MP nº 1.151, of December 26, 2022, published in the Official Gazette of the Union on Tuesday (27), aims to promote the market for carbon credits in the country, credit biodiversity and payments for environmental services, as well as taking advantage of Brazil's enormous conservation potential. The country has one of the largest native vegetation covers on the planet, corresponding to 66% of its territory.
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With the changes promoted by the MP, the public forest concession contract “starts to provide for the right to sell carbon credits and non-timber forest products and services”, such as:
- Environmental services;
- Access to genetic heritage or associated traditional knowledge for conservation, research, development and bioprospecting purposes;
- Restoration and reforestation of degraded areas;
- Management activities aimed at conserving native vegetation or avoiding deforestation;
- Tourism and visitation in the granted area;
- Products obtained from local biodiversity, among others.
According to the note published on the Ministry of the Environment website, forestry concession contracts currently in force may be amended to adapt to the provisions of the MP, “as long as there is agreement between the granting authority and the concessionaire, the financial obligations towards the Union and the obligations of any investments established in the contract are maintained”.
“Carbon credits and environmental services may result from: reducing emissions or removing greenhouse gases; maintaining or increasing forest carbon stocks; the conservation and improvement of biodiversity, soil and climate; or other ecosystem benefits, in accordance with the National Policy for Payment for Environmental Services, established by Law No. 14.119/2021.”, adds the note.
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The MP also allows the National Development and Social Bank (BNDES) to enable financial agents or fintechs, public or private, to act in financing operations with resources from the National Climate Change Fund (FNMC). “Previously, only Banco do Brasil, Caixa Econômica Federal and other public financial agents could be enabled.”
The Ministry of the Environment highlights the importance of publishing the MP, since Brazil has international commitments to reduce carbon dioxide emissions, such as the Climate Agreement and the Global Biodiversity Framework.
“Innovations remove regulatory obstacles and add economic attractiveness to low-impact sustainable forest management concessions, especially in the region of Amazon. The legalization of the environmental asset of native vegetation, especially the new concept of biodiversity credit, is the first step to recognizing and remunerating those who care for native forests, from communities to rural producers in private and public areas”, highlights the note.
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(Source: Agência Brasil)
