Investor Presentaiton
ECONOMIC VALUATION OF
REFORESTATION - PROJECT VERENA
VERENA is a Portuguese acronym for Economic
Valuation of Reforestation using Native Species
and Agroforestry Systems. This project seeks to
demonstrate the technical and economic viability
of large-scale restoration and reforestation
using native species, highlighting the social
and environmental benefits of this approach.
Native Brazilian tree species have existed for
thousands of years; however, there are no records of
these species from the capital market perspective.
In this respect, the VERENA project has four
principal ambitions: (a) construct a portfolio of
projects and attractive experiences for investors
and financiers; (b) assess the tropical timber
market in Brazil and the rest of the world from the
point of view of volumes and prices to comprehend
the viability of native species silviculture and
agroforestry systems in the country; (c) increase
the scale of business models through the leading
production chains; and (d) reduce perceived
risk and increase return through a research
program involving tree species native to Brazil.
Guided by these goals, throughout 2018 the
VERENA project helped disseminate business
models among farmers at national and
international events. The farmer engagement
strategy also involved the collaboration of the
planted forest industry, through participation
at meetings with Regional Forums for Dialogue
on Forestry in Paraná, Santa Catarina and the
Far South of Bahia, home to Brazil's leading
forestry companies. Also, in the south of
Bahia, VERENA developed a regional case
study to present to potential investors.
Meetings with the financial sector and private
investors helped unlock funding to support
farmers in implementing VERENA business
models. One example was the BNDES (Brazilian
Bank of Development) relaunch of a financial
program with low interest rates for the restoration
and implementation of agroforestry systems. As
part of Initiative 20x20, a round table meeting
brought together six major investors and nine
project developers in São Paulo with the aim
of connecting projects with sources of funding.
WRI Brasil played a vital role in organizing
the meeting, analyzing potential projects and
helping project developers to prepare solid
proposals for presentation to investors.
VERENA also coordinated the creation of the Terms
of Reference (TOR) "Analysis of R&D Gaps and
Priorities for Native Species Silviculture", which
is part of one of the priority actions of the Brazil
Climate, Forests and Agriculture Coalition, which
is heading up the action. A group of specialists was
selected to implement the ToR, with the support
of the World Bank - PROFOR. Activities include
the establishment of a research and development
platform aimed at native species. This effort was
completed in December and the final report was
submitted to the World Bank for final approval.
Based on similar initiatives, the VERENA project
seeks to build a culture around a new forestry
and agroforestry economy, which is the basis
for engagement and support for farmers, the
private sector, financial institutions, governments,
organizations, and academia. It sets a new,
economically viable direction for the sector and
contributes directly to Brazil's commitment to
dealing with climate challenges, with a focus on
increasing forest cover in degraded areas and in
bolstering forestry and low carbon economies.
LANDSCAPE RESTORATION
The collapse of the Mariana Dam in Minas
Gerais shook Brazil to its core. Following this
tragic event in November 2015, WRI Brasil
established a partnership with the Renova
Foundation to identify and map opportunities
for landscape and forest restoration in the
region of the greater Gualaxo do Norte basin.
The region is dominated by dairy cattle farming
and there is an urgent need to replant the
landscape's trees to ensure climate resilience. WRI
Brasil staged workshops to promote the concept
of forest restoration and agroforestry among
the
local population and assisted in implementing
demonstration units. We also applied the
Restoration Opportunity Assessment Methodology
(ROAM), developed by WRI in partnership with
the International Union for Conservation of Nature
(IUCN), to assess restoration opportunities with
the best ecological and economic outcomes.
Following a spatial analysis of the region,
engagement activities are being staged together
with the establishment of demonstration units
under three different models: silviculture
with native species with economic purposes,
agroforestry systems and ecological pasture
management. The implementation of the units
included partnerships with ICRAF (International
Centre for Research in Agroforestry) and
Fazenda Ecológica (Ecological Farm).
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WRIbrasil.org.br
WRI BRASIL 2018 ANNUAL REPORT
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