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Confirming the quality of our projects and our commitment to climate, community and biodiversity, the Corridors For Life ARR Project has been validated and is now ready to generate carbon credits verified by the VCS and CCB standards.

Biofílica, in partnership with IPÊ – Instituto de Pesquisas Ecológicas, is proud to announce that the Corridors For Life ARR Project has reached another significant milestone by receiving VCS+CCB validation. This achievement not only validates the project’s commitment to restore degraded areas of Atlantic Forest biome, but also highlights its positive impact on the CCB tripod (climate, community and biodiversity).

The VCS+CCB validation confirms that the Corridors For Life ARR Project complies with the highest sustainability standards, assuring high quality carbon removal accounting, the promotion of social well-being and the protection of biodiversity. With a robust plan of activities, the project aims to restore 75k hectares over 20 years, to improve the lives of more than 600 people and contribute to the conservation of 215,000 hectares of native vegetation, including 28 vulnerable species and 3 critically endangered species in the Pontal do Paranapanema region.

Project Highlights

The Corridors for Life ARR Project has the potential to remove 29 million tons of CO2e over 50 years by restoring 75,000 hectares of degraded areas in the Pontal do Paranapanema region. Thus, among the projects already validated by the VCS, it is currently the largest Brazilian ARR project in terms of annual emissions removal potential (baseline ex-ante of 514k tCO2e).

As well as promoting environmental restoration, the project promotes environmental education activities, generates employment and income, and encourages the establishment of new forest seedling nurseries and restoration service companies, thus contributing to the sustainable development of local communities.

VERRA’s validation of the project guarantees its compliance with the strict criteria of the certification standards, reinforcing its credibility and transparency.

Main aspects recognized by the VCS + CCB Standards

The Corridors For Life ARR Project is fully capable of measuring tropical forest restoration carbon stocks, guaranteeing a methodologically sound approach.

The carbon credits generated by the project are fundamental to enable large scale restoration activities of the degraded Permanent Preservation Areas (APP) and Legal Reserves (RL) in Pontal do Paranapanema, reinforcing the additionality of the project.

The project has a low non-permanence risk of the carbon stocks removed by the project and effective mechanisms for mitigating future risks, demonstrating its commitment to long-term sustainability.

The Corridors For Life ARR Project works in a transparent, equitable manner and guarantees the free, prior and informed consent of local communities, strengthening ties and promoting joint development.

With a plan capable of making a significant contribution to the conservation of critically endangered species, the Corridors For Life ARR Project is eligible to receive the Gold Label for Biodiversity.

This milestone represents a significant step forward against climate change, conservation of biodiversity and fair economic development, emphasizing Biofílica’s and IPÊ’s commitment to building a more sustainable future for all.

Verra

VERRA, a non-profit organization, is responsible for VCS+CCB validation.

Operating the world’s leading carbon credit program, VERRA is committed to helping reduce greenhouse gas emissions, improve livelihoods and protect natural resources by working with the public and private sectors.

For more information about the Corridors For Life ARR Project and its initiatives:

or contact our team of experts.

About Biofílica

Biofílica aims to be the world’s best Nature-based Solutions (NBS) company, generating value for the environmental asset market, fighting climate change, protecting biodiversity and promoting well-being and social development.

We carry out projects that promote the reduction of emissions through forest conservation and the sequestration of emissions through reforestation.

We believe in Nature-Based Solutions as fundamental mechanisms for humanity to achieve the goals of the Paris Agreement and overcome the climate crisis. By 2030, between 35% and 50% of emissions reductions will have to come exclusively from Nature-Based Solutions.

Talk to Biofílica:
mkt.decarbon@ambipar.com / @biofilicabr

About IPÊ

IPÊ – Instituto de Pesquisas Ecológicas is a Brazilian non-profit organization that works to conserve the country’s biodiversity through science, education and sustainable business. Founded in 1992, it is headquartered in Nazaré Paulista (São Paulo), where its education center, ESCAS – Escola Superior de Conservação Ambiental e Sustentabilidade, is also located. For IPÊ, biodiversity conservation is central to socio-economic transformation and tackling climate challenges.

Present in the Atlantic Forest, Amazon, Pantanal and Cerrado biomes, it carries out around 30 projects a year. The Institute has created a conservation model that is a benchmark in socio-environmental conservation, involving scientific research into species, environmental education, community involvement and mobilization, habitat and landscape conservation and support for the construction of public policies.

IPÊ is responsible for planting more than 7 million trees in the Atlantic Forest, contributes directly to the conservation of six species of fauna and carries out environmental education and training for an average of 15,000 people a year. The projects benefit more than 200 families with sustainable actions, knowledge about socio-environmental conservation and income generation. To develop its socio-environmental projects, the organization relies on partners from all sectors and works as an articulator on fronts that promote engagement and mutual strengthening between socio-environmental organizations, private initiative and government institutions.

To find out more:
^{ipe.org.br / @institutoipe} 

^{by Caio Gallego, NBS Intelligence Manager and Marcos Siqueira-Neto, ALM Specialist (Agricultural Land Management)}

Planting and livestock raising are among humanity’s oldest activities. Agriculture allowed the emergence of cities, productive diversification, and commercial activities. Altering landscapes and utilizing natural resources, agriculture is the greatest human endeavor on Earth.

to provide feed, fiber, and bioenergy for the 10 billion people estimated to occupy the planet in 2050, and without increasing impacts on natural ecosystems, the rise of agricultural production must be made possible not only by increasing productivity, but also through recovery of degraded areas.

In this 2^nd technical positioning of Biofílica, we intend to address the importance of Brazilian agribusiness for socioeconomic development and its decisive role as a potential Nature-Based Solution. We also highlight the need to face the challenges of food and energy security against climate change, guaranteeing human health and well-being, while also helping to reduce environmental degradation.

The growth of Brazilian agriculture and its environmental impacts

The success of Brazilian agriculture was due to the presence of areas with favorable environmental conditions, abundant water, and a mechanized production, combined with technological innovations and tropicalized management practices, resulting in both increased productivity and the expansion of production frontiers, especially in the Amazon and the Cerrado.

Family agribusiness, which accounts for 77% of rural properties, is important for supplying the domestic market and controlling food prices. Corporate agribusiness accounts for around 50% of the export basket, with emphasis on the soybean and sugar-alcohol complexes, cereals, meat, and forestry products.

The productive rise of Brazilian agriculture began in the 1960s, a period known as the “Green Revolution”. Its modernization was based on scientific research and technological innovations, with emphasis on the creation of the Brazilian Agricultural Research Corporation (Embrapa). However, this growth brought deep changes to the production model and rural landscape, and consequences for traditional farmers, such as:

• Need to adapt to the new production model
• Need for credit to purchase equipment and inputs
• Need for technical assistance for technological transition
• Dependence on technology and inputs external to the properties.

Which also reflected in Brazilian territorial planning, such as:

• Unemployment in the countryside
• Rural exodus
• Increase in large estates
• Migratory movements
• Territorial occupation and the need for infrastructure.

As for the environment, the biggest impacts caused by the growth of the agricultural sector are related to two factors:

1. intensive change in land use, which is one of the main vectors responsible for deforestation, and,
2. after conversion, degradation of cultivated areas and pastures, caused by inadequate management practices or lack thereof.

These factors, added to the burning of plant residues, flooded rice production, the excessive use of fertilizers (especially nitrogen) and agrochemicals, in addition to enteric fermentation and the decomposition of animal waste are responsible for environmental degradation and increased greenhouse gas emissions (GHG), worsening climate change, of which feed back into impacts on production, such as changes in territorial zoning and agricultural suitability, increased desertification risk and extreme weather events.

Regulatory actions for sustainable development in Brazilian agriculture

Historically, Brazilian agricultural policies have encouraged commodity production and deforestation focused exclusively on increasing production. However, more recently, international pressure, markets and civil society have been demanding that various sectors, including agribusiness, establish clear goals and implement effective actions to reduce environmental degradation, mitigate climate change, biodiversity losses, eradicate work analogous to slavery, and promote fair labor relations.

In addition to changing legislation to protect the environment, voluntary initiatives seek to reconcile environmental preservation and economic development to encourage responsible agricultural production, for example, the ‘Soy Moratorium‘. This initiative marks the companies’ commitment not to sell soy from deforested areas of the Legal Amazon. In 2020, the ‘Brazil Climate, Forests, and Agriculture Coalition‘ brought together representatives from agribusiness and other entities, and presented six measures to quickly reduce illegal deforestation in the Amazon, these being:

1. Intensify supervision
2. Suspend the CAR for areas in public forests
3. Designate areas for protection and sustainable use
4. Grant financing under socio-environmental criteria
5. Provide transparency in vegetation suppression authorization data
6. Suspend land regularization processes for properties with deforestation found after July 2008.

Recently, the European Union published Regulation 2023/1115 – EU Deforestation-Free Regulation, imposing due diligence requirements on imports of agricultural products that may be associated with deforestation. In fact, this regulation worked as a catalyst to accelerate initiatives aimed at traceability of value chains, e.g., the ‘Soja na Linha’ initiative, which presents criteria for soy traceability. In livestock, the most recent initiative was the ‘Protocolo de Monitoramento Voluntário de Fornecedores de Gado no Cerrado‘, presenting the socio-environmental monitoring criteria for the purchase of products of bovine origin.

In this context, it becomes evident that the search for sustainable development in Brazilian agribusiness goes beyond responsible production, respect for land, labor, and environmental legislation. It is also influenced by regulatory frameworks, agreements, and guidelines on international markets, which has reputational consequences, including sanctions and embargoes. These factors affect both the demand and the prices of Brazilian agricultural products, directly impacting the income of rural producers.

Agriculture as a Nature-Based Solution

As defined by the United Nations Environment Programme (UNEP), Nature-Based Solutions (NBS) are actions to conserve, restore or sustainably use of natural or modified ecosystems, which address social, economic, and environmental challenges, while time that provides human well-being, quality ecosystem services, climate resilience, and benefits for biodiversity.

Based on this definition, the NBS goes beyond environmental issues, and points to the need to promote actions to support rural populations, especially smallholders, women, and traditional populations in vulnerable situations, through the provision of credit and financing services, market access, land ownership, health, social services, education, training, knowledge, and environmentally appropriate and accessible productive technologies.

For Brazilian agriculture to be seen as an NBS, it is necessary to encourage changes in the approach to the current production model. This transformation must occur both on rural properties and in productive activities. This will only be possible through the involvement of public authorities, international organizations, universities, private sector, and civil society, especially rural producers, and environmentalists.

Changes to the production model initially occur in the administrative and financial management of rural properties and extends to its productive activities. Best management practices with a NBS bias operate in synergy with natural processes, enhancing ecosystem services. In addition to the benefits for production, improved soil health and the productive environment, these practices effectively promote the recovery of degraded, unproductive, or low-productivity areas. Some examples of best management practices are no-tillage, cover crops, crop rotation and diversification, rotational pasture management, agroforestry, among others.

Adoption of best management practices also guarantees a more resilient agricultural environment, both to financial and environmental risks, helping producers to adapt productive activity to increasingly varied climatic conditions, as well as directly contributing to the mitigation of climate change, through sequestration carbon in soil and vegetation and reducing GHG emissions into the atmosphere.

In this sense, the necessary actions for the transition from current production models to the sustainable development of Brazilian agriculture must occur through the adoption of best management practices with a NBS bias that provide i) socioeconomic benefits, such as increased productivity and agricultural profitability, with improved living conditions in rural communities and new sources of income; ii) adaptation and resilience of productive activities to climate risks, guaranteeing food and energy security and, iii) the reduction and removal of GHG emissions.

Challenges and Perspectives

If, on the one hand, the sustainable development of agriculture is a potential SNB and can leverage the global sustainable development, on the other hand, given the size of the country, Brazilian agriculture is marked by the heterogeneity of production models that differ in terms of scale, production systems, use of production factors and inputs, and presents different technical and technological levels.

In most cases, this discrepancy is related to regional diversity and the knowledge of rural producers, as well as their different capabilities to make investments in the property and in its productive activities. In general, the barriers that prevent the transition from the current production model to a sustainable approach in agriculture are related to:

1. producers’ resistance to adopting new models of property management and their productive activity (cultural barrier)
2. lack of knowledge of the impacts of the exhaustion of natural resources, loss of quality of ecosystem services and climate risks on production (institutional barrier)
3. lack of capacity and/or financial strategy to make improvements in productive activity (financial barrier)
4. lack of technical assistance and qualified labor force to implement sustainable production (technical barrier)

Facing these challenges reinforces the synergy between agriculture and NBS through meticulous engagement of rural producers with the sustainable development of production. Thus, providing rural producers with knowledge, training, and technical assistance to adopt best management practices in the property and productive activity, demonstrating their benefits in productivity and profitability.

It is known that to make changes in management practices, it normally requires investments in equipment, infrastructure, inputs, and labor. Therefore, rural producers need access to credit lines with sustainability criteria that can be public (RenovAgro and Fundo Clima), private (green bonds) or mixed (blended financial), in addition to other financial incentives such as payments for environmental services and the carbon market.

Currently, in addition to the potential benefits to society and the environment, the adoption of best management practices with a NBS bias also makes it possible to implement projects to generate carbon credits, which can be certified in the Voluntary Carbon Market (VCM). The entry of the agricultural sector into the carbon market represents yet another paradigm shifts in history, directing real financial incentives towards the development of the sector towards sustainable production.

In this way, Brazilian agriculture can take a leading role in leveraging the Sustainable Development Goals, as it guarantees food security and improved nutrition (SDG2), becomes the largest supplier of biofuels, influencing the global energy matrix (SDG7), boosts the agro-industrial chain and responsible consumption (SDG 12), contributes to the empowerment of small farmers and women (SDG5), and contributes to the poverty eradication (SDG1). Furthermore, the sustainable intensification of agricultural production has a direct effect on forest conservation, reducing pressure on deforestation and mitigating climate change (SDG13).

Brazilian agriculture has a lot to gain by aligning itself with the principles of Nature-Based Solutions. However, for this to happen, it is essential to create, encourage and disseminate export policies, credits, and socio-environmental incentives, as well as markets for carbon credits, low carbon/net zero products, and fair trade. At the same time, agribusiness, both family and business, needs to adapt, transform, and commit to continuous improvement in the management of rural properties and their productive activities. These actions must aim to increase productivity, productive diversification, and financial benefits, advancing the sustainable development agenda, reducing environmental depletion, and increasing resilience to climate risk.

For more:

^{Denny, D.M.T., Cerri, C.E.P., Cherubin, M.R., & Burnquist, H.L. (2023).
Carbon Farming: Nature-Based Solutions in Brazil.}

Research carried out by the journal Nature Communications shows that the world’s population prefers to adopt Nature-based Solutions in order to sequester Greenhouse Gases (GHG) from the atmosphere.

A Recent study published by the journal Nature Communications has revealed a worldwide trend regarding the public’s preferences for solutions to combat climate change. Carried out in 22 countries, both developed and developing, and covering various regions, the study highlights the urgency perceived by the population in tackling this global challenge. Among the countries analyzed, Brazil, the United States, China and Germany stand out.

The research presented five carbon sequestration techniques: reforestation; soil management; Direct Air Capture with Carbon Storage (DACCS); Enhanced Weathering (EWR); and Bioenergy with Carbon Capture and Storage (BEECS).

Among the tools evaluated for capturing CO2 in the atmosphere, Nature-based Solutions, such as reforestation and restoration of degraded areas (ARR), emerged as the most preferred by the public in all research groups.

These techniques not only capture carbon, but also offer additional benefits, such as the preservation of biodiversity, the socio-economic development of local communities and the strengthening of the resilience and adaptive capacity of natural ecosystems.

In addition, respondents said that another great advantage of Nature-based Solutions is that these techniques foster environmental education, resulting in individuals who were previously vectors of deforestation, such as some rural landowners, becoming engaged and understanding the importance of reforestation and the restoration of degraded areas for the improvement of local ecosystems and, consequently, becoming more deeply engaged in restoration activities.

The survey also showed that, in countries with tropical forests, participants linked afforestation and reforestation efforts to prohibiting or discouraging deforestation, even though this practice reduces rather than removes carbon. In other words, several participants stressed the importance of multiple forest protection systems for mitigating climate change.

At Ambipar Environment, we share this vision and believe that conserving and restoring forests is the most appropriate way to overcome the global climate crisis. Trees are our oldest technology for playing a crucial role in carbon sequestration, acting as guardians of the climate balance. Through photosynthesis, they absorb carbon dioxide from the atmosphere, converting it into oxygen and storing the carbon in their biomass and in the soil.

This process, in addition to mitigating the effects of climate change by reducing the concentration of greenhouse gases, also contributes to maintaining biodiversity, the health of terrestrial ecosystems and the maintenance of the natural water cycle. Thus, preserving and expanding forests is fundamental to meeting global climate challenges.

That’s why we’re developing the Corridors for Life ARR Project with the Institute of Ecological Research – IPÊ, which aims not only to capture carbon, but also to restore ecosystems, conserve biodiversity and promote sustainable socio-economic development through job creation, training and empowerment of local communities.

Results of the Corridors for Life ARR Project

To date, the project has planted an impressive total of 2,688,986 seedlings of more than 100 species of trees native to the Atlantic Forest, covering 1,501 hectares of degraded areas and making a significant contribution to preserving biodiversity in one of the world’s most threatened biomes. In monitoring the project areas, 174 species of trees, 166 birds and 27 mammals have already been identified.

In the social sphere, all this work is responsible for fostering 10 community nurseries, 11 restoration service companies and two IPÊ teams, generating employment and income for 188 people, including 53 women and 54 young people, thus strengthening local economies. In addition, through training and community empowerment activities, the project indirectly benefits a further 492 people.

But the numbers go further. The Corridords for Life ARR Project has the potential to sequester an impressive 29 million tons of CO2e over 50 years by restoring 75,000 hectares of degraded and priority areas for landscape conservation in Pontal do Paranapanema, a region located in the far west of the state of São Paulo. In addition, the project promotes environmental education, research and scientific development activities and encourages the development of new local companies in the restoration chain, contributing to the sustainable development of communities.

Validated by Verra’s Verified Carbon Standard (VCS) and Climate, Community and Biodiversity (CCB) standards, the project guarantees its compliance with the strict criteria of the certification standards, reinforcing its credibility and transparency. By getting involved with the Corridords for Life ARR Project, you not only become part of a vital initiative to combat climate change, but also contribute to building a more sustainable and resilient future for all.

Annie Groth
Head of Advocacy & Engagement
Ambipar Environment

Talk to our team and learn more about our NbS (Nature-based Solutions)
projects and find out how you too can make a difference in the fight against climate change.

^{by Caio Gallego, NBS Intelligence Manager at Biofílica Ambipar}

Forest management in the Amazon plays a crucial role in environmental conservation and the fight against climate change, especially in the face of growing greenhouse gas (GHG) emissions resulting from the conversion of tropical forests. Sustainable Forest Management (SFM) represents an evolution from the predatory practices of the past to a more responsible and sustainable approach, allowing for the selective and low-impact extraction of timber, promoting forest regeneration and the preservation of biodiversity.

There is a positive correlation between SFM and the Voluntary Carbon Market (VCM), since the former is a low-impact forest management activity and the latter aims to finance activities that promote the reduction or removal of GHG emissions through their practices. We can consider different aspects of this relationship, such as:

• Territorial governance
• Scale
• Time
• Financial return and
• Scientific research

For this reason, it is understood that associatingSFM with carbon projects is an initial step towards promoting territorial management and ensuring the financial stability and long-term vision necessary for the sustainable development of the Amazon. We will discuss the reasons for this below.

Complementary Practices

Currently, the conversion of tropical forests to agricultural use accounts for a significant portion of Brazil’s Greenhouse Gas (GHG)¹ emissions. Therefore, forest management, management and conservation practices play a fundamental role in mitigating socio-environmental impacts and meeting Brazil’s targets in international agreements.

This begs the question: “How can logging be considered an ally in forest conservation strategies and the fight against climate change, given that it is one of the main contributors to degradation and GHG emissions?”. Through this Technical Positioning, we intend to address this question and begin a series of positionings that we will publish this year. Through this initiative, we aim to bring society closer to the challenges, dilemmas and opportunities that carbon project developers deal with on a daily basis.

This text will focus on Timber Forest Management, which consists of the selective extraction of native tree species for processing into different timber products. Although there are various approaches to forest management, such as the extraction of non-timber products, wildlife management, ecotourism, among others, Timber Forest Management is still the most important activity in the Amazon in economic terms², in terms of scale and technical-scientific knowledge.

The practice of timber management did not originate in the way we know it today. At the beginning of the 20th century, it was characterized by predatory exploitation of forest resources, but over the last few decades it has evolved into a more sustainable and responsible practice.

This development was spurred on in the early 1990s, especially due to the 1992 United Nations Conference in Rio de Janeiro, Eco-92, where a number of commitments related to forest management were established, resulting in the formulation of new national laws and policies. In the following years, the first certifications emerged – with the FSC (Forest Stewardship Council) standing out – and, with improved techniques for reducing impacts and a greater focus on social and biodiversity aspects, the practice came to be called Reduced Impact Forest Management, or Sustainable Forest Management (SFM).

Today, SFM is a practice aimed at the selective extraction of wood, using low-impact techniques that enable forest regeneration and the preservation of biodiversity. For those who are curious to understand SFM in more detail, we have listed some reading suggestions at the end of this text.

In parallel with the development of Timber Forest Management, the Voluntary Carbon Market (VCM) was also being developed. After the Kyoto Protocol came into force in 2005, the VCM thesis gained more strength due to the incentives for developing countries to generate carbon credits, paving the way for the emergence of various certification standards not linked to the Protocol, such as the Verified Carbon Standard (VCS) and the Gold Standard.

I don’t intend to go into the details of the current design and structure of the VCM here. In this sense, for those interested in the subject, I list recommended reading at the end. It is worth noting that VCM has grown significantly in recent years, reaching the US$ 2 Billion mark in annual transactions in 2022³ and it is estimated that it could exceed US$ 50 Billion in the next decade⁴.

In this context, the forestry sector plays an important role, especially for the REDD+ modality (Reducing Emissions from Deforestation and Forest Degradation), which today represents around 32% of this market in value⁵ . REDD+ is a mechanism applied by governments or organizations that aims to remunerate results obtained by improving forest management in order to prevent deforestation and forest degradation, ensuring the maintenance of carbon stocks and biodiversity.

But what is the relationship between VCM and Timber Forest Management? This relationship can be approached from two opposing perspectives. On the one hand, predatory logging can threaten forest conservation and reduce the effectiveness of REDD+ strategies. On the other hand, Reduced Impact Forest Management, especially certified operations, can be an ally of conservation and essential for REDD+ strategies.

Main factors that demonstrate the positive correlation between Sustainable Forest Management and Carbon Projects

Territorial Governance:

As a popular saying goes, “What you don’t use, you lose”. One of the main factors resulting in land invasion and deforestation in the Amazon is the lack of territorial governance. Implementing and strengthening territorial management is a fundamental strategy for REDD+ Projects, through physical presence, environmental monitoring, patrolling and field operations. In this respect, MSF’s presence plays a key role through its annual large-scale operations. Both the REDD+ project and SFM ensure the maintenance of the business’s main assets: timber and carbon. They also implement stakeholder management, generating positive impacts and reducing the risk of social conflicts.

Scale and Time:

The environmental challenges we face today require large-scale solutions that will last over the long term. These are also fundamental principles of both the carbon market and SFM. In other words, to generate consistent positive climate impacts, carbon market initiatives need to be viable on a large scale and their benefits must be permanent. REDD+ projects, for example, must last at least 40 years. SFM is structured in a similar way, with cycles of at least 25 years for each Annual Production Unit (APU), allowing for the natural recovery of impacts in the logged area before the operation returns to the same area. This dynamic requires the structuring of a long-term operation in large territories. Therefore, there is nothing more logical than reconciling the two operations, reducing risks and making it easier to gain scale in the business.

Financial Return:

Standing forest in Brazil is worth less than felled forest – this is a maxim that has been repeated for decades. Removing the forest generates immediate income through the sale of timber and the rapid implementation of extensive cattle ranching, in addition to the immediate appreciation of the land, which then becomes “productive”. In Brazil, there is still a lack of relevant economic incentives aligned with forest conservation that could reverse this logic. These should not only be limited to public incentive policies, such as Payments for Environmental Services (PES), but also to the use of market mechanisms, such as carbon credits, and the sustainable exploitation of natural resources such as wood, resins, medicines, tourism, among others. The addition of nature-based economic activities, also known as the Bioeconomy, tends to increase financial incentives and balance the cost-opportunity ratio compared to other conventional activities, such as extensive livestock farming and agriculture. In other words, growth and diversification in the generation of income from the sustainable exploitation of natural resources has a direct impact on the incentives to maintain these resources and, consequently, will lead to a reduction in deforestation, the main objective of the REDD+ mechanism.

Scientific Research & Innovation:

Many consider the Amazon to be an open-air laboratory, full of untapped riches and with enormous potential to offer solutions to humanity’s challenges in the 21st century. Unfortunately, the exploitation of natural resources is still predominant in these regions and is based on the extraction of primary resources with a low level of processing and practically no technological use (such as wood, minerals, fruit and nuts), resulting in the destruction of undiscovered potential wealth. If we are to reverse this logic, we need to invest heavily in scientific research and innovation, accelerating biotechnology initiatives in tandem with valuing traditional knowledge. This approach is in line with the values promoted by REDD+ and SFM. Unfortunately, the existence of large territories under long-term, financially sound conservation management is the exception, not the practice in Brazil. Therefore, the consolidation of these initiatives has the potential to open doors to Research & Innovation, through incentive programs in partnership with local governments and the provision of adequate infrastructure.

Impact of Activities

Finally, I couldn’t fail to mention the impacts generated by ongoing logging operations in a native forest and how they can be reflected in REDD+ projects. Even certified SFM causes impacts, such as the construction of infrastructure, trails for machinery, the opening of clearings and the removal of high biomass trees.

However, it is possible to accurately measure the level of these impacts on carbon stocks and subsequently discount them in the REDD+ project’s emissions accounting. This can be done by reconciling operational field data with remote sensing techniques, avoiding questions regarding the integrity of the carbon project’s GHG emissions calculation. Other potential social and environmental impacts can be monitored and mitigated, which is why certifications that ensure quality control of operations are important. It is important to emphasize that this impact is substantially less than other common economic alternatives, such as conventional predatory logging, which often triggers serial degradation culminating in the establishment of cattle ranching.

Future Prospects

Undoubtedly, the solutions for sustainable economic development in the Amazon region must go far beyond the extraction of primary resources such as timber, and transitional economic incentive mechanisms such as the carbon market.

On a macro scale, land-use planning needs to take place, through land-title regularization, command and control over illegal activities, and the implementation of effective management of public lands. At the same time, adequate investment in knowledge generation is essential in order to sustain the process of technological transformation of production chains. Without these initiatives, we will never be able to move beyond extracting primary products with low added value, preventing growth in income generation and socio-economic development.

The establishment of SFM activities associated with carbon projects does not represent the definitive solution for the Amazon, but rather a fundamental initial stage to enable the consolidation of territorial governance with financial stability and a long-term vision, thus supporting the development of other initiatives with greater added value and ensuring the maintenance of environmental assets for generations to come.

References and Suggested Reading:

• System for Estimating Greenhouse Gas Emissions and Removals – SEEG
• Approval of the bill for a Brazilian ETS in the Chamber of Deputies is a remarkable achievement – Positions – Biofílica Ambipar
• COP28 and the Voluntary Carbon Market – Positions – Biofílica Ambipar
• Brazilian Institute of Geography and Statistics (IBGE) – Plant extraction and forestry
• Bioeconomy Observatory (FGV) – Voluntary Carbon Market in Brazil: In reality and in practice
• Ecosystem Marketplace – State of the Voluntary Carbon Markets 2023
• World Bank: State and Trends of Carbon Pricing 2023
• Imazon – Guide to Community Forest Management
• FSC – Forest Management
• Instituto Floresta Tropical (IFT) – What is Reduced Impact Logging and Forest Management (RILFM)?
• Idesam – Forest Cities: Sustainable Forest Management [Video]

Caio Gallego
NBS Intelligence Manager
Biofílica Ambipar

^{[1] Around 48% of national emissions in 2022, according to data from the SEEG (System for Estimating Emissions and Removals of Greenhouse Gases).
[2] According to the IBGE, around 63% of extractive production in Brazil in 2022 was of timber origin.
[3] Ecosystem Marketplace, 2023: State of the Voluntary Carbon Markets 2023
[4] McKinsey, 2021: A blueprint for scaling voluntary carbon markets to meet the climate challenge
[5] Ecosystem Marketplace, 2023: State of the Voluntary Carbon Markets 2023}

Dear friends, partners, and clients,

As we wrap up another year of hard work, we want to share with you our joy and pride for everything we have achieved together. 2023 represented a unique moment to rethink key aspects of the voluntary carbon market, in which there was a true “separation of the wheat from the chaff” aimed at consolidating carbon projects with high socio-environmental integrity.

Resilience was the keyword for this year, but also represented a window of opportunity so that we can begin 2024 stronger and continue to join forces to improve the integrity, quality, trust and scale of Nature–Based Solutions. 

In Brazil, the three branches of government joined forces to strengthen the fight against climate change, and we have never been so close to establishing a Brazilian Emissions Trading System (ETS)

At the Legislative level, our Chamber of Deputies approved Bill No. 2,148/2015, which creates a Brazilian ETS. The advancement of this bill is a remarkable achievement for the decarbonization of the country’s economy and strengthens the voluntary market, as there will be interoperability between the two mechanisms. We have developed an analysis on the topic, which can be accessed through this link.

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Law No. 14,590/2023 was also sanctioned. It corrects a historic obstacle in the national legislation on Forestry Concessions, now allowing the development of carbon projects in those areas. Biofílica Ambipar has been actively working with the Ministry of the Environment and the Brazilian National Development Bank to assist in regulating the law, preparing feasibility models and scenarios aiming to substantially leverage forestry concessions in Brazil.

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At the Executive level, Biofílica Ambipar obtained a seat on the National Commission for REDD+ (Conaredd+), representing the private sector. Representing this chair means receiving recognition for the technical expertise and engagement of Biofílica Ambipar in the area of ​​Nature-Based Solutions. 

Globally, the main entities and stakeholders of the Voluntary Carbon Market (VCM) have joined forces to improve integrity, trust, and scale, reflecting a positive perspective regarding the future of this climate financing mechanism. 

At COP28, which took place in Dubai, we participated in several discussions and were able to interact with our international partners. We have seen global consensus on the importance of carbon markets for decarbonization and climate change mitigation. As an example, we cite the speech of the President of the European Union, Ursula von der Leyen, about the importance of these mechanisms and their connection with the protection of Biodiversity. We also developed a bulletin with news on the VCM during COP28, which can be accessed through this link.

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Additionally, in a historic announcement supported by the COP28 Presidency, the Science Based Targets Initiative (SBTi), the Voluntary Carbon Markets Initiative (VCMI), the Integrity Council for the Voluntary Market (ICVCM), GHG Protocol and the We Mean Business Coalition (WMB) announced that they will join forces to establish an integrity manual that provides scientifically based methodologies for the decarbonization of production processes and the use of voluntary carbon credits to offset residual emissions. We recommend the following video, released by the entities, explaining the urgency of financing forest conservation and restoration.

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On the supply side of the VCM, we watched the world’s largest certifiers, such as Verra, American Carbon Registry (ACR), Architecture for REDD+ Transactions (ART), Climate Action Reserve, Global Carbon Council and Gold Standard, announce that they will work together to establish common principles related to quantifying, verifying and maintaining carbon emissions reductions and removals in their respective methodologies. The partnership aims to ensure that each of these certifiers is aligned with the Core Carbon Principles (CCPs), a set of parameters developed to identify high-integrity voluntary carbon credits.

Besides the national and international advances in the VCM, we highlight the following market milestones in 2023

Verra, certifier of all Biofílica Ambipar projects, published a consolidated methodology for forest conservation projects involving unplanned deforestation (REDD+ AUD). The new methodology aims to harmonize project baselines, providing a greater environmental integrity of these carbon credits.

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After seven years, Ecosystem Marketplace updated its analysis of how companies that buy carbon credits work vs. those who do not use this strategy. The study, carried out with more than 7,000 companies, identified that, on average, companies that are part of the voluntary market invest three times more in emission reduction activities than companies that do not. In other words, the study combats the misunderstanding that companies that buy carbon credits do not have broad decarbonization strategies.

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The involvement of companies with the voluntary carbon market in 2023 was also notable, even in a challenging year. According to data from Verra, the volume of carbon credits from forest conservation projects (REDD+) retired in 2023 exceeded the volume retired in the same period of the previous year by 70%, reaching 46 million tCO2e. Total retirements at Verra, considering all types of projects, reached the level of 104 million tons, the same volume observed in the equivalent period of 2022.

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Internally, we maintained our focus on ensuring forest conservation and restoration projects of high quality and integrity. With a team of more than 70 people with a high technical level, we conducted 10 validations/verifictions, developed six new projects, consolidated intelligence in projects focused on sustainable soil management in agriculture and livestock and in Blue Carbon, and implemented new seals and co-benefits certifications. We also innovated the financing model in ecological restoration areas, through the investment of USD 60 million in the forest restoration of the Atlantic Forest Biome within the scope of the Corridors for Life ARR Project, in partnership with Astrazeneca. Finally, we are increasingly integrated into the Ambipar Group, taking advantage of all the synergy and thousands of customers around the world to provide decarbonization solutions. We could not be on a more powerful platform to achieve our mission.

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All our achievements were only possible due to the support and trust of our customers and partners, who believe in the need to significantly increase financing for forest conservation and the reforestation and restoration of degraded areas in Brazil. 

In 2024, keep counting on Biofílica Ambipar for a more sustainable future. 

On behalf of our entire team, I wish you an extraordinary and prosperous 2024.
With kind regards

Plínio Ribeiro
Co-founder and CEO of Biofílica Ambipar

🌳 IN A REMARKABLE ACHIEVEMENT, THE BRAZILIAN CHAMBER OF DEPUTIES APPROVED A BILL TO ESTABLISH A NATIONAL ETS.

In a year marked by the worsening of the global climate crisis, in which we experienced extreme temperatures, droughts in unprecedented places and tragic floods, yesterday, Brazil experienced a historic moment within its Chamber of Deputies when the deputies approved a bill proposal to establish an emissions trading system (ETS) for the country. There were 299 votes in favor of the 404 parliamentarians present. This means that 73.76% of the deputies voted in favor of this major step for the decarbonization of its industries.

Since the sanction of the National Climate Change Policy in 2009, there has been a legal provision in Brazil for the creation of a regulated carbon market. It’s been a long 14 years of waiting, a period in which we missed great opportunities to position ourselves at the forefront of the world as a leading country in creating innovative solutions that drive economic growth in a sustainable manner. It’s worth remembering that, in 2009, the European ETS, the first regulated market of its kind in the world, was only 3 years old and was still in its infancy. Today it trades more than 754 billion Euros in its primary and secondary markets, generating € 42 billion annually of taxes for the bloc’s countries.

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But why is having a regulated national carbon market so important for Brazil?

First, it is always important to highlight the differences between an ETS and the Voluntary Carbon Market. In an ETS, the State establishes a Greenhouse Gas (GHG) emission limit within the productive sector, enabling the eventual trading of deficits and surpluses of emissions between each other. On the other hand, the voluntary market is characterized by an environment in which people, companies and organizations neutralize their GHG emissions through purchases of carbon credits.

According to the proposed regulation, companies that emit more than 10 thousand tons of carbon dioxide equivalent – ​​CO2E¹ per year will be required to establish a plan to monitor their emissions, developing a periodic report, while companies above 25 thousand tons of CO2E per year, in addition to reporting and monitoring, they will need to reconcile their emissions through emissions licenses distributed free of charge or at a cost by the government. It is estimated that there are around 5,000 companies in Brazil that emit more than 25 thousand tons of CO2E. Thus, the Brazilian Regulated Market, when implemented, will be the largest carbon market in Latin America.

Secondly, by creating an emissions license trading system, in which it is possible to transact emissions quotas between companies that have exceeded their respective GHG limits with companies that have managed to decarbonize their production processes, we enable carbon pricing to encourage the competitiveness of the Brazilian industry and its innovation.

As in Brazil more than 50% of greenhouse gas emissions are the result of deforestation, forest degradation and land use change, the proposed law is in the right way establishing interoperability between voluntary and regulated markets, through the possibility for companies to offset part of their emissions through the acquisition of Verified Emissions Reduction or Removal Certificates – CRVE, which will be voluntary carbon credits converted for commercialization in the regulated market, after the definition, by the Brazilian State, of which certification bodies and methodologies currently available will be capable of acceptance in this new market.

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Other advances in the Brazilian voluntary carbon market in the proposal approved by the Chamber of Deputies:

• Legal certainty on points such as the ownership of credits, in which it was defined that, while the current status for voluntary carbon credit remains, when a carbon credit is transformed into a CRVE, it will be interpreted as a “market asset”)
• Free initiative (including at a state level) in the development of carbon projects
• Rules that prevent double counting of credits and increase the socio-environmental integrity of projects
• Update of tax legislation regarding credits
• Freedom for states to implement their own jurisdictional programs (under the responsibility of the public authorities) for carbon generation, while at the same time there is also the guarantee of the possibility for private properties to exercise their property rights by requesting the exclusion of their respective areas from such programs
• Environmentally appropriate waste disposal and recycling projects can generate carbon credits
• Guaranteeing appropriate benefit sharing for traditional communities and indigenous peoples, in which ARR initiatives will allocate to those communities at least 40% of the carbon credits generated, while REDD+ projects will allocate a minimum of 60%
• Guarantee that those settled in agrarian reform projects have the same rights and duties as indigenous peoples and traditional communities

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New additions to the emissions trading system included:

• An allocation of 85% of the resources raised by the regulated market to finance scientific research and technological development activities with the aim of promoting the decarbonization of productive activities
• Entry of motor vehicles as a source of regulated emissions
• Environmentally appropriate waste treatment and final disposal units will be considered based on their transversal potential for mitigating greenhouse gas emissions and will not be subject to the emission limits set out in the law when they are proven to adopt systems and technologies to neutralize such emissions.
• Double appeal level for possible application of fines for non-compliance with emissions reconciliation.

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Lastly, it is important to note that there are still several steps necessary to implement a Brazilian ETS. The proposal will now be sent back to the Federal Senate, which has already approved material that was used as the basis for the bill approved by the Chamber of Deputies. This should speed up the legislative process, but as highlighted, the bill has suffered several modifications that need to be discussed. Finally, if the bill is sanctioned, the proposed timeline of implementation is five years.

Biofílica Ambipar Environment will continue to share our technical expertise with the Brazilian parliament, the Federal government, civil society and, principally, our clients, to engage in their business decarbonization.

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^{[1] CO2E is a metric measure used to compare emissions of various greenhouse gases based on global warming potential relative to carbon dioxide (CO2). For example, the global warming potential of methane gas is 21 times greater than the potential of carbon dioxide (CO2). So, we say that the CO2 equivalent of methane is equal to 21.}

At COP28 in Dubai, the main entities and stakeholders of the voluntary Carbon Market (VCM) have joined forces to improve integrity, trust and scale, reflecting a very positive perspective regarding the future of this climate financing mechanism.

On the supply side, it has been announced that several stardards are going to work together in order to adhere their methodologies to the Core Carbon Principles (CCPs), a set of parameters defined by the Integrity Council for the Voluntary Carbon Market – ICVCM to qualify carbon credits as of high quality and integrity.

On the other hand, some of the most important entities alongside the demand for carbon credits like Science Based Targets Iniciative – SBTi, the Voluntary Carbon Markets Iniciative – VCMI, GHG Protocol and We Mean Business Coalition came together to develop an end-to-end, science based integration in the decarbonization guidance that will help companies to decarbonize their production processes and use carbon credits to offset their residual emissions.

The urgency of climate action is evident and VCM is one of the most cost-effective tools to accelerate global decarbonization. Below we present you a summary of the main announcements at this COP:

VCMI, SBTi, ICVCM, WMB and GHG Protocol come together to promote VCM as climate action tool

In a historic announcement and with the support of the COP28 board, the Science Based Targets Initiative – SBTi, the Voluntary Carbon Markets Initiative – VCMI, the Integrity Council for the Voluntary Market – ICVCM, GHG Protocol and the We Mean Business Coalition – WMB informed that they will join forces to establish an integrity guidance that provides scientifically based methodologies for the decarbonization of production processes and the use of voluntary carbon credits to offset residual carbon emissions.

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World’s biggest stardards announce colaboration to increase the positive impact of Carbon Markets

Verra, American Carbon Registry – ACR, Architecture for REDD+ Transactions – ART, Climate Action Reserve, Global Carbon Council and Gold Standard announced that they will work together to create common principles related to the quantification, verification and permanence of reductions and removals of carbon emissions in their respective methodologies. The partnership aims to ensure that the methodologies of each of these certifiers adhere to the Core Carbon Principles – CCPs – a set of parameters developed by the Integrity Council for the Voluntary Carbon Market – ICVMC, to identify high-integrity voluntary carbon credits.

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CFTC issues proposed guidance regarding the listing of Voluntary Carbon Credit Derivative Contracts 

The Commodity Futures Trading Commission – CFTC has approved a proposed guidance and request for public comment regarding the listing for trading of voluntary carbon credit derivative contracts. The proposal outlines certain factors a CFTC-regulated exchange, or designated contract market, should consider when addressing requirements of the Commodity Exchange Act (CEA) and CFTC regulations that are relevant to the contract design and listing process.

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European Commission President speeches about VMC’s importance

The president of the European Commission, Ursula von der Leyen, spoke about the urgency of developing new carbon markets that adhere to the Paris Agreement, with the aim of combating climate change. In her speech, she highlighted the need for the world to advance in three objectives: helping more and more countries to create their own regulated carbon markets and that these markets really have the ambition to promote the reduction of emissions and. Furthermore, the importance of encouraging private capital to finance the voluntary carbon market, with a view to enabling the continuity of projects that protect biodiversity.

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World Bank Carbon Credits to Boost International Carbon Markets

World Bank Engagement Road map for High-Integrity Carbon Markets seeks to expand transparent and inclusive carbon markets that will help developing countries in Africa, Latin America and Southeast Asia to protect their forests.

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Iosco proposes suite of good practices for VCM

The International Organization of Securities Commissions – Iosco, requested public comment regarding a manual of good practices to promote the integrity of the VCM. The document seeks to provide legal support to jurisdictions that have established or may be seeking to establish national regulations for their respective voluntary carbon markets.

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UN Climate Change Executive Secretary speech at voluntary carbon market roundtable

UNFCCC Executive Secretary Simon Stiell stated that there is an urgent need for countries to accelerate efforts to combat climate change and decarbonize their economies. In this sense, carbon markets are one of the viable tools that can be implemented now and at scale. To achieve this, it is necessary to strengthen the credibility, integrity and transparency of voluntary credits.

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Climate Impact X launches new trusted carbon credits contracts

Climate Impact X, a global marketplace for trusted carbon credits announced that it is going to launch a suite of new trading venues in order to negociate carbon credits contracts adherent to the Core Carbon Principles (CCPs).

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United States and Partners Announce Energy Transition Accelerator Framework

The U.S. Department of State, the Bezos Earth Fund, and The Rockefeller Foundation presented the core framework of the Energy Transition Accelerator (ETA), an innovative carbon finance platform aimed at catalyzing private capital to support ambitious just energy transition strategies in developing and emerging economies.

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UNDP launches plan to boost integrity in carbon markets and increase access to finance schemes

The United Nations Development Programme (UNDP) today launched a new initiative at COP28 to support developing countries’ access to carbon markets, mitigate social and environmental risks and promote accurate carbon accounting.

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Brazilian Development Bank announces new program to restore the Amazon Forrest

The National Bank for Economic and Social Development (BNDES) announced the Arco da Restauração Program, which aims to invest more than US$ 200 million in the restoration and reforestation of 60 thousand square kilometers of the Amazon Forest by 2030.

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Seven UE countries propose framework to prevent greenwashing and boost integrity in voluntary carbon markets

The Netherlands, Germany, France, Spain, Finland, Belgium and Austria proposed a framework aiming at preventing greenwashing complaints against companies. Among the proposals, is the recognition of the use of carbon credits for companies’ climate action.

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Institute for Global Environmental Strategies works to advance engagement in international carbon markets

The Global Institute for Environmental Strategies (IGES), through the Partnership for the Implementation of Article 6 of the Paris Agreement, announced that it will partner with the International Emissions Trading Association (IETA), aiming to implement and enhance the market mechanisms stipulated in Article 6 of the Paris Agreement.

The event will take place on March 16 and will be online. Companies, organizations, and government members from Latin American countries will participate.

The International Emissions Trading Association (IETA) is a non-profit business association created to establish trading and policy guidelines for the carbon markets and to be the central voice for market-based climate solutions.

In order to foster and stimulate exchange on the subject, the association is organizing the webinar IETA LIVE – Latin America Carbon Markets Roundup: Updates and Outlooks for 2023. During the webinar, IETA members, government representatives and carbon market experts from Latin America will share valuable information about the current state of the voluntary markets and their prospects for 2023.

Biofílica Ambipar, the 1st Brazilian developer of forest carbon projects to join IETA, will participate in the event represented by Annie Groth, Head of Advocacy & Policy, who will talk about the perspectives of the Brazilian market given the current political situation in comparison with other Latin American countries.

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“We were flattered by the invitation and excited to share our vision and hear from others their impressions and expectations for this year. It will certainly be an enriching exchange.” – comments Annie.

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THE EVENT WILL BE ONLINE AND REGISTRATION IS OPEN.

IETA reinforces that as the world moves towards a low-carbon future, the voluntary carbon market plays an increasingly vital role in driving sustainable development.

The event is an opportunity to stay ahead of the curve and gain a deeper understanding of the rapidly evolving, innovative market landscape in Latin America.