Potencial Beneficiaries

The National REDD+ Strategy of Brazil (ENREDD+) was approved in the end of 2015 with the overall objective to contribute to climate change mitigation by eliminating illegal deforestation, promoting conservation and restoration of forest ecosystems and fostering a low-carbon and sustainable forest economy, while delivering environmental, social and economic benefits. This will be done through three specific objectives:

1. Improving the monitoring and impact assessment of public policies for REDD+;
2. Integrating governance structures for climate change, forests and biodiversity in all levels;
3. Contributing to the mobilization of resources at the scale compatible with Brazil’s commitments to mitigate climate change in accordance with Brazil’s NAMAs by 2020.

Also, in 2015, Brazil submitted its Nationally Determined Contribution (NDC) to the UNFCCC. Brazil’s NDC intends to reduce GHG emissions by 37% below 2005 levels in 2025 and a subsequent reduction of GHG emissions by 43% below 2005 levels in 2030. Brazil’s NDC is economy-wide, based on flexible pathways to achieve its objectives. In the annex of its NDC Brazil presented  additional information meant only for clarification purposes – these  are not sectorial targets. With regards to the forest sector, the following measures have been preliminarily identified for the implementation of Brazil’s NDC:

• Strengthening and enforcing the implementation of Brazil’s Forest Code (Law 12.651/2012), at federal, state and municipal levels;
• Strengthening policies and measures with a view to achieve, in the Brazilian Amazon, zero illegal deforestation by 2030 and compensating for GHG emissions from legal suppression of vegetation by 2030;
• Restoring and reforesting 12 million hectares of forests by 2030, for multiple purposes;
• Enhancing  sustainable  native  forest  management  systems,  through  georeferencing  and  tracking systems  applicable  to  native  forest  management,  with  a  view  to  curbing  illegal  and  unsustainable practices.

Eliminating  illegal  deforestation,  promoting  the  enhancement  of  forest  carbon  stocks  and  fostering  a sustainable  forest  economy  are  common  objectives  of  both  Brazil’s  ENREDD+  and  the  NDC.  Both  the ENREDD+ and the NDC also have the implementation of the Forest Code as a strategic element. REDD+ is considered  by  Brazil  as  means  for  the  implementation  of  its  NDC.  Brazil’s  NDC  states  that  “the implementation  of  REDD+  activities  and  the  permanence  of  results  achieved  require  the  provision,  on  a continuous basis, of adequate and predictable results-based payments in accordance with the relevant COP decisions”. The results-based payments received by Brazil from the GCF will contributed tothe implementation of the forest sector actions of Brazil’s NDC. This project proposal has two main outputs:

• Development of a pilot of an Environmental Services Incentive Program for Conservation and Recovery of Native Vegetation (Floresta+); and
• Strengthen the implementation of Brazil’s ENREDD+ through improvements in its governance structure and systems. These two outputs will contribute to the achievement of the ENREDD+ overall objective and the country’s NDC. More details are provided below.

Output 1: Floresta+ Pilot Program

The Floresta+ is a new and innovative pilot program that aims to provide incentives for environmental services (IES) in the Legal Amazon region, in accordance with Brazil’s Forest Code, the ENREDD+ and Brazil’s NDC. This IES pilot program will have the following specific objectives:

• Provide monetary compensation to incentivize native vegetation conservation and recovery and improvement of ecosystems that generate environmental services (including but not limited to carbon);
• Prevent the occurrence of deforestation, forest degradation and forest fires through financial incentives;
• Incentivize the conservation and recovery of native vegetation of rural properties, conservation areas, indigenous lands, land settlements and traditional people and community lands;
• Promote compliance with the environmental legislation, especially that related to the protection and recovery of native vegetation (Forest Code);
• Offer a financial mechanism to foster the development and implementation of public policies aimed at conservation and recovery of native vegetation.

The target audience for the Floresta+ Pilot Program is comprised of:

• Small farmers, according to art. 3º, V, of the Forest Code (Law nº 12.651/2012), up to 4 fiscal modules
• Indigenous peoples;
• Traditional peoples and communities according to I, do art. 3º, of decree nº 6.040/2007 (that use their territory collectively); and
• Public institutions or agencies (including States and municipalities), civil associations, cooperatives and private law foundations that act in topics related to conservation and recovery of native vegetation.

The prioritization of areas to be selected as beneficiaries for the Floresta+ pilot program will consider:

• Regions with high pressure from deforestation, forest degradation and forest fires;
• Priority areas for biodiversity conservation and for the recovery of native vegetation, according to norms defined by the MMA;
• Buffer zones around protected areas;
• Regions with higher density of smallfarmers;
• Regions with higher concentration of traditional peoples and communities;
• Integration with other public policies related to the conservation and recovery of native vegetation.

The Floresta+ Pilot Program willoperate through resource distribution modalities such as:

• Modality 1 (Floresta+ Conservation): incentives to landowners and land users of rural properties according to the classification of item V, of article 3º, of the Forest Code (Law nº 12.651/2012), with the objective of conserving native vegetation remnantsadditional to the legal requirements.
• Modality 2 (Floresta+ Recovery): incentives to landowners and land users of rural properties according to the classification of item V, of article 3º, of the Forest Code (Law nº 12.651/2012), with the objective of recovering Permanent Preservation Areas (e.g. riparian forests, mountain tops and steep inclines).
• Modality 3 (Floresta+ Communities): support to associations and representative entities of indigenous peoples and traditional peoples and communities.
• Modality 4 (Floresta+ Innovation): supportinnovative actions and arrangementsto develop, implement and leverage public policies for conservation and recovery of native vegetation.

Additional criteria and priority areas will be developed and refined in consultation with the relevant stakeholders, including indigenous peoples and traditional peoples and communities, civil associations, state government representatives, federal agencies, non-governmental organizations, among others. Direct payments will be calculated based on the area of native vegetation remnants and environmental liabilities to be recovered, in hectares, according to the data in the National Rural Environmental Registry System (SICAR). Amount of payment per hectare will be defined in norms to be published by the Project Advisory Committee and should consider:

• The relationship between the preserved native vegetation area and the area of deforested, degraded or burnt native vegetation within the rural property limits;
• The opportunity cost of land use in areas with alternative land use;
• The reference values of other programs of incentives for environmental services, when applicable.

Modalities 1, 2 and 3 of the Floresta+ Pilot Program should represent about 80% of the program funding allocation.

Floresta+ Pilot Program alignment with the ENREDD+, and Brazil’s NDC

As of the time of the submission of this proposal, policies and measures to reduce deforestation in the Amazon region have heavily focused on command and control actions. Studies suggest that enforcement actions are very effective but also have an intrinsic limit on the fight against illegal deforestation. A high degree of continuous investments is needed, to support command and control operations on the ground while also providing positive incentives to the people that contribute to forest conservation and enhancement of forest carbon stocks. Investments in positive incentives are key to maintain and further expand the REDD-plus results achieved in the Amazon region. This will be the core of this GCF proposal.

The Floresta+ Pilot Program will incentivize conservation and the recovery of native vegetation in accordance with Brazil’s Forest Code and Proveg. This will contribute to reduce the pressure on native forests therefore consistent with the ongoing efforts to eliminate illegal deforestation and promote the restoration/recovery of ecosystems, which are part of the general objective of Brazil’s ENREDD+ and are listed as potential activities in the forest sector for the achievement of Brazil’s NDC and national policies.

Output 2: The implementation of Brazil’s ENREDD+

About 43 developing countries have signed and in part already received a total of USD 400 million from readiness funds from the Forest Carbon Partnership Facility (FCPF) from the World Bankand other readiness initiatives to develop all the elements for REDD+ including a national REDD+ strategy (NRS), FREL/FRL, NFMS and SISREDD+.

Brazil was not part of any international REDD+ readiness fund or initiative. All REDD+ elements were developed by the country itself, using its own limited national budget (details presented in section B.2.2 (viii) of this proposal) and human resources. With a small part of the resources to be received from the GCF through REDD+ results-based payments, Brazil intends to improve its REDD+ elements to strengthen the implementation of the ENREDD+ and contribute to a more effective and transparent implementation of its NDC.

The resources received by Brazil from the GCF through REDD+ payments will be in part directed to support the:

1. Expansion of the forest monitoring system and MRV to include additional REDD+ activities, pools and gases, considering the mapping products produced under the Brazilian Biomes Environmental Monitoring Program, for all biomes, as appropriate, following the guidance from the Working Group of Technical Experts on REDD+. The aim is to submit a national FREL to the UNFCCC by 2020.
2. Development of a tool to monitor and measure the impacts of REDD-plus policies and investments and inform decision-making regarding the forest component of Brazil ́s NDC.
3. Improvement Brazil’s Safeguards Information System for REDD+ (SISREDD+) and its ombudsman, making it more complete, transparent and accessible.
4. Enhancement of the capacities and access of the various stakeholders for participating in the CONAREDD+ and its Consultative Chambers, including the revision of the National REDD+ Strategy in 2020.
5. South-south Cooperation Program in Forests and Climate Change designed by the MMA and the Brazilian Agency of Cooperation of the Ministry of Foreign Affairs (ABC/MRE)

A stronger governance structure and more transparent data and information systems will contribute to the long-term sustainability of these investments. It will also contribute for the effective implementation of the measures needed in the forest sector for the achievement of the national target indicated in Brazil’s NDC.

The REDD-plus results-based payments from the GCF will also fund a South-south Cooperation Program in Forests and Climate Change designed by the MMA and the Brazilian Agency of Cooperation of the Ministry of Foreign Affairs (ABC/MRE). This Program has as its overall objective contributing to the reduction of global GHG emissions and the achievement of Parties commitments under the UNFCCC and its Paris Agreement, through their NDCs, by strengthening the technical and institutional capacities of developing countries to achieve REDD-plus results. The Program is aligned with Brazil’s NDC and ENREDD+. Brazil’s NDC recognizes the complementary role of South-South cooperation, based on solidarity and common sustainable development priorities, for the achievement of the ultimate objective of the Convention.

The GCF resources will allow the MMA and the ABC to develop knowledge materials in English, Spanish and French to share with other developing countries the Brazilian experience developing and implementing effective public policies to protect its forests and curb deforestation and in forest monitoring and MRV systems for REDD+. Regional workshops and exchanges, including site visits, will also be promoted. The implementation of Brazil’s ENREDD+ should represent less than 10% of the total funding allocation.