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THE ARC A/R PROJECT

Document Prepared By Amazon Reforestation Consortium (ARC)

Project Title The ARC A/R Project

Version 1

Date of Issue 6th September 2019

Project Location State of Para, Brazil

Amazon Reforestation Consortium

amazonreforestation.consortium@gmail.com
Project Proponent(s)
Address: Rodovia BR 010 Km 15, Paragominas, Para, Brazil
CEP: 68.625-970

Prepared By Amazon Reforestation Consortium (ARC)

Validation Body

Project Lifetime 1st January 2014 – 31st December 2044; 30-year lifetime

GHG Accounting Period 1st January 2014 – 31st December 2044

History of CCB Status Not applicable

Gold Level Criteria Not applicable

Expected Verification
Schedule

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1 SUMMARY OF PROJECT BENEFITS

The Amazon Reforestation Consortium afforestation project is a VCS AFOLU (Agriculture, Forestry and
Other Land Use) project, scope 14, and, specifically, it falls under the ARR (Afforestation, Reforestation
and Revegetation) category.

The Afforestation and its plans to plant in a secondary focus a total of 39,150 hectares in a
afforestation/reforestation activity, to help re-establish animal corridors, and help remove carbon from the
atmosphere, with a total of 20,386 hectares already reforested over the last 5 years. The project has
financial resources available for 2/3rds to 3/4ths of ther planting expenses, but is dependant on carbon
credit sales to complete the afforestation activities, the project has a proven tangible additionality through
the reforestation activities. Throughout its lifetime, the project will contribute to the reduction of
greenhouse gas emissions by acting as a sink, sequestering almost 15,503,400 tCO2e.

1.1 Unique Project Benefits

Reference
Section
Outcome or Impact Estimated by the End of Project Lifetime

1) 39,150 hectares of reforested area in the eastern Amazon in a highly critical region that has
been absolutely devastated

2) Re-creation of a critical mass forested area to allow the fauna of the region to have refuge.
3) Empowerment of women and communities

4) The permanent protection of habitat for countless fauna and flora

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1.2 Standardized Benefit Metrics

Reference
Section
Estimated by the End
Category Metric
of Project Lifetime

Net estimated emission removals in the project N/A

GHG emission
reductions or

area, measured against the without-project

removals

scenario
Net estimated emission reductions in the project 516,780 tCO2
area, measured against the without-project
scenario
For REDD2 projects: Estimated number of N/A
Forest cover

hectares of reduced forest loss in the project area

measured against the without-project scenario
1

For ARR3 projects: Estimated number of hectares 39,150 Hectares

of forest cover increased in the project area
measured against the without-project scenario
Number of hectares of existing production forest N/A
land in which IFM4 practices are expected to
occurred as a result of project activities, measured
Improved land
management

against the without-project scenario

Number of hectares of non-forest land in which N/A
improved land management practices are
expected to occurred as a result of project
activities, measured against the without-project
scenario

1 Land with woody vegetation that meets an internationally accepted definition (e.g., UNFCCC, FAO or IPCC) of what
constitutes a forest, which includes threshold parameters, such as minimum forest area, tree height and level of
crown cover, and may include mature, secondary, degraded and wetland forests (VCS Program Definitions)
2 Reduced emissions from deforestation and forest degradation (REDD) - Activities that reduce GHG emissions by

slowing or stopping conversion of forests to non-forest land and/or reduce the degradation of forest land where forest
biomass is lost (VCS Program Definitions)
3 Afforestation, reforestation and revegetation (ARR) - Activities that increase carbon stocks in woody biomass (and

in some cases soils) by establishing, increasing and/or restoring vegetative cover through the planting, sowing and/or
human-assisted natural regeneration of woody vegetation (VCS Program Definitions)
4 Improved forest management (IFM) - Activities that change forest management practices and increase carbon stock

on forest lands managed for wood products such as saw timber, pulpwood and fuelwood (VCS Program Definitions)

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Reference
Section
Estimated by the End
Category Metric
of Project Lifetime

40 families
Total number of community members who are
expected to have improved skills and/or
knowledge resulting from training provided as part
Trainin g

of project activities

Number of female community members who are 15

expected to have improved skills and/or
knowledge resulting from training as part of project
activities
Total number of people expected to be employed 30
in project activities,5 expressed as number of full-
Employment

time employees6
Number of women expected to be employed as a 8
result of project activities, expressed as number of
full-time employees
Total number of people expected to have 40 families
improved livelihoods7 or income generated as a
Livelihoods

result of project activities

Number of women expected to have improved 15
livelihoods or income generated as a result of
project activities
Total number of people for whom health services 40 families
are expected to improve as a result of project
activities, measured against the without-project
Health

scenario
Number of women for whom health services are 15
expected to improve as a result of project
activities, measured against the without-project
scenario

5 Employed in project activities means people directly working on project activities in return for compensation
(financial or otherwise), including employees, contracted workers, sub-contracted workers and community members
that are paid to carry out project-related work.
6 Full time equivalency is calculated as the total number of hours worked (by full-time, part-time, temporary and/or

seasonal staff) divided by the average number of hours worked in full-time jobs within the country, region or economic
territory (adapted from the UN System of National Accounts (1993) paragraphs 17.14[15.102];[17.28])
7 Livelihoods are the capabilities, assets (including material and social resources) and activities required for a means

of living (Krantz, Lasse, 2001. The Sustainable Livelihood Approach to Poverty Reduction. SIDA). Livelihood benefits
may include benefits reported in the Employment metrics of this table.

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Reference
Section
Estimated by the End
Category Metric
of Project Lifetime

Total number of people for whom access to, or N/A N/A

quality of, education is expected to improve as
result of project activities, measured against the
Education

without-project scenario
Number of women and girls for whom access to, N/A N/A
or quality of, education is expected to improve as
result of project activities, measured against the
without-project scenario
Total number of people who are expected to 40 families
experience increased water quality and/or
improved access to drinking water as a result of
project activities, measured against the without-
project scenario
Water

Number of women who are expected to 15

experience increased water quality and/or
improved access to drinking water as a result of
project activities, measured against the without-
project scenario
Total number of community members whose well- 40 families
Well-being

being8 is expected to improve as a result of project

activities
Number of women whose well-being is expected 15
to improve as a result of project activities
Expected change in the number of hectares 39,150 hectares
managed significantly better by the project for
conservation

biodiversity conservation,9 measured against the

Biodiversity

without-project scenario
Expected number of globally Critically Endangered 12
or Endangered species10 benefiting from reduced
threats as a result of project activities, 11 measured
against the without-project scenario

8 Well-being is people’s experience of the quality of their lives. Well-being benefits may include benefits reported in
other metrics of this table (e.g. Training, Employment, Livelihoods, Health, Education and Water), and may also
include other benefits such as strengthened legal rights to resources, increased food security, conservation of access
to areas of cultural significance, etc.
9 Managed for biodiversity conservation in this context means areas where specific management measures are being

implemented as a part of project activities with an objective of enhancing biodiversity conservation, e.g. enhancing
the status of endangered species
10 Per IUCN’s Red List of Threatened Species
11 In the absence of direct population or occupancy measures, measurement of reduced threats may be used as

evidence of benefit

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2 GENERAL

2.1 Project Goals, Design and Long-Term Viability

Summary Description of the Project (G1.2)

The ARC prject focus involving Reforestation of the degraded pasture land between the critical
mass forest areas. The meaning of ARC = Amazon Reforestation Consortium. It is set up by a
consortium of likeminded groups including Grupo Dacko the largest Tree Nursery in the Amazon
Biome producing 25 million trees per year, Transportadora Florestal do Araguaia Ltda. a large
landowner, the Municipality of Paragominas and the Municipality of Ulianopolis and the
Municipality of Novo Esperanca do Piria and lastly the carbon consultant. These groups see the
potential to reforest millions of hectares of the Amazon and help re-establish animal corridors to
help rebuild the bio-diversity that was lost during the last 40 years, when more than half of the
eastern Amazon was deforested.

The project reforests 39,150 hectares. The project goal is to reforest with trees the degraded
pasture in the Amazon Biome, with the goal to prove out the economic feasibility of reforestation
in the Amazon via the help of carbon credit sales, with the hopes that other large scale
reforestation projects can be completed as investment grade enterprises.

To date large scale reforestation projects have been unsuccessful in the Amazon due to the
limited future buyers of wood. The lack of access to cheap credit for individual farmers. With the
help of carbon credit income, factors involving inflation and Brazil’s soft currency which results in
a difficult economic situation – where foreign money is almost certain not to be able to profit. This
project hopes to prove out that reforestation projects can work. Prior to the current owner there
were over 39,150 hectares of degraded pasture land.

Prior to the current owner the land was degraded forest, with no cutting plan, the forest area still
has a high threat situation, and it is common for illegal loggers to be operating in and around the
project area.

The Project has made and will continue to make the following actions:

Reforest 39,150 hectares of land and maintain this tree cover on the land indefinitely. Of which
20,386 hectares are already reforested.

Local socioeconomic development: through its job creation, training in reforestation practices,
sustainable development, fire prevention, and the project hopes to help the local population to
have high capacities to move into the rural middle class through training in sustainable land use.

Furthermore, the increase in forest cover and sequestration of carbon in living biomass, will
contribute to the reduction of greenhouse gas emissions by acting as sinks by sequestering an
average of 516,780 tCO2e per year, it is 15,503,400 tCO2e whiting the 30-year crediting period.

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2.1.1.1 Description of the project activity

The project activity is recuperation of degraded lands, which includes commercial reforestation.

2.1.1.1.1 Planted species

The project aim to recover land degraded by extensive cattle raising through establishing an
reforestation system with Eucalyptus species.

2.1.1.2 Project Objectives

The project aims to recover land degraded by land use that promotes deforestation, such as
cattle raising, through the establishment of reforestation plans. The overall purpose of the
initiative is to develop an economically profitable system for the timber plantation that
simultaneously provides environmental and social benefits to the region.

Climate Benefits:

Estimated annual GHG reductions are 516,780 tons of CO2e per year.

Community Benefits:

The main object of the project for the community is to direct the community toward employement
opportunities in the area. In addition to this provide cook stoves and training for sustainable land
use. There are 18 different villages near the project area, where the project attempts to focus
hiring from these villages, where it saves the project money by not having to transport people
from the two population centers of Ulianopolis and Paragominas.

Biodiversity Benefits:

Create Animal Corridors by the protectation and repair of the 39,150 hectares of forest.This
critical mass will help many of threatened and endangered species.

Location of the project:

The project is located in the northern part of the Brazil, State of Para, under three municipalities
namely Nova Esperanca do piria, Paragominas and Ulianpolis. Nearest Airport is around 300
Kms by road which is located at Belem.

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Project Scale

Project Scale
Project

Large project Yes

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Project Proponent (G1.1)

Organization name Amazon Reforestation Consortium

Contact person Michael Greene
Title Project Manager
Address Rodovia BR 010 Km 15
Paragominas, Para, Brazil
CEP: 68.625-970
Telephone

Email amazonreforestation.consortium@gmail.com

Other Entities Involved in the Project

Provide contact information and roles/responsibilities for any other entities involved in the
development of the project. Copy and paste the table as needed.

Physical Parameters (G1.3)

The project is located on private properties in the Municipality of Paragominas and Ulianopolis
and Nova Esperança do Piriá in the state of Para. It makes up of 3 separate blocks of land
representing 39,150 hectares.

Soils:

According to Rodrigues et al. (2000), the main soils mapped within the region of the Municipal
District of Paragominas were: Yellow Latisols, Yellow Argisols, Plithosols, Gleysols and Neosols.
These soils were classified according to criteria and differential characteristics to frame them
within the Brazilian System of Soil Classification (EMBRAPA, 1988). As it can be seen in Figure
2, project area soils are Yellow Latisols. According to Viera (1988), they are soils where clay
contents in B horizon vary from 15% to more than 60%. It is possible to define a soil classification
of intermediate texture (15% to 35% clay), clay-like texture (35% to 60% clay) and of very clay-
like texture (more than 60% clay). With reference to use possibilities, Rodrigues et Al. (2003)
state that Latisols, due to their unfavorable chemical characteristics for agricultural activities,
require correction, mainly in relation to high acidity and high aluminum content. These limiting
characteristics are easily corrected by means of correctives and chemical and organic fertilizer
application with the aim of increasing concentration and retention capacity of nutrients in the soil.

As regards physical properties, Rodrigues et al. (2003) suggest adopting soil and handling
conservation practices for Yellow Latisols, although they do not have restrictions for intensive
agricultural use, considering soil and nutrient losses due to water erosion resulting from rainfall
indices present in the most rainy season.

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Figure 2: Soil classification map

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Climate:

The climate of the region can be characterized as hot and humid, with quite high temperature,
relative humidity and volumetric rainfall, perfectly framed in the AW type of the Koppen
classification (tropical humid, with monsoon rains, dry winter, with precipitation in the driest month
below 60 mm). The annual rainfall is around 1,800 mm (Figure:3,4 and 5)

Figure 3: Annual Precipitation from year 2011 to 2018 – Nova Esperança do Piriá

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Figure 4: Annual Precipitation from year 2011 to 2018 – Paragominas

Figure 5: Annual Precipitation from year 2011 to 2018 – Ulianopolis

Hydrology:

The municipality of Ulianópolis is covered by the Gurupi sub-region and the Guamá-Capim Basin.
Due to the location of the South Block, near the border with the state of Maranhão, it is located in
the Gurupi sub-region. The municipality of Ulianópolis is the southern boundary of the Gurupi
sub-region, which belongs to the Northeast Atlantic Hydrographic Region (MMA, 2006) (Figure 6).
The Gurupi sub-region has its boundary to the west with the Guamá-Capim Basin, belonging to
the Tocantins-Araguaia Basin. Central Block is located in the southern region of the municipality
of Paragominas, at the meeting between the Piriá River and Rio Gurupi (the Piriá River flows into
the Rio Gurupi). The Rio Gurupi is a currency of the states of Pará and Maranhão. North Block is

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located between the municipalities of Paragominas, Nova Esperança do Piriá and Garrafão do
Norte, between one of the sources of the Guamá River and the Igarapés Maritacas and
Piriazinho (the Piriá River flows into the Rio Gurupi). The study area is located in the Northeast
Atlantic Coast Hydrographic Region.

Figure 6: Map of the hydrology region of the project

Geology:

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The geological terrains of the Paragominas region belong to the Maranhao Basin, according to
the definition by Mesner & Wooldridge (1964). However, more recently, Góes (1995) admitted to
this extensive Sedimentary Province a polycyclic evolution, enabling its partitioning in the
following different basins: Parnaíba, Apercatas, Grajaú and Espigao-Mestre. Taking into account
this new conceptualization, the region is situated in the Grajaú Basin, in whose stratigraphy can
be identified, from the bottom to the top, the following geological units: Ipixuna Formation,
Itapecuru Formation, Detritus-Lateritic Paleogene Coverage, Pleistocene Sedimentary Coverage
and Alluvial Deposits.
The areas of the Municipalities of Ulianópolis and Paragominas are located in the
Morphostructural Domain of the Non-Bended Sedimentary Plateau, characterized by flattened
structural surfaces, in the form of extensive plateaus, with average elevations around 200 m,
bounded by plateaus dissected under the form of crests, tabular interflúvios, and developed in
sedimentary rocks constituted of argillites, of the Ipixuna Formation, of the Upper Cretaceous
period and belonging to the Grajaú Basin and by alluvial plains.

Considering the grouping of geomorphological units that have similarities resulting from the
convergence of factors responsible for their evolution, the area was identified as belonging to the
geomorphological region of the Northern Plateau Pará-Maranhão. The geomorphological units,
resulting from the association of recurrent forms of relief, generated from a common evolution
are: Tabular Surfaces of the Tiracambu Mountain, Dissected Plateau of Paragominas, Plains of
Ulianópolis and Plains of the Capim and Gurupi Rivers.

Figure 7: The maps of altimetry and slope are, respectively, for the south block. Where
red represents areas with high risk of erosion.

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They are the remains of a degraded pediplano, developed in sedimentary rocks of the upper unit
of the Ipixuna Formation, filled with clayey or sandy-clay sediments, these being recognized as
the deposits correlative to an extensive erosive / depositional or interpolar episode occurring at
the beginning of Tertiary, called Del'Arco & Mamede (1985) of Paleogenic Planing. Environmental
conditions, coupled with relative tectonic quietude, have led to the development of thick lateritic
crusts that constitute the group of Paleogenic Detrito-Lateritic Coverages, which respond to the
preservation of the relief in the chapadões that characterize this geomorphological unit. The
altitudes decrease from South to North, with maximum values, around 200 meters.

Dissected Plateau of Paragominas constitutes a relief unit formed by crystalline hills with steep
valleys, or by tabular interflúvios with ravenous slopes, modeled in the inferior unit of the Ipixuna
Formation and constitute the level of dissection of the Paleogenic Planing.

The Planos de Ulianópolis unit represents another planning (flat) surface that lowered the
Paleogenic Surface to the altimetric level around 80 meters. It is modeled in sediments of the
Ipixuna Formation, being retouched by erosion recovery, and flooded by the quaternary
sediments that constitute the Pleistocene Sedimentary Coverage group, which cover the Ipixuna
Formation.

Plains of Capim and Gurupi Rivers plains are developed in the valleys of these rivers, with the
presence of terraces and alluvial plains of Quaternary age.

Biodiversity:

The description of the biodiversity presented in this section corresponds to the flora and fauna
that have been reported in the region of reference. More detailed descriptions (municipal scale)
are presented only for those municipalities where studies related to the particular area are
available.

The natural vegetation of the area was classified into dense subperenitolia submontane
equatorial forest, dense subperenifolia equatorial forest of lowland and equatorial forest dense
alluvial perennial. The whole enterprise was original dense ombrophilous forest

Equatorial Forest Dense Subperenifolia Submontana:

It is the forest formation that occupies the sedimentary surfaces with dissected reliefs, of the
Tertiary and Cretaceous Periods, where deep soils predominate, having as main characteristics:
high phanerophytes, some exceeding 50 meters high and quite uniform, with little occurrence of
lianas (vines), bamboo and palm trees; large number of emerging plants; clean sub-forest,
consisting of seedlings of natural regeneration and through seeds, occurrence of few
nanofanerófitos and caméfitos; and absence or presense of streams.

The most common species in the area are: angelim-pedra-da-hoja-miúda or angelimda-mata

(Dinizia exelsa) and maçaranduba (Manikara huberi), emerging species; acapu (Voucapoua
americana), tachi (Tachigalia paniculata); faveira (Pithecellobium spp.), visgueiro (Parkia spp.)
and jutai-açu (Hymenaea courbaril).

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This type of forest covers the geomorphological units Tabular Surfaces of the Serra of Tiracambu
(rolling hills) and Dissected Plateaus of Paragominas and is related to the geological units
Paleogenic Detrito-Lateritic Coverages and Ipixuna Formation.

Equatorial Forest Dense Subperfusion of the Lowlands:

In general, the plains that extend from the coast to the altitude of 100 m in the interior of the
continent. Usually they occupy in this range the pliopleistocénico grounds of the group Barreiras
and post-Barreiras.

It presents a typical characteristic floristic physiognomy, represented by ecotypes of very different

genera. Thus, in the Amazon, the genera Pouteria, Vouacapoua and Tabebuia predominate,
which form a dense forest of exuberant size, usually with emergents. The occurrence of palms of
various species is great, and the understory is very dense and rich in nanofanerophytes, where
large concentrations of bamboo are often observed. In this environment, one can observe the
great wealth of small streams.

The most common species in the area are: angelim-leaf-stone or angelimda-mata (Dinizia
exelsa), morototó (Dydimopanax morototoni), faveira (Vatairea paraenses), palm trees Inajá
(Maximiliana regia), açaí (Euterpe oleracea) and babassu (Orbignya martiana).

This type of forest covers the geomorphological unit Plans of Ulianopolis and is related to the
geological unit Pleistocene Sedimentary Covers.

Forest Ombrófila Densa Aluvial:

It is a riverine formation or "ciliary forest" that occurs along the waterways, in quaternary lands.

This formation consists of macro, meso and fast-growing microfanerophytes, usually smooth-
skinned, conical trunk, sometimes with the characteristic shape of botija and tabular roots, and
frequently presents with an emergent canopy. It is a formation of many palm trees. The most
common species in the area are: açaí (Euterpe aleracea), buriti (Mauritia flexuosa), kapok (Ceiba
pentandra) and açacu (Hura creptans).

This type of forest covers the geomorphological unit of the Capim River Plains and the Gurupi
River and is related to the geological unit Alluvial Reservoirs.

At the start of the project, the property owner completed an inventory of the Flora – 2013 and
2014. The focus was on the highest concentration of botantical families as well as the
concentration percentage.

Figure 8: South Block – Top 15 Botantical Families

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Figure 9: Central Block – Top 26 Botanical Families

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Figure 10: North Block – Top 13 Botanical Families

Fauna:

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The most threatened fauna is found within the mammalian group. In the Primates group, Cebus
kaapori (Ka’apor Capuchin) and Chiropotes satanas (Black Bearded Saki) are critically
endangered both by IUCN and IBAMA, and the latter considered the least sighted primate
(Ferrari et al. 2007) in the region. In the Carnivores, Leopardus tigrinus (oncilla) is considered
vulnerable (IUCN, IBAMA) and Pteronura brasiliensis (giant otter) endangered (IUCN). Other
threatened mammals are: Mymecophaga tridactyla (giant anteater) and Priodontes maximus
(giant armadillo), both considered vulnerable by (IUCN 2012) and endangered by (IBAMA 2008)

Chiroptera is the most dominant mammalian taxon throughout Amazon. Due to their
sensitiveness to changes in the ecosystem, they respond easily and quickly to those changes,
which makes them good bio-indicators. The region of lower Xingu, including the project zone
area, is very heterogeneous in terms of vegetation, which allows a wider range of bat species
(Marques-Aguiar et al. 2003).

Regarding the birds group, all the species were found in literature about Eastern Amazon in
general and other inventories in Eastern Amazon national forests (Silva et al. 1990, Henriques et
al. 2003), due to the lack of literature on birds’ species in Caxiuanã and Xingu-Tocantins
interfluvium. According to MMA (2002), Caxiuanã region is a region that lacks bird data, and for
that reason it is included in the criterium of extreme important site for birds’ inventory. There are
some studies performed within the boundaries of Caxiuanã national forest investigating frugivore
by Pscittacidae.

Amphibians are not widely known by specialists, considering the Eastern Amazon context. What
is known is that 82% of the amphibian species in the entire Legal Amazon are endemic. There is
not any record of vulnerability, threat nor endanger of any amphibians documented in Pará
(IBAMA 2008).

Social Parameters (G1.3)

The Municipalities of Ulianopolis, Paragominas & Nova Esperança do Piriá

Ulianópolis was elevated to the category of municipality in 1991. Its colonization began in 1958,
when the pioneers set up a small encampment under a Cumarú tree, next to a creek. The head of
the camp, engineer Bernardo Sayão, thought that it was the Gurupi river that established the
border of the states of Pará and Maranhão. Realizing that it was only a tributary of the Gurupi, he
called him Gurupizinho (little Gurupi)

The village, called Gurupizinho, began to house several families in the 1960s. These were
attracted by the colonization projects of the Amazon and by the ease in obtaining lands in the
region. Uliana was among the first families to reach the site, and its name gave rise to the current
denomination of the municipality.

It was elevated to the category of municipality with the denomination of Ulianópolis, by the state
law nº 5679, of December of 1991, dismembered of Paragominas.

Already Paragominas was elevated to the category of municipality with the denomination by the
State Law n. 3,225, dated 04-01-1965, being dismembered from the municipality of São
Domingos do Capim and Viseu.

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Thus, remaining in territorial division dated 1-1-1979, by State Law n. 5,087, of 09-14-1983, the
district of Dom Eliseu is created and attached to the municipality of Paragominas. In territorial
division dated 18-8-1988 the municipality was constituted of 2 districts: Paragominas and Dom
Eliseu. Through State Law n. No. 5,450, dated 05-05-1988, the district of Dom Eliseu was
dismembered from the municipality of Paragominas, and raised to the category of municipality,
thus remaining two distinct municipalities.

By 1970 the area occupied by the Municipality of Novo Esperanca of Piriá was used only by
hunters. The access was difficult for those who moved from the seat of the Municipality of Viseu,
and for those who were on their way from Ourém, Captain Poço and surrounding areas.

From that year the first families began to settle in the area, introducing subsistence agriculture
(rice, beans and cassava). These pioneers from Bahia State (a different state in Brazil), led by
Jossué Mendes de Almeida, were responsible for opening the first branch of the road that
facilitated access to that area, stimulating the arrival of other families, which resulted in the
formation of a population cluster that gave rise to Vila de Piriá.

Vila Piriá began on March 18, 1972. The first commercial establishment was installed by Ademar
Pontes, at 13 de Maio Street. The first house built was the one of Adriano Mendes and Josinal
Pires da Silva was the first child to be born in the place, on January 30, 1973.

Subsistence agricultural activity gradually grew as other families moved to Vila Piriá. Logging also
contributed to the formation and growth of the urban nucleus that gave rise to that locality, which
later became the seat of the municipality.

The Official document forwarded to the Legislative Assembly by the Pro-Emancipation Committee
referred to the suggestions of names: Antônio Guerreiro de Serra Azul do Piriá and Nova
Esperança Piriá. The latter ended up satisfying the majority of the population, because it reflected
the expectation that political-administrative autonomy emerged as a new hope (novo esperanca)
for promising days for the municipality and its population.

Table 1: Demographic data for Ulianopolis 2015 (source IBGE)

Population in 2010 43,341

Population in 2015 53,881
Area in square km of the Municipality 5,088
Inhabitants per square km 8.52

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Table 2: Demographic data for Paragominas 2015 (source IBGE)

Population in 2010 97,819

Population in 2015 107,010
Area in square km of the Municipality 19,342
Inhabitants per square km 5,06

Table 3: Demographic data for Nova Esperanca do Piria (source IBGE)

Population in 2010 20,158

Population in 2015 20,663
Area in square km of the Municipality 2,809
Inhabitants per square km 7,18

Project Zone Map (G1.4-7, G1.13, CM1.2, B1.2)

Project Location:

Figure 11: Location in Brazil Figure 12: Location of the project in the Region

Project Boundaries:

The project area is approximate 40 km from the city of Paragominas. It straddles the river basins
of the Gurupa river which divides the border between the state of Maranahao Brazil and the state
of Para Brazil – which is to the east of the property and borders part of the property, to the west of
the property by 70 km is the river Capim, a major tributary in the region.

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Figure 13: The three blocks of land as they fit into the municipality

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Figure 17: Displaying the 3 blocks of land and their located in the three municipalities:
Ulianopolis to the south, Paragominas in the central and Novo Esperanca do Piria in the top.

Community Locations:

Each block of land has a set number of communities around them as can see in the following
figures maps and distances from the land.

Figure 18: Location of communities in relation to the South Block

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There are four communities that are near to the south block.

1. Vila Sao Francisco

2. Vila Sao Mateus

3. Vila Sapucai

4. Vila Bom Jesus

Figure 19: Location of the communities in relation to the north block.

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There are four communities near to the central block

1. Vila Piria

2. Vila Gleba 22

3. Vila Km 204

4. Vila Beiradao

Figure 20: Location of the communities in relation to the north block.

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There are 10 communities near to the north block

1. Vila N. Alianca

2. Vila Novo Uniao

3. Vila P. Araras

4. Vila Paranoa

5. Vila Resplendor

6. Vila Agua Vermalha

7. Vila Louro

8. Vila Arapua

9. Vila Escolinha

10. Vila 21

Stakeholder Identification (G1.5)

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As a first step in this identification process, a review of secondary information was made available
for both the area and the project area. Thus, from official documents such as the Municipal
Development Plans and Plans or Schemes of Territorial Ordering, in addition to reports
corresponding to studies of socio-economic characterization, it was possible to determine in a
preliminary way the actors present in the area. Subsequently, a series of interviews were
conducted with social professionals who have accompanied community processes in the project
area, with a view to specifying the information previously collected.

Finally, from socialization workshops, the secondary information collected and the information
provided by the professionals interviewed will be validated with the community, carrying out the
joint exercise of identification as proposed in the Manual for the Evaluation of Social Impact and
the Biodiversity (SBIA) of afforestation projects. For this, the following activities were carried out:

• Brainstorm key informants or focus groups to list and classify stakeholders.

• Classification of wealth or well-being of local actors or the community.
• Analysis of each group of actors according to their interests, motivation to participate and
relationships with other actors.
• Analysis of the level of influence and importance of each group of potential actors.

Next, the groups of actors identified in the process of reviewing secondary information for both
the area and the project area, as well as the information derived from interviews with
professionals in the area, are described. Aspects such as the level of participation of the actors,
the classification of their wealth or well-being, their degree of influence in the process and the
analysis of each group according to their interests, motivation to participate and relations with
other actors, will be specified once the socialization workshops will be developed within the
framework of which this identification exercise will be carried out.

During the Pre-Project scenario in 2013 were identified all the commercial stakeholders that
would be involved with the security and the community activities of the project.

Prior to the initiation to the project, the local communities were assessed for people who needed
jobs, who had families and were indirectly need of income or people who were in need of
cookstoves or had current sub-par cooking apparatuses. These are the stakeholders to the
project. As long as the project is able to continue planting it is able to service the needs of the
stakeholders.

Stakeholder Descriptions (G1.6, G1.13)

List of all Communities, Community Groups and Other Stakeholders

• Communities: workers of the property, workers families, technicians and experts

involved in the Project, people from neighboring farms (landlords, workers, technicians).

• Community Groups: Villages near the project: N. Alianca; Novo Uniao; P. Araras;
Paranoa; Resplendor; Agua Vermalha; V. Louro; Arapua; Escolinha; Vila 21; Piria; Gleba
22; Km 204; Beiradao; Sao Francisco; Sao Mateus; Sapucai; Vila Bom Jesus.

• Other Stakeholders: City of Paragominas and City of Ulianopols where many workers
come from.

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• Direct Stakeholders: Project Owner; Land Owner; Employees from local villages

• Institutional Stakeholders: Mayoral office of the Municipality of Paragominas and

Ulianopolis, Mayoral office of Novo Esperanca do Piria

• Commercial Stakeholders: Grupo Dacko Tree nursery, BLB FLORESTAL

REPRESENTAÇÃO NO BRASIL LTDA . land management

Sectoral Scope and Project Type

The Project corresponds to VCS scope 14 “Agriculture, Forestry and Other Land Use”
(AFOLU) as an “Afforestation, Reforestation and Revegetation” (ARR). The Project aims
to reforest degraded lands, which are expected to remain degraded or to continue to
degrade in the absence of the Project.

Project Activities and Theory of Change (G1.8)

In order to predict how the project intends to achieve its climate, community and biodiversity
objectives, a Theory of Change was developed for each of the following critical factors identified
in the project instances for climate community and biodiversity:

1.Limited knowledge of forest benefits and climate change

2.Unsatisfied basic needs
3.Unsustainable land uses

Limited knowledge of forest benefits and climate change

Activity Expected climate, community, and/or biodiversity Relevance to project’s

description objectives
Outputs Outcomes Impacts

Provide Courses / People trained in the Increase in perception / Community: people traine
community workshops on proper recognition of the value in each activity
training, forest management, management of forest of forest resources. related to sustainable fore
environmental environmental plantations, Increase sustainable management and a greate
awareness,and education. Number environmental practices in the region. appreciation of forest by
sensitization of people trained. education and the People trained in forest communities. Biodiversity:
implementation of management. Social increase in biodiversity
sustainable practices. empowerment. through sustainable
practices.
Improve Improvements of Greater knowledge Enhanced access to
childhood school’s and abilities. information and
education infrastructure. communication.
Improvements in
communities’ knowledge
and skills.

Unsatisfied basic needs

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Activity description Expected climate, community, and/or biodiversity Relevance to

project’s objectiv
Outputs Outcomes Impacts

Empowerment of Community: high

women. incomes for
Increased incomes for communities an
communities. reduction of pover
Increase in life the region.
expectancy as the
Number of full-time Increase in local and regulated work
Generation of conditions provide
employees Number of regional employment for
employment social security.
women employees men and women.
Increase in
opportunities for
economic
subsistence.

Courses / workshops on People trained in the Improvement in skills Community: peop

forest management, proper management of and knowledge trained in each act
environmental forest plantations, regarding forest related to sustaina
education, safety and environmental management and forest manageme
health at work. Number education and sustainable and industrial hea
Provide community of people trained. implementation of agriculture. and safety to prev
training sustainable practices; Increase in economic accidents and/or r
awareness in livelihood to direct and indir
occupational health opportunities. staff.
and safety. Communities wi
access to second
education.
Promote education Number of students with People from local
a communities
degree in technology or occupying more senior
careers related to the workplaces – i.e. not
land vocation. only operative activities,
but also management
roles.

Unsustainable land uses

Activity Expected climate, community, and/or biodiversity Relevance to

description project’s
Outputs Outcomes Impacts objectives

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Number of trained people Revenues from the CO2 sequestration, Climate: CO2
Number of plants in the sale of carbon credits, generation of new sequestration.
field Planted area income from habitats for biodiversity, Biodiversity:
Number of full-time alternative activities increase in quality and recovery of fores
employees increase in timber quantity of forest cover, cover, transformi
Recovery of stocks, increase in restoration of productive
degraded lands local and regional landscapes, wildlife activities into bein
employment, number increases through more
of trained workers in recruitment of vegetal environmentally
plantation and animal species. friendly, wildlife
management. increase, soil and
water
conservation.
Courses / workshops on People trained in the Improvement in skills and
forest management, proper management of knowledge of forest Community:
environmental education, forest plantations, management and increase in
employment,
and health and safety at environmental sustainable agriculture.
revitalization of th
work. education and Increased economic
regional economy
Provide community Number of people implementation of livelihood opportunities.
training trained. sustainable practices;
awareness in
occupational health
and safety.

Improvements in school Greater knowledge, Enhanced access to Community:

infrastructure. abilities and information and development of
Number of workshops. environmental communication. sustainable land
aptitude. Improvements in uses and greater
communities’ knowledge appreciation of th
Improve childhood and skills. forest.
education Biodiversity:
increase in
"biodiversity
through
sustainable
practices."

Sustainable Development

The Project Activity promotes proper handling of the land in the Amazon Biome, contributing to
the mitigation of climate change by reducing GHG emissions, generate sustainable development
through their activities such as reforestation and generate social, climatic and environmental co-
benefits.

▪ Social co-benefits:

Project activities have stimulated an increase in the local workforce employed in the Project Zone
(before the project there was only one worker in each section of the property who was
responsible for raising 10,000 beef cattle). It has also allowed the specialization and qualification

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of this workforce and thanks to this has produced a wage increase of these workers, with
consequent benefits to their families.

▪ Climate co-benefits:

The Project has a positive impact on the micro climate of the region: in fact it contributes, less soil
reflectivity, and a reduction in temperatures. This could, as it is done on a large scale, have
significant effects on the climate of the micro-region.

▪ Environmental co-benefits:

Soil: the Project has a positive impact on the soil, which improves the characteristics, mainly
organic matter: this increasing follows the planting and the subsequent cuts because during the
harvesting and the selection of the timber abundant vegetable matter (branches and leaves)
remains in the loation. This wood litter, with natural decomposition, integrates with the soil in the
form of organic matter.

Thanks to the Project the soil also reduces its acidity and is enriched with micro and macro
elements thanks to periodic fertilization after each cut and the application of 1.5 tons of calcium
per hectares every 7 years. The Eucalyptus also produces lower soil susceptibility to erosion: in
fact, roots contribute to the stability of the soil, the Eucalyptus leaf foliage slows down the impact
of rain on the soil and the plant material accumulated on the soil slows down the water descend
during the rains on the most sloping soils. The arboreal coverage also increases soil moisture,
mainly outside the rainy season.

Biodiversity: as for biodiversity in the specific case of the property, there is an increase in
different species of birds (including hawks, woodpeckers, snakes-hunter birds and various
species of birds) and mammals (including Anteaters, Tapirs, Deer, Foxes, Wild Boars, Ocelots
and numerous species of rodents) can be frequently found in the Project Zone. This is mainly due
to the fact that the planted forest areas help connect the forest areas. This type of mosaic-shaped
crop and environmental diversification fully respects and can even enhance the biodiversity of the
region, despite the presence of a monoculture such as the Eucalyptus plantation. It is very
common for the workers to see on the edge of theforest Puma with spots, this species, which is
considered threatened in many countries of Latin America, is present nowadays in the Project
Zone, and it had not been observed when the project started in its first 3 years, meaning the
Puma has returned to the project area.

▪ Economic progress:

The legal timber produced during the Project lifetime has also allowed and enabled the timber
market to grow, with the involvement of various stakeholders, who have also benefited directly
and indirectly by the Project. The timber produced during the life of the Project will be used for
civil construction, livestock fencing and delimitation of pastures and if willing for other large
industries in the region including cellulose or MDF, thus feeding the regional paper industry and
medium density fiberboard (mdf). The part of lumber extracted from the E. uro Phylla species will
be used for various purposes after industrial autoclave treatment that increases its strength and
durability. This treated Eucalyptus will be used for civil construction, livestock fencing and

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delimitation of pastures and if willing for other large industries in the region. It is interesting to
point out that the production of planted forests does reduces considerably the need to extract
native timber, thus reducing legal and illegal logging.

Implementation Schedule (G1.9)

Date Milestone(s) in the project’s development and implementation

2014 Start date

2015 Implementation of project activities

2016 Climate change adaptation workshop and presentation of climate change

analysis.
2017 Implementation of biodiversity monitoring plan

2018 Resource Management Plan completed and signed

2019 Validation and Verification of project activities.

Project Start Date

The project start date is 1st January 2014. The project start date is based on the time when the
project started conduction Bio-diversity activities and reforestation activities started taking place –
immediately after the transfere of the land to a new company.

Benefits Assessment and Crediting Period (G1.9)

Activity Actions Results Expected Impacts Expected benefits:

climate
community and
biodiversity
Reforestation Training courses, Revenues from Restored areas Climate: CO2
number of trained the sale of carbon with native and sequestration;
people, number of credits, income introduced Biodiversity:
used species, from alternative tree species. Wildlife increase
number of plants activities, increase due to the
in field, planted of timber stocks, restoration of
area, research on increase of local landscapes, soil
native species. and regional and water
employment, conservation;
trained workers in Community:
plantation increase of the
management, employment,
publications and / development of
or research family business,

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activities. recreation and

tourism,
revitalization of
the
economy.
Monitoring Training courses Additional income Increase of the Climate: CO2
in the monitoring from the sale of biodiversity in the sequestration;
of climate, carbon credits, project area, Biodiversity and
communities people trained in improvement of Communities:
biodiversity, monitoring the life quality quantitative and
research on climate, inside the qualifying studies
plantations with community and project area. about changes in
native and biodiversity the biodiversity,
introduced indicators, climate and
species in the publications and community over
region. / or publications the time.
resulted
from the
monitoring’s.
Training and Courses / People trained in People with Climate: CO2
Education workshops on the proper practical sequestration.
forest management of and sustainable Sustainable
management, forest plantations, actions development of
environmental environmental in the project area. activities;
education, safety education People trained in Biodiversity:
and health at and forest increase
work. implementation of management. of biodiversity
Courses / sustainable Social through
workshops on practices; empowerment. sustainable
forest awareness in practices.
management, occupational Community:
environmental safety and health. People trained on
education, each activity
safety and health related to
at work. sustainable forest
management
and industrial
safety and health
to prevent
accidents and/or
risks to the direct
and indirect
staff.

The project foresees the usage of this project as the center-piece case study that the Amazon
Biome can be economically reforested with the help of the Carbon Credit project.

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Differences in Assessment/Project Crediting Periods (G1.9)

There is no difference.

Estimated GHG Emission Reductions or Removals

Estimated GHG emission

Year reductions or removals
(tCO2e)
1 516,780
2 516,780
3 516,780
4 516,780
5 516,780
6 516,780
7 516,780
8 516,780
9 516,780
10 516,780
11 516,780
12 516,780
13 516,780
14 516,780
15 516,780
16 516,780
17 516,780
18 516,780
19 516,780
20 516,780
21 516,780
22 516,780
23 516,780
24 516,780
25 516,780
26 516,780

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27 516,780
28 516,780
29 516,780
30 516,780
Total estimated ERs 15,503,400
Total number of crediting years 30
Average annual ERs 516,780

Risks to the Project (G1.10)

The greatest risk to the project are created by two government induced issues:

1.) The constitution of Brazil of 1988 allows for invasion of private property – which invasion is
the single largest source of land conflict and deforestation in Brazil. To be able to claim
possession and subsequent title and invader must deforest the land and build a home site.

a. To this point, it is illegal to invade public property, and thus all invasions are forced
onto private property lands. It is as if invaders are funneled into “larger landowner”
who have more un-utilized or forest area. It is a constitution right, when there were
millions of hectares of unclaimed land in Brazil in 1988 – the government added this
clause to push people into regions zoned as private property. But today all the land
is claimed leaving only title private property – as the target of this serious and
dangerous “right” of Brazilians. The constitution has created serious land-conflicts
that terrorize large landowners with preserved unused forest.

2.) From 2003 to 2018 the ruling government that was in existence in Brazil created and passed
“chaos decrees” in order to undertake illegal “Agrarian Reform” policy. These decrees were
nothing short of unilateral and arbitrary title cancellation decrees in numerous regions of
Brazil. In summary legitimate landowners would own a property and pay taxes, and have all
the documentation, and then the state or federal government who was pro-agrarian reform at
the time (the taking of land from the wealthy large landowners and then state it is for
settlement projects and allowing anyone to enter the property and claim a maximum of 100 to
1000 hectares). The people creating this chaos would then denounce various large
landowners. They would pass a law to give doubt to legitimate large landowners. Most
landowners were able to resolve this, but still millions of hectares were put into land-conflict
and have increased risk of deforestation. Most of the large landowners in the state of Para
during 2003 to 2018 were faced with these chaotic situations and subsequent land invasions
– orchestrated by the government. Thus the reason why the state of Para is known as a
region with major title issues – issued factually created by agents within the government.

a. The landowner of this project land faced the issues but resolved the governments
actions in 2014 and 2015.

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In both cases the landowner would have to increase spending on security to protect the property.
Upon either case an invader is required to deforest their new home site in order to prove
possession to claim title.

In either case invaders use tactics of fraud to and fraudulent testimonies claiming they have been
in that location for 10 years. In order to request title from the government on top of someone
elses title,it must be proven presense for 10 years. These people typically have not been
present for more than a few weeks when they make these claims and any claim typically involves
deforestation.

Currently due to the current government of Brazil both are lower risks than one year ago, but in
Brazil things could drastically change during the next presidency placing short term risk low, and
mid-term risk very high for the forest land area.

Benefit Permanence (G1.11)

The reforestation activities will and have permanently created full time employment. The work is
not seasonal, it is year round. Even after all the areas are planted, the reforestation activities will
have to continue, as portions of the forest will have to be thinned and cut, and portions of the
reforested area will be clear cut and replanted – for an indefinite amount of time, leading to
permanent employment.

The benefits of a permanent reforested area means there is a permanent animal corridor for the
fauna of the region. This permanent animal corridor has a permanent benefit allowing for the
continuously growth and diversification of fauna in what is now a permanent critical mass area
that the fauna can roam.

Financial Sustainability (G1.12)

Carbon sales revenues are directed directly to the landowner of which will be used to first cover
the yearly salaries and pay for the trees for the reforestation. The community aspect of the
project is 100% covered by the carbon credit sales and not from the landowner.

The project uses carbon credit sales to pay for a large security presense and for the
socioeconomic projects in the project area.

In the event the carbon credit sales fail to maintain the employment on the farm the landowner
will then supplement this via debt.

Grouped Projects

This is not a grouped project activity.

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2.2 Without-project Land Use Scenario and Additionality

Land Use Scenarios without the Project (G2.1)

From 2013 and 2014 the land was transferred by the current landowner into a new company for
the purposes of a reforestation project. Prior to this date the current owner had bought the land in
2005 originally to set up a large Metallurgical business as this plan did not work out they decided
to focas on preservation and reforestation. The owner prior to 2005 was a person who had
degraded the land and cleared the land, as well as overly degraded the forest area.

In 2005 to 2008 Paragominas Para was deemed the epicentre of deforestation, a region of 2
million hectares with 1 million hectares cleared. It was on the International black list for
deforestation. Saw mills and cattle were considered black-listed and the municipality Mayor
announced they would begin to work to rid-themselves of this name.

If this project had not been implemented the forest area would continue to be devastated and
degraded. The reforestation that has taken place and will take place on the open areas will not
have occurred. If the current owner had not owned it, another owner would have certainly either
lost the land to invasion or would have deforested it for themselves.

The employment situation for the reforestation area would have been minimal; as a large, low
yield cattle operation employees less than 1 person per 1,000 hectares. Without the project there
would be no community benefits, and overtime the land would have had the forest further
widowed away over time.

Most-Likely Scenario Justification (G2.1)

In the absence of the project, the most likely activities are livestock and expansion of the
agricultural frontier; its realization under traditional systems give continuity to management
practices that generally are detrimental to natural resources. This in turn affects gradually the loss
of soil fertility, increase erosion and decrease topsoil, and as a result, a decrease in productivity is
achieved with unprofitable products.

However, these activities continue to perform as traditional methods also involve low capital
investment and implementation of known techniques. These characteristics are most important
when taking into account that much of the rural population in the prioritized area corresponds to
adult age groups, culturally most established to the knowledge acquired from their parents and
less willingness to change their traditional systems production.

Community and Biodiversity Additionality (G2.2)

The project area prior to the project start date was degraded cattle pasture land with
unmaintained pasture, with very large sub-divisions for the cattle to roam. There was less than 5
employees for the entire property and the property was highly unprofitable for cattle.

At the state of the project the soil was completely degraded, the landowner did not use inputs on
the pasture, thus ridding the soil of all nutrients.

The project today has a full time workforce of 186, it also supports a off-site tree nursery owned
by Grupo Dacko which has over 70 employees growing the trees specifically for this operation. In

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absence of the project, the land would not have created such a large number of employeed
people.

The region has been an epicenter of degradation and deforestation, this landowner is one of the
few that has attempted to preserve land. Without his committed ownership and preservation, any
other landowner would have seen an opportunity to deforest.

Benefits to be used as Offsets (G2.2)

No community and biodiversity benefits are intended to be used as offsets

2.3 Stakeholder Engagement Stakeholder Access to Project Documents (G3.1)

The Project Proponent, Landowner has access to all documents related to the project.

The meetings with the Community Stakeholder taken place at the project location. The community
stakeholders including the workers and their family have access upon request or during their
standard weekly training secession that take place 50 times per year. The project has limited
explinatation and comment period sessions with the stake holders for the project each year.
However all stakedholders have been engaged with related to the project.

Dissemination of Summary Project Documents (G3.1)

Summary documentation describing the proposed project activities and its requirements have
been translated into portuguese shared with all community groups at all levels of administration
through consultative workshops and specific training sessions. ARC group has set in place a
Carbon Champions program, training young men and women from each of the five villages in
climate change and project development. These carbon champions have travelled to all villages
and sub-villages to inform people about this afforestation project.

Informational Meetings with Stakeholders (G3.1)

During the all the consultation the aspects of climate change and carbon markets were addressed
by providing information and general concepts in simple language that could be understood by all
participants. The documentation and information regarding the Project was made available to the
community through the following mechanisms:

• At the beginning of each meeting, participants received a summary sheet of the

Project for them to understand the Project.

• During the meetings aspects related to forest carbon project, specific project
activities and participants were explained.

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• There were question and answer sessions after the talks. The questions of the
participants were resolved and all observations were heard and taken into
consideration.

• The information provided, included contacts (phone number and email) of the
people in charge of the Project documentation (project developers), in order to
give the attendants, the possibility to permanently communicate their concerns or
comments.

• Once the project document is ready, it will be published on the website of the
CCB for public Comments.

In addition to the topics mentioned above, during the local consultation were analysed the
possible impacts that the project might have on individual or collective actors in terms of
economic, social and biodiversity aspects. This analysis was performed through the use
questions, comments and opinions regarding to the exposed topics. The result of the evaluation,
assigned to each impact a rating of positive, negative or neutral according to the effect on the
quality of life of each participant.

During the local consultation, all participants were informed about the validation and registry
process while pointing out that an external auditor (a validation and verification body) who visits
the area of influence executes this process, interacts with stakeholders, evaluates the project
information and issues a report of the evaluation.

Community Costs, Risks, and Benefits (G3.2)

Through these workshops they were explained the benefits of the project and the potential costs
and risks that they could perceive due to the implementation of the project. However, the project
activities have been designed in conjunction with the owners in order to minimize possible
negative impacts.

In addition, in every consultation workshop each participant interested in being involved in the
project received an “Intention letter” which they voluntary signed to continue with the process of
visit their properties and evaluate whether their areas are eligible for the project purpose.

On the other hand, there were also people who wanted to evaluate their participation and talk
with their respective families, so that they were given the possibility of carrying the letter of intent
and then a ARC group technician would pick up the letter from the concerned. Finally, during all
the workshops they were repeated that participation in the project is totally voluntary.

Information to Stakeholders on Validation and Verification Process (G3.3)

The validation and verification process was explained during the local consultation workshops. A
power point presentation was used, and when performed in areas where there was no electricity,

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billboards with the same information were used. In this way, ensured that all participants will
always receive the same information about the project cycle.

During the local consultation process, all participants were informed about the mechanisms that
generate Carbon Credits and the validation and registry process while pointing out that an
external auditor (a validation and verification body) who visits the Project Area and executes the
process, interacts with stakeholders, evaluates the Project information and issues evaluation
reports.

Site Visit Information and Opportunities to Communicate with Auditor (G3.3)

Referring to the Project Owner, and Project Proponent has maintained constant and direct
communication with the Project Owner, in order to give the guidelines and clarity aspects related
to the Project cycle, including validation, registration and Project monitoring. We explained to the
stakeholders of the property the project process in a comprehensible way giving the timing for the
visit of the DOE. The Forest Operations Manager, will take charge of collecting from the workers
any kind of questions to be asked to the DOE during the site-visit.

Stakeholder Consultations (G3.4)

The consultation of the “community stakeholders” that was made within the The Project has been
divided into:

• Consultation of the owners of neighbouring farms (farmers);

• Consultation of other stakeholders in the agro-forestry supply chain (local timber

processing companies);

• Consultation of forest technicians operating in the forest sector in the Paragominas and
Ulianopolis Region;

• Consultation of permanent or semi-permanent workers of The Project (fertilizers, ant

control, pruning, maintenance in general)

• Consultation of skilled workers in cutting operations (third party personnel)

During all these type of consultation were analysed the possible impacts that the Project might
have on individual or collective actors in terms of economics, social and biodiversity aspects. This
analysis was performed through the use of questions, comments and opinions regarding to the
exposed topics. The result of the evaluation, assigned to each impact a rating of positive (I+),
negative (I-) or neutral (N) according to the effect on the quality of life of each participant, as
shown.

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Of the 50 people who were interviewed in relation to Community, Climate and Bio-diversity, a
total of 50 people agreed that: The project is good for all aspects of Community, Climate and
Biodiversity.

According to the opinions of the stakeholders interviewed very few have given negative opinions
on possible impacts on Community, Climate and Biodiversity. These few negative opinions focus
mainly on biodiversity, probably because the positive impact on Biodiversity for the people
questioned would result, very simplistically, in an increase in animal species and number of
individuals by species present in the forest, and this requires a long period to be able to come
true. In fact, the increase in the species of wildlife in the Project Area has been highlighted mainly
in the last 6 years of the Project.

Continued Consultation and Adaptive Management (G3.4)

There are weekly meetings to address all aspects from the carbon credit projects, fire prevention
and sustainable plans.

The update meetings and project status meetings will be both open to the workers and their
families, as well as the tree nursery staff and their families as well as the city of Paragominas and
Ulianopolis.

The Training meetings are held weekly with the locals, communities, employees to
update them on any changes and reminders. As the workers receive a salary and go to the
property 5 days per week, any change or update in meeting schedule can be informed at that
time. The following figure 22, shows the dates of training for 2018

Figure 22: Training schedules held in the year 2018

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Stakeholder Consultation Channels (G3.5)

The stakeholders identified were invited to report and comment in reference to the Project
implementation through local consultation. Local consultation meetings were organized with
different stakeholders (owners of neighboring farms, stakeholders of the agro-forestry supply
chain, forest technicians, permanent/semi-permanent workers of for the property and outsourced
workers) in the property. The invitation to these events was always conducted by telephone.

In addition the meetings with the institutional stakeholders including the city of Paragominas and
Ulianopolis were conducted 1 on 1 with the project proponent, to better explain the scope of the
property and convey what the project was trying to achieve from a Community, Climate and Bio-
diversity perspective.

Stakeholder Participation in Decision-Making and Implementation (G3.6)

The necessary measures to facilitate the participation are:

• Local consultations, where the participation of as many people as possible was

encouraged. In addition, contact information was provided for future consultations.
Participants were allowed to present their comments anonymously, in order to feel free
when expressing their disagreements.

• The constant monitoring guarantees the participation of communities and the

reassessment of goals and objectives during the development of the Project.

• Plans for the dissemination of information (design document, monitoring reports, etc.).
The publication of the results, allows the stakeholders to remain updated about the
Project status, in order to ensure that their participation is effective when required.

Plans for conflict resolution and training sessions, facilitate and promote the understanding and
participation of locals, communities and employees. All these measures have been and will
continue to be implemented without gender discrimination and respecting the cultural customs of
the stakeholders.

Anti-Discrimination Assurance (G3.7)

Both the Project Proponent and the Project Owner have excellent reputation and are not involved
in or complicit in any form of discrimination or sexual harassment with respect to the Project.

The stakeholders involvement in the Project has been inclusive, according to individual
capabilities and independent of gender, cultural identity and religion.

Recruiting managers have as a principle employ qualified and reliable staff whose skills are in line
with the requirements and objectives of the Project, through technical, transparent and
nondiscriminatory procedures based on merit and excellence. The policies and guidelines of the

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Project Owner and the Project Proponent guarantee that no type of discrimination will be
tolerated at any point during the Project development.

Feedback and Grievance Redress Procedure (G3.8)

The Feedback and Grievance Redness Procedure is manage by the Forest Manager, who
personally delivered to every single stakeholder his business card with the phone and e-mail
contacts.

For being in constant contact with the community and workers, the Forest Manager is the first
responsible for responding to requests from the community.

According to the internal procedures the Forest Manager must climb the observation to the area
of Project Owner and must address the affected to a discussion room, in order to handle the
complaint.

On the other hand, the Forest Manager and the Project Owner maintain constant contact with the
institution, in order to verify that externally, the Project operations are not negatively impacting the
surrounding communities. It will be done through regular meetings, email and phone calls,
allowing them to express their suggestions, recommendations or claims.

The time frames established concerning to the grievance procedures are:

• Claims or complaints must be attended within 15 working days of receipt of the request.

• Suggestions must be attended within 30 working days of receipt of the request.

• However, where it is not possible to provide an answer within the established frame time,
the claimant must be formally informed and the reasons for the delay and the new date
for reply must be given.

The proposed mechanism will be in constant evaluation and adjustment, according to the
recorded dynamics and evaluation of effectiveness. So far, none of the stakeholders has
been expressed any kind of grievance.

Accessibility of the Feedback and Grievance Redress Procedure (G3.8)

Accessibility of the feedback and grievance procedure is ensured as grievances can be reported
at multiple levels. Individual community members have direct communication access to ARC
group staff, the community has bi-annual meetings designed for this specific purpose, and the
leadership have direct formal channel to air grievances and general feedback. Landowners will
also engage in this process, as they are highly active at the grassroots level in the community
and are a neutral group. Furthermore, the concept of feedback and grievance and the channels of
using the mechanism have been explained to the community at all these levels.

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Worker Training (G3.9)

ARC group has extensive experience in conservation and community development projects. The
activities of the Project have been designed to transfer knowledge and technological packages to
the owners involved in the project through workshops and the direct activities developed in each
of the properties.

To fulfill the worker responsibilities, the recruiting manager is responsible for integrating and
managing confidential personnel information, verifies information provided and drawing up
contracts. Once hired, the staff goes through a trial period. For the selection of officials, the
human resources team will have the principle to find qualified and reliable staff whose skills are in
line with the requirements and objectives of the company, through technical, transparent and non-
discriminatory procedures, based on merits and excellence.

At the end of the most important training, the workers sign the participation document and specific
certificates are given to each worker who, in addition to attesting their participation, also have the
function of enhancing the person and increasing the professionalizing process of each participant.

Community Employment Opportunities (G3.10)

For hiring staff, the Project Owner verify that the person meets the hiring profile established for
the vacant position, without any discrimination of age, sex, marital status, ethnicity, social status
or religious convictions, political ideas and / or sexual orientation. It is not allowed to employ
under age young people (18 for Brasil).

To full-fill their responsibilities, the Project Owner is responsible for integrating and managing
confidential personnel information, verify information provided and drawing up contracts. Once
hired, the staff goes through a trial period of 90 days (as expected by law). For the selection of
officials, the Project Owner will have the principle to find qualified and reliable staff whose skills
are in line with the requirements and objectives of the company, through technical, transparent
and non - discriminatory procedures, based on merits and excellence.

Figure 23: Employment source in 2018 for the Central Block by number of people and where they
are originally from. 122 peole

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Figure 24: Employement for the Northern Block by number of people and where they ar originall
from for 2018. 66 people

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Figure 25: Employement for the Southern Block by number of people and where they ar originall
from for 2018. 50 people

Figure 26 The Central Block and the local villages near the property where the workers live.

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Figure 27: The northern Block and the local villages near the property where the workers live.

Figure 28:: The southern Block and the local villages near the property where the workers live.

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Figure 29: Total number of employees, Central Block 122, Northern Block 66 and Southern Block
110 in 2018

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Relevant Laws and Regulations Related to Worker’s Rights (G3.11)

The labor laws in Brazil, although they have previous origin, are born in the government of
Getúlio Vargas. From the year 1930, President Vargas joined a group of lawyers and legislators
to elaborate the Consolidation of Labor Laws - CLT.

The labor laws of Vargas's era, as they are also called, took 13 years of development, and sought
to guarantee a series of securities and regulations in the relationship between employers and
employees.

Since 1943, the CLT has undergone a series of modifications - natural, in Law. The Labor Laws
in 2015 best represent the new labor relations, and the main changes relate to new technologies,
and their use in work.

There are a number of issues addressed in the CLT, but some stand out due to the advances that
have accrued for the living conditions of the working classes and to the systematization of the
Brazilian labor market.

Undoubtedly, the CLT is one of the greatest examples of a law that is concerned with the worker.
The following are the main Brazilian labor laws:

▪ Law 605/1949 - Repouso Semanal Remunerado (Paid Weekly Rest);

▪ Law 2.959/1956 - Contrato por Obra ou Serviço Certo (Contract for Work or Right
Service);

▪ Law 3.030/1956 - Desconto por Fornecimento de Alimentação (Discount for Food

Supply);

▪ Law 4.090/1962 - Gratificação de Natal;

▪ Law 4.749/1965 - 13º Salário

▪ Law 4.886/1965 - Representantes Comerciais Autônomos (Autonomous Business

Representatives);

▪ Law 4.950-A/1966 - Remuneração de Profissionais (Engenharia, Química, Agron. e

Veter.) (Remuneration of Professionals (Engineering, Chemistry, Agron. And Veter.);

▪ Law 5.859/1972 - Empregado Doméstico (Housekeeper);

▪ Law 5.889/1973 - Trabalho Rural (Rural Work);

▪ Law 6.019/1974 - Trabalho Temporário Urbano (Temporary Urban Work);

▪ Law 6.494/1977 - Estagiários (Trainees);

▪ Law 6.919/1981 - FGTS de Diretores (FGTS of Directors);

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▪ Law 6.932/1981 - Médicos Residentes (Resident Doctors);

▪ Law 7.418/1985 - Vale-Transporte (Transportation vouchers);

▪ Law 8.036/1990 - Lei do FGTS (FGTS Law);

▪ Law 8.906/1994 - Advogados (Lawyers);

▪ Law 9.601/1998 - Banco de Horas e Contrato por Prazo Determinado (Bank of Hours
and Contract for Term Determined);

▪ Law 10.101/2000 - Participação dos Trabalhadores nos Lucros ou Resultados (Workers'

Participation in Profits or Results);

▪ Law 10.607/2002 - Declara Feriados Nacionais (National Holidays);

▪ Law 10.748/2003 - Programa Primeiro Emprego – PNPE (First Job Program);

▪ Law 10.820/2003 - Desconto de Prestações em Folha de Pagamento (Discount on

Payroll Benefits);

All these laws aim to achieve justice in the relations arising between employers and workers,
under a spirit of economic coordination and social balance. All hiring processes that occur inside
the Project are governed by the labour code, in addition to the internal quality system that has
processes and procedures associated with the management of human resources.

As mentioned before, all workers have a contract, in which its duties, rights and laws that protect
them are reported.

Occupational Safety Assessment (G3.12)

The only activities that endanger workers are those related to equipment, used in the planting and
harvest process.This dangerous machinery that are used during the planting is the tractor and the
large water-tank pulled behind the tractor. In both cases accidents are prone to happen. People
getting away, not paying attention.

In the case of wood extraction forest harvesters (used for the mechanized cutting of the E.
urophylla x grandis. All the farm workers have the tools, uniforms and necessary equipment to
prevent accidents of workers while performing activities on field.

Moreover, before the beginning of logging activities of the first cutting test, training sessions had
took place, in order to provide the workers information and practical exercises to make them
expert.

At the end of each specific training, a personalized certificate was issued for each operator
showing a "Certificado de Operador de Motoserra" (chainsaw operator certificate). In addition,

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first aid courses have been conducted for each worker and related specific certificates has been
issued.

2.4 Management Capacity

The project manager oversees the entire project on behalf of the landowner.

Required Technical Skills (G4.2)

• Knowledge of the region and social science / community related skills.

• Experience in sustainable practices for local / rural development, conservation and
management of biodiversity and ecosystem services.
• Knowledge in planning, execution and control of administrative and financial resources.
Extensive experience and skills in managing resources from donors or cooperators.
• Experience in carbon markets, VCS and CCB standards.
• Experience in biodiversity monitoring, sampling methods of wildlife and ecosystem assessment
using quality indicators.
• Extensive experience in working with the community and environmental education.
• Knowledge of the area and experience in field implementation of restoration activities,
crop improvement, woodlots, silvopastoral systems, efficient stoves and solar power
panels.
• Abilities to manage the geographical information system and databases of property
owners, as well as to generate all required cartographic analysis.

2.4.3 Management Team Experience (G4.2)

2.4.4 Project Management Partnerships/Team Development

Project consultant on the project.

2.4.5 Financial Health of Implementing Organization(s) (G4.3)

The company is with the full financial where with all to finance and manage the entire project due
to its large financial asset base.

2.4.6 Avoidance of Corruption and Other Unethical Behavior (G4.3)

All forms of bribery and corruption are prohibited. ARC group will not tolerate any act of bribery or
corruption. Any breach of ARC group company policy on corruption and unethical behaviour or
local law could result in disciplinary action being taken. A bribe does not actually have to take
place - just promising to give a bribe or agreeing to receive one is prohibited.

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2.4.7 Commercially Sensitive Information (Rules 3.5.13 – 3.5.14)

No commercially sensitive information has been excluded from the public version of the project
description.

2.5 Legal Status and Property Rights

2.5.1 Statutory and Customary Property Rights (G5.1)

All project lands are private property managed by the land owners who are engaged to
the project through a free, prior and informed consent. The conservation agreements
signed freely between ARC group and the owners are the result of the socialization
workshops and the commitment of both parties.

2.5.2 Recognition of Property Rights (G5.1)

The property rights for each parcel are recognized and respected. All properties involved in the
project either have property titles or equivalent documents to certify and assure rights over the
land. Within the Reference Region, there are no communities of Brazil or indigenous heritage with
collective property titles.

2.5.3 Free, Prior and Informed Consent (G5.2)

The project is being undertaken with full consent of the communities, land owners, local and
district government. The project will not involve any property or land held privately. ARC group
representatives were invited to a board meeting of the land owner at Paragominas land owners
meeting where they introduced the concept of the Reforestation project. Later, consultative
meetings were held with both members of the land owners committee and representatives of the
five participating villages to explain the respective responsibilities of each stakeholder in the
proposed Reforestation project. Subsequently meetings with the full land owners board (including
village representatives) and executives were held to negotiate the terms of contract, which was
thereafter signed by both parties. The contract forms the basis of the Reforestation project
activities. Multiple grassroots led training sessions were conducted which included
representatives of both land owner association and village communities. These training sessions
were condcted in the local language to sensitise general community members to the aims and
requirements of the Reforestation project. Furthermore, the project aims to follow and reinforce
the RMP which is the community generated document that outlines the communities own desires
for natural resource management within the ARC group.

2.5.4 Property Rights Protection (G5.3)

The project activities do not lead to any type of involuntary relocation or relocation because all the
participants / owners own their land and present documents that accredit it. In addition, ARC
group has informed in all the socializations that at no time will be made purchase of land. Finally,
the conservation agreements signed freely between ARC group and the owners are the result of
the socialization workshops and the commitment of both parties to identify and define the
activities that will be developed in each one of the farms; which ensures that they have not been
forced to relocate activities important to their culture and livelihood. At the same time, one of the

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measures implemented by the project proponent is to maintain constant communication with the
owner.

2.5.5 Illegal Activity Identification (G5.4)

In the baseline scenario, the illegal deforestation practised in the project area generates problems
related to a scenario without the project. The project aims to prevent these illegal practices by
means of a set of activities aimed at the reforestation of the deforested land.

2.5.6 Ongoing Disputes (G5.5)

The project has no ongoing disputes.

2.5.7 National and Local Laws (G5.6)

Brazil is one of the signatories of Kyoto protocol. The project is in compliance with this regulatory
framework, because in the AFOLU scope, conservation is one of several mechanisms by which
GHG emissions are expected to be reduced.

Nationally, the most significant effort to date was the submission of Bill No. 195/2011, which
"establishes the national system to reduce emissions from deforestation and degradation,
conservation, sustainable forest management, maintenance and increase of carbon stocks
(REDD+), and other provisions", which are still in progress.

• Law 12,651 of 05/25/2012: It provides for the protection of native vegetation; amending Laws No.
6938, of August 31, 1981, Law No. 9393, of December 19, 1996, and Law No.11428 of
December 22, 2006; revoking Laws No. 4771, of September 15, 1965, and No. 7754 of April 14
1989, and Provisional Measure No. 2166-67, of August 24, 2001; and other measures.

• Law No. 12187 of 12/29/2009: It established the National Policy on Climate Change (PNMC) and
provides other measures.

• Provisional Measure No. 571, of 05/25/2012: It amends Law 12651 of May 25, 2012, which
provides for protection of native vegetation; amending Laws No. 6938, of August 31, 1981, Law
No. 9393, of December 19, 1996, and Law No.11428 of December 22, 2006; revoking Laws No.
4771, of September 15, 1965, and No. 7754 of April 14 1989, and Provisional Measure No. 2166-
67, of August 24, 2001.

• Law No. 58,054 of 3/23/1966: It promulgates the Convention for the protection of flora, fauna and
scenic beauties of the American countries. .

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• Decree No. 96944 of 10/12/1988: It created the Program in Defense of the Ecosystem Complex
of the Legal Amazon, and other measures.

• Decree No. 2661 of 7/8/1998: It regulates the sole paragraph of art. 27 of Law 4.771 of
September 15, 1965 (Forest Code), by establishing precautionary standards for activities
involving fire in agropastoral and forestry practices, and other measures.

• Decree No. 2959 of 2/10/1999: It provides for measures to be implemented in the Legal Amazon,
for monitoring, prevention, environmental education, and forest fire fighting.

• Decree No. 5975 of 11/30/2006: It regulates art. 12, final part, 15, 16, 19, 20 and 21 of Law 4771
of September 15, 1965, art. 4, item III, of Law 6938 of August 31, 1981, art. 2 of Law No. 10650,
of April 16, 2003, amends and adds provisions to Decrees 6514/08 and 3420/00, and other
provisions.

• Decree No. 7390 of 12/9/2010: Regulates articles 6, 11 and 12 of Law 12187 of December 29,
2009, establishing the National Policy on Climate Change (PNMC), and other measures.

• Decree-Law No. 5452 of 05/01/1943: Approves Labor Laws Consolidation. CONAMA Resolution
No. 16 of 12/07/1989: It establishes the Integrated Program for Assessment and Environmental
Control of the Legal Amazon.

• CONAMA Resolution No. 378 of 10/19/2006: It defines undertakings potentially responsible for
national or regional environmental impact for purposes of item III, paragraph 1, art. 19 of Law
4771 of September 15, 1965, and other measures.

• CONAMA Resolution No. 379 of 10/19/2006: It creates and regulates the data system and on
forest management under the National Environmental System - SISNAMA.

• CONAMA Administrative Rule No. 218 of 5/4/1989: It provides for felling and exploration of native
forests and successors forest formations of the Atlantic Forest, and other measures.

• IBAMA Administrative Rule No. 37 of 4/3/1992: Recognizes as Official List of Brazilian

Endangered Flora Species the list found in the Administrative Rule.

• Ministry of Environment Administrative Rule No. 103 of 4/5/2006: It provides for the
implementation of the Document of Forest Origin - DOF, and other measures.

• Ministry of Environment Administrative Rule No. 253 of 8/18/2006: It establishes, from 1

September 2006 on, under the Brazilian Institute of Environment and Renewable Natural
Resources (IBAMA), the Document of Forest Origin (DOF), replacing the Authorization for
Transportation of Forest Products (ATPFs).

• Administrative Rule 1896 of 09/12/2013: It amends Regulatory Norm No. 31. Ministry of
Environment Administrative Rule No. 1 of 9/5/1996: It provides for Obligatory Reforestation and
Forest Integrated Plan.

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• Ministry of Environment Administrative Rule No. 07 of 4/27/1999: It provides for the authorization
for deforestation in the Legal Amazon States.

• Ministry of Environment Administrative Rule No. 02 of 5/10/2001: It provides for the economic
exploration of forests in rural properties located in the Legal Amazon, including Legal Reserve
areas and with exception of permanent preservation established in current legislation, which will
be carried out through multiple use sustainable forest management practices.

• IBAMA Normative Instruction No. 30 of 12/31/2002: It informs the geometric volume calculation of
standing trees, applying the volume equation that specifies it, and other measures.

• IBAMA Normative Instruction No. 112 of 08/21/2006: It regulates the Document of Forest Origin -
DOF, established by Ordinance Ministry of Environment Administrative Rule .253 of August 18,
2006. (Amended by IBAMA Normative Instruction No. 134 of November 22, 2006)

• Ministry of Environment Administrative Rule No. 06 of 12/15/2006: It provides for the reforestation
and consumption of forest raw materials, and other measures.

• IBAMA Normative Instruction No. 178 of 6/23/2008: It defines guidelines and procedures,
provided by IBAMA, for consideration and approval on the issue of forest suppression
authorizations and other forms of native vegetation in an area greater than two thousand hectares
in rural properties located in the Legal Amazon, and a thousand hectares in rural properties
located in the remaining regions of the country.

• Regulatory Norm No. 31 of 03/03/2005: Approves the Regulatory Norm for Safety and Health at
Work in Agriculture, Cattle Raising, Forestry, Forest Exploration, and Acquafarming.

2.5.8 Approvals (G5.7)

Not required.

2.5.9 Project Ownership (G5.8)

The ownership of the lands inside the project area is supported by legal documentation (see
folder: contract between ARC group and the land owner).

Through the signing of the letters of intent, the land owners and ARC group (as the project
proponent) agree that the benefits generated by the reduction of greenhouse gas (GHG)
emissions, will be used to give continuity to the project and expand its scope. This will be
managed by forest manager with the participation and follow-up of the community (See folder).

Also, ARC group signs voluntary agreements with other project owners (outside the project area,
but inside the project zone). These project owners are supported throught the implementation of
the project activities in their lands. Despite the agreements are signed for a period between 3 to
10 years, these will be subject to periodical and conditional renewal, according to the medium-
term results (see folder).

2.5.10 Management of Double Counting Risk (G5.9)

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Carbon credits are currently the only environmental credit being generated from this project. No
other environmental credits will be generated or sold.

2.5.11 Emissions Trading Programs and Other Binding Limits

Carbon credits are currently the only environmental credit being generated from this project. No
other environmental credits will be generated or sold.

2.5.12 Other Forms of Environmental Credit

Carbon credits are currently the only environmental credit being generated from this project. No
other environmental credits will be generated or sold.

2.5.13 Participation under Other GHG Programs

The project has not been registered or is seeking registration under any other GHG program.

2.5.14 Projects Rejected by Other GHG Programs

The Project was not submitted to validation/Verification to any other GHG program and therefore
has not been rejected by any other GHG program.

2.5.15 Double Counting (G5.9)

Carbon credits are currently the only environmental credit being generated from this project. No
other environmental credits will be generated or sold.

3 CLIMATE

3.1 Application of Methodology

3.1.1 Title and Reference of Methodology

This is an AFOLU A/R project that aims to recover degraded lands, which are expected to remain
degraded or to continue to degrade in the absence of the project.

Methodology applied:

AR-ACM003. Afforestation and reforestation of lands except wetlands. Version 2.0.

Tools applied:

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- “Combined tool to identify the baseline scenario and demonstrate additionality in A/R CDM
project activities”;

- “Estimation of carbon stocks and change in carbon stocks of trees and shrubs in A/R CDM
project activities”;
- “Estimation of carbon stocks and change in carbon stocks in dead wood and litter in A/R CDM
project activities”;
- “Tool for estimation of change in soil organic carbon stocks due to the implementation of A/R
CDM project activities”;
- “Estimation of non-CO2 greenhouse gas (GHG) emissions resulting from burning of biomass
attributable to an A/R CDM project activity”;

3.1.2 Applicability of Methodology

Applicability conditions of the Methodologies

Table 10: Applicability conditions from the AR-ACM003 methodology

Applicability condition Compliance

a. The land subject to the project activity Fragile lands such as forests, lagoons, flood plains, wetlands
is not categorized as ‘wetland’ and water bodies were excluded from project boundary given
the analysis of land eligibility that was carried. These areas
are protected by the owners and only pastures areas are
subject to project activities.

b. Soil disturbance attributable to the project (a) The soil within the Project boundaries is not an organic soil as
activity does not cover more than 10% of area in proved by the soil analysis and the presence of sand reaches
each of the following types of land, when the nearly 90%, so it is considered a sandy soil.
land is included within the project boundary:
• Land containing organic soils; (b) The land within the Project boundaries was a degraded
• Land which, in the baseline, is subject to grasslands, without receiving inputs such as listed in appendices
land-use and management practices and 1 and 2 to the methodology ARACM003. Such grasslands under
receive inputs listed in "appendices 1 and tropical conditions have less carbon compared to plantations and
2 of the AR-ACM003 methodology." forest cover. Therefore, it is expected for soil organic carbon to
increase more in the presence of the Project activity relative to
the previous land use.

In addition during the soil preparation phase at the beginning of

the Pre-Project phase, no extensive surface treatments have
been carried out with the exception of the closure of the deep
erosions, of the digging pits for the plantlets and the ploughed
perimeter band to reduce the risk of fire. Soil disturbance
attributable to the Project activity does not cover more than 10%.
The absence of extended soil processing in unsaturated sandy
soils has reduced the losses of organic matter originally present
as well as maintaining a natural mulching capable of preserving
the soil moisture and favouring the development of natural
microbial fauna.

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3.1.2 Project Boundary

The relevant GHG sources, sinks and reservoirs for the project and baseline scenarios are
presented below.

Table 11. Selection and justification of carbon pools

Source Gas Included Justification/Explanation

CO
2 Yes Above and below ground carbon stock in the baseline is presented in the
isolated trees and grasses. The trees present in the Project Area before the
Project was neither harvested, nor cleared, nor removed. These didn't suffer
mortality because of competition from trees planted in the project, or damage
because of implementation of the Project activity and they are not inventoried
along with the Project trees in monitoring of carbon stocks throughout the
Above and crediting period of the project activity. Therefore, carbon stock in the baseline
below can be accounted as zero.
ground
biomass
Baseline

CH
4 No This is not a requirement of the methodology
N O
2 No This is not a requirement of the methodology
CO
Dead wood, 2 Yes It is expected that carbon stock in these pools will not decrease due to the
litter and soil implementation of the Project activity
organic
CH
carbon 4 No This is not a requirement of the methodology
N O
2 No This is not a requirement of the methodology

CO
Above and 2 Yes Carbon stock in above ground biomass is the major carbon pool subjected
below to Project activity and it is expected to increase due to the implementation
ground of the Project activity.
biomass
Carbon stock in below ground biomass is expected to increase due to the
implementation of the Project activity.
CH
Project

4 No This is not a requirement of the methodology

N O
2 No This is not a requirement of the methodology
CO
Dead wood, 2 Yes Carbon stock in these pools may increase due to implementation of the
litter and soil Project activity
organic
CH
carbon 4 No This is not a requirement of the methodology
N O
2 No This is not a requirement of the methodology

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3.1.3 Baseline Scenario

Identification of the baseline scenario

The baseline scenario will be justified in the next 2.2 - Additionality, applying the A/R CDM
Methodological tool “Combined tool to identify the baseline scenario and demonstrate
additionality in A/R CDM project activities” (Version 01).

Selected baseline scenario: historic use of the land

The baseline scenario corresponds cattle ranching in degraded pasturelands. The land within the
Project boundary before the the start of the Project was degraded grassland, occupied by
extensive cattle farming, as occurs in the same department and municipality. Such grasslands
have historically been subject to burning activities that took place with the objective to reduce tree
covers and expand grasslands in order to develop extensive cattle ranching activities.
Before the start of the Project, the 2 activities present at property were cattle ranching, mainly for
meat production, practiced in degraded grassland areas corresponding to Area 3 and Eucalyptus
plantation corresponding to Areas 1 and 2. The grazing area was made up of large areas for
grazing, ranging from 30 to 60 ha each, bounded by fences made of iron wires and wooden poles
set into the ground. Cattle grazed in that areas permanently, throughout the year, feeding on
native and introduced grasses. According to information provided by the current Land Owner,
cattle farming had been practiced for several decades. In addition to the grazing areas the
property conserved remnants of savannah forest that made up the Legal Reserve of the
Fazenda. As stated by law, in fact, in the State of Para each rural property is required to maintain
a minimum of 20% of the land to be used as a Legal Reserve. In these permanent reserve areas,
any kind of activity is banned. The vegetation must be preserved in its entirety. Furthermore, a
demarcation and fencing obligation applies to these areas.

Over the years, irrational extensive cattle ranching had caused a serious degradation pasture
process on the property. The most obvious signs of this process were land erosion patches and
reduction in soil fertility (decreased organic matter, decreased macro and micro trace elements).
The factors that led to this gradual depletion of pasture and soil were:

▪ Cattle grazing pressure: grazing cattle ingest large quantities of green fodder, which contain
nutrients derived from the soil;

▪ Lack of rational fertilization: this practice is necessary to replenish the nutrients extracted from
the soil by grazing cattle;

▪ Cattle trampling: this phenomenon, mainly impacting the areas where pasture rotation is not
practiced, leads to a reduced vegetation cover, exposing the soil to rainfall and subsequent
erosion and depletion of a surface fertile layer;

▪ Shrinking of the original tree cover: the arboreal plants present in the pastures are seen as
competitors for light, nutrients and water of forage. For this reason there is a tendency to

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eliminate them, reducing soil resistance to erosion, also by increasing the evaporation of water
present in the soil.

Before the start of the Project, year after year, a decline in pasture production was recorded on
the property, with an inevitable reduction of animal load per hectare resulting in a decreased
productivity. All this had led to an alarming decline in the economic return of the farm owner.

At the time, pastures present in the Fazenda were so unproductive that in the dry season the
owner pushed cattle to graze also in the Legal Reserve areas, thus jeopardizing even the few
remaining natural areas, where is prohibited by low any livestock presence. Moreover, in the dry
season, when fodder plants are in their state of vegetative rest, thus reducing the pasture
nutritional quality, the owner occasionally lit a fire to stimulate grasses to grow back (in fact, the
new shoots sprouting after a fire are much more nutritious and palatable for the cattle than
mature fibrous fodder plants typical of the dry season). This form of extensive and irrational cattle
breeding did not only lead to a soil impoverishment and to a serious decrease in productivity of
the Fazenda, but it was also a threat to a dangerous decline in biodiversity of the entire region.
This landscape corresponded to the land prior to the Project Start Date.

Stratification of the Baseline scenario

The biomass distribution over the Project Area in the baseline scenario is homogeneous, so
stratification is not necessary to be carried out. Indeed the areas affected by the afforestation
Project in the baseline scenario was homogeneous in the pedological and environmental
characteristics and the land cover was totally represented by pastures for cattle (herbaceous
grass meadows) intertwined with few isolated trees.

Conclusion

The degradation, erosion and compacting of the soil in the baseline scenario prevents the natural
regeneration of these areas. The few vegetation present in these areas and his economic use in
the absence of the Project activity are not sufficient to permit the natural regeneration process of
forest cover. If the Project activity were not to occur, the historical uses and the economic
determinants of land use would most probably result in a continuation of pastures for cattle.

3.1.5 Additionality

Additionality was calculated by following a methodological tool to measure the baseline scenario
and demonstrate the additionality in AR CDM project activities.

The assessment and demonstration of additionality and the identification and justification of the
baseline scenario are described using the “Combined tool to identify baseline scenario and
demonstrate additionality in A/R CDM project activities (Version 01)”, issued by the CDM
executive board at the United Nations, which shall be hereinafter referred to as “additionality tool”.

The additionality tool is applicable under the following conditions:

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Forestation of the land within the proposed project boundary performed with or without being
registered as the A/R CDM project activity shall not lead to violation of any applicable law even if
the law is not enforced.

This tool is not applicable to small-scale afforestation and reforestation project activities.
According to the additionality tool the following steps have been applied.

STEP 0. Preliminary screening based on the starting date of the A/R project activity
STEP 1. Identification of alternative scenarios
STEP 2. Barrier analysis
STEP 3. Investment analysis (if needed)
STEP 4. Common practice analysis

STEP 0. Preliminary screening based on the starting date of the A/R project activity

The starting date of the properties A/R is July 15, 2014, thus after December 31, 1999.

Provide evidence that the starting date of the In the appendices it is fact that the company
A/R CDM project activity was after 31 the current property owner did not even own
December 1999. the land until 2013/2014, so the project could
not have occurred prior to this date.
Provide evidence that the incentive from the The project is factually uneconomical without
planned sale of VCUs was seriously loans from the bank or the sale of CERS, to
considered in the decision to proceed with the plant trees on the property. A very large
project activity. This evidence shall be based number VCU’s has to be sold to subsidize the
on (preferably official, legal and/or other planting operation. There is no willing person
corporate) documentation that was available to that will provide direct capital investment for a
third parties at, or prior to, the start of the planting operation in the amazon. The only
project activity. way for this to be economical is via carbon
credit sales and bank credit loans.

STEP 1. Identification of alternative land use scenarios to the proposed A/R CDM project
activity

This step serves to identify alternative land use scenarios to the proposed CDM project activity
that could be the baseline scenario, through the following sub-steps:

Sub-step 1a. Identify credible alternatives land use scenarios to the proposed project
activity

In the specific area where the Project will focus, the alternative land uses in absence of the VCS
forestry proposal are cattle ranching activities and the forestry activities without the VCS
component. This two agricultural activities are not attractive for the Land Owner.

The Scenario 01 is the continuation of the pre-project land use and

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corresponds to the degraded pasture lands with extensive cattle

ranching.

Scenario 01: The Para state predominant land use is represented by pastures for
continuation cattle breeding prior to 2014.
of the pre-project
land use: cattle According to IBGE (2015)50, the state of Para has a total of XX million
ranching. bovines and represents 9.92% of the total bovine herd of Brazil (215,2
million of cattle in 2015). For cattle breeding is used natural grasslands
and lands, originally occupied by the Cerrado, that had suffered a
process of deforestation and were transformed into pasturelands. This
deforestation process is still exiting throughout Brazil.

According to Kirby (2005) the annual rate of deforestation in the Brazil

has continued to increase from 1990 to recent years because of several
factors, both local and international. The removal of rainforest, to make
way for cattle ranching, was the leading cause of deforestation and land
degradation in the Para State.

Cattle ranching in Para State has resulted in massive deforestation and

it is regarded as one of the main causes of fragmentation and land
degradation, affecting the ecosystem, biodiversity and conservation. In
addition, there are significant evidences of erosions and structural
degradation.

Under the Deforestation Monitoring Program of the Brazilian Biomes of

the Ministry of Environment, the current situation of deforestation in the
rainforest has been mapped (2012), based on the comparison of satellite
images. According to this mapping, between 2002 and 2010, the
rainforest had its cover removed.

Currently, in some regions of Brazil, deforestation and a form of irrational

extensive cattle ranching are causing serious desertification
phenomena. The recent research work “Desertificacao, degradacao da
terra e secas no Brazil”, conducted by CGEE (2016) states that "the
climate is not responsible for the extreme soil impoverishment", which
already characterizes many regions of Brazil. It also points out that
"while drought is a climatic phenomenon, desertification is a human
phenomenon". The same document has also highlighted that "the
deforestation of primary forests for the use of timber and the subsequent
allocation of pastures for livestock rearing, associated with the lack of
measures to curb soil erosion, inexorably lead to the soil
impoverishment down to its ultimate “collapse”.

In conclusion cattle ranching is very prominent in the state of Para (and

in Brazil overall) it is clearly established in the local economic culture but
if managed in an irrational manner may cause serious repercussions on

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environment, land and climate.

The Scenario 02 is represented by forestation of the land within the

Project boundary performed without being registered as the A/R CDM
project activity.

Brazil has millions of hectares of planted with reforestation species as

Eucalyptus, Pine and other species like Acacia (Acacia mearnsii),
Seringueira (Hevea spp.), Teca (Tectona grandis), Parica (Schizolobium
Scenario 02: parahyba), Araucaria (Araucaria angustifolia) and Alamo (Populus spp.),
forestation of used in the production of pulp, paper, architecture, furniture, energy and
the land within biomass. In addition, planted trees play an important role preventing
the Project deforestation of native forests, protecting biodiversity and preserving the
boundary soil and springs. They recover degraded areas and they contribute to
performed reducing GHG, as they are natural carbon inventories.
without being
registered as Today these planted forests occur mostly in monoculture systems and
the A/R CDM rarely associated in two or more species. In recent years, major
project progress has been made by research on these agroforestry systems and
activity. it has shown many favorable results in all respects, from an economic,
environmental and social point of view. Some important functions of
planted forests are:

▪ Decreased pressure on native forests;

▪ Restoration of degraded lands due to agriculture and livestock
breeding;
▪ Carbon sequestration;
▪ Soil and water protection;
▪ Shorter production cycles than in temperate climate countries (because
of the rapid
growth of the plants due to the longer photoperiod and to the abundance
of the rain
water typical of the humid tropical zones);
▪ Improved product consistency, facilitating all mining and industrial
processes.

Planting activity is managed in accordance with sustainable forestry

management principles, aiming to reduce environmental impacts and
pursuing the goal to promote economic and social development of the
communities surrounding the plantations. In general, these lands are
initially degraded, but they suit the needs of the plantations. The
plantations also allow preserving extensive areas of natural resources in
places named in Brasil as Permanent Preservation Areas (PPA) and
Legal Reserves (LR). In the state of Para are present reforestation areas
with commercial species and according to the IBGE (Instituto Brasileiro
de Geografia e Estatistica) in the state of Para the total area occupied by

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forest plantations is less than 100,000 hectares, making it the 2 nd largest

state in Brazil, a state in the Brazilian Amazon, but also a state with
insignificant reforestation activities compared to nearly 5 million hectares
or Afforestation and Reforestation in the other regions of Brazil.

Outcome of Sub-step 1a:

▪ Cattle ranching.
▪ Forest plantations (without being registered as a carbon project).

Sub-step 1b. Consistency of credible alternative land use scenarios with enforced
mandatory applicable laws and regulations.

According to the information in sub-step 1a all of these alternative land use scenarios are legal
and enforced by mandatory applicable laws and regulations taking into account the enforcement
in Brazil and the state of Para.

In summary the alternative land uses scenarios in the Project Area that are in compliance with all
mandatory applicable legal and regulatory requirements are:

▪ Cattle farming: this activity is regulated by the following main laws: Law n° 11,443 -
January 5, 200758, Law n° 12,727 - October 17, 201259, Law n° 12,805, April 29,
201360.

▪ Forest plantations (without being registered as a carbon project): all the laws that
regulate the forest plantations in the state of Para.

Outcome of Sub-step 1b:

▪ Cattle ranching.
▪ Forest plantations (without being registered as a carbon project).

STEP 2. Barrier analysis

This step serves to identify barriers and to assess which of the land use scenarios identified in the
sub-step 1b are not prevented by these barriers.

Sub-step 2a. Identification of barriers that would prevent the implementation of at least
one alternative land use scenarios.

Investment barrier

The commercial forestry sector is not particularly attractive for professional investors because it
has a business-model characterized by unfavorable elements:

▪ High concentration of costs in the first years of production;

▪ Long production cycle;

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▪ Long wait for economic returns.

Because of this reason who decides to invest in this specific sector are the big enterprises that
belong to the wood supplying chain and that have significant financial availability.

These entities also had and still have greater access to credit lines and incentives at the expense
of small and medium-sized rural enterprises. This is exactly what happens in the Brazilian forestry
market where nowadays 74% of planted forests is owned barely by 10 big companies.
Nowadays the small and medium forestry entrepreneurs are disadvantaged in working in a
market become an oligopoly. In addition during the last ten years the forestry sector in Brasil has
been facing several market issues that have slowed down the sector's growth. Who has been
mostly suffering these changes have been the independent planted forest owners.

The property owner is an independent forest owner that has experienced these barriers, in
contrast to the big companies that control the market.

It is clear that a subsidiary of a multinational group may have different access to capital than a
local SME company or an individual company as the Project owner case. In particularly today, all
the sector, is facing barriers relating to markets, which could be summarized as follows:

Domestic currency devaluation: in recent years, the devaluation of the Real brazilian currency
(Diagram 08) has led to a significant increase in the cost of fertilizers and plant protection
products, all these imported products paid in USD. Over the past 7 years, this has led to a 35%
increase in fertilizer and other agricultural products costs.

Currency devaluation

Increase of the labour cost: in recent years the labour cost has increased as a result of the high
inflation rate, as shown in Table 12: (on average by 5-6% per annum).

Year 2010 2011 2012 2013 2014 2015 2016

Inflation % 5.909 6.502 5.839 5.911 6.409 10.672 5.780

Table 13: IPC inflation rates (2010-2016 period).

Decrease of the timber sale price: the average sale price per cubic meter of timber has
decreased over the last 7 years between 12 - 13% (Table 13). The present value loss of forest
products seems to be due to the current crisis that has affected Brazil, but it may also be a
consequence of the fact that the market is controlled by few big companies as explained above.

Allocation Jan 2010 Jan 2011 Jan 2012 Jan 2013 Jan 2014 Jan 2015 Jan 2016
(amounts
R$/m3)

Timber for 54,12 54,86 52,09 47,20 46,20 47,44 42,84

Energy
purposes
Timber for 76,33 73,52 66,94 64,44 67,95 67,71 77,65

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Chemical
treatment
Timber for 126,02 125,70 120,52 125,56 115,80 112,86 112,14
Sawmills

Decrease of marginality: this is due to the decrease of the timber sale price while the timber
production costs (particularly the labour cost and fertilizer/manure costs) are increasing. All these
factors have led to a sharp reduction in returns from the sale of Eucalyptus timber, estimated
around 50 - 60%. This has resulted into a strong pressure on the availability of resources
allocated for plantation maintenance.

Lack of access to insurance mechanism to protect the future selling price of Eucalyptus timber: in
Brazil as a whole doesn't exist any insurance company that may cover the timber selling price
risk.

Lack of access to credit: a further and significant investment barrier is the difficulty in accessing to
credit. The brazilian economic situation and high inflation rates have led to very high interest rates
on bank loans, averaging around 20-25% per annum for short-term financing to support working
capital (Table 14).

Table 14: interest rates applied by brazilian credit institutes in 2016, per month and per year
(Banco Do Brazil 2016).

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With a so long production/financial cycle, this business itself, it is absolutely not bankable. The
plantation business involves very high costs for the preparation of the land and for the plantation
and the management of the forest until the first cut in 7 years. The first revenue only began after
the sale of the timber thus from the 7th year onwards. Usually a bank loan can reach a pre-
amortization period of 2 years, therefore absolutely not suitable for this financial-productive cycle
of 7 years.

Even considering a bullet loan (very difficult to obtain within the bank’s system), it would still
impossible to repay the debt since in Brazil the annual interest rate it is about 25% and this
activity has a low margin. For these reasons, a bank can’t take into consideration the possibility
of financing a planting activity.

Obtaining VCUs, the Project Owner can overcome these barriers in a terms of an additional
revenue stream that guarantee an adequate return on investment. Also the Project Proponent is
R remunerated by the Project Owner using these carbon credits.

Social barrier: lack of skilled and/or properly trained labour force

The labour force that inhabit the countryside that surround the Project Area do not have
experience in reforestation. Reforestation activities are not part of the traditional economic culture
in the state of Para, and institutional and technological support are lacking. Historically, as in
many other regions of central Brasil, the principal economic activity has been the extensive, and
often with subsistence characteristics, cattle farming. And in general, wood production in the
entire Brazil is based on the exploitation of the abundant natural tropical forests.

Today reforestation is not yet consolidated in the country as an economically sustainable venture
probably also caused by the difficulty in finding skilled workers. In this way the lack of technical
knowledge of the labor force is the main cause of the underdevelopment of the silvicultural sector
and represents a loss of great potential.

The local supply of labor with experience in forestry is difficult. Training is costly. Skilled labor
must be paid with a higher wage, often to move them from other regions of the State or of the
Country. The Project Owner recognizes all these obstacles and has to overcome these
social/technical barriers. Part of the capacity work could be financed by the income of the carbon
credits.

Outcome of Step 2a:

List of barriers that may prevent one or more land use scenarios identified in the Step 1b:
▪ Investment barrier
▪ Social barrier

Sub-step 2b. Elimination of land use scenarios that are prevented by the identified barriers
Reforestation without carbon revenues faces at least one of the identified barriers. Extensive
cattle farming is the only land use alternative that does not face any of the identified barriers.
Table 15 shows the List of land use scenarios and the list of the faced barriers.

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Project Alternative Barrier Faced

Cattle Farming No Barriers faced
Forest Plantations (without being registered as • Investment barrier
a carbon project). • Social Barrier

Table 15: Summary of barriers faced for alternative use scenarios.

Forest plantations without carbon revenues face the identified barriers. Degraded pasture by
extensive livestock is the land use alternative does not face any of the identified barriers. Forest
plantation with carbon revenues will alleviate the identified barriers.

Outcome of Sub-step 2b:

List of land use scenarios that are not prevented by any barrier:
▪ Cattle farming

Sub-step 2c. Determination of baseline scenario (if allowed by the barrier analysis)

Apply the following decision tree to the outcome of sub-step 2b:

Is forestation without being registered as an A/R CDM project activity included in the list of land
use scenarios that are not prevented by any barrier? → NO
If NO then: Does the list contain only one land use scenario? → YES
if YES, then the remaining land use is the baseline scenario.
Continue with Step 4: Common practice test

Applying the decision tree presented in the “Combined tool to identify the baseline scenario and
demonstrate additionality in A/R CDM project (Version 01)” is concluded that:
▪ Reforestation without being registered as an A/R VCS Project activity is included in the
list of land use scenarios that are prevented by the barriers listed.
▪ Cattle farming is the baseline scenario.

STEP 4. Common practice analysis

Brazil is the fifth country in the world for total area: over 8.500.000 square kilometre and
composed of 26 federated states, each with very different characteristics. We have decided to
take into consideration the State of Para (where the project is actually implemented) because it
has a multitude of similar characteristics within it that impact on the project but which differ or may
differ from other federated states. The main characteristics taken into consideration are the
following: climatic, pedological, legislative, rainfall, photoperiod, economic, financial, cost and
skilled labor, market related to timber prices, cost of products due to duties that vary from state to
state.

In the state of Para there are reforestation projects but there aren’t projects registered as A / R
VCS Projects as evidenced by the VCS database http://www.vcsprojectdatabase.org/#/projects
and the UNFCC | CDM http://cdm.unfccc.int/Registry/index.html.

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Planted Forests today represent just very small area of the total area of the municipalities. The
main use for the wood is directed toward Suzano Cellulose.

As shown in the “Plano Estadual de Desenvolvimento Sustentavel de Florestas Plantadas -

PEF/MS, 2008”, 54% of planted areas belong to a single company, the VCP - Vontorantim
Celulose e Papel group, 20% of planted areas belongs to 9 other big companies and finally just
26% belongs to a large number of small and medium-sized producers.

So we can say that about 90% of the state of Para;s commercial timber production is from native
forest extraction both legal and illegal. These large forestry companies have close links with the
timber processing industries and together they affect almost the entire market. Compared to
medium and small timber producers these companies have great advantages, including lower
costs due to economies of scale, greater contractual power and easy access to credit.

The main difference between these 2 categories (small-medium size forest and big forest) is the
microeconomic prospective and internal context. The tactic of those forest owners (multinational
company) is part of an strategic industrial plan which is called vertical integration of the supply
chain (upstream integration in this specific case). The client of the forest and the forest owner
itself (in the majority of the cases) is the same entity.

Small and medium timber producers (barely 26% according to “Plano Estadual de
Desenvolvimento Sustentavel de Florestas Plantadas - PEF/MS, 2008”) are facing the investment
and social barriers already widely described in the Sub-step 2a. The Project Owner is one of
them.

The main similarities between these small-medium size projects are:

- be in the same State;

- have about the same dimensions;
- be held by small-medium agroforestry entrepreneurs (independent individual entity);
- strongly suffer from the market situation.

The (small–medium) forest owner is often forced to sell the wood to figures that are lower than
the cost generated to produce it. This happens because of a market dominated by a strong
presence of a few and huge companies (described above) that control the market along the entire
supply chain (from wood to the finished product). Because of this market situation that has
become unsustainable for small forest producers, cases are increasingly frequent in which the
forest is destroyed to restore cattle breeding (initial condition).

This is the reason why in the Municipality, where the Project is implemented, commercial
reforestations are not commonly practiced. In fact, they are too far from Suzano to be of clear
profitable economic value for the landowner. Suzano has a target drive range of 180 km and the
plantations are over 200 km away from the Suzano operation.

The main difference between the project and similar ones is the possibility of balancing this
serious obstacle thanks to the carbon project and the consequent sale of the VCUs, thus
maintaining the forest throughout the project period. The same IMASUL (state forestry agency) is
looking with particular attention and interest to this project because it could be a resource for

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small and medium forest projects in the state. VCUs could be the means to ensure the survival of
these small projects and the development of new forest projects.

→ If Step 4 is satisfied, i.e. similar activities can be observed and essential distinctions
between the proposed CDM project activity and similar activities cannot be made, then the
proposed CDM project activity is not additional. Otherwise, the proposed A/R CDM project
activity is not the baseline scenario and, hence, it is additional.

Conclusions:

▪ The Project activity is not the common practice in the Municipalities.

▪ The proposed A/R Project activity is not the baseline scenario and it is additional.

By registering the Project under international standards it can generate that investors evaluate
positively invest in forestry projects. Financial revenues from carbon sequestration will help
investors to offset the risks of investing in the area and the high costs of accessing distant
markets for the future sale of timber. The sale of certificates of emission reduction is part of the
main sources of additional income to the Project. In addition, the Project seeks to promote the
technical development of forestry plantations, by using methods and procedures that allow the
well development of the planted area, the inclusion of native species in order to contribute to the
sustainable use of the environment and of the landscape and the constant flow of revenues.
Therefore, the current initiative will alleviate the common characteristics of the plantations
explained before, in order to improve the forestry sector in the area.

3.1.6 Methodology Deviations

No deviation of methodology was applied in this Project.

3.2 Quantification of GHG Emission Reductions and Removals

3.2.1 Baseline Emissions

The baseline emissions for the aspect of the project of A/R:

According to the A/R Large-scale Consolidated Methodology, Afforestation and Reforestation of

lands except wetlands (Version 02.0), the baseline estimation is given as follows (equation 1 of
the AR-ACM0003 methodology):

Where:

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Baseline net GHG removals by sinks in year t; t CO2-e

Change in carbon stock in baseline tree biomass within the

project boundary in year t, as estimated in the tool “Estimation
of carbon stocks and change in carbon stocks of trees and
shrubs in A/R CDM project activities”; t CO2-e

Change in carbon stock in baseline shrub biomass within the

project boundary, in year t, as estimated in the tool “Estimation
of carbon stocks and change in carbon stocks of trees and
shrubs in A/R CDM project activities”; t CO2-e. No shrub is
expected in the project activity, thus it is not accounted.
Change in carbon stock in baseline dead wood biomass within
the project boundary, in year t, as estimated in the tool
“Estimation of carbon stocks and change in carbon stocks in
dead wood and litter in A/R CDM project activities”; t CO2-e.
Change in carbon stock in baseline litter biomass within the
project boundary, in year t, as estimated in the tool “Estimation
of carbon stocks and change in carbon stocks in dead wood
and litter in A/R CDM project activities”; t CO2-e

See 2.1.4 - Baseline Scenario for a description of the pre-project conditions that fulfill the criteria
presented in the A/R Methodological tool “Estimation of carbon stocks and change in carbon
stocks of trees and shrubs in A/R CDM project activities” (Version 04.1) to consider the carbon
stock in trees and shrubs in the baseline as zero (Section 5.11 and 5.12 of this tool).

can be accounted as zero due to all of the following conditions:

▪ The Baseline trees are neither harvested, nor cleared, nor removed throughout the crediting
period of the Project activity;

▪ The Baseline trees do not suffer mortality because of competition from trees planted in the
project, or damage because of implementation of the Project activity, at any time during the
crediting period of the project activity;

▪ The Baseline trees are not inventoried along with the project trees in monitoring of carbon
stocks but their continued existence, consistent with the baseline scenario, is monitored
throughout the crediting period of the Project activity.

conservatively is assumed to be zero in the baseline scenario, due to the fact that
changes in carbon stock of above and below ground biomass of non-tree vegetation of the
degraded land in baseline scenario is not possible.

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Also and are assumed to be zero due to the fact that the baseline scenario
was degraded pasture, where fire was often used, which did not allow accumulation of
dead wood and litter.

That is why the estimated baseline emissions or removals are considered insignificant and hence
accounted as zero.

3.2.2 Project Emissions

Whereas in the baseline scenario burning practice was widely used to burn vegetable litter, to
deforest, to stimulate the regrowth of the pasture when become hard and fibrous, since January
2013 no Project activity included use of fire.

Increase in non-CO2 GHG emissions within the Project boundary as a result of the
implementation of the A/R VCS project activity, in year t. is estimated in the Annex 31 “Estimation
of non-CO2 GHG emissions resulting from burning of biomass attributable to an A/R CDM project
activity” Version 04.0.0”.

Considering equation 1 of this tool:

GHG = GHGSPF + GHGFMF + GHGFF

Where:

= Emission of non-CO2 GHGs resulting from burning of biomass and forest fires
within the project boundary in year t; t CO2-e

= Emission of non-CO2 GHGs resulting from use of fire in site preparation in year
t; t CO2-e

= Emission of non-CO2 GHGs resulting from use of fire to clear the land of
harvest residue prior to replanting of the land or other forest management. in
year t; t CO2-e

= Emission of non-CO2 GHGs resulting from fire, in year t; t CO2-e.

= 1.2.3. … years counted from the start of the project activity

It can be stated that:

▪ Fire has not been used for the preparation of the Project area and has been used in the area at
least once during the period of ten years preceding the start of the A/R CDM Project activity. Thus
= 0.

▪ Project lifetime considers activities of harvesting but does not consider the use of fire to clear
the land of harvest residue or for other forest management. Thus = 0.

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▪ Emission of non-CO GHGs resulting from fire are insignificant. Thus = 0.

Thus Project Emissions ( ) are accounted as zero.

3.2.3 Leakage

The Project activity does not expect any displacement of agricultural activities present in the
Project Zone before the beginning of the Project, thus leakage emissions are considered
insignificant and hence accounted as zero.

In addition to this the area around the project area has been absolutely devastated during past
periods of deforestation. The project area is an island surrounded by devastated area.

Starting from 2012 the cattle were gradually sold as they reached maturity for the marketing of
the meat. Since January 2013, month of the beginning of the Project untill today there are no
cattle in the farm, except several milk cows owned by the farm keeper for his self-consumption.
Because ofthat, no leakage management zone was identified.

Also market leakage and activity-shifting leakage is negligible (in the farm were bred 600-800
bovines, that represent the 0,0004% of the brazilian herd, composed by more than 200 million
cows).

3.2.4 Net GHG Emission Reductions and Removals

Stratification

The stratification was defined according to the A/R Large-scale Consolidated

Methodology:“Afforestation and reforestation of lands except wetlands”, Version 02.0, Section
5.2.11.b: “For actual net GHG removals by sinks the stratification for ex ante estimations is based
on the project planting/management plan” (Table 16).

Stratum Area(Ha) Starting Crediting Year

Stratum 1 39,150 2014
Total Area 39,150

Table 16: Stratification based on Project activities.

Estimating carbon stock in trees at a point of time

To estimate the carbon stock in tree biomass at a point of time, the following tool was used:
“Estimation of carbon stocks and change in carbon stocks of trees and shrubs in A/R CDM
project activities”, AR-TOOL14 (Version 04.1). According to Section 8.2 of this tool, this method is
used forex-ante estimation (projection) of carbon stock in tree biomass.

Step 1: Tree biomass estimation

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An equation for Eucalyptus urophylla x grandis derived from age has not been found. The
equations available for this species depend on allometric parameters and there is not an available
database with allometric parameters that allow us to adjust a time equation to estimate the ex-
ante carbon stocks.

Considering this, the annual increment in volume of wood suitable for industrial processing value
(I) of 40 m3ha-1year-1 (trunk biomass volume) was used in combination with other parameters
derived from ANNEX 3A.1 “Biomass Default Tables for Section 3.2 Forest Land” of IPCC Good
Practice Guidance for LULUCF, to find the total biomass per hectare (Table 18).

Parameter Value Source

Annual Increment in volume of 40 Source: IPCC – TABLE 3A.7 of ANNEX 3A.1
wood, Iv (m3ha-1year-1) “Biomass Default Tables for Section 3.2 Forest
Land” of IPCC Good Practice Guidance for
LULUCF. Mean value between I V values of E.
urophylla x grandis.
Wood density, D 0.51 Source: IPCC – TABLE 3A.9-2 of ANNEX 3A.1
“Biomass Default Tables for Section 3.2 Forest
Land” of IPCC Good Practice Guidance for
LULUCF
Biomass Expansion Factor, 1.5 Source: IPCC – TABLE 3A.10 of ANNEX 3A.1
BEF “Biomass Default Tables for Section 3.2 Forest
Land” of IPCC Good
Root-shoot-ratio, R 0.35 Source: IPCC – TABLE 3A.8 of ANNEX 3A.1
“Biomass Default Tables for Section 3.2 Forest
Land” of IPCC Good Practice Guidance for
LULUCF

Table 18: Parameters used to estimate the total biomass (below+above) per hectare per year.

The I value used of 40 m3ha-1year-1 is the mean value between E. urophylla x grandis I values
derived from Table 3A.7 of ANNEX 3A.1 “Biomass Default Tables for Section 3.2 Forest Land” of
IPCC Good Practice Guidance for LULUCF.

To calculate the above and below-ground biomass we used the equation 3.2.5 of the IPCC “Good
Practice Guidance for Land Use, Land-Use Change and Forestry” where GTOTAL is the
expansion of annual increment rate of above-ground biomass (GW) to include its below ground
part, involving multiplication by the ratio of below-ground biomass to above-ground biomass
(often called the rootto-shoot ratio (R)) that applies to increments. This may be achieved directly
where GW data are available as in the case of naturally regenerated forests or broad categories
of plantation. In case GW data are not available, the increment in volume can be used with
biomass expansion factor for conversion of annual net increment to aboveground biomass
increment. Equation 3.2.5 shows the relationship:

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where:

GTOTAL = average annual biomass increment above and below-ground, tonnes d.m. ha-1 yr-1 ;

GW = average annual aboveground biomass increment, tonnes d.m. ha-1 yr-1 ;

R = root-to-shoot ratio appropriate to increments, dimensionless;

IV = average annual net increment in volume suitable for industrial processing, m3 ha-1 yr-1;

D = basic wood density, tonnes d.m. m-3 ;

BEF1 = biomass expansion factor for conversion of annual net increment (including bark) to
aboveground tree biomass increment, dimensionless;
In the Table 19 follows the calculation of average annual biomass increments above and
belowground of E. urophylla x grandis and the mean value between them that was used to
calculate the carbon stock of the Project (100% of Project plantation is composed by E. urophylla
x grandis.

Source Annotations Increment Wood Biomass Incr. Root- Incramental

wood vol density Exp biomass shoot Biomass
(m3/ha/year) Fact Above ration Above+Below
D (ton/ha/year) (ton/ha/year)
Iv BEF1 Gw = Iv * D* R
BEF1 Gtotal
=Gw*(1+R)
IPCC- E. urophylla 40.00 .51 1.5 30.60 0.35 41.31
Table x grandis
3A.7
PDD 40.00 0.51 1.5 30.60 0.35 41.31
value

Table 19: Average annual biomass increments above and below-ground of E. urophylla x grandis
and the mean value between them.

Step 2: Mean tree biomass estimation

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The estimation of the mean tree biomass per hectare in the tree biomass estimation strata was
calculated according to the equation 13 of the AR-TOOL14:

where A is the area of each stratum and btree is the mean tree biomass per hectare, that
correspond to GTOTAL calculated above.

Step 3: Mean tree carbon stock in terms of CO2e

The estimation of the mean carbon stock in trees within the tree biomass estimation strata was
calculated according to the equation 12 of the AR-TOOL14:

Step 4: SOC - Soil Organic Carbon

Estimations of soil organic carbon (SOC) stocks were done in accordance to the “Tool for the
estimation of change in soil organic carbon stocks due to the implementation of A/R CDM project
activity”, Version 1.1.0”. As suggested by the tool, it is assumed that the implementation of the
Project activity increases the SOC content of the lands from the pre-project level to the level that
is equal to the steady-state SOC content under native vegetation. The increase in SOC content in
the Project scenario takes place at a constant rate over a period of 20 years from the year of
planting.

The Project meets the applicability conditions of this tool in the area managed with Eucalyptus:
the areas of land to which the tool is applied do not fall into wetland category, do not contain
organic soils and are not subject to any of the land management practices and application of
inputs listed in Tables 1 and 2 of the tool.

The initial SOC stock at the start of the Project is estimated as follows (equation 1 of the tool):

SOC INITIAL,I = SOC REF I X Flu,I FMG I X Fin,i

= SOC stock at the beginning of the A/R CDM Project activity in stratum i of the
areas of land; t C ha-1

= Reference SOC stock corresponding to the reference condition in native lands

(i.e. non-degraded. unimproved lands under native vegetation n normally forest) by climate region
and soil type applicable to stratum i of the areas of land; t C ha-1

= Relative stock change factor for baseline land-use in stratum i of the areas of
land; dimensionless

= Relative stock change factor for baseline management regime in stratum i of the areas of land;
dimensionless

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= Relative stock change factor for baseline input regime (e.g. crop residue returns. manure) in
stratum i of the areas of land; dimensionless

= 1. 2. 3. … strata of areas of land; dimensionless

The values of SOCREF. . fLU.ii. fMG.. fIN.ii are presented in the Table 20.

Parameter Symbol Value Source: SOC estimation tool

Reference SOC 47 Table 20 of the tool; Tropical
(tC/ha) moist, Soils with low activity
clay (LAC)
Land use factor 1 Table 4 of the tool; All
Permanent grassland.
Management factor 0.70 (tropical) Table 4 of the tool; Lands
are identified as degraded
lands.
Input factor 1.11 Table 4 of the tool; Lands
are identified as degraded
lands.
SOC at the beginning 32.9 Calculated, with Eq. Above
of the Project activity described

Table 20: Parameters used for the estimation of the soil organic carbon (SOC).

Then, the rate of change in SOC stock in Project scenario until the steady-state is reached is
estimated as follows (equation 6 of the tool):

where:

= The rate of change in SOC stock in stratum i of the areas of land. in year t; t C ha-1 yr-
1.

= Reference SOC stock corresponding to the reference condition in native lands (i.e.
non-degraded. unimproved lands under native vegetation n normally forest) by climate
region and soil type applicable to stratum i of the areas of land; t C ha-1

= SOC stock at the beginning of the A/R CDM Project activity in stratum i of the areas of
land; t C ha-1.

= The year in which first soil disturbance takes place in stratum i of the areas of land.

= 1. 2. 3. … strata of areas of land; dimensionless.

= 1. 2. 3. … years elapsed since the start of the A/R CDM Project activity.

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In the case of the soil disturbance attributable to Project activity and for which the total area
disturbed, over and above the area is less than 10% of the area of the stratum. Then the carbon
loss is assumed as zero. The application of these equations results in an estimated rate of 0.71 t
C ha yr-1 in soil organic carbon.

The change in SOC stock for all the strata of the areas of land, in year t. is calculated as indicated
in equation 8 of the tool.

Where:

= Change in SOC stock in areas of land meeting the applicability conditions of this tool. in
year t; t CO2-e

= The area of stratum i of the areas of land; ha

= The rate of change in SOC stocks in stratum i of the areas of land; t C ha-1 yr-1

= 1. 2. 3. … strata of areas of land; dimensionless

Step 5: Dead Wood

Estimations were done in accordance with the AR-TOOL12 “Estimation of carbon stocks and
change in carbon stocks in dead wood and litter in A/R CDM project activities”, Version
03.0”Values of the conservative default-factors expressing carbon stock in dead wood as a
percentage of carbon stock in tree biomass was selected according to the guidance provided in
the methodological tool.

Project Proponent won’t make sampling-based measurements for estimation of C stock in dead
wood for all strata to which this default method is applied, the carbon stock in dead wood was
estimated as is indicated in equation 9 of the tool, using the default values presented in:

where:

= Carbon stock in dead wood in stratum i at a given point of time in year t; t CO2e

= Carbon stock in trees biomass in stratum i at a point of time in year t. as calculated in

the tool “Estimation of carbon stocks and change in carbon stocks of trees and shrubs in
A/R CDM project activities”; t CO2e

= Conservative default factor expressing carbon stock in dead wood as a percentage of

carbon stock in tree biomass; per cent

= 1. 2. 3. … biomass estimation strata within the Project boundary

= 1. 2. 3. … years elapsed since the start of the A/R Project activity

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Step 6: Litter

Estimations were done in accordance with the tool “Estimation of carbon stocks and change in
carbon stocks in dead wood and litter in A/R CDM project activities” (Version 03.0). Values of the
conservative default-factors expressing carbon stock in litter as a percentage of carbon stock in
tree biomass was selected according to the guidance provided in the methodological tool.

If the Project proponent will not to make sampling based measurements for estimation of C stock,
they will use the default method described in tool.

For all strata to which this default method is applied, the carbon stock in litter will be estimated as
is indicated in equation 15 of the tool, using the default values presented in:

where:

= Carbon stock in litter in stratum i at a given point of time in year t; t CO2e.

= Carbon stock in trees biomass in stratum i at a point of time in year t. as calculated in tool
“Estimation of carbon stocks and change in carbon stocks of trees and shrubs in A/R CDM
project activities”; t CO2e.

= Conservative default factor expressing carbon stock in litter as a percentage of carbon stock in
tree biomass; percent.

= 1. 2. 3. … biomass estimation strata within the Project boundary.

= 1. 2. 3. … years elapsed since the start of the A/R Project activity.

Parameter Description Value Comments

DFDW Conservative default factor 1% Biome: tropical
expressing carbon stock in Elevation: <2,000m
dead wood as a DW Precipitation: 1,000-
percentage of carbon stock in 1,600 mm.yr-1
tree biomass.
DFLI Default factor for the 1% Biome: tropical
relationship between carbon Elevation: <2,000m
stock in litter and carbon stock Precipitation: 1,000-
in living trees. 1,600 mm.yr-1

Table 21: Conservative default factor expressing carbon stock in dead wood and litter.

Step 7: Change in the carbon stocks in Project

Change in the carbon stocks in Project , occurring in the selected carbon pools in year t
were calculated according to the equation 3 of AR-ACM0003 methodology:

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where:

in carbon stock in tree biomass in Project in year t, as estimated in the

tool
“Estimation of carbon stocks and change in carbon stocks of trees and
shrubs in A/R CDM Project activities”; t CO2-e
Change in carbon stock in shrub biomass in Project in year t, as
estimated in the tool
“Estimation of carbon stocks and change in carbon stocks of trees and
shrubs in A/R
CDM project activities”; t CO2-e
Change in carbon stock in dead wood in project in year t, as estimated in
the tool
“Estimation of carbon stocks and change in carbon stocks in dead wood
and litter in
A/R CDM project activities”; t CO2-e
Change in carbon stock in litter in project in year t, as estimated in the
tool
“Estimation of carbon stocks and change in carbon stocks in dead wood
and litter in
A/R CDM project activities”; t CO2-e
Change in carbon stock in SOC in project, in year t, in areas of land
meeting the
applicability conditions of the tool “Tool for estimation of change in soil
organic carbon
stocks due to the implementation of A/R CDM project activities”, as
estimated in the
same tool; t CO2-e

Step 8: Actual net GHG removals by sinks

The actual net GHG removals by sinks are calculated using equation 2 of the AR-ACM0003
methodology as follows:

Actual net GHG removals by sinks, in year t; t CO2-e.

Change in the carbon stocks in project, occurring in the selected
carbon pools, in year
t; t CO2-e.
Increase in non-CO2 GHG emissions within the project boundary

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because of the
implementation of the A/R CDM project activity, in year t, as
estimated in the tool
“Estimation of non-CO2 GHG emissions resulting from burning of
biomass attributable
to an A/R CDM project activity”; t CO2-e.

Since the Project Emissions are accounted to zero (see § 3.3), = .

Step 9: Net Anthropogenic GHG removals by sinks

According to the equation 5 of the AR-ACM0003 methodology, the net anthropogenic GHG
removals by sinks shall be calculated as follows:

Net Anthropogenic GHG removals by sinks, in year t; t CO2-e

Actual net GHG removals by sinks, in year t; t CO2-e

Baseline net GHG removals by sinks, in year t; t CO2-e

Leakage GHG emissions, in year t; t CO2-e

Given that can be considered as zero according to § 3.2 and can be

considered as zero according to § 3.4, then =

The period over which the long-term average GHG benefit is calculated is 30 years.

The total GHG benefit, calculated as the sum of stock changes along the 30-year period, is
15,503,800 tCO2e (Table 22).

Year Estimated Estimated Estimated Estimated net

baseline project leakage GHG emission
emissions or emissions or emissions reductions or
removals removals (tCO2e) removals
(tCO2e) (tCO2e) (tCO2e)
2014 516,780 0 0 516,780
2015 516,780 0 0 516,780
2016 516,780 0 0 516,780
2017 516,780 0 0 516,780

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2018 516,780 0 0 516,780

2019 516,780 0 0 516,780
2020 516,780 0 0 516,780
2021 516,780 0 0 516,780
2022 516,780 0 0 516,780
2023 516,780 0 0 516,780
2024 516,780 0 0 516,780
2025 516,780 0 0 516,780
2026 516,780 0 0 516,780
2027 516,780 0 0 516,780
2028 516,780 0 0 516,780
2029 516,780 0 0 516,780
2030 516,780 0 0 516,780
2031 516,780 0 0 516,780
2032 516,780 0 0 516,780
2033 516,780 0 0 516,780
2034 516,780 0 0 516,780
2035 516,780 0 0 516,780
2036 516,780 0 0 516,780
2037 516,780 0 0 516,780
2038 516,780 0 0 516,780
2039 516,780 0 0 516,780
2040 516,780 0 0 516,780
2041 516,780 0 0 516,780
2042 516,780 0 0 516,780
2043 516,780 0 0 516,780
2044 516,780 0 0 516,780
Total 15,503,800 0 0 15,503,800

3.3 Monitoring

3.3.1 Data and Parameters Available at Validation

Data / Parameter Mean annual Increment in Volume (I )

V

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Data unit m3ha-1yr-1

Description It is the average annual net increment in volume suitable for industrial processing
and itis used to calculate the average annual above-ground biomass increment
(Gw) with the Equation 3.2.5 of IPCC “Good Practice Guidance for LULUCF”.

Source of data Table 3A.7 of ANNEX 3A.1 of IPCC “Good Practice Guidance for LULUCF”.
Value applied 40
This is the mean value between I values of E. urophylla x grandis.
V

Justification of choice of data As the forest plantation has not been measured yet, data reported in the literature
or description of was used for estimation of GHG removals. Once the monitoring is developed this
measurement methods and value will be replaced for the actual growth of the forest.
procedures applied

Purpose of data Estimation of GHG Emission Reductions and Removals.

Comments

Data Unit / Parameter: Wood density (D)

Data unit: t d.m./m3

Description: Wood density is used to convert the commercial tree volume into tree biomass.
Source of data: Table 3A.9-2 of ANNEX 3A.1 of IPCC “Good Practice Guidance for LULUCF”.

Value applied: 0.51

Justification of choice of data Used the value of Eucalyptus robusta in Latin America (the only species os
or description of Eucalyptus reported in the table).
measurement methods and
procedures applied:
Purpose of data: Estimation of GHG Emission Reductions and Removals.

Comments:

3.3.2 Data and Parameters Monitored

Data / Parameter A

Data unit Ha

Description Project Area (planted area).

Source of data Survey databases of each polygon that is part of the Project and is under the
control of the Project participants.

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Description of measurement Field measurement: the area shall be delineated either on the ground, using GPS
methods and procedures to or from geo-referenced remote sensing data.
be applied

Frequency of At the beginning of site preparation, in final establishment of the Project and each
monitoring/recording time a verification is conducted.

Value applied 1,055.66

Monitoring equipment GPS equipment (precision 1- 5 m) and Remote Sensing data.

QA/QC procedures to be Quality control/quality assurance (QA/QC) procedures prescribed under national
applied forest inventory are applied. In the absence of these, QA/QC procedures from
published handbooks, or from the IPCC GPG LULUCF 2003, are applied.

Purpose of data Calculation of Project emissions.

Calculation method Measurement

Comments

A
Data / Parameter i
Data unit Ha
Description Area of stratum i
Source of data Monitoring of strata and stand boundaries is done employing Geographical
Information Systems (GIS) allowing the integration of data from different sources
(including GPS coordinates and Remote Sensing data).
Description of measurement Field measurement: the area shall be delineated either on the ground using GPS
methods and procedures to or from geo-referenced remote sensing data.
be applied
Frequency of Each time a verification is conducted.
monitoring/recording
Value applied See Table
Monitoring equipment GPS equipment (precision 1- 5 m) and Remote Sensing data.
QA/QC procedures to be Quality control/quality assurance (QA/QC) procedures prescribed under national
applied forest inventory are applied. In the absence of these, QA/QC procedures from
published handbooks, or from the IPCC GPG LULUCF 2003 are applied.
Calculation of Project emissions.
Purpose of data Calculation of Project emissions.
Calculation method Measurement
Comments The stratification for ex post estimations is based on the actual implementation of
the project planting/management plan. It may even be necessary to evaluate the
possibility of restratification of the project boundary, according to the development
of the stand models, as it would enable the merging of several strata in order to
optimize the costs and improving the outcomes in forest inventories.

3.3.3 Monitoring Plan

Operational and Management Structure

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For monitoring purposes, the plantation manager and human resources coordinator will be in
charge of contracting field crews that will carry out the data collecting for all the parameters
mentioned in - Data and Parameters Monitored. The first phase of data collection constitutes the
establishment of field crews. For these tasks, locally available experienced staff will be preferred.
The Project proponent is committed to act responsibly to guarantee the quality of the silvicultural
activities performed in the field, and also that the environmental, industrial safety and
occupational health standards are in line with the development of all the processes, products and
projects. The skills required by the staff in order to work in the Project are as follows:

Specialized staff: this staff is composed by professionals that perform specific technical and
administrative tasks and that usually have experience in this type of projects. This group of
people is hired by the project owners and many of them belong to the permanent team of
workers. The group consists of forestry and agricultural engineers, forestry technicians and farm
managers, among others.

Qualified staff: corresponds to the staff who have acquired training and experience in forestry
projects through their ongoing work on these projects and that have specialized in a specific task.

Non-qualified staff: workers engaged to unskilled activities that do not require special skills or
training to perform their duties. The company will prioritize the inhabitants of the area where the
Project is developed.

Once the personal is contracted for monitoring the Project activities, the data collecting process
will start. For this component of the Project, permanent plots will be the base of data collecting.
Data will be collected by the field crews that will be composed by at least four members.
Additional people may be included to improve performance of the field crews when conditions
require greater resources. The crew will be composed by three forestry experts (qualified staff),
one of them being the crew leader, and one additional person (qualified or not) that is familiarized
with the local site, routes, strata, etc. The responsibilities for each crew member are summarized
in Table 22.

Crew member Responsibilities

Organizing all the phases of the fieldwork, from the
preparation to the data collection. This includes: preparing
the fieldwork by carrying out bibliographic research,
preparing field forms and maps, plan the work for the
crew, administer the location of plots, ensure that field
forms are properly filled in and that collected data is
Forestry expert
reliable, organize meetings after fieldwork in order to sum
(crew leader)
up daily activities, and organize working safety plan.
When needed, crew leader will be in charge of training the
crew for guarantying the accuracy of the data collection.
Additionally, he/she will have to contact and maintain
good relationship with the plantation manager and
overview the progress achieved in the fieldwork.

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Help the crew leader to carry out his/her task, take

Forestry expert
necessary measurements and observations, make sure
(assistant of the
that the equipment of the crew is always complete and
crew leader)
operational, and supervise and guide workers.

Forestry expert Measure DBH, height

Help to measure distances, facilitate access and visibility
Local Person
to technicians and inform about access to the strata.

Table 22: Crew members’ responsibilities.

It is important to emphasize that before the crews start the collecting data process, the crew
leader,together with the plantation manager, must prepare field work (bibliographic research,
contacts with farm workers, preparation of the field forms, preparation of the maps and access
itinerary, field equipment preparation, etc.). In this phase, it is expected that the crew leaders train
the field crews,organize and plan mobilization and the preparation of necessary resources and
equipment, such as vehicles, maps with plots location, and prepare and print valid field forms (the
form is described in the - Record of the data. Regarding this form, some information will be filled-
in before going out in the field: sections for identification of the strata and plots (header of each
page), general information related to strata location and coordinates of the plot. The crew leader
must ensure that enough forms are available to carry out the planned field data collection.
Regarding the maps, they must be prepared to help the orientation in the field, so it must contain
all the project strata and the location of plots for each one of the strata. The strata limits and plot
locations will be delineated on topographic maps and, if available, on aerial photographs/satellite
images. The plots in the strata are to be indicated, together with their respective coordinates, in
decimal degrees (latitude and longitude), traceable in GPS. The point coordinates of the plots
must be entered into the GPS receiver.

The plot visit order for data collection will vary according to conditions of accessibility. This is
determined during the preparation phase. The plots will have unique IDs as following: #
(=Stratum number) + # (=Plot number).

Field equipment per crew will include:

▪ Compass (360°);
▪ GPS receiver (Geographic Positioning System) and extra batteries; 􀀁
▪ 2 self-rolling measuring tapes 10-30 m (metric);
▪ 2 diameter tapes or caliper (metric);
▪ A clinometer;
▪ 50m measuring tape or wire rope of 50 meters, marked every 5 meters;
▪ Waterproof bags to protect measurement instruments and forms;
▪ Mobile phone;
▪ Digital camera;
▪ Waterproof boots and outfits;
▪ Machetes;
▪ Emergency kit;
▪ Topographic maps;
▪ Supporting board to take notes;

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▪ Data collections forms;

▪ Field manual;
▪ Permanent markers and pens.
▪ Yellow paint;
▪ Brushes.

Methods for Measuring

Only above-ground and below-ground biomass of trees established in the Project will be
monitored. Therefore, only individual growth of each tree in the plots will be monitored. This value
shall be estimated from the increase in the determined measured stem and height in each
monitoring. The carbon content in dead wood, litter and soil attributable to Project activities will
not be monitored. These will be estimated by using default values and suggested methods in the
tools “Estimation of carbon stocks and change in carbon stocks in dead wood and litter in A/R
CDM project activities” and “Tool for estimation of change in soil organic carbon stocks due to the
implementation of A/R CDM project activities”.

QC activity Procedures
Check that assumptions and
criteria for the selection of 1 Cross-check descriptions of project activity, emission factors and
emission factors and other other estimation parameters with information on source and sink
estimation parameters are categories and ensure that these are properly recorded and archived.
documented.

2 Confirm that bibliographical data references are properly cited in

Check for transcription errors the internal documentation.
in data input and reference. 3 Cross-check a sample of input data (either measurements or
parameters used in calculations) for transcription errors

4 Reproduce a representative sample of removal calculations.

Check that removals are
5 Selectively mimic complex model calculations with abbreviated
calculated correctly.
calculations to judge relative accuracy.

6 Check that units are properly labeled in calculation sheets.

Check that parameter and 7 Check that units are correctly carried through from beginning to end
units are correctly recorded of calculations.
and that appropriate 8 Check that conversion factors are correct.
conversion factors are used. 9 Check that temporal and spatial adjustment factors are used
correctly.

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10 Confirm that the appropriate data processing steps are correctly

represented in the database.
11 Confirm that data relationships are correctly represented in the
Check the integrity of database database.
files. 12 Ensure that data fields are properly labeled and have the correct
design specifications.
13 Ensure that adequate documentation of database and model
structure and operation are archived.

14 Check that removal data are correctly reported when preparing

Check that the movement of
summaries.
inventory data among
15 Check that removal data are correctly transcribed between
processing steps is correct
different intermediate products.

16 Check that qualifications, assumptions and expert judgments are

Check that uncertainties in
recorded.
removals are estimated or
17 Check that calculated uncertainties are complete and calculated
calculated correctly.
correctly, following the methodology requirements.

18 Check that there is detailed internal documentation to support the

estimates and to enable reproduction of the emission, removal
estimates.
Undertake review of internal
19 Check that inventory data, supporting data, and inventory records
documentation
are archived and stored to facilitate detailed review.
20 Check integrity of any data archiving arrangements of outside
organizations involved in inventory preparation.

21 Check for temporal consistency in time series input data for

biomass estimation.
Check time series consistency.
22 Check for consistency in the algorithm/method used for
calculations throughout the time series.
23 Confirm that estimates are reported for all years.
Undertake completeness 24 Check that known data gaps that may result in incomplete
checks emissions estimates are documented and treated in a conservative
way.

25 Current inventory estimates should be compared to previous

Compare estimates to previous
estimates, if available. If there are significant changes or departures
estimates.
from expected trends, re-check estimates and explain the difference.

Uncertainty assessment

The Project will follow the methods from IPCC GPG for LULUCF, GPG 2003, and the modalities
and procedures for A/R project activities to estimate baseline net GHG removal by sinks,

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leakage,actual net GHG removal by sinks, and net anthropogenic removal by sinks. In the context
of this methodology, the major sources of uncertainties related to changes in carbon stock in the
living biomass pool include: natural factors such as fire and pest outbreaks; stand variables such
as variation in the yield tables, allometric equation, biomass expansion factor (BEF), wood
density, and carbon fraction.

Verification of Project emissions

The Project will quantify and monitor the Non-CO2 GHG emissions resulting from an occurrence
of fire (forest fire) within the Project boundary, whose accumulated area affected by such fires in
a year is ≥5% of the Project Area. These events will be monitored and the affected area will be
recorded. Emission of non-CO2 GHGs resulting from the loss of aboveground tree biomass due
to fire will be calculated in each verification period, by using the above ground biomass of trees
belonging to relevant strata calculated in the previous verification and the default values for the
combustion factor, the emission factors and the global warming potential.

3.3.4 Dissemination of Monitoring Plan and Results (CL4.2)

The data recorded in the forest inventory (DBH and Height) will be the input for growth models
that will define the total biomass accumulated for the Project at the time of monitoring (all the data
proposed can be updated). For E. urophylla x grandis, the unique species planted in the project
Area, the following equation will be used for volume estimation. This equation was fitted by
PEREIRA et al.(2014)89 for a forest plantation of this species in Brazil.

where:
V = stem volume in m3 ;
H = Total Height (m);
DBH = Diameter at Breast Height (cm);

Stem biomass will be estimated using the Wood Density (WD) of the species. The total
aboveground biomass will be estimated using the relevant Biomass Expansion Factor (BEF) for
the species, and Root-Shoot-Ratio (R) will be used for estimation of below-ground biomass, with
the following equation:

where:
TB = Total Biomass in t/ha/year;
V = Stem Volume in m3/ha/year;
WD = Wood Density (0,51)90;
BEF = Biomass Expansion Factor (1,50 )91;
R = Root-Shoot-Ratio (0.35)92;

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Total biomass (TB, above and below-biomass) will be used in the following equation for CO2e
estimations:

where:
CO2-e = Carbon Dioxide equivalent in t/ha/year;
TB = Total Biomass in t/ha/year;
CF = Carbon Fraction (0.45)93.
Deadwood, litter and soil organic carbon will be calculated according to the tools “Estimation of
carbon stocks and change in carbon stocks in dead wood and litter in A/R CDM project
activities”and “Tool for estimation of change in soil organic carbon stocks due to the
implementation of A/R CDM project activities”; the conservative default approach might be
selected.

3.4 Optional Criterion: Climate Change Adaptation Benefits

Not applicable.

4 COMMUNITY

4.1 Without-Project Community Scenario

4.1.1 Descriptions of Communities at Project Start (CM1.1)

For the social and economic study of the project area, the reference area of the municipalities
was taken as a sample, no other municipalities were reviewed as these are very large
municipalities and the next most approximate municipality was not directly near the project area,
or had no secondary roads that allowed access, thus separated from the relevance of the project.
This choice was made because there is a social and economic relationship between the Property
and the municipality of Paragominas and Ulianopolis, due to access to the area, the creation of
jobs and the destination of raw material (wood), and the fact that the activities of the deforestation
agents mainly occur based in the Paragominas and Ulinaopoliss region.

In addition to the aforementioned relationships, it is also noteworthy that: a) access to the area is
via Paragominas, Ulinaopolis and Novo Esperanca do Piria; b) the area is noncontiguous in this
region; c) the settlements for agrarian reform (considered vectors of deforestation) are located in
the municipalities of Paragominas and Ulianopolis not too far from the property; d) all other areas
are deforested, privately held, and used for agriculture purposes;

In the Project Zone, corresponding to the private property (private farm), there were no
Community, Community Groups or Indigenous Groups prior to the Project or after the project.

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The only people who lived in the farm were the property keeper and his family. This was the only
farm worker and he was responsible for tending to the cows in the pasture.

Figure 31: Shows the block of land closest to indigenous areas that are at the closest 23.04 km
away from the property. The darker green where it states Terra Indigena is federal indigenous
reserves. The orange is the municipality of Paragominas

Some of the care taken by the project is to verify the lack of traditional communities within the
properties where the management activities are developed.

The right to the definitive title of the lands occupied by the remaining communities of quilombos is
guaranteed by the Federal Constitution of 1988, in the Transitional Constitutional Provisions Act.
This means that no title of real estate registration will be valid in the face of this historical
ownership developed by the communities.

Quilombola are people who are decendants of African slaves, who formed communities after
slavery was made illegal in 1888.

Even if the quilombola community has not yet obtained title to the area they are occupying, the
right to it is a constitutional guarantee, which is why it must be respected and can not, unless
agreed with the community, occupy or use these areas with any activity. The same occurs in the
eventual existence of indigenous communities. As the Constitution guarantees to traditional
communities the maintenance of their ways of living (article 216, part II of the CF) there is even
possibility of expanding the lands destined to these communities if the necessity for the
maintenance of their traditions.

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To date, South Block, Central Block and North Blocko have no traditional community site in their
vicinity, as can be seen in Annex 4, the Annex, the Annex, and the Annex.

Figure 33: Traditional Quilombo communities very distance

Figure 34 : shows the North block and the villages of the traditional communities. All are
very distant from the project area.

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After the project started the only change is that the project area employed the local rural
people to start planting trees.

The choice of methodology for the social and economic analysis of the Project Reference
Region took into account the need to combine the data obtained from municipal
authorities and government departments, with the information obtained through the field
work and secondary data.

The actors interviewed by the social study were identified as small ranchers, farmers and
squatters in rural areas, employees of the property, and in urban areas, representatives
of the population and local public agencies such as the education angencies in the three
municipalities. The questionnaires were formulated containing closed-ended as well as
open-ended questions, because this model allows researchers to observe certain
subjective aspects of the respondents that might be hidden in a later stage of data
tabulation and analysis.

In this way, questionnaires were used, applied to three groups of the study population,
rural area, urban area and farm workers, which served as a basis for further analysis.
The questionnaires were applied in field work conducted October 08–17, 2014. The
number of questionnaires referred to the sampling effort obtained in the time allotted for
the field survey. This procedure was chosen in the field stage, as the following activities
were carried out in this period: Interviews with residents of the urban and rural areas of
the muncipalities and the workers at property. Additionally, researchers’ perceptions were
obtained during this period regarding the situation of the municipality. The researchers
also contacted staff members of municipal government departments, with whom open
interviews were conducted and saved on audio recordings, with the permission of the
interviewees.

Socio Economic Situation of the adjacent Area

The main factors that occur in the region and contribute negatively to the development of
local communities are:

• Progressive decline in productivity and profitability of traditional agriculture and

livestock.
• Lack of work and income generation options in the region.
• Level of poverty and lack of communities.
• Inefficiency by the public power to promote sustainable productive activities, order the
occupation of the territory and meet the main demands of the communities for health,
housing, education and leisure.

Figure 35: brings the HDI (Human Development Index) of the municipality of Ulianópolis
for the year 2010. Figure 7th ranking in the state ranking and Figure 8 in the national
ranking (UNDP, 2013). Blue is the average, with yellow being above average and red
being below average.

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Figure 35: The state ranking of Ulianopolis for IDH

Figure 36: National ranking of Ulianopolis for IDH, out of 5600 municipalities

Figure 37: brings the HDI (Human Development Index) of the municipality of
Paragominas for the year 2010. Figure 10 is the ranking in the state ranking and Figure
11 in the national ranking (UNDP, 2013). Blue is the average, with yellow being above
average and red being below average.

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Figure 37: The state ranking of Paragominas for IDH

Figure 38: National ranking of Paragominas for IDH, out of 5600 municipalities

Figure 39 shows the Human Development Index (HDI) of the municipality of Nova
Esperança do Piriá for the year 2010. Figure 13o ranking in the state ranking and Figure
14 in the national ranking (UNDP, 2013). Blue is the average, with yellow being above
average and red being below average.

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Figure 39: The state ranking of Nova Esperança do Piriá for IDH

Figure 40: National ranking of Nova Esperança do Piriá for IDH, out of 5600
municipalities

Educational Aspects

In the rural area in 2013 school census, there were 838 enrollments all in Municipal
school. Only students attending rural schools have access to transportation. There is no
school transportation contemplating students who need to go to the urban nucleus to
study.

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Among the families interviewed in field work carried out in this municipality, we verified
the levels of education described in Figure xx. It can be seen that, as in the urban area, a
large number of people (52%) frequenting primary school or just part of it. It is also
noticed that 9% did not complete high school, suggesting the occurrence of school drop-
out, possibly due to the need for secondary education rural schools or in the urban area,
necessitating the use of school transportation.

The illiteracy rate is around 9%, which is equal to the Brazilian rate and slightly lower
than the northern region, which is 10.6% (IBGE, 2010). Attention is drawn to the rate of
people with a complete or incomplete higher education level, which did not appear in
interviews in the urban area, this information should be analyzed with caution as it may
not represent the reality of higher education professionals, since interviews eere sampled
within the error limits.

Health aspects

Regarding the sanitation of the residences, only Paragominas has a sewage treatment network
and in the rural area, the use of rudimentary cesspit prevailed and in the urban area the use of
septic tank. In both cases this issue is of concern in terms of health, since the second CAERD
servant interviewed, contamination of rivers and wells due to the use of pits can occur if they are
not more than 600 meters from the pit. According to this survey, in the urban area the
contamination of wells occurs in all the residences that use them.

Regarding access to health services, there was dissatisfaction among the population. Part of this
is due to the existence of only one UBS (Basic Health Unit), insufficient to meet the entire
resident population in the rural and urban areas of the Municipality.

These graphs point to similar perceptions regarding the needs of the Basic Health Unit of the
Municipality. It was a UBS because both the population living in urban and rural areas of the
Municipality are served by UBS located in the urban area of the Municipality. This especially
hampers access to care for families in rural areas, who are often in difficulty to transport to the
city.

With regard to diagnosis of diseases, was obtained information from the SINAN - Information
System on Aggravation and Notification, that the incidence of Leishmaniosis is a concern in the
Municipality; however none of the interviewees in an urban or rural area stated that they knew of
any cases in the family. This servant also reported a high incidence of Hepatitis, Leprosy and
Syphilis, diseases that were also not mentioned and/or appeared in few interviews. The diseases
most declared by the interviewees were malaria and dengue. Another cause for entry into the
service of the UBS narrated as very frequently are the cases of work accidents related to the
activities in the sawmills. These cases were also not mentioned by people interviewed in rural
and urban areas.

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Another issue of relevance raised by the employees of the health department is that the greatest
cause of mortality among the inhabitants is homicide. It is a question related to public safety and
the offer of other social devices, but this data ends up being filed by the health department, in
view of the entrance to the emergency room. Another problem was the presence of a high
number of abuses against minors, practiced mainly by those responsible for the child, a fact also
pointed out by the guardianship council during an interview.

Characteristics associated with gender

Women currently constitute a work force working in services that were previously classified as
exclusively male. In the urban area, the field research revealed the presence of female heads of
household and contributing to the monthly income of the residence, however in more than 50% of
the interviews it was verified that the income was less than R $ 1,000.00/month or less than
minimum wage, thus slave wages – which has been determined by the government as a major
issues in the Amazon region of Brazil.

In the case of the performance of women in the Rural area of the Municipalities, respondents, the
majority declared the women not participating in the family income. It may be thought that in this
context, although women often perform various activities in the agricultural production phases,
their labor is not accounted for and remunerated. However, it is not possible to deepen the
discussions because these would require a longer time in the field so that the researchers
perceive some nuances of social life that do not arise immediately with the interpretation of the
questionnaires.

Economic characteristics

In the rural income, it was difficult to quantify annually, due to the lack of control of the production
by the producers and the irregular prices of some of the products produced such as Mandioca
(Cassava)

Figure XX shows the income of the people interviewed, and it should be noted that rural income
was obtained taking into account only the annual production data of the property. In the case of
the homemade interviewees, there were cases where they could not report the annual income of
the property or did not want to respond.

Looking for information on possible land use changes, the continuity of the activities already
developed in the case the dairy farming was the most cited, however the cultivation of corn,
banana, cassava and fish farming appear as alternatives of use from soil.

The presence of large farms, occupied with livestock and soybeans and also small farms
producing milk, cocoa, and subsistence agriculture, was verified in the field work around the
property. The above fact can be exemplified in two very clear moments found in the field, one that
refers to the incorporation of rural plots by farms and another by the maintenance of family
agriculture.

In the second case, in the other two secondary roads that finish in the limit of the property, the
majority of the properties are split between government settlement area which comprise typically

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of 100 or 200 hectare plots and large landowners typically of 2000 hectares or more. However,
most of the interviewees pointed to the inefficiency of public policies, focused on health,
education in the field and technical assistance as the main causes of abandonment and sale of
rural properties, together with deficiencies in the soil and lack of resources for investments in land
reclamation and acquisition of agricultural inputs.

4.1.2 Interactions between Communities and Community Groups (CM1.1)

The project will be developed within three community nuclei, comprising a total of seven
communities, which within the nucleus observe a good interaction between communities and
community groups. This interaction occurs due to the geographic proximity between them, so the
relationship of the outer distant communities of the nuclei is considered incipient and/or
superficial due to the geographic distance and the absence of common activities to be carried out
jointly by the communities.

4.1.3 High Conservation Values (CM1.2)

The High Conservation Values (HCV) concept was developed by the Forest Stewardship Council
(FSC, 1996) for the certification of timber products from responsible forest management,
according to standard Principles and Criteria that reconcile environmental and ecological
safeguards with social benefits and economic viability (FSC, 2014).

According to Jennings et al. (2003), an area with HCVA represents a natural or managed area
with exceptional values or critical importance, meeting the objectives of conservation of
biodiversity, rare ecosystems and areas with relevant social and cultural functions.

Within the context of the socio-economic context of the reforestation Project, some cultural,
historical and relevant aspects are discussed for local traditional communities, which may
characterize High Conservation Values Area, which must be identified and managed in order to
guarantee their maintenance and improvement (BROWN et al., 2013). From the six listed criteria,
two of them are directly related to traditional populations.

4.1.4 Without-Project Scenario: Community (CM1.3)

Based on the evaluation carried out, it was possible to verify that there are three basic concepts
widely discussed that permeate the context of land use in the region: a) the decline of timber
extraction; b) conversion of forests into pastures; c) increase of agricultural mechanization.

The decline in potential timber is a matter of time, since no municipality has managed to exceed
30 years of intense exploration, considering that since 1990 the timber sector has grown rapidly
in the region, and has collapsed due to almost a near eliminaton of forest in eastern Para state.
This fact is due to a series of factors, among them, the lack of effective action of the State in
supervision and licensing of the activity; and lack of commitment of a large part of the sector to
socio-environmental issues and sustainability, which are posed as "obstacles to development".
This decline scenario will certainly cause economic gaines for the municipalities since soy bean
farming would eventually be on this farm, and not a large reforestation activity or a long term
sustainable forestry activities. Soybeans have a very clear return on investment.

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The downturn of the timber industry inevitably entails converting forest into pasture, since from a
capital viewpoint, the forests that once served to leverage the region’s economic environment are
no longer of importance, due to the absence of tree species with economic value. Thus, people
turn to cattle raising, planting pastures with grass of African (capim grass) origin in these areas,
which will cause imbalance in the mostly polymorphic soil structure (low natural fertility). For cattle
raising, there is a complete framework provided by the State to support the activity, as well as
guaranteed marketing of production, in addition, several studies such as the Land Market
Analysis (FNP, 2016) indicate that pasture areas can generate a valuation of up to five times the
value of land compared to forest areas. Initially, the activity encompasses those farmers who,
over the years, ended up leasing or selling their lands to small business owners in the area,
because they were not able to obtain the capital to invest in improving pastures, which become
deteriorated due to soil depletion, leading to low productivity levels per hectare.

As an alternative to the weakening of the soil, agricultural mechanization and monoculture,

especially soy, begin to appear, which finds deforested areas, with low cost of mechanization,
cheap and depleted lands. These facts are attractive to those who have technology and
knowledge to invest in the activity. If this scenario is confirmed, it will, in turn, involve the
incorporation of areas that are currently used for livestock and agriculture management, which
will result in real estate marketing and speculation, with a consequent rural exodus, or removal of
family farmers to new areas of cultivation and/or livestock and may result in pressure on the
remaining forest areas. Soy farming is also less expensive to implement than a reforestation
project – thus more people chose this route.

In this context, one must consider that the municipalities in the reference area are located in the
region known as the “Arc of Deforestation,” because of the actions related to illegal logging as
well as the advancement of agriculture and livestock; notably it has been observed statewide that
the private property are areas with lower conservation and preservation due to the fact that
landowners have less obstacles to illegally deforest and the government has provided amnesty in
the past, and thus in the mind of property owners – the government will provide amnesty again.

It is also noted that the state agencies and the representations of the executive, legislative and
judicial branches, due to a series of structural difficulties or even omission have not been satisfied
in their role of supervision and territorial planning, which favors the action of agents and related
drivers of deforestation and forest degradation.

In this context, it is not possible to verify, from an assessment of plausible scenarios for land use
in the region, that there will be a short and medium term change in the chain of events that leads
to deforestation and conversion of forest areas. The probable continuity of this scenario is due to
two main factors, primarily due to the lack of efficiency of the State in its role of monitoring and
territorial planning, a fact that generates land insecurity and encourages illegal activities, the
second factor is related to the low value of the forest in Due to the lack of public policies in this
area and the low incentive to private initiatives to operate in the forestry sector in a regular and
sustainable way.

The most effective way to change the common practice scenario in the region must be through
valuing the forest and its natural resources through public policies, consistent studies and specific
incentives to attract the interest of private initiative. The analysis shows that environmental
awareness is not enough to provide conservation without offering real alternatives to generate
sustainable economic development in the region.

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In a catastrophic scenario, it is possible that the situation in the region will worsen the indicators
of deterioration, considering that there is noticeable low self-esteem among the population, which
at the moment is practically abandoned in the following categories:

a) social (education, healthcare, housing, communication, housing conditions, leisure and

cultural areas, and other infrastructure);

b) economic (employment, income, agriculture and alternatives to promote diversification

and vertical integration of production);

c) environmental (potentiation of invasions and illegal extraction of natural resources;

d) political–associative (with the weakening or disintegration of their representative

entities).

4.2 Net Positive Community Impacts

4.2.1 Expected Community Impacts (CM2.1)

The analysis of the net benefits to the communities resulting from the Project activity is organized
around the Sustainable Livelihoods Approach (SLA) as described by the IFAD - International
Fund for Agricultural Development78. The SLA includes a framework for understanding the
complexities of poverty and guiding principles for action. This framework is designed to develop
around people and the influences that affect how they can support themselves and their families.

The basic units of analysis are livelihood assets, which are divided into five categories: human
capital, social capital,physical capital, financial capital and natural capital. One of the key factors
that affect access to livelihood assets is the vulnerability context. This idea incorporates into the
analytical, economic,political and technological trends.

▪ The guiding principles of the SLA are:

▪ Be people-centered. SLA begins by analyzing people's livelihoods and how they

change over time. The people actively participate throughout the project cycle.

▪ Be holistic. SLA acknowledges that people adopt many strategies to secure their
livelihoods,and that many actors are involved; for example, the private sector,
ministries, community-based organizations and international organizations.

▪ Be dynamic. SLA seeks to understand the dynamic of livelihoods and what

influences them.

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▪ Build on strengths. SLA builds on people's perceived strengths and opportunities

rather than focusing on their problems and needs. It supports existing livelihood
strategies.

▪ Promote micro-macro links. SLA examines the influence of policies and

institutions on livelihood options and highlights the need for policies to be
structured according insights from the local level and by the priorities of the poor.

▪ Encourage broad partnerships. SLA counts on broad partnerships drawing on

both the public and private sectors.

▪ Aim for sustainability. Sustainability is important if poverty reduction is to be

lasting.

The evaluation of the net community benefits of the Project have been based on a comparison
with the baseline scenario and structured base on the Sustainable Livelihoods Approach. Table
23 summarizes the improvements in each category of livelihood asset that the Project has
provided to the local communities.

Net Direct/
Livilihood Asset With Project Scenario
Effect Indirect

Human Recognition of The property could be a place for the Positive Direct
Capital the value of generation of environmental and agroforestry
forest education. Will be organized some “open farm days”
resources where agricultural entrepreneurs, farmers,
technicians and rural workers can know the Project,
the results obtained and the direct and indirect
benefits of all Project activities.
Knowledge During the Project all of the workers were trained in Positive Direct
and skills the techniques of sowing and maintain of agroforestry
system. This training includes all steps from site
preparation to establishment of the plantations, plant
production, and maintenance of the plantations, weed
control, fertilization and sawing
.
The Project contributes to the accumulation of
knowledge at the local level. Locals will benefit from
capacity building in line with the Project activities.
Further extensive training will be developed in the
future for the Project employees.
Life and work The Project created better life and work conditions for Positive Direct
conditions the workers of the property resulting in fair salaries,
improving the welfare of workers and their families,
and in more access to health services and social
security.
Workers’ risk due to the use of chemicals and Negative Direct
accidents.

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Social Networks and Locals will be benefit from technology transfer and Positive Indirect
Capital Connections capacity building that among others refer to initiatives
for reforestation.

Physical Improved The continuous Project operations requires the Positive Direct
Capital transportation constant roads maintenance.
infrastructure
Ecotourism Inside the Project Zone could be conduct in the future Positive Direct
facilities some eco-turism activities, due to the abundance of
wildlife.
Financial Employment Generation of employment derived from the activities Positive Direct
Capital of establishment and maintenance of the agroforestry
activities.

Investment The Project will increase the interest of additional Positive Direct
investors looking for implementing agroforestry
productive projects in the region.

Increase in At the beginning of the forestry business of Fazenda Positive Direct

income property, the only income was represented cattle, as
diversification the previous owner had degraded the native forest
and sold all the merchantable wood. Today, VCU
sales could become a significant income
diversification. Moreover, eco-touristic activities
developed in future years could represent a further
income diversification.
Natural Biodiversity The production of timber from agroforestry projects Positive Indirect/
Capital leads to a reduction of deforestation that will mitigate Direct
the decline in biodiversity by conserving the habitat.
In this way plantings will contribute to maintaining the
biodiversity. The same forest houses an undergrowth
made up of various plant essences which allows for
an increase in biodiversity if purchased from other
agricultural production systems. The forest also
provides food, water and protection to various
species of mammals and birds.

Forest The Agroforestry Project generates different forest Positive Direct

products product (timber, wood for energy, wood for pulp).
Wildlife Reforestation contributes to protect and expand the Positive Indirect
habitats of native wildlife and reduced pressure on
native forest. Increase in wildlife populations is
expected. The forest provides shelter and food to
several species of mammals and birds.

Soil Reforestation contributes to protect the soils and Positive Direct

helps improve soil fertility and water retention. An
increase in soil conservation and soil fertility /
productivity is expected.

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Water Reforestation improve the stabilization of water flows Positive Direct

and protect water resources in the Project area. The
infiltration rate of water into the soil under the
plantations are more gradual and of lesser degree
than those from a non-forest cover.

Inadequate use of chemicals can affect the quality of Positive Direct

the water resources.

Table23: Evaluation of the net community benefits of the Project.

No negative well-being impacts on Community Groups have been identified. It is

expected that the forests will generate benefits on the quality of the environment of the
region and on the living conditions of the community groups (mainly farm workers).

For maintenance or enhancement of the High Conservation Value attributes identified

during the Project, the following measures were carried out in order to protect the
surrounding forest and water drains:

▪ Soil preparation was done mechanical and manually to avoid the removal of
deep soil.

▪ Sowing was conducted across the slope in order not to favour superficial erosion.

▪ All solid waste from planting activities, such as crates, black bags, sacks and
other debris such as plastic and glass bottles, etc. are being stored for recycling
or proper disposal.

▪ The trees in the designated planted area are protected and not removed. Their
growth
▪ continues to take place within the plated area.

▪ The vegetation surrounding the watersheds has been maintained and protected.

▪ No chemical containers have been washed in areas close to the rivers.

▪ Storing fuels, oils, pesticides and hazardous waste containers in areas close to
the rivers has been avoided.

▪ The application of insecticides has been addressed and controlled, avoiding any
generation of negative impacts on the waterways and natural drainage network.

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▪ Nurseries and greenhouses have been established away from water sources, in
order to avoid any disturbance from the passage of personnel, use of chemical
substances, washing utensils and solid waste management.

The Project will generate positive changes in the identified community groups.

All the Project Zone prior to the beginning of the Project were degraded pastures with severe soil
erosion and did not generate income for the Land Owner and no indirect benefit to the
Community (meat production for ha was very low, the number of animals per ha was also low and
the workforce employed was clearly minimal).

As a result under the without-project scenario, the ecosystem services, livelihood of communities
and cultural values provided by the without-project lands were weak. Therefore, net impacts of
the Project have been positive for local communities.

The Project Owner has internalized environmental and social sustainability criteria within his
Project, including respect for botanical and animal native species, prohibitions on logging the
natural forests, prohibitions on hunting, preservation of natural ecosystems and aquifer systems
and implementation of productive systems under good practices.

Therefore, it is expected that natural ecosystems such as savannahs, gallery forests and
grasslands will not be affected by the Project since:

▪ The reforestation Project activity is not carried out in these ecosystems.

▪ It is expected that the forestry plantations will become a “buffer area”.

These ecosystems will therefore continue to contribute the provisioning, regulating, supporting
and cultural services to the community. In addition, according to Applicability conditions of the
methodology for A/R projects that covers all environmentally fragile areas such us forests,
lagoons, flood plains, wetlands and water bodies have been excluded from project boundary.
Besides, these areas are easily protected by the Project Owner because the physical conditions
of these ecosystems make the establishment of plantations difficult. Only pastures and degraded
areas are subject to Project activities.

4.2.3 Negative Community Impact Mitigation (CM2.2)

No negative impacts have been identified on other stakeholders (see Stakeholder consultarion
folder). The project also serves as an example of good practices and innovative approaches in
the communities that can be adapted by outside communities.

4.2.4 High Conservation Values Protected (CM2.4)

There are no high conservation values related to the community

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4.3 Other Stakeholder Impacts

4.3.1 Impacts on Other Stakeholders (CM3.1)

No negative offsite effects are expected during the development of the project. No critical
ecosystem service is going to be negatively affected by the Project activities by people who live in
the Project Zone, as there are no settlements located inside the Project Zone. Communities live
faraway and therefore no significant impacts will be felt by them.The only people living in the
Project Zone are the Project workers.

No negative impacts can be identified regarding other Stakeholders. The Project activities are
likely to obtain major attention and priority from Other Stakeholders involved in the agroforestry
business,wood market and carbon market.

Measures needed to mitigate negative impacts.

No negative impacts have been identified regarding other Stakeholders, and therefore no
measures or activities have been developed.

Demonstrate that the project activities do not result in net negative impacts.

No negative impacts by the implementation of the Project activities have been identified on other
Stakeholders, and therefore there are no impacts expected on their well-being.

4.3.2 Mitigation of Negative Impacts on Other Stakeholders (CM3.2)

No negative impacts have been identified on other stakeholders.

4.3.3 Net Impacts on Other Stakeholders (CM3.3)

Negative impacts have not been identified by the implementation of project activities in other
stakeholders and, therefore, there are no impacts on e xpected welfare.

4.4 Community Impact Monitoring

Community Monitoring Plan (CM4.1, CM4.2, GL1.4, GL2.2, GL2.3, GL2.5)

Although there are no real communities in the Project Zone, the community impacts will be
evaluated during every verification period using indicators described in the Table 23. This
evaluation aims to answer three key questions:

• What changes have there been in the community since the start of the Project?

• Which of these changes are attributable to the Project?

• What differences have these changes made to people’s lives?

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The main objective of the monitoring plan is to verify the improvement in the socio-economic
conditions due to the implementation of the project activities. The Project Proponent (PP) will be
in charge of the implementation of the monitoring plan. Quantitative and qualitative indicators will
be compiled using the records kept of the implementations activities.

Livilihood Expected Impact Indicator Method Monitoring

Human capital Improvement in skills Each
Number of participants per Data
and knowledge in forest verification
workshop record
management period
Level of awareness,
Increase in perception Each
perception/ recognition of
of the value of forest Survey verification
the value of forest
resources period
resources
Increase in perception Level of awareness, Each
of the value of perception/ recognition of Survey verification
Biodiversity the value of biodiversity period
Increase in perception Level of awareness,
Each
of the value of decent perception/ recognition of
Survey verification
and fair conditions work decent and fair conditions
period
conditions work conditions
Financial Each
Employment (direct and Number of people Data
Capita verification
indirect) employed record
period
Each
Data
Increase in cash income Level of Salary par month verification
record
period
Physical Number of kilometres of
Capital roads or
Each
Improved transportation transportation
verification
infrastructure infrastructure in
period
maintenance, upgrade or
renovation
Level of maintenance,
upgrade Each
Improved residential
and renovation of the verification
infrastructure
residential period
infrastructure
Natural Increased in soil
Capital conservation and soil Please refer to biodiversity monitoring
fertility/ productivity
Increase in wildlife
populations due to
Please refer to biodiversity monitoring
increased forest cover
or protection

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Increase or stabilization Each

Data
of water flows and/or Forests expansion (ha) verification
record
quality for local people period

Table 23 Indicators used for assessing the social impact of the Project

The main steps proposed in the assessment are to:

• Gather and train the team. Once the team of the technicians get involved in the
project, training workshops will be held, in order to ensure that all team members
fully understand the purposes,contents, procedures and specific methods of the
field survey.

• Define the questions to be answered. The key research issues and questions
should be identified, based on a clear understanding of the project logic and
objectives. It is likely to use a simple questioning process or semi-structured
interview with Project participants.

• Define the stakeholders involved in the surveys, and the corresponding questions
according to each stakeholder sub-group (project owners, farm workers and their
families – in case they live in the project zone, neighbor's farms (including the
administrator of the farm) local government, environmental government).

Collect the information according to the indicators described in the Table 23.

• Systematize the results obtained and assess the project ́s social contribution
differentiating between the benefits and costs and risks (negative impacts). If
needed, develop a mitigation plan foridentified negative impacts.

• Verify the results with the stakeholder’s sub-groups previously mentioned. The
measures taken to maintain or enhance the identified HCV related to community
well-being are to:

• Train the staff and provide adequate means, to work with a responsible attitude
towards the protection of the environment. In addition, promote environmental
awareness among staff and the community itself.

• Use more appropriate technologies to continually and progressively reduce

significant environmental impacts on forest operations.

• Follow the harvesting plan, responding to the needs of forest products. The
harvesting plan involves immediate replanting to maintain the soil cover and the
sequestration of carbon. Roots,branches and other parts that are not useful

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during the harvest will be let on the ground and will be gradually reintegrated into
the soil to maintain the contents of organic material.

The results of monitoring undertaken will be made publicly available on the internet and
through the website of the Project Proponent (CCC). Additionally, all documents and
information about the results of the monitoring and verification of this project will be
published in the platforms of the VCS and CCB standards as usual.

4.4.2 Monitoring Plan Dissemination (CM4.3)

All results will be publicly available on the internet and summaries are communicated to the
Communities and Other Stakeholders through appropriate media. Additionally, all documents and
information about the results of the monitoring and verification of this project will be published in
the platforms of the VCS and CCB standards as usual.

ARC group has extensive experience working with communities. The most effective medium
agreed with communities is workshops and newsletter reporting the progress of the project. The
monitoring plan and monitoring result will be disclosed through the President of the community
action boards.

To date, neither monitorings nor verifications reports have been conducted.

4.5 Optional Criterion: Exceptional Community Benefits

The project does not seek to be validated at the Gold Level for exceptional benefits of the
community.

5 BIODIVERSITY

5.1 Without-Project Biodiversity Scenario

5.1.1 Existing Conditions (B1.1)

At the start of the project there were 39,150 hectares of land that was degraded pasture with low
yield cattle operations.

A full analysis was completed at the start of the project in 2013/2014 of the bio-diversity both flora
and fauna.

Vegetation and Flora

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The area of the Project is composed of ten different plant phytophysiognomies, including forest
and non-forest formations, with predominance of Lowland Dense Ombrophilous Forests and
Submontane Dense Ombrophilous Forests, as already mentioned in section 2.1.5 - Physical
Parameters.

For the phytosociological characterization carried out in the reforestation area, a survey was
carried out with the installation of 75 sample plots with dimensions of 25 x 25 meters (1 hectare),
subdivided into four subplots. At the end of the forest inventory, 8,664 individuals were distributed
in 340 tree species, highlighting the richness of the flora existing in this Amazon region (NELSON
and OLIVEIRA, 2001). The richest and most abundant families in the Project area were: family
Sapotaceae, Mimosaceae, Caesalpiniaceae, Burseraceae and Fabaceae.

Table 24: Inventory of Flora for Central Block - 61 Species, and 28 familes

Family Scientific Name Common Name

FABACEAE Tachigali sp tachi
Macrolobium sp
Dahlstedtia sp.
Inga alba (Sw.) Willd. ingaí
Hymenaea sp. jatobá
Abarema mataybifolia (Sandwith) Barneby & J.W.Grimes
Inga marginata Willd. ingá
Inga laurina (Sw.) Willd. ingá-de-macaco
RUTACEAE Rauia resinosa Nees & Mart. cafezinho
APOCYNACEAE Lacmellea aculeata (Ducke) Monach sorvinha
ARECACEAE Astrocaryum gynacanthum Mart. tucum
BURSERACEAE Protium altsonii Sandwith breu-branco
Protium sp.2 breu
VIOLACEAE Rinorea macrocarpa (Mart. ex Eichler) Kuntze
SAPOTACEAE Pradosia sp.1
MYRISTICACEAE Virola sp.1
Campnoseura sp.
Iryanthera sp.1
RUTACEAE Sohnreyia excelsa K.Krause surucucumirá
Rauia resinosa Nees & Mart.
URTICACEAE Pourouma villosa Trécul imbaúba-branca
Pourouma sp.
Cecropia palmata Willd. imbaúba
SAPOTACEAE Pouteria sp.1
Pouteria sp.3
Pouteria sp.4
Pouteria sp.2 goiabinha
Micropholis sp.
Chrysophyllum sp.1

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Pouteria sp.6
LECYTHIDACEAE Eschweilera sp.1
Eschweilera sp.2
Cariniana sp.
OLACACEAE Minquartia guianensis Aubl. acariquara
EUPHORBIACEAE ariquena-
Aparisthmium cordatum (A.Juss.) Baill. queimosa
Micrandra sp.2
Croton matourensis Aubl. maravuvuia
Micrandra sp.1
Mabea speciosa Müll.Arg.
HYPERICACEAE Vismia baccifera Triana & Planch. lacre
SALICACEAE Laetia procera (Poepp.) Eichler apijó
Casearia sp.1
COMBRETACEAE Buchenavia sp.1
SAPINDACEAE Cupania cf. scrobiculata Radlk.
Matayba sp.
MELASTOMATACEAE Bellucia grossularioides (L.) Triana goiaba-de-anta
CHRYSOBALANACEA
E Licania sp.3
Licania sp.1
VOCHYSIACEAE Vochysia sp.
MALVACEAE Apeiba echinata Gaertn. pente-de-macaco
SIMAROUBACEAE Simaba sp.
BIGNONIACEAE Jacaranda copaia (Aubl.) D.Don pará-pará
NYCTAGINACEAE Guapira sp.
BORAGINACEAE Cordia exaltata Lam. freijozinho
ANNONACEAE Xylopia sp.
Annona sp.
ANACARDIACEAE Astronium lecointei Ducke muiracatiara
VIOLACEAE Rinorea macrocarpa (Mart. ex Eichler) Kuntze
SIPARUNACEAE Siparuna guianensis Aubl. caá-pitiú
LAURACEAE Nectandra sp.

Table 25: List of Species North Block – 45 species and 19 families

Family Scientific Name Common Name

MELASTOMATACEAE Bellucia grossularioides (L.) Triana goiaba-de-anta
Miconia sp.
EUPHORBIACEAE Croton matourensis Aubl. maravuvuia
Micrandra siphonioides seringarana
FABACEAE Dinizia excelsa Ducke angelim-pedra

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Anadenanthera sp.
Tachigali sp. tachi
Inga alba (Sw.) Willd. ingaí
Copaifera sp. copaíba
Inga rubiginosa (Rich.) DC. ingá-ferrugem
Abarema mataybifolia (Sandwith) Barneby & J.W.Grimes
Inga sp.1
Hymenaea sp. jatobá
Parkia sp. faveiro
MYRTACEAE Eugenia sp.
Campomanesia sp.
URTICACEAE Cecropia palmata Willd. imbaúba
MALPIGHIACEAE Byrsonima sp. murici-do-mato
Byrsonima cf. duckeana W.R.Anderson murici
HYPERICACEAE Vismia baccifera Triana & Planch. lacre
SALICACEAE Casearia sp.2
pente-de-
MALVACEAE Apeiba echinata Gaertn. macaco
BURSERACEAE Protium sp.1 breu
Protium altsonii Sandwith breu-branco
RUTACEAE Rauia resinosa Nees & Mart. cafezinho
MELIACEAE Guarea pubescens (Rich.) A.Juss.
LAURACEAE Ocotea sp. louro
ANNONACEAE Annona sp.
COMBRETACEAE Buchenavia sp.2
Buchenavia sp.3
MYRISTICACEAE Iryanthera sp.2 tiriba
Iryanthera sp.3
Iryanthera sp.4
SAPINDACEAE Matayba sp.
SAPOTACEAE Pouteria sp.5
Manilkara sp. maçaranduba
Chrysophyllum sp.2 sabiarana
Pouteria sp.2 goiabinha
Pouteria sp.6
Chrysophyllum sp.3 guajará-bolacha
guajará-de-
Sarcaulus sp.2 cinza
CHRYSOBALANACEAE Hirtella sp. casca-seca
Licania sp.2

Table 26: Forest Inventory for the South Block – 40 species with 8 more species unable to be determined.

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Allophylus edulis (A.St.-Hil., Cambess. & A. Juss.) Radlk

Andira inermis (Sm.) Kunth ex DC.
Aphelandra aurantiaca (Scheidw.) Lindl.
Apuleia leiocarpa (Vogel) Macbride.
Attalea phalerata Mart. Ex Spreng.
Attalea sp.
Bocageopsis multiflora (Mart.) R.E.Fr.
Byrsonima spicata (Cav.) Kunth
Callisthene major Mart.
Caryocar sp.
Cecropia sciadophylla Mart.
Copaifera sp.
Coutarea hexandra (Jack.) K. Schum.
Curatella americana L.
Didymopanax morototonii (Aubl.) Decne. & Planch.
Diplotropis purpurea
Duguetia sp.
Endlicheria paniculata (Spreng) J.F. Macbr
Eugenia pseudopsidium Jacq.
Himatanthus sucuuba (Spruce ex Mull. Arg.) Woodson
Holopyxidium latifolium (Ducke.) R. Knuth
Hymenaea courbaril L.
Hymenaea sp.
Inga cylindrica (Vell.) Mart.
Jacaranda copaia (Aubl.) D.Don
Lecythis idatimon
Macrolobium bifolium Pers.
Manikara huberi (Ducke) Cheval.
Morta
Nectandra rigida (Kunth) Nees
Ocotea sp.
Parkia nitida Miq.
Pouteria macrophyla (Lam.) Eyma
Pouteria ramiflora (Mart.) Radlk.
Sagotia brachysepala (Müll.Arg.) Secco
Tapirira guisnensis Aubl.
Tetrorchidium rubrivenium Poepp. & Endl.
Theobroma grandiflorum (Willd. Ex Spreng.) K. Schum.
Triplaris surinamensis Cham.
Vismia guianensis (Aubl.) Pers.

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The inventory of Flora within the project area, has resulted in a priority to conserve the flora on
Table 27, which are targeted by illegal loggers.

Table 27 –Target Species for Conservation

Family Species
Sterculiaceae Sterculia excels Mart.
Leguminosae-Mimosoideae Anadenathera colubrine (Vell.) Brenan
Vochysiaceae Callisthene major Mart.
Caryocareaceae Caryocar microcarpum Ducke
Sapotaceae Chrysophyllum lucentifolium
Lecythidaceae Couratari oblongifolia Ducke et R.Knuth
Leguminosae-Papilionideae (Fabaceae) Diplotropis purpurea
Lauraceae Endlicheria paniculata (Spreng) J.F.Macbr
Leguminosae-Mimosoideae Enterolobium schomburgkii (Benth.) Benth
Sapotaceae Pouteria oblanceolata Pires
Burseraceae Protium puncticulatun Macbr.
Sterculianceae Sterculia excelsa Mart.
Leguminosae-Mimosoideae Zygia selloi
Sapotaceae Manikara huberi (Ducke) Cheval.
Burseraceae Protium heptaphyllum (Aubl.) March

Fauna:

At the state of the project, between 2013 and 2014 a monitoring program for Fauna, both Avifauna and
Mastofauna was inacted. In Tables 28 to 29, we are able to determine the results of the study and the
endangered species identified.

Table 28: Avifauna sited

Number of Species Seen (AviFauna) 2013

Group II 149
Group III 177
Threatened Species 66

Number of Species Seen (MastoFauna) 2013

Group II 19
Group III 20
Threatened Species 14

Number of Species Seen (AviFauna) 2014

Group II 177

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Group III 199

Threatened Species 70

Number of Species Seen (MastoFauna) 2014

Group II 22
Group III 19
Threatened Species 15

Table 29: Endangered, At Risk or State priorities: Species of avifauna for monitoring and
Conservation

Species Popular Name

Penelope pileata jacupiranga
Psophia viridis obscura jacamim-de-costas-verdes
Guaruba guarouba ararajuba
Pyrrhura lepida tiriba-pérola
Pteroglossus bitorquatus bitorquatus araçari-de-pescoço-vermelho
Synallaxis rutilans omissa João-teneném-castanho
Phlegopsis nigromaculata paraensis mãe-de-taoca

Endangered, At Risk or state priorities for conservation - Species of Mastofauna for monitoring
and Conservation

Taxom Popular Name

Dasypodidae
Priodontes maximus tatu-canastra
Cebidae
Saguinus niger sagui-una
Cebus paella macaco-precgo
Saimiri sciureus macaco-de-cheiro
Aotidae
Aotus azarae macaco-da-noite
Atelidae
Alouatta beizebul guariba-pteto
Felidae
Leopardus pardalis jaguatirica
Leopardus tigrinus gato-do-mato-pequeno
Puma concolor onca-parda
Panthera onca onca-pintada
Canidae

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Cerdocyon thous Graxaim

Familia Tapiridae
Tapirus terrestris Anta
Tayassuidae
Tayassu pecari Queixada
Cervidae
Mazama Americana veado-mateiro

Target species (avifauna) for monitoring and conservation (2014):

• Penelope pileata (jacupiranga).

• Guaruba guarouba (ararajuba). Pteroglossus bitorquatus (araçari-de-pescoço-vermelho).

Target species (mastofauna) for monitoring and conservation (2014):

• Saimiri sciureus (mico-de-cheiro)

According to the analysis of avifauna survey carried out in 2013, in view of the panorama of the
original forest cover of the area, which historically can be defined as composed of Amazonian terra
firme forest, it is possible to highlight the predominance of forest birds registered in the remaining
samples, which occupy the dark understorey of the forests as well as large frugivorous growers of
the upper canopy areas (60% of species). The predominance of these species was expected, taking
into account the high wealth that the forest areas present, as well as the predominance of these
environments in the sampled regions.

Only a small fraction of these fragments remain with visible signs of anthropogenic disturbance.
Considering the alteration of the original forest cover, the avifauna was also replaced by colonizing
elements characterized by generalist species that commonly inhabit regions of capoeiras or even
drastically decharacterized places (WILLIS & ONIKI 1988). In this sense, it is important to highlight
the transitional areas, constituted by capoeiras as the second most representative environment in
terms of use by birds (30% of species).

As a result of avifauna monitoring in 2014, in view of the panorama of the original forest cover of the
area, which historically can be defined as composed of Amazonian terra firme forest can be
highlighted the predominance of forest birds registered in the remaining sampled birds that occupy
the dark forest understory as well as large frugivorous growers from the upper canopy forest (60% of
species). The predominance of these species was expected, taking into account the high species
richness of the forest areas as well as the predominance of these environments in the sampled
regions.

In the considerations presented on the mastofauna in 2013, the study presents several species that
indicate the quality of the environment. Although no sampled fragment has original characteristics of
its landscape, it can be affirmed that these still represent areas of great importance for the
maintenance of the local fauna.

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Two species of large felines were recorded with probable occurrence in the region by the literature.
These are species that occupy the top of the food chain and require large territories for their survival,
which characterizes them as an umbrella species. The maintenance of environmental requirements
for the healthy existence of these feline populations can help to maintain several other species in the
environment.

For the monitoring of the mastofauna in 2014, as observed in situ in the studied localities few
fragments have characteristics that were originally observed there. However, these fragments still
play a fundamental role in the maintenance of the target species and as a direct consequence the
maintenance of the entire local biota.

Despite the strong decharacterization of the environment, the number of endangered species
recorded was significant, according to the International Union for the Conservation of Nature (IUCN
2014) of the Convention on International Trade in Endangered Species of Wild Fauna and Flora
(CITES 2014), Ministry of Environment MACHADO et al. 2008) and List of endangered species of
flora and fauna in the State of Pará (SEMA 2007). The vast majority of registered species are
included in the Vulnerable Category (VU) or CITES Appendix I or II.

Specific studies of the project areas

Further complementary studies were conducted in April 2016 in the Central Block and North
Block areas in 2015 at the South Block. These surveys aim to generate information on the local
fauna composition, establish plans and measures to protect local biodiversity, with emphasis on
the target species identified and identify the main threats to biodiversity within project area.

Mastofauna

Fauna that is a priority for Conservation and Monitoring spread across the Project.

Table 30: Mastofauna South Block

Ordem Family Species Common Name

Cingulata Dasypodidae Dasypus novemcinctus tatu, tatu-galinha
Euphractus sexcinctus tatu-peludo, tatu-peba
Primates Atelidae Alouatta belzebul guariba-de-mãos-ruivas
Rodentia Cuniculidae Cuniculus paca paca
Caviidae Hydrochoerus hydrochaeris capivara
Dasyproctidae Dasyprocta prymnolopha cutia
Carnivora Felidae Puma concolor onça-parda, suçuarana, leão-baio
Canidae Cerdocyon thous cachorro-do-mato, graxaim, raposa
Procyonidae Nasua quati
Perissodactyla Tapiridae Tapirus terrestris anta
Artiodactyla Tayassuidae Pecari tajacu cateto, caititu
Tayassu pecari queixada, porco-do-mato
Cervidae Mazama americana veado-mateiro

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Table 31: Mastofauna no Central Block

Taxom Popular Name

Subfamília Callitrichinae
Saguinus niger Sagui una
Família Atelidae
Allouquata sp Macaco capelão
Família Tapiridae
Tapirus terrestris Anta
Família Dasyproctidae
Dasyprocta leporina Cutia
Família Procyonidae
Nasua nasua Quati
Família Mustelidae
Eira Barbara Irara

Table 32: List of the spécies that are at risk in the Central Block

Taxom Popular Name

Subfamília Callitrichinae
Saguinus niger Sagui una
Família Tapiridae
Tapirus terrestris Anta

Table 33: List of mastofauna on block North Block

Taxom Popular Name

Família Procyonidae
Nasua nasua Quati
Família Cebidae
Saguinus niger Sagui una
Família Atelidae
Allouquata sp Macaco capelão
Família Cervidae
Mazama americana Veado mateiro
Família Didelphidae
Didelphis marsupialis Gambá
Família Felidae
Leopardus tigrinus gato-do-mato-pequeno

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Table 34: Mammals that are regsitered under threat and are in the project area.

Family Species
Dasypodidae Dasypus novemcinctus
Euphractus sexcinctus
Atelidae Alouatta belzebul
Cuniculidae Cuniculus paca
Hydrochoerus
Caviidae hydrochaeris
Dasyproctidae Dasyprocta prymnolopha
Felidae Puma concolor
Canidae Cerdocyon thous
Procyonidae Nasua nasua
Tapiridae Tapirus terrestris
Tayassuidae Pecari tajacu
Cervidae Tayassu pecari
Mazama americana

5.1.2 Attributes of High Conservation Value (B1.2)

As defined by the HCV Resource Network, the high value attributes for conservation 1, 2 and 3 were
considered for the present work, since they are criteria related to biodiversity. Within this context, to guide
the following items in this document, the guidelines for identification, management and monitoring of high
values were considered, as stated in the “General Guide for the Identification of High Conservation
Values” (BROWN et al., 2013), “Common Guidance for the Management & Monitoring of High
Conservation Values” (BROWN, SENIOR, 2014), “FSC Principles and Criteria for Forest Stewardship”
(FSC, 2012) and “The Climate, Community and Biodiversity Alliance” (CCBA, 2013).

5.1.3 Without-project Scenario: Biodiversity (B1.3)

As described above, prior to the project the region was degraded low yield cattle land. The
current property owner bought the land and has since started implementing the land for
reforestation.

Due to the lack of funds, the inability to gain credit at reasonable interest rates the landowner and
the fact the entire area being reforested is over 35,000 hectares the project has been only
planting large amounts in reason years with the hope that carbon credits will help sub-sidize its
total completion.

Without the project, the pastures were not fertilized thus degrading the soil. The animal load was
often below normal due to the degraded state of the soil not being able to support a large number
of cattle.

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The slash and burn practice of clearing more forest, planting grass and then allowing cattle to go
onto this section of the property would have continued as the previously landowner chased profits
through destruction of the Amazon – instead of investing back into the already deforested area,
that had pasture, and placing fertilizers and implementing weed prevention techniques.

The previous landowner also practiced an “old style” wives tail practice of burning existing
pasture in controlled fires – believing the find “dark ash” layer that remained on top of the soil
would result in a type of natural fertilizer. This concept of burning has been dis-proven to be
beneficial and actually burns vegetation and the organic calories present in the soil, resulting in
further degraded soil and a necessity for further fertilizer.

The previous landowner, like many landowners who have cattle farms in the Amazon would
pouch wild cats including the endangered Onyx and the Jaguar to prevent them from attaching
and killing the novinas cows (calves). Thus prior to the project the fauna in the region had
virtually disappeared.

5.2 Net Positive Biodiversity Impacts

5.2.1 Expected Biodiversity Changes (B2.1)

The clearing of forests for the expansion of the agricultural frontier can generate
fragmentation of remaining forests with high conservation values. Therefore, the project
activities to increase sustainable productivity of farms, may decrease the phenomena of
fragmentation.

Biodiversity Element Reforestation Activities

Estimated Change Reducing deforestation and land degradation

Justification of Change The activities of the Project aim at the reduction of deforestation
and forest degradation, based on the practices of sustainable
forest management, deforestation monitoring, patrimonial
surveillance, technical assistance service and rural extension,
among others, thus generating a positive impact on biodiversity.

5.2.2 Mitigation Measures (B2.3)

The HCV attributes are not expected to be negatively affected by the project. By reducing the
deforestation rate in the project area, the project will preserve the habitat for endangered and
vulnerable species. The recovery of ecological niches for endemic, vulnerable or threatened
species is favored.

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5.2.3 Net Positive Biodiversity Impacts (B2.2, GL1.4)

The activities proposed by the Reforestation Project seek to generate diverse benefits to the
climate, communities and biodiversity. The main benefits to biodiversity are linked to the
reduction of deforestation and forest degradation and the conservation of biodiversity and
habitats.

The implementation of the Project activities, as described above, have a direct and positive
impact on biodiversity, such as the maintenance of vegetation cover and the conservation of
biodiversity, acting directly against the loss of habitats and also against the fragmentation of the
local vegetation cover. These positive impacts are due to avoided deforestation, improvements in
management practices, monitoring of deforestation and biodiversity, technical assistance and
rural extension, patrimonial surveillance, and other activities carried out during the life of the
Project.

The effectiveness of the Project's activities is intended to generate positive net impacts to the
climate, communities and biodiversity, but negative impacts may arise, and mitigation measures
are necessary to avoid and minimize these impacts.

The sustainable forest management implemented by the ARC Group is well planned and
performed in a correct manner, following strict norms and well established criteria, which
guarantee the abundance and biodiversity of the local species. In large part, the negative impacts
of this activity are ephemeral and not very severe, and do not endanger the conservation of the
species. Negative impacts may be related to disturbances due to increased vehicle and person
traffic in the Project region and noise production, local suppression of few species to open tracks
and infrastructure, possible trampling of animals, increased hunting, fishing, and extraction of
wood and non-timber products, as a consequence of the opening of tracks and bites.

In the scenario with the Project, we can see the generation of several positive impacts on
biodiversity, a result of the reduction of deforestation and forest degradation in the Project area,
thus promoting biodiversity conservation and mitigating the risks of extinction, guaranteeing
genetic diversity, among others effects. The indirect impacts promoted by climate change on
biodiversity will also be attenuated.

5.2.4 High Conservation Values Protected (B2.4)

All project activities are aimed at the conservation of forest areas, páramos, and protection of
areas and species of fauna and flora.

Specifically, given that the ecotourism activity involves a closer interaction with HCV biodiversity,
the implementation of these activities should follow the recommendations outlined in the previous
section in order to ensure non-involvement of ecosystem wealth in the project area.

5.2.5 Species Used (B2.5)

An important role in the region’s economy is filled by vegetable extraction and forestry, mainly as
a source of subsistence for families. The vegetal extraction of the municipalities mainly counts on
the management of non-timber forest products (NWFP) of native species of the region, such as
brazil nuts and açaí.

In addition, the rural communities living in the Project area are mainly engaged in the production
of cassava, flour and manioc, according to the Family Diagnosis. Crops of corn, banana, orange,

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cabbage, cupuaçu, eucalyptus and cacao are also employed by some local communities but in
smaller scales than the others already mentioned.

5.2.6 Invasive Species (B2.5)

No known invasive species will be introduced into any area affected by the project.

5.2.7 Impact of Exotic Species (B2.6)

As specified above (section 5.2.6 –Invasive Species), the Reforestation Project encourages the
use of native species by local communities. In addition, approximately 75% of the main crops and
sources of income of the producers assisted by the Project are based on the development and
production of native species (chestnut, açaí, flour, cassava, cupuaçu, among others)

The few non-native species are however used by local communities, i.e., small-scale use and do
not have an adverse impact on the environment. Again, quoting the text above, these species
have been cultivated for years, being part of the cultural history of the region and serving as a
source of subsistence for these communities and not being encouraged their use by the
Reforestation Project.

5.2.8 Exclusion of Genetically Modified Organisms (GMO) (B2.7)

Through the Reforestation Project it is guaranteed that no genetically modified organisms

(GMOs) will be used. It is also ensured that the seeds and seedlings of forest and agricultural
species provided to communities are not GMOs. The reduction or removal of greenhouse gas
emissions will be achieved through reduction of deforestation and forest degradation.

5.2.9 Inputs Justification (B2.8)

Fertilizer application prior soil analysis will be performed on each farm, to conservatively
determine the nutritional needs of the soil. In addition, the practical use of organic fertilizers will
be encouraged.

Improper use of chemical fertilizers or abuse them, without taking into account the lack of other
nutrients that limit crop productivity, leads to deterioration of natural resources, particularly land.
In contrast, organic, due to the characteristics fertilizers in their composition are forming the
humus and enrich the soil with this component, modifying some of the properties and
characteristics of the soil as its reaction (pH), variable loads, ion exchange capacity, chelation of
elements, availability of phosphorus, calcium, magnesium and potassium, and of course the
microbial population, making it more appropriate for the proper development and crop yields;
therefore organic fertilizers favorably influence the characteristics of fertility and physical soil.

5.2.10 Waste Products (B2.9)

The process for handling waste and waste is determined by the following practices:

• It should be set aside an area for storing waste to final disposal; not bury or incinerate on the
premises, as pollute the environment and are harmful to animals and humans.

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• In addition, it should be separated the garbage and make proper management of hazardous
waste and pesticide containers and pesticides.
• Leftover pesticide applications and the washing water sprayers are deposited on a site fallow
properly identified and away from water sources.
• Triple washing of pesticide containers is performed when empty, also drilled without destroying
the label and stored in a separate place and restricted to deliver to an appropriate company that
promotes this activity in the country.

5.3 Offsite Biodiversity Impacts

5.3.1 Negative Offsite Biodiversity Impacts (B3.1) and Mitigation Measures (B3.2)

There are no negative impacts on biodiversity outside the Project Zone resulting from
Project activity.

5.3.2 Net Offsite Biodiversity Benefits (B3.3)

As mentioned in the section above (section 5.3.1), no negative impacts are expected outside the
Project area, nor are leakages due to activities undertaken. Therefore, mitigating actions are not
necessary. In addition, the social activities carried out by this Project are already designed to
mitigate possible leakages that may occur.

As the Project area is surrounded by conservation units (UCs), positive impacts on biodiversity
outside the Project area are observed, with the main expected positive impacts being the
maintenance of an ecological corridor for biodiversity, which serves as a refuge and protection for
endangered species and ecosystems and are places where ecological processes can occur
without any human intervention or only with sustainable use, and the Project area functions as a
buffer zone for risks and threats to the mosaic of protected areas of the North of the State of
Pará.

5.4 5.4 Biodiversity Impact Monitoring

The Flora monitoring program aims to measure the forest recovery of areas with past
anthropization. The fauna monitoring program aims to diagnose the community of mastofauna and
avifauna, to evaluate the influence of the enterprise on these communities and to measure the
effectiveness of the new ecological corridors that will be implemented.

According to art. 1 of the Wildlife Protection Act No. 5,197 / 67, animals of any species, at any
stage of their development and living naturally out of captivity, constituting the wild fauna, as well
as their nests, shelters and natural breeding grounds, are property of the State, being prohibited
its use, persecution, hunting or harvesting. Thus, it is evident that no hunting activity can be
carried out or tolerated within the properties where the undertaking is carried out. Such activities
constitute crimes, provided for in the Law on Environmental Crimes, Law 9605/98, art. 29 et seq.

5.4.1 Biodiversity Monitoring Plan (B4.1, B4.2, GL1.4, GL3.4)

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Mastofauna

Sampling for the mastofauna is qualitative, aiming to record the target species. The method used
is to search actively, at random, to increase the sample effort. Identification of the species is
performed through direct visualization and indirect traces such as traces, feces, burrows and
scratches. The traces were identified with the help of the Borges & Tomás (2008) footprint guide.

For the South Block, 13 species of wild mammals of medium and large size were registered in the
region of the enterprise. These species are distributed in 11 families and 6 orders. The graph is
shown in Figure 61.

For Central Block, six species of wild mammals of medium and large size were registered in the
region of the project. These species are distributed in 6 families. The graph is shown in Figure 61.

For the North Block, six species of wild mammals of medium and large size were registered in the
region of the enterprise. These species are distributed in 6 families. The graph is shown in Figure.

Avifauna

The collection of data for the survey of avifauna is carried out by means of a fixed point census
that, through audiovisual observation, aims to estimate the abundance of birds that inhabit the
strata of the forest. For the Soma Block, 788 individuals from 148 species belonging to 40
families and 18 orders were registered. Figure 61. For the Piquiá Block, 73 species belonging to
27 families were recorded (Figure 62) and 65 species belonging to 25 families were recorded for
the São Pedro Block (Figure 63).

Monitoring Plan

The monitoring plan must include a description of aerial, aquatic and terrestrial biodiversity
directly affected by the Project, through characterization and analysis of the structure and
composition of vegetation and associated fauna, including analysis of frequency, richness and
abundance of the identified species. This analysis should include sections related to the
connectivity of the ecosystems in the area, the current state of conservation of soils and their
sensitivity to agrochemicals or organic products, among others.

In terms of vegetation, it is planned to evaluate the remaining areas of natural forest and its
proximity to the area to be operated. Native species should be identified and quantified within the
forest inventory. An assessment of the level of degradation of the study area should be carried
out and a special effort should be made in order to identify the possible actions or activities to be
implemented to offset or reduce these levels of degradation.

In terms of wildlife, an inventory of all individuals present in the area on influence of the Project
should be done, with the aim of identifying patterns and relationships between species, such as
seed dispersal mechanisms and fauna related to that purpose; identification and description of
native species, or species of special character due to their ecological (endemic species),
economic (high commercial value) and social (particularly important for certain communities)
behavior.

The wildlife assessment should include the following items:

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• Identification and description of niches.

• Description of the main eco-region present in the study area.

• Aquatic, aerial and terrestrial habitat types present in the area and associated
communities.

• Description of the landscape elements of special importance.

At the end of each monitoring conducted within the study area, some of the results listed below
should be presented, depending on the type of information collected and the purposes of
collecting:

Vegetation map.

• Results of interviews carried out with local communities, with the aim of identifying
wildlife species of special value.

• History of previous research in the area of study (review of secondary information in

general), including analysis of threats to biodiversity and management.

• Relationship between the threats described and communities present in the area.

• If any elements with high conservation values are found, they must be located by
maps or satellite images. In the case of endemic species, photographic evidence
must be provided.

• Description of impacts on biodiversity in the scenario with and without the Project.

• Description of measures to maintain biodiversity.

• Select biodiversity indicators (pressure, state and response indicators are mostly
used) in order to facilitate monitoring activities.

• Describe the state of the species found including its social, economic and ecological
values.

The biodiversity variables to be monitored are presented in the Table 35.

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Variables to Areas to
Sampling
be be Unit Frequency
method
monitored monitored
Number of
Planted Number of Pemanent
trees Each verification period
area Trees sample plots
planted
Total
Planted Permanent
reforested Hectares Each verification period
area samples plots
area
Outcomes
Reduction in Planted
soil Soil sampling Each verification period
soil erosion area
sampling

Increase in Outcomes Continuous, The registries will

Planted
biodiversity flora Sampling Plots be compiled and reported
area
(Flora) inventories every verification period

Increase in Outcome Continuous, The registries will

Planted Opportune
biodiversity faunda be compiled and reported
area observations
(Fauna) inventories every verification period

Increased
natural
Planted Remote
regeneration Hectares Each verification period
area Sensing
in Legal
Reserve
No. of
Frequency Continuous, The registries will
Planted events and Registers and
and intensity be compiled and reported
area affected databases
of fires every verification period
hectares

5.4.2 Biodiversity Monitoring Plan Dissemination (B4.3)

The results of monitoring undertaken will be made publicly available on the internet and through
the web site of ARC Group. Additionally, all documents and information about the results of the
monitoring and verification of this project will be published in the platforms of the VCS and CCB
standards as usual.

5.5 Optional Criterion: Exceptional Biodiversity Benefits

The project does not seek to be validated to the Gold Level for exceptional Biodiversity Benefits.

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