Decree regulating concessions in public forests and the generation of credits for environmental services is published

In a nutshell

Decree No. 12.046/2024 regulates, at the federal level, the (i) National Register of Public Forests, (ii) the allocation of public forests to local communities, (iii) the Multi-Year Forest Grant Plan, (iv) forest concession bidding and contracts, (v) monitoring and auditing in public forest concessions, (vi) forest restoration and the exploitation of credits for environmental services in forest concessions.

More details

According to the new decree, forest restoration concessions must focus on: (i) restoring degraded ecosystems; (ii) national efforts to mitigate and adapt to climate change; (iii) maximizing the generation of employment and income locally, (iv) strengthening environmentally, socially and economically sustainable production chains associated with restoration; (v) developing research, ecotourism and other activities related to socioeconomics; (vi) conserving and restoring biodiversity and ecosystem services.

The rights to generate and commercialize credits for environmental services, including carbon or similar instruments within the scope of forest concessions, will be transferred through concession contracts, taking into account national commitments related to climate change and applicable legislation. Projects in public forest areas occupied by or granted to local communities must comply with specific regulations, with no transfer of ownership.

With regard to credits for environmental services, the concession contract for forest restoration must regulate the right to market certificates representing the credits, in accordance with the applicable legislation. When marketing the credits, the concessionaire must provide the granting authority with information on the generation, certification, granting, acquisition, possession, transfer and cancellation of the credits generated through the concession. In addition, the concessionaire must comply with the guidelines and rules relating to the public registry in force and the registration requirements applicable to the trading of credits for environmental services, including carbon instruments or similar.

In order to guarantee environmental integrity and an effective contribution to climate change mitigation, the generation of carbon credits in forest concessions must comply with the guidelines and norms of the National Commission for the Reduction of Greenhouse Gas Emissions from Deforestation and Forest Degradation, Conservation of Forest Carbon Stocks, Sustainable Forest Management and Enhancement of Forest Carbon Stocks – REDD+, especially with regard to: (a) the regulation of technical standards and methodologies for the development of REDD+ projects and actions; and (b) the establishment and application of REDD+ safeguards.

The bidding notice and concession contract must be preceded by economic and financial feasibility studies and define: (i) the form and participation of the granting authority in the funds received by the concessionaire from the sale of credits for environmental services, including carbon or similar instruments; and (ii) the sharing of the benefits arising from the sale of credits for environmental services, including carbon or similar instruments, with the surrounding community will take place through ancillary charges, defined in the bidding notice.

Finally, forest concession contracts in force on the date of publication of the Decree may be amended, by means of an addendum, to include in their purpose forest restoration activities or the reduction of emissions from deforestation and degradation, with a view to generating, certifying and marketing credits for environmental services, including carbon or similar instruments.

The decree came into force on the date of its publication (06.06.2024) and revoked Decrees No. 6.063/2007 and No. 10.347/2020.