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Potential trajectories of the upcoming forest trading mechanism in Pará State, Brazilian Amazon

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  • Brenda Brito

Abstract

In 2012, the Brazilian government revised the federal Forest Code that governs the use of forest resources on rural properties. The revisions included a forest trading mechanism whereby landowners who deforested more than what is legally allowed before 2008 could absolve their deforestation “debts” by purchasing Environmental Reserve Quotas (CRA) from landowners who conserved more forest than legally required. CRA holds promise as a tool to complement command-and-control initiatives to reduce deforestation and incentivize restoration. However, the success of this instrument depends on how its implementation is governed. This study builds on a few recent assessments of the potential of the CRA in Brazil–but that are focused on biophysical potential–by assessing how a few key implementation decisions may influence the CRA market development. Specifically, this study estimates how decisions on who can participate will likely influence the potential forest surplus and forest debt for the CRA market, and takes into account governance characteristics relevant to the State of Pará, eastern Amazonia. In particular, the study evaluates the effects in the CRA market eligibility after simulating a validation of properties in the environmental rural registry (CAR) and assessing different scenarios surrounding land tenure status of properties. Results show how regulatory decisions on CRA market eligibility will determine the extent to which CRA will serve as a tool to support forest conservation or as a low-cost path to help illegal deforesters to comply with legislation, but with limited additional environmental benefits. The study reviews regulatory options that would reduce the risk of forest oversupply, and thereby increase the additionality of the areas eligible for CRA. Overall, the study demonstrates the importance of including governance as well as biophysical characteristics in assessing the potential of forest trading tools to deliver additional environmental conservation and restoration benefits.

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  • Brenda Brito, 2017. "Potential trajectories of the upcoming forest trading mechanism in Pará State, Brazilian Amazon," PLOS ONE, Public Library of Science, vol. 12(4), pages 1-21, April.
    • Handle: RePEc:plo:pone00:0174154
    DOI: 10.1371/journal.pone.0174154
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    References listed on IDEAS

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    Cited by:

    1. Hissa, Leticia de Barros Viana & Aguiar, Ana Paula Dutra & Camargo, Rafael Rodrigues & Lima, Leticia Santos de & Gollnow, Florian & Lakes, Tobia, 2019. "Regrowing forests contribution to law compliance and carbon storage in private properties of the Brazilian Amazon," Land Use Policy, Elsevier, vol. 88(C).
    2. Brito, Brenda, 2020. "The pioneer market for forest law compliance in Paragominas, Eastern Brazilian Amazon," Land Use Policy, Elsevier, vol. 94(C).
    3. Mello, Kaline de & Fendrich, Arthur Nicolaus & Borges-Matos, Clarice & Brites, Alice Dantas & Tavares, Paulo André & da Rocha, Gustavo Casoni & Matsumoto, Marcelo & Rodrigues, Ricardo Ribeiro & Joly, , 2021. "Integrating ecological equivalence for native vegetation compensation: A methodological approach," Land Use Policy, Elsevier, vol. 108(C).
    4. Amintas Brandão Jr. & Lisa Rausch & América Paz Durán & Ciniro Costa Jr. & Seth A. Spawn & Holly K. Gibbs, 2020. "Estimating the Potential for Conservation and Farming in the Amazon and Cerrado under Four Policy Scenarios," Sustainability, MDPI, vol. 12(3), pages 1-22, February.
    5. van der Hoff, Richard & Rajão, Raoni, 2020. "The politics of environmental market instruments: Coalition building and knowledge filtering in the regulation of forest certificates trading in Brazil," Land Use Policy, Elsevier, vol. 96(C).

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