Investor Presentaiton

18 REDD+ in the State of Acre - Brazil Institutional strenghtening of the SISA system REM supports Acre's State government in the strengthening and further development of SISA • ° • . • • • • • Targeted environmental monitoring and con- trol in priority areas, including the interinstitu- tional deforestation control task force Update of the state deforestation prevention and control plan Targeted land tenure regularization in priority areas Improvement of biomass estimates and degra- dation monitoring Publication of the first State-level greenhouse gas inventory in the Brazilian Amazon Structuring and development of SISA (inclu- ding carbon account-ing and registry) Governance / participation mechanisms: CEVA, Indigenous Peoples working group Development of new benefit-sharing compo- nents and SISA sub-programmes Monitoring of safeguards implementation Knowledge management and exchange Communication on SISA Programme monitoring, financial audits and technical evalua-tions Examples of benefits to local stakeholders Price difference for forest products: Rewarding environmental services In 1999, the "Chico Mendes Law" was passed in Acre, allowing for payments for envi-ron- mental services via a price mark-up for forest products. Primarily geared towards rubber, the intention was to provide an incentive for rubber tappers, who were increas-ingly under pressure to deforest or leave forest areas with the decline of the rubber economy. While the impact of a price mark-up for ru- bber alone would have been insignificant due to declining market trends, investments were made into the whole value chain of rub-ber, linked to new collecting, storing and processing methods as well as the strengthen-ing of co- operatives. Furthermore, new business models were developed: a latex and preservative factory was constructed and contracts concluded with the Ministry of Health to procure "Acre natural rubber preservatives" for national health cam- paigns and marketing channels to the fashion industry were opened up. This integrated effort contributed to more constant levels of rubber production and income generation, especially in some rubber tapper areas that are threate- ned by deforestation. REM contributes in several ways: i) providing funds for the lion's share of the current envi- ronmental price mark-up; ii) supporting the lo- gistics and transport of collected rubber out of the forest; and iii) funding the planting of small- -scale rubber plantations in already deforested areas. Overall, this supports the increase of pre- servative produc-tion in the factory and reduces labor costs by rubber tappers (in comparison to tapping rubber from dispersed trees in the forest). Especially younger rubber tappers are more interested in planting rubber trees. REM also provides funds to test price mark-ups in other forest-based value chains (e.g. "Murmu- ru" palm nuts) as a way to diversify and bro- aden this form of payments for environmental services linked to forest goods and to support the viability of production by forest-dependent communities. TAKE ME O "Fish farming brought various opportunities for me and my family, apart from being our food, source of income and livelihood. It is much bet- ter than breeding cattle: the returns we had with pisciculture in one year were twice as high as the returns we had with 40 cattle in three years." Jaira Silva, President of the Cooperative "Coopergrãos"

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