from national or international public or private organizations, and in the Cerrado biome. funds from parliamentary amendments. FOREST ECONOMY AND MARKET AWARD The Brazilian Forest Service www.florestal.gov.br In order to put together a portfolio of studies to improve public Diretor-General cabinet policies, as well as to foster the development of forest economy and market studies and to promote a debate on the productive Esplanada dos Ministérios, Block D and sustainable use of Brazilian forests from an economic 9th floor - Room 952 perspective, the Brazilian Forest Service, in collaboration with the Brasília/DF - CEP: 70.043-900 National School of Public Administration (Enap) and the National [email protected] Confederation of Industries (CNI) has been holding the Brazilian Forest Service Award on Forest Economy and Market since 2013. Follow us on social media The Award has a Student and a Professional category and brings @sfb_florestal together essays that help understand the mechanics of Brazil’s forest sfbflorestal resources and timber and non-timber forest products – including florestal.gov fruits, fibers, seeds, essences and other chemical assets – which are sfbflorestal drivers of economic development, especially in remote areas from major cities. Support:

The essays are stored in a collection available from the Brazilian Forest Service and the National School of Public Administration.

Photo: André Dib Made in September of 2019 Cover and back cover photos: André Dib