REPORT 2 AMAZONAS, BRAZIL

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1 REPORT 2 AMAZONAS, BRAZIL Best practices and lessons learned in BioTrade and REDD+ projects The case of the Surui Carbon Forest Project in Brazil UNEDITED VERSION VERENA CRISTINA DE ALMEIDA INDEPENDENT CONSULTANT AMAZONAS, BRAZIL DECEMBER

2 NOTE The present report is an unedited, unofficial document. The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city or area, or of its authorities, or concerning the delimitation of its frontiers or boundaries. The views expressed in this publication are those of the author and do not necessarily reflect the views of the United Nations. 2

3 Table of contents Acronyms The case of the Surui Paiter indigenous people: first REDD+ project on Indigenous Lands in Brazil History of the Surui Paiter and the Indigenous Land Sete de Setembro Suruí Forest Carbon Project (PCFS) Legal framework and national and international recommendations applicable to REDD Potential threats to the indigenous territories Lessons learned from PCFS Strategy for the development of the pilot project involving REDD+ and BioTrade Final considerations REFERENCES Charts, Figures and Tables Chart 1. Summary of the Suruí Forest Carbon Project...12 Figure 1. Localization of Sete de Setembro Indigenous Land, in Rondônia, Brazil...7 Table 1. Timeline of the activities carried out by the SuruÍ Paiter indigenous people focusing on the management of the Indigenous Land Sete de Setembro and the search for economic sustainability..8 Table 2. Partner Institutions in the elaboration and execution of the PCFS...10 Table 3. Planned activities for the management of the TISS 50 years 14 Table 4. Land units, management devices and right of land use or ownership..25 3

4 ACRONYMS FUNAI IL INCRA MMA P&C PCFS PDD National Indigenous Foundation Indigenous Land National Institute of Colonization and Land Reform Ministry of Environment Principles and criteria Surui Forest Carbon Project Project Design Document PNGATTI National Environmental and Territorial Indigenous Lands Management Plan REDD+ TISS which refers to the development of a mechanism or a policy that should cover ways of providing positive incentives for developing countries to adopt one or more of the following actions aimed to mitigate climate change: 1. Reducing emissions from deforestation and forest degradation; 2. Increase in forest carbon stocks; 3. Sustainable forest management; 4. Forest conservation. Indigenous Land Sete de Setembro RAISG Red Amazónica de Información Socioambiental Georreferenciada 4

5 1. The case of the Surui Paiter indigenous people: first REDD+ project on Indigenous Lands in Brazil The experience of the Surui Forest Carbon Project (PCFS), started in 1997, is a milestone for several reasons. Apart from being the first forest carbon project implemented on Indigenous Land in Brazil, it was carried out by the Surui Paiter indigenous people who identified in REDD+ the potential as economic alternative for preserving the forest, generating financial resources for the management of the Indigenous Land, as well as for improving the people s quality of life and also for rescuing/maintaining the cultural identity of the Surui Paiter. REDD+ was considered a strategy to overcome environmental and social degradation as opposite to the strong history of agricultural and logging activity in the Amazon area in which the indigenous land Sete de Setembro (Rondônia, Brasil) is located. Almir Surui, who held a fundamental part in the political and institutional articulation, achieved the REDD+ project acceptance of the clans of his Surui Paiter people and of the Federal Government (National Institute of Colonization and Land Reform - INCRA and Ministry of Environment - MMA), setting an important precedent for REDD+ projects directly involving communities, not only in Brazil, but all around the world. The credibility shown through the transparency of the whole process of development of the Surui Forest Carbon Project (PCFS) was essential to accomplish the sales of the first lot of emissions avoided to the company Natura, whose interest was to compensate for the emissions generated from the building of their cosmetics factories. After the Surui Paiter people achieved the elaboration and implementation process of the Surui Forest Carbon Project, a new interpretation of the potential of this alternative arises for the indigenous and traditional peoples. They have come to consider this as a viable path for an effective management of their territories, as well as for promoting the strengthening and broadening of the non-wood products value chains through the resources obtained by selling carbon credits. So, REDD+ becomes a viable strategy also for the preservation of biodiversity, since there is a strong interdependency of the peoples of the forest in relation to the products and environmental services they provide. REDD+ also considers conditions to guarantee the maintenance of the ways of life of the traditional communities and indigenous peoples, while favouring the access to services and products that promote an improvement in their quality of life. 5

6 2. History of the Surui Paiter and the Indigenous Land Sete de Setembro The Surui people have called themselves Paiter, which means hawk. Its language belongs to the Mondé branch of the Tupi family. It is organized based in clans, base of the government system, political organization and its parenting and marriage system. The clans are Gameb, Gamir, Makor and Kaban, and the clan transmission is given from father to son. The first contact with the Surui Paiter people happened in 1969, when there were expeditions supported by the Brazilian government through the Rondon 1 Project ( ) with the objective of gathering more information about the Amazon region and its inhabitants. The RONDON Project made surveys and mapped the area, which lead the policy of colonization of the Amazon region. This policy was carried out since the 1970s, after the creation of the INCRA (National Institute of Colonization and Land Reform). The Program of National Integration stimulated the arrival of settlers from other Brazilian states, especially from the South and Southeast ones, to settlements in the Amazon, where there was land distribution and support to agrarian activities. In 1969 there were an estimate of 5000 Surui Paiter, who after two years were reduced to 290. Later, in 2009 there were approximately 1350 members of the people and today there are 1231 identified individuals. The sudden fall in the indigenous population in Brazil occurred basically due to two factors: (i) the contact with the white man favoured the dissemination of diseases to which the locals had no antibodies; and (ii) frequent confrontation between the native peoples and the new settlers. The Surui Paiter indigenous territory demarcation was made in 1983, through Decree 88,867, naming the land as Indigenous Land Sete de Setembro (TISS). At the time there were farmers occupying part of the TISS land who were expelled after ratification, but the farmers had initiated the process of degradation of the forest with the logging and agricultural activities (especially the production of coffee in a settlement that is now incorporated to the Indigenous Land). There still is intense pressure from loggers and farmers from the surroundings of the TISS, which strengthens the need and adaptation of the REDD+ project in the TISS. Today, the Surui Paiter people is formed by 24 communities, distributed in 25 villages in a territory of about 247,845 hectares, between East-central Rondônia, Cacoal and Espigão D Oeste districts, and Northeast Mato Grosso, Rondolândia district (Figure 1). 1 Named after humanista and military man Marechal Cândido Mariano da Silva Rondon. 6

7 Their contact with the non-indigenous brought changes to the traditional ways of life of the indigenous people, who found themselves integrated into the capitalist activity, from manufactured goods consumption and the need for health and education services. As a consequence, the Surui began practicing the extraction of wood as their main commercial activity, in order to get goods and services, which lasted for about 40 years. Figure 1. Localization of Sete de Setembro Indigenous Land, Rondônia, Brazil. Source: Suruí Carbon Forest Project, The social changes generated by the logging activity were deep, which even lead to the formation of new villages. Since 2000, with the beginning of the depletion of the wood resource and the consolidation of most of the surrounding areas as livestock and coffee production areas, the Surui Paiter started investing in alternatives for the use of land and generation of income. Since 2007, the search for a substitute to logging as a source of income was the stimulus to create a REDD+ project, since 2007, that also includes in its activities coffee production and livestock, since these are already consolidated in the area. Table 1 shows the sequence of actions and initiatives of the Surui Paiter people, related to the management of the Indigenous Land Sete de Setembro and the search of alternatives, which constituted a fifty-year plan for the management of the TISS: 7

8 Table 1. Timeline of the activities carried out by the Surui Paiter indigenous people focusing on the management of the Indigenous Land Sete de Setembro and the search for economic alternatives for social, environmental and economic sustainability. Year Activity Ethno-environmental assessment and Management Plan 2004 Reforestation of downgraded areas Cultural mapping and ethno-zoning 2006 Search for partnerships for the 50-year Management Plan 2007 Beginning of conversations with carbon partners Meetings with the community and partners on the carbon project 2008 Document on the project s conception (PDD) and several meetings with the indigenous communities Presentation of the PDD to the Government FUNAI Brasília Signing of the Term of partnership between the institutions involved (see Table 2) 2009 Term of Agreement between the clans and the Surui indigenous people associations Free Prior Informed Consent Reforestation Plan Management Fund FUNBIO Presentation at COP Presentation at COP 16 Contacts with Governments and several entities Meeting with the Governor of Rondônia and presentation to the State Department of Environmental Development (SEDAM) Social impact assessment Validation of the Project in the Verified Carbon Standard - VCS and Climate, Community and Biodiversity - CCB criteria 8

9 2013 Verification of the carbon project for the period September first sale of credits to Natura Therefore, the fifty-year plan for the territory was a demand prior to the establishment of the National Policy of Environmental and Land Management for Indigenous Lands (Decree 7747, 2012) and the conception of the PCFS. However, it was integrated to the REDD+ project as one of the tools of the strategy for the management of the TISS. Estimates are that a 93% of the TISS forest is preserved. The income generated by carbon credits (the first sale of which was made in September 2013, to the company Natura) will be directly used on the management of the Indigenous Land. Since the Fifty-year Management Plan states sustainable productive activities that can be executed (Agroforestry systems, handicraft, Brazil nut, etc.), the same resources must subsidize the implementation and operation of these activities, taking into account that the income produced will go directly to the families. So, the strategy intends to establish the provision of resources for the management of the TISS, while the strengthening of the sustainable productive activities aims at generating resources for the improvement of the quality of life of the families. We must point out that, according to the concurring opinion of the Socioenvironmental Institute 2, of September 30 th, 2009, there is no restriction in the national, as well as in the international legislation for the indigenous peoples and their organizations to appear as bearers of projects on reduction of carbon emissions and to transact the credits derived from them. The C169 Indigenous Land and Tribal Peoples Convention (1989), the Federal Constitution of Brazil (1988) and the customs right recognise their full civil capacity, as well as their right to self-determination. Hence, in spite of the fact that the indigenous land is property of the Federal Government, the right to the natural resources (excepting the underground mining ones) belongs to the indigenous peoples, legitimating their property rights over the carbon credits and their trading. 2 NGO established as an Organizatoion of the Civil Society of Public Interest, one of its objectives is the defence of the rights of the indigenous peoples and traditional population in Brazil, since

10 3. Suruí Forest Carbon Project (PCFS) To carry out the REDD+ project, it was necessary establishing a dialogue between the four clans of the Surui Paiter people that live in the TISS, in order to level the understanding about the rights and duties to be fulfilled for the project to succeed. After many meetings, there was a consensus of the four clans, aided by the partnerships made with other six non-government institutions that act in different areas: Metareilá Association of the Suruí Indigenous People, Institute for Conservation and Sustainable Develompment of Amazonas IDESAM, Forest Trends, Kanindé Association for Ethno-Environmental Defense, Amazon Conservation Team ACT, and Brazilian Biodiversity Fund - FUNBIO. The elaboration of the technical base and the execution of the necessary processes for the development of the PDD (establishment of the base-line, buffer zone, opportunity cost analysis, future scenario of deforestation, construction of the "Free Prior Informed Consent", establishing safeguards, development of the monitoring and surveillance plans) were performed together with several institutions (Table 2) that lead the work in a collaborative way with the indigenous associations involved. Technical information about the PCFS is stated in Chart 1. Table 2. Partner Institutions in the elaboration and execution of the PCFS. Institution Roles and responsabilities Representant Metareilá Association of the Suruí Indigenous People Institute for Conservation and Sustainable Development of Amazonas - IDESAM An institution representing the Suruí Paiter people Technical coordination in the elaboration of the baseline scenario and preparation of Project Design Document (PDD) as well as the validation and verification to VCS and CCB standards, Coordination of biomass and carbon inventories and forest monitoring in support of the PCFS (remote sensing). Also supports policy and techinical coordination related to REDD+ for PCFS Almir Narayamoga Suruí Mariano Cenamo Role in the institution Coordinator Head of IDESAM Contact mariano@idesa m.org.br 10

11 Forest Trends Kanindé Association for Ethno- Environmental Defense Amazon Conservation Team - ACT Brazilian Biodiversity Fund - FUNBIO Gãbgir Association of the Surui Paiter Indigenous People Kabaney Association of the Forest People and Garah Pameh Association of the Kabaney Provides support in the formulation and implementation of the project and strategy for raising funds and selling carbon credits generated by the PCFS Responsible for the ethno-zoning of TISS. Coordination and organization of activities for food security and income generation, monitoring of biodiversity and socio-economic benefits. Communications Office and development of Territorial Protection Plan Support activities for food security and income generation, monitoring of biodiversity and socioeconomic benefits, legal advice and communication to the project. Development of the Land Protection Plan, environmental monitoring and carbon stocks (remote sensing) Responsible for the financial resources' management mechanism generated by the Surui forest carbon projects - Surui Fund - and other income activities within the Management Plan Provide support to improve the quality and performance of schools in the TISS Supports the implementation of economic systems for the sustainable use of TISS' natural resources that meet the Paiter Suruí people's needs Beto Borges Vasco Marcus van Roosmalen Angelo Augusto dos Santos Director of Communities and Trends Programme President Head of Climate and Energy Unit BBorges@forest -trends.org kaninde@kanin de.org.br angelo.santos@ funbio.org.br 11

12 Paiter Suruí People Pamaur Association for the Protection of the Paiter Suruí People's Makor Clan Yabner Gãbgir Forestry Institute of the Paiter Suruí people Supporting the identification of more effective alternatives to address the health problems faced by the Suruí Paiter people Encouranging the revitalization, strengthening and enhancement of traditional cultural property Source: Suruí Carbon Forest Project, Chart 1. Summary of the Suruí Forest Carbon Project 1) Duration of the project: 30 years 2) Expected deforestation in the baseline scenario ( ): 13,575.3 ha 3) Expected emissions in the baseline scenario: 7,782,713.1 tco2e 4) Expected deforestation in the Project s scenario: 1,357.5 ha 5) Expected emissions in the project s scenario: 524,360.8 tco2e 6) Expected net emissions reduction: 7,258,352.3 tco2e 7) Area of the Sete de Setembro Indigenous Land: 247,845 ha 8) REDD+ project area: 31,994.2 ha 9) Leakage belt: 208,038.9 ha 10) Leakage management area: 3,416.6 ha 11) Reference area: 247,845 ha The PCFS falls within the scope of the AFOLU sector (Agriculture, Forestry and Other Land Use), and in the category of Reducing Emissions from Deforestation and Degradation (REDD) in particular. The proposed type of activity is Avoided Unplanned Deforestation and/or Degradation. PCFS was based on two management instruments: (i) the area ethnomapping, which 12

13 gives a base of knowledge of the physical, biological, economic and social aspects of the IL; (ii) ethnozoning, an assessment that establishes some guidance about the type of activities that can be performed, according to the category of the area, of use or protection (e.g.: full protection, sustainable management, intensive use), as well as which practices must be used focusing on environmental sustainability (sustainable management, incorporation of technology, intensive/extensive practices). Both instruments constitute the Indigenous Land Management Plan, elaborated with participative planning of the communities, identifying their real needs and helping in the understanding of the appropriate strategies for the Indigenous Land management. The Management Plan, after the creation of the PCFS, was established as an instrument of office management for the IL through the National Policy for Environmental and Land Management of the Indigenous Lands, instituted by federal Decree 7,747, June 5, This policy rules for all the Indigenous Lands ratified in Brazil. It establishes mechanisms and rules to be adopted in order to fulfil the needs of a sustainable management of the natural resources of the indigenous communities living in the Indigenous Land. The same decree considers environmental services projects, in which REDD+ is included, as possible activities in the Indigenous Lands. According to the PDD (Table 3), there is a list of some activities that aim at controlling the deforestation process inside the TISS, divided in four strategic axes: 1. Forest protection and environment: support monitoring, surveillance and training of the Surui for the defence of their territory; 2. Food Security and Sustainable Production: organize the possibilities of economic use of the existing natural resources in a sustainable way; 3. Institutional Strengthening: contribute to the Surui Paiter people autonomy in the land management of the TISS, by the institutional strengthening of their organizations; 4. Development and implementation of a financial mechanism - Suruí Fund: perform the financial management of the PCFS, a tool that is essential for the establishment of the fifty-year Plan of the Surui Paiter people in the TISS. 13

14 Table 3. Planned activities for the management of the TISS for 50 years. Project activities Forest Protection and Environment Objective Support the Suruí Paiter and non-indigenous people's monitoring and surveillance capacity to defend their territory Specific Activities 1. Mapping risks, threats and vulnerability of TISS; 2. Reestablish and rehabilitate demarcating lines; 3. Construction of bases for surveillance; 4. Training of environmental agents; 5. Provide enforcement with National Indigenous Foundation - FUNAI and the Environment Police; 6. Implement routine surveillance expeditions Expected impacts - Elimination of invasions in TISS; - End illegal logging in TISS; - Forest stocks conservation in TISS; - Ensuring of the territory; - Biodiversity conservation Cost of activities for the first 5 years in the PCFS R$ USD (approx.) 1,870, ,140 Food security and sustainable production Organize the possibilities of sustainable economic use of natural resources within the TISS 1. Assess the productive potential and the need for technical assistance; 2. Promote discussion about the network of farmers; 3. Identify sustainable alternative income generation; 4. Implement agro-ecological management - Improvement of economic conditions; - Guarantee of alternative sources of income not linked to deforestation and forest degradation; - Ensure diversified sources of food for the Surui Paiter; - Improving the diet of the 1, 060, ,000 14

15 of plantations; 5. Establish and improve supply chains; 6. Prepare communicatio n materials; 7. Promote reforestation and agroforestry systems, and planting density; 8. Provide technical assistance for local production; 9. Analyse the possibility of certification Surui Institutional strengthening Development and implementation of the Financial Mechanism (Surui Fund) Contribute to the autonomy of the Surui Paiter indigenous people through institutional strengthening of their organizations Development and implementation of the Surui Fund for the financial management of 1. Plan the organization and establishment of Support Centers; 2. Present Plan for approval from the Surui; 3. Equip. Support Centers (computers, printers, telephones, etc.) and vehicles; 4. Technical consultancy (management and administrative organizations); 5. Hire staff 1. Create a financial management model for Surui Fund; 2. Diversify funding sources - Improved communication and working structure of associations; - Strengthening unity among associations; - Adequate training of associations to carry out its actions - Ensuring longterm financial sustainability; - Suruí Fund operational 1,341, , , ,000 15

16 the PCFS for implementation of project activities Source: Suruí Carbon Forest Project, Among the sustainable productive activities listed on the Fifty-year Management Plan for the TISS that interact with non-wood products value chains, there are: - Agroforestry Systems production of banana and other fruits and coffee (inherited from the previous settlement crops) - Handicraft (made mostly by the women, today the production is becoming stronger and increasing) - Picking and processing Brazil nut Thus, the link between REDD+ and BioTrade becomes evident from the sustainable production activities listed on the Management Plan of the TISS. In the case of synergy between REDD+ and the value chains of non-wood products (e.g.: Brazil nut, a strong product for the integration of BioTrade), improvements in the production activities are proposed as their demand is increasing. In 2013, the production of Brazil nut was sold by a contract signed together with COOPAVAM (Cooperative of Farmers of Vale do Amanhecer), located in Juruena, Mato Grosso. The idea is to build, in the near future, a processing plant inside the TISS to add value to the product, using the financial resources generated by the Surui carbon credit sales. The same cooperative is already negotiating to buy Brazil nut for In the case of handicraft, that involves mostly women, there has also been an increase in production, thanks to the potential demanding market. Since the sale of the carbon credits was made to Natura, which already acts heavily in the national and international cosmetics market, there is a possibility for this company to buy or even facilitate the handicrafts trade, which it has already done with some traditional communities in other parts of the Amazon. In order to ensure success in getting and maintaining the certification for the PCFS, it is fundamental to establish training and information processes for the communities directly affected, in a robust and continuous way. This is important as it complies with the premises established in the social and environmental safeguards, in relation to the Free Prior Informed Consent, as well as to ensure the participation of the indigenous people in all the execution stages of the PCFS. Safeguards are Guidelines that seek to make positive impacts more effective and 16

17 reduce negative impacts related to REDD+ actions. Safeguards must be built and implemented transparently and in a participative way. Socio-environmental Principles and Criteria for REDD+ programmes and projects in the Brazilian Amazon propose a process 3 for the development of safeguards from a set of principles and criteria that seek: 1. Guaranteeing the rights of the indigenous peoples and traditional communities, considered vulnerable; 2. Environmental integrity of the result of the reduction of emission, in order to keep forest preserved; and 3. Reinforce good governance, transparency and participation. The PCFS experience subsidized substantially the elaboration of the Socio- Environmental Principles and Criteria for REDD+ programmes and projects in the Brazilian Amazon. The Katoomba Incubator elaborated the document that was ready in July, Its eight principles are: 1. Compliance with the law: fulfill all applicable legal requirements and international agreements; 2. Recognition and guarantee of rights: recognition and respect for the rights of land tenure and use, and of the use of natural resources; 3. Distribution of benefits: fair, transparent and equal distribution of the benefits resulting from REDD+ actions; 4. Economic sustainability, improvement in quality of life and reduction of poverty: contribution for economic sustainable diversification of the use of natural resources; 5. Environmental preservation and recovery: contribution for the recovery and preservation of natural ecosystems, biodiversity and environmental services; 6. Participation: participation in the elaboration and implementation of REDD+ actions and in the decision-making processes; 7. Monitoring and transparency: full availability of information related to REDD+ actions; and 8. Governance: promotion of better governance, articulation and aligning with national, regional and local policies and rules. The principles and criteria lead the actions during the whole period of the REDD+ project validity. For instance, the Surveillance Plan established for the TISS follows principles 1, 4, 5, 6, 7 and 8. According to Mr. Vasco Marcus van Rossmalen 4, president of Amazon Conservation Team ACT, the Surveillance and Monitoring Plan includes the work of the indigenous community acting in the Indigenous Land and its surroundings. This is done thanks to their training as Environmental Agents (whose activity is recognized by the National Indigenous Foundation - FUNAI), who act, not 3 In compliance to Decision 1/COP17. Available on: 4 The information was provided in a Skype conversation held on December 18 th,

18 only in biodiversity monitoring, but also on the combat to forest degradation (e.g.: creating an intelligence network to combat burnings and forest fires). Indigenous people are, thus, trained and recognized as workers (according to the Brazilian Labour Law). Once the sale of the first lot of avoided emissions was made, on September 2013, PCFS is considered to be initiating its second phase, the operational phase of the plan. 4. Legal framework and national and international recommendations applicable to REDD+ According to the Brazilian Federal Constitution of 1988 (CF/1988), indigenous peoples have the right of exclusive usufruct of the special public use goods, legally defined as Indigenous Land, aiming at their physical and cultural reproduction. So, the natural resources of the Indigenous Lands (biodiversity, water, forest products and services) are for the exclusive use of the indigenous people, in order to ensure their traditional ways of life and their culture. However, the same law establishes that the land tenure is with the Federal Government, who performs the demarcation and ratification of the Indigenous Lands, keeping in sight the formal recognition of the indigenous peoples rights, but also holds the rights of possession on the underground resources (mineral resources) according to article 20, subsection IX (CF/1988). The Federal Constitution, in its Article 225, paragraphs I, III and Single paragraph, demonstrates compliance with the duty of the Surui People towards environmental protection, and contribution to the preservation and restoration of essential ecological processes. Are also applicable to REDD+: 1. The commitments of the Brazilian state with the United Nations Framework Convention on Climate Change (UNFCCC), ratified by Legislative Decree No. 1, February 3, Federal Law No. 12,187, 2009 establishing the National Policy on Climate Change (NPCC) and the Federal Decree 7,390, 2010 which regulates the NPCC; 3. Federal Law No. 11,284, 2006 which regulates the management of public forests for sustainable production, and establishes the Brazilian Forest Service, and the legislation related to it; 4. Federal Law 6,938, 1981, regarding the National Environmental Policy and related legislation; 5. The Provisional Measure No. 2,186-16, 2001, in particular in regard to genetic resources and protection of traditional knowledge. 18

19 Currently, there isn t in Brazil a specific legal framework about REDD+, despite the fact that there are two Bills 5, and that it is stated in the Bill of the National Policy of Payment for Environmental Services (Bill 792/2007). Nonetheless, the Federal Government hasn t stated its position about the adoption of REDD+ as a strategy to control deforestation, even when the civil society has shown its interest in different proposals. In the meantime, while awaiting the consolidation of the REDD+ activities regulation in Brazil and the UNFCCC, programmes and projects must be encouraged and implemented, according to existing principles, criteria and safeguards. In this sense, the Socio-Environmental Principles and Criteria for the development and execution of REDD+ programmes and projects in the Brazilian Amazon, as well as the ones proposed, for example, by the CCBA (Climate Community & Biodiversity Alliance), are being widely discussed and incorporated into programmes and projects for environmental services. In the case of the CCBA s P&C, they are accepted and recognized in the voluntary carbon market, and adopted as complementary to what is established by the VCS (Verified Carbon Standards). 5. Potential threats to the indigenous territories Some of the threats to the Amazon biome, such as mining, hydroelectric power plants and deforestation for livestock breeding, are directly related to threats to the Indigenous Lands. Consequently, they also impact the rights of the indigenous peoples, the preservation of their way of life and their right to a healthy environment (biodiversity maintenance, access to clear water, and others) essential for current and future generations (CF/1988, Article 225). The fact that the indigenous peoples have the right to the aboveground natural resources that are in the territories ratified as Indigenous Lands and, while the Federal Government holds the right over the underground mineral resources in the same areas, promotes a real threat on these territories biodiversity and on the rights of the indigenous peoples. It is well known that, depending on political will, mechanisms are established to evade collective rights. In the last six years, there has been an increase in Brazil in the degree of dissatisfaction of the environmental and socio-environmental groups, as well as of the indigenous peoples in relation to the way the environmental and socio- 5 Bill 212/2012 in the Federal Senate and Bill 195/2011 in the lower house. 19

20 environmental policy is carried out by the Federal and state governments. This policy threatens the rights of the vulnerable and marginalized communities (extractivist peoples, traditional communities, among others), while systematically weakening policies on preservation of biodiversity, as the changes are made in the Law of the National System of Protected Areas. Environmental groups and socio-environmental institutions don t seem to have enough political strength to face the interests of the cattle farming and mining sectors' representatives. They have forced the government into loosening laws and legal instruments in order to facilitate their actions, especially in areas ratified as Indigenous Lands and Protected Areas. There is a prevision for building hydroelectric power plants 6 in Brazil as well as in other neighbouring countries sharing the Amazon biome (namely Brazil, Colombia, Peru, and Venezuela). It aims at generating electrical power to subsidize mainly mining and civil construction activities which will have a negative impact on the course of rivers, as well as on the environmental, social and economic conditions, both locally and regionally. The social scenario of this impact includes the number of populations affected by dams, generating an increase in the rural exodus and the vulnerability and marginalization of these populations that are not considered direct beneficiaries, apart from overlapping the people s rights established by the Federal Constitution or by Conventions signed by Brazil (CDB, ILO, 169). In this sense, it is very important that the international organizations that work with Human Rights and Environment be vigilant to the internal political forces in Brazil and to the short-time development strategies adopted, and that may hurt rights and environmental and social integrity in areas with high socio-environmental richness, as happens in the Amazon biome. 6. Lessons learned from PCFS - The high complexity of REDD+ projects requires different technical expertise to execute the project s design and to execute the process of information to the communities affected by the project, via the free prior informed consent; - there are already guiding documents for the fulfillment of the social and environmental safeguards, based on the Socio-environmental Principles and Criteria, 6 The Amazon Network Socioambiental Georeferenced Information RAISG is composed of nongovernmental institutions in Brazil, Bolivia, Colombia, Ecuador, Peru and Venezuela. 20

21 the adoption of which became a condition for trading with carbon credits of the REDD+ programmes and projects, in Brazil and all around the world; - strong effort to unite the indigenous people (in the case of the Surui, the four clans living in the TISS), in order to raise the resources necessary to achieve their goals; - the indigenous peoples must be aware of the pressures unleashed by the process of deforestation (causes) in order to combat them. It involves the awareness of the community about their rights (resources obtained, distribution of benefits, ethnozoning of the IL) and duties (maintenance and monitoring of the forest and its resources) necessary for the success of the REDD+ project; - international and national effective laws do not limit the action of the indigenous peoples in relation to their rights over the natural resources of their territories, thus including the right of use and trade of the carbon credits generated in those areas. According to an opinion by FUNAI 7 about the PCFS, indigenous peoples have the exclusive usufruct of the resources of their territory, therefore the title of the carbon credits belongs exclusively to them; - Address FUNAI s recommendation that any contract related to cession of rights over carbon credits can only be made after the establishment of a plan for land management and benefits use, which should foresee REDD+ activities, developed with the participation of the community and that points out how the benefits will be distributed. The cost of the implementation of the activities (whether governmental or indigenous), the model of resources management, mechanisms of social control and mediation on the conflicts related to their application, and on all the stages of the project (stated on Decree 7747, 2012); - need to articulate, with the local and state governments, common policies and strategies that aim at reducing pressure on the forest resources in the surroundings of the Indigenous Lands; - it is important to make clear that REDD+ is not an activity that generates immediate rent to the direct beneficiaries, because it depends on a series of technical requirements and on the market demand. 7 FUNAI opinion Carbon in Indigenous Land. FUNAI s position Note 039/PGF/PFE/FUNAI/2011- CAF accompanied by Technical opinion nº 22/CGMT/DPT/2011, April 6th,

22 7. Strategy for the development of the pilot project involving REDD+ and BioTrade Introduction to the relationship between BioTrade, REDD+ and the CBD The BioTrade Initiative aims to establish environmentally sustainable trade and presents a wide experience in activities it has supported in many countries. Today, it searches for ways to relate BioTrade activities to REDD+, so that there is synergy between activities, aiming at strengthening value chains, as well as capture the potential of the carbon emission trading market. It establishes a dialogue with the private sector interested in participating in nonwood products' value chains, and could fosters the participation of companies in REDD+ trading, in order to compensate for their carbon emissions. Furthermore, it studies value chains that are developed in potential areas for REDD+ projects, establishing contact with the extractivist producers, the basis of the chain. BioTrade has been making efforts to improve its work. Its "Guidelines for a Methodology to support value chains for BioTrade products from selection of products to development of sector strategies" states methodological steps to identify potential products for developing BioTrade. BioTrade activities consider zoning and management plans 8 as base instruments for the development of activities, since these already hold information about environmental, social and economic conditions. Apart from the seven principles for the development of BioTrade activities, its activities have a tight link to the CBD Goals, including the Aichi Targets established for the period. REDD+ is directly related to Aichi Target 15 9 Recovery of Degraded Ecosystems for Climate Change Mitigation and Adaptation although it has the potential to attain other targets. As an example, if the Cancun safeguards are respected and addressed, this will increase the ability of REDD+ to contribute towards achieving the Aichi Biodiversity Targets. The Cancun safeguards promote REDD+ actions consistent with the conservation of natural forests and biological diversity, and 8 In Brazil, Management Plans are instruments adopted for the management of Protected Areas (Conservation Units and Indigenous Lands), that state information about the territory and its resources, as well as its population and economy. Cultural aspects are also considered, because the social dynamic affects the environment in different ways, which may cause degradation and deforestation. Rules for the use of the resources are established based on the land-zoning, and must be built together with the local population or indigenous people. 9 By 2020, ecosystem resilience and the contribution of biodiversity to carbon stocks has been enhanced, through conservation and restoration, including restoration of that least 15 per cent of degraded ecosystems, thereby contributing to climate change mitigation and adaptation and to combating desertification 22

23 the effective involvement of indigenous peoples and local communities, as well as addressing other important issues 10. As regards as the safeguards, according to Mr. Daniel Valenzuela, at the II BioTrade Congress, there is convergence between the BioTrade principles and criteria (for value chains) and those of Climate, Community and Biodiversity Alliance - CCBA (for REDD+). Thus, there are similarities in the text, despite that each one refers to a different activity, as the overall aim is reducing negative impacts on biodiversity and communities. Both of them are founded on CBD's objectives and show flexibility and convergence with other safeguards (e.g.: Socio-Environmental Safeguards for REDD+11, elaborated by the organized civil society in Brazil). Different from what happens with value chains, the success of REDD+ depends on local governance in the project area and in its surroundings. It is important that local and regional policies are aligned with actions to combat and prevent degradation and deforestation, to engage in environmental monitoring and control and to promote sustainable productive activities with focus on the preservation of the area of the REDD+ project. To establish governance, endeavour is necessary to create partnerships with governmental and non-governmental institutions, in order to associate efforts to reduce the implementation costs and create safer conditions in the project area. Support is underway to strengthen cooperatives and associations, but it must try to improve their performance to guarantee the autonomy of these groups. The relationship between BioTrade and REDD+ is synergistic and direct, since the first link on the value chain (production or extractivism) of forest base is directly related to REDD+ activities. This relationship also creates opportunities and have the potential for: - Sharing implementing costs including shared priority-setting, landzoning/planning processes, and appraisal of interventions for their impacts on both carbon and biodiversity, - Increasing the value of Carbon Credits, - Reducing the ecological footprint throughout the value chain, - Improvements in incomes, job creation, and capacity building, - Reduction of emissions originating from deforestation and (forest) degradation - Increase in carbon forest reserves, 10 Miles, L. et al. UN-REDD Programme Policy Brief 05. REDD+ and the 2020 Aichi Biodiversity Targets. 11 Available in: 23

24 - Sustainable management of forests, and - Forest preservation. 7.1 BioTrade and REDD+ in Brazil In Brazil, REDD+ projects have bigger potential in the Amazon due to the presence of a large forest cover and the intense pressure of deforestation and degradation. In the Amazon area, the livelihood of numerous indigenous peoples, traditional communities and small producers depends on the forest. All these elements: forest/biodiversity, deforestation pressure and communities, are key for the eligibility of REDD+ projects focussed on reducing deforestation. To carry out REDD+ projects and programmes in Brazil, it is necessary to establish a national legislation, or a state legislation, focusing on legal security for the parties involved in such projects and programmes. Despite the fact that few Brazilian states have legislation about REDD+ (Acre and Mato Grosso), several states have worked on the development of their laws (Amazonas and Rondonia) or on the creation of grants for the development of a future State System for REDD+. These initiatives show the existing interest from states authorities in REDD+. Independent initiatives have also occurred, even if they were not able to trade their carbon credits. Establishing the link between REDD+ and BioTrade in Brazil should come from the perspective of the value chains, which presents lower complexity compared to REDD+. Value chains are already established in many areas, but the Amazon differs in the offer of already known products, their yet-to-be-discovered potential and their cultural diversity. REDD+ projects require many analysis that could prove to be costly to conduct in the region, there are few institutions with the required technical experience in the Amazon and the topic is not widely discussed by many governmental and non-governmental institutions. In Brazil, the National Plan for Promotion of Sociobiodiversity Products points out the potential of the Brazil nut, copaíba and açaí berry in the Amazon 12. There are, however, many other non-wood products with BioTrade potential, according to regional, environmental, economic, social and cultural characteristics. Report 1 of this consultancy, identifies other potential products for BioTrade in the state of Amazonas (Arapaima gigas, oils, pulps, and fibres, among others). Sustainable management activities of non-wood forest products have existed for decades and are performed mainly by the indigenous peoples and traditional communities. Small farmers, supported by universities and research institutions, are 12 Available in: 24

25 also involved in such activities. All these efforts relate directly the first link of the value chain to REDD+. In relation to the fulfillment of the environmental and social safeguards, each territory has its own rules regarding the right of land use or ownership (Table 4), as well as management devices. One of the difficulties for REDD+ projects is to proof land ownership. Table 4. Land units, management instrument and land use or ownership rights. Type of land Indigenous Land Munici pal Fede ral Sta te Area in the State of Amazonas (%) X 27,6% Management instrument Management Plan Rights on the land Federal State, but the usufruct is for the indigenous people Right of use of the natural resources The underground (mineral resources) belongs to the Federal State, the indigenous peoples have the usufruct of all the other resources Protected Areas X X X 28,41% Management Plan Settlements X 6% None The state grants a Concession of the Property Right of Use to the inhabitants of the Protected Areas. However, is a slow process and there is a high demand. This situation is becoming an obstacle to prove ownership or the rights of use of the land and its resources. Concessions can be individual or collective. Can be created through a concession contract (temporary) or a domain title (permanent) in the name of the settlers, but the process is slow Concession holders must respect the rules of the Management Plans. In the case of Amazonas, complementary law 53/2007 states that all environmental services originated in the territories of the UCs must be used on its management, or on the other s within the scope of the State System of Protected Areas. Settlers can use the natural resources according to the laws and rules of use, following handling plans and requesting licensing for their activities. Indigenous Lands are ratified in the name of the indigenous peoples, who have their right to the use of the natural resources recognized. They hold no rights over mineral goods, which belong to the Federal State. Within the scope of the government, the administration of indigenous issues is dealt with by the FUNAI which doesn't the necessary resources or structure to meet the current demand. In 2013, the National 25

26 Policy for Land and Environmental Management of Indigenous Lands (PNGATTI) established the Management Plan as a instrument for the management of the Indigenous Lands and a pre-requisite for REDD+ projects. As in the case of the Surui Carbon Project (PCFS), financial resources produced by the sale of carbon credits are used to implement activities derived from the Management Plan of the Indigenous Land. Therefore, apart from being used for monitoring and follow-up, resources are also used in strengthening sustainable productive activities, and the income generated is being divided among the families involved. Hence, PCFS involves sustainable production activities and the preservation of biodiversity with improvement in the quality of life of the indigenous peoples. Apart from that, local stakeholders take part in monitoring activities. Such activities, implemented in accordance to federal labour laws are a source of new job. In the Protected Areas, the ownership of the land belongs to the local States or to the Federal State. The inhabitants of the Protected Areas may be granted an individual or collective Concession of Property Right of Use. Such right allows only the use of natural resources and does not provide its holders with the ownership of the territory. This complicates the identification of the beneficiaries and, subsequently, the guarantee of the distribution of the benefits from REDD+ projects. In the Protected Areas in Amazonas, income generated by the environmental services and products must return to the management of the same UC or others within the State System of Protected Areas. The territory of the settlements also belongs to the Federal Government and, similarly to the case of the Protected Areas, settlers receive a concession of use or, less frequently, a permanent title. Settlements have the highest deforestation rates in Amazonas, especially the ones in the south of the State. However, the lack of governance in the region and the intense and continuous social conflict involving settlers, indigenous peoples and farmers, makes it very difficult to carry out proposals before the governance issue is solved. In view of the experience acquired by the Surui Paiter people, the following lessons learned should be considered in elaborating and implementing a REDD+ project on Indigenous Land: - the possibility of recognizing the indigenous peoples as right holders over carbon credits trading in the voluntary market; - the social and environmental pressures by these peoples and the biodiversity they protect in their territories; and - the precedent started by the PCFS. It is therefore understood that the development of the pilot project that would materialize the linkage between REDD+ and BioTrade could be undertaken on ratified 26