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Moving Towards a Deforestation-Free Cacao and Chocolate Value Chain with Low Greenhouse Gas Emissions

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Moving Towards a Deforestation-Free Cacao and Chocolate Value Chain with Low Greenhouse Gas Emissions Alliance Moving towards a Deforestation-free Cacao and Chocolate Value Chain with Low Greenhouse Gas Emissions CURRENT STATUS, OPPORTUNITIES AND AN ACTION PLAN FOR THE UCAYALI REGION The Alliance of Bioversity International and the International Center for Tropical Agriculture (CIAT) delivers research-based solutions that address the global crises of malnutrition, climate change, biodiversity loss, and environmental degradation. The Alliance focuses on the nexus of agriculture, environment, and nutrition. We work with local, national, and multinational partners across Africa, Asia, and Latin America and the Caribbean, and with the public and private sectors and civil society. With novel partnerships, the Alliance generates evidence and mainstreams innovations to transform food systems and landscapes so that they sustain the planet, drive prosperity, and nourish people in a climate crisis. The Alliance is part of CGIAR, the world’s largest agricultural research and innovation partnership for a food-secure future dedicated to reducing poverty, enhancing food and nutrition security, and improving natural resources. www.bioversityinternational.org www.ciat.cgiar.org www.cgiar.org Moving towards a Deforestation-free Cacao and Chocolate Value Chain with Low Greenhouse Gas Emissions CURRENT STATUS, OPPORTUNITIES AND AN ACTION PLAN FOR THE UCAYALI REGION Yovita Ivanova, María Claudia Tristán, Miguel Romero, Andrés Charry, Sebastián Lema, José Sánchez Choy, Andrés Vélez, Augusto Castro and Marcela Quintero Alliance of Bioversity International and CIAT Regional Centre for Latin America and the Caribbean Km 17 Recta Cali-Palmira. C.P. 763537 A.A. 6713, Cali, Colombia Call: +57 4450000 Email: [email protected] Website: www.ciat.cgiar.org PROJECT: BUSINESS MODELS TO ADDRESS THE DRIVERS OF DEFORESTATION IN PERU CIAT Publication no. 502 November 2020 SUSTAINABLE AMAZON BUSINESSES (SAB) Authors: Ivanova Y; Tristán M; Romero M; Charry A; Lema S; Choy J; Vélez A; Castro-Núñez; Quintero M. 2020. Moving towards a deforestation-free cacao and chocolate value chain with low greenhouse gas emissions. CIAT Publication No. 502. International Leading Entity: Center for Tropical Agriculture (CIAT). Cali, Colombia. 136 p. Alliance of Bioversity International and the International Center for Tropical Agriculture (ABC) Collaborators: Matthias Jaegger, Jhon Jairo Hurtado, Juan Pablo Castro, Simon Koenig National Political Partners: Ministry of the Environment (MINAM), Ministry of Agriculture and Irrigation (MINAGRI), Cover Photos: Sean Mattson © CIAT - Neil Palmer © CIAT - © BMU project Regional Government of Ucayali (GOREU) Internal photo credits: © CIAT - © BMU project. Some Rights Reserved. This work is licensed under a Creative Commons Attribution Non-Commercial 4.0 International License (CC-BY-NC) Subcontractor: https://creativecommons.org/licenses/by-nc/4.0/ Photos available Flickr https://www.flickr.com/photos/131075783@N02/ Climate Focus (CF) https://www.flickr.com/photos/ciat/ Donor organization: German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety Copyright © CIAT 2020. Some rights reserved. (BMU) Period of implementation: CIAT encourages the wide distribution of its printed and electronic publications so that the public obtains the maximum benefit from them. Therefore, in August 2018–July 2021 most cases, colleagues working in research and development should not feel restricted in their use of this material. CIAT materials for non-commercial Geographic scope of the intervention: purposes. However, the Center prohibits modification of these materials and expects to receive credits for their use. Although CIAT produces its publications with great care, it does not guarantee that they are accurate or that the information is complete. Ucayali Region, Peru Abbreviations and acronyms ABC Alliance of Bioversity International-CIAT GOREU Ucayali Regional Government AFS Agroforestry Systems GRDES Regional Economic and Social Development Authority BMU German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety IKI International Climate Initiative BPP Permanent Production Forests JDI Joint Declaration of Intent CC Climate Change LULUCF Land-use and land-use Changes and Forest CCC Central Committee for the Future Development of Curimaná MINAGRI Ministry of Agriculture and Irrigation CF Climate Focus MINAM Ministry of the Environment CITE Center for Productive Innovation and Technology Transfer MRV Monitoring, Reporting and Verification MTRCC Regional Technical Committee for Cacao and Chocolate CO2eq Carbon Dioxide Equivalent DGA General Directorate for Agriculture NDC Nationally Determined Contributions DGCCD General Directorate for Climate Change and Desertification NGO Non-governmental Organization DGPA General Directorate for Agricultural Policies PO Producer Organization DRAU Regional Sectoral Directorate for Agriculture in Ucayali PPP Public-Private Alliance ENBCC Ecological-Economic Zoning REDD+ Reducing Emissions from Deforestation and Forest Degradation ENCC National Climate Change Strategy SAB Sustainable Amazon Businesses FZ Forest Zoning SERFOR National Forest and Wildlife Service GHG Greenhouse Gas SME Small and Medium-sized Enterprises GOLO Local Governments Acknowledgments Foreword This document was prepared by the International Center for Tropical Agriculture (CIAT, in On behalf of the Regional Government of Ucayali, I express our appreciation and gratitude Spanish) as part of the Alliance of Bioversity International and CIAT, under the leadership to sectoral stakeholders, public institutions, private companies, non-governmental of the Multifunctional Landscapes Area, and in collaboration with the Climate Focus organizations, and international cooperation agencies, who responded to the joint invitation international advisory company. The development of this report was made possible by of the Alliance of Bioversity International and CIAT, the Ministry of the Environment the valuable contribution of all the multi-stakeholder platform actors, as established (MINAM), and the Ministry of Agriculture and Irrigation (MINAGRI), to discuss, prepare, and within the framework of the “Business Models to Address Drivers of Deforestation in issue this strategy document. The information and actions included in this text represent a Peru” or Sustainable Amazon Businesses (SAB), funded by the International Climate valuable opportunity to reinforce our commitment towards the sustainable development Initiative of the German Federal Ministry for the Environment, Nature Conservation and of the Amazon, and to redesign business models and institutional structures in favor of the Nuclear Safety. conservation of our forests, the recovery of degraded areas, and the generation of income for the farmers in our region. The Ucayali Regional Government (GOREU, its Spanish initials) and the Regional Technical Committee for Cacao and Chocolate (MTRCC, in Spanish) provided strategic support and We are facing a series of major social and environmental challenges we cannot ignore; guidance in the design and validation stages of this document. Our gratitude extends however, our region has great potential and opportunities for development, and it will be especially to the Central Committee for the Future Development of Curimaná and the only through an interinstitutional coordination and collective efforts that we will Colpa de Loros Agricultural Cooperative for Flavor Cocoa, who shared with us their be able to reach the commitment we have with our future generations to leave a inspiring stories and vision for the sector. world better than the one we received. It depends on us whether the efforts of the IKI project “Business Models to Address We thank the Ministry of the Environment, especially the General Directorate Drivers of Deforestation in Peru” and other projects operating in our region for Climate Change and Desertification (DGCCD, in Spanish); the Ministry will help build a concerted vision for the development of the cacao and of Agriculture and Irrigation (MINAGRI, in Spanish), particularly chocolate chain, a sector that fills us with pride and represents one of the General Directorate for Agricultural Policies and the General the flagship products of our region. In this sense, we reiterate our Directorate for Agriculture (DGPA, in Spanish); and the National gratitude to the stakeholders who took part in this process with Forest and Wildlife Service for their valuable contribution and a proactive attitude, commitment, and responsibility. This is support during this process. a first step; therefore, we invite you to continue participating We would also like to thank all the organizations and with the same or increased willingness in future spaces to stakeholders interviewed and consulted in Ucayali for be developed, which will strengthen the cacao sector and offering their valuable comments and recommendations. allow us to position ourselves as a region consolidating its presence in differentiated markets, both nationally and internationally, in a competitive, inclusive, and sustainable manner, generating better incomes and wellbeing for its stakeholders through partnering and institutional articulation, contributing to the conservation of forests and the environment. iii iv Executive Summary The report entitled “Towards a Deforestation-free Cacao and Chocolate Value Chain with Low integrated approach to the sustainability of the agricultural and environmental sectors. Greenhouse Gas Emissions: Current status,
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