A Brazilian carbon developer and two organisations working with Indigenous communities are piloting a biodiversity credit project in the Amazon state, with two European companies interested in purchasing units after COP16, Carbon Pulse has learned.

The pilot, which started early this year, is located on a 444,000-hectare area across the Nove de Janeiro and Ipixuna Indigenous reserves, and has been designed by InCarbon with the support of the local NGO Kaninde and Brazilian startup Meu Pe de Arvore.

The aim of the project, which will be launched at COP16 and will run for 30 years once implemented, is to boost the resilience of native communities through the crediting scheme and the related development of ‘bioeconomy’ practices, Fabiane Tessari, CEO of InCarbon, told Cabon Pulse.

In its early stages, the initiative is expected to benefit 416 people of the Parintintin community living in and managing the reserves, with plans to expand the project area and involve five other Indigenous groups once the pilot is completed.

According to Tessari, the Parintintin people are currently the sole owners of the project since they manage the land under the law, and she expects the community to have full control of the initiative in the next few years.

Units will be generated by using the Life Institute’s methodology, a Brazilian standard also involved in a separate initiative seeking to establish the country’s first subnational biodiversity credit scheme in the Parana state.

Under the methodology, one credit represents a unit of Biodiversity Positive Performance (BPP), which is calculated in two separate stages by combining a wide range of indicators.

The initial assessment focuses on the key features of the conserved area, such as its size and biological importance as well as the fragility of the ecoregion and the level of implementation of actions aimed at preserving the site.

The second step focuses on monitoring and assessing conservation and restoration outcomes based on a set of indicators, including the maintenance of genetic variability and ecosystem services, the behaviour of animal populations and plant species, and the landscape and trophic structures.

CONSERVATION AND RESTORATION

Diogo Hungria, CEO at Meu Pe de Arvore, told Carbon Pulse the team will carry out both conservation and restoration activities by combining agroforestry practices with real-time biodiversity monitoring.

Outcomes will be verified by a third-party certification body as required by the methodology, he said.

The monitoring framework will harness camera traps, remote sensing, and data from public databases, including the National Indigenous People Foundation (FUNAI).

“We are teaching Indigenous People how to use tools to monitor biodiversity and how to implement sustainable activities such as agroforestry and seed collection, so they can receive income both from the credit market and the development of bioeconomy practices,” Hungria said.

Bioeconomy encompasses a wide range of activities and sectors, such as agriculture, forestry, food, energy, timber, and biotechnology.

While a common definition is still being debated, Brazil’s interest in the matter is increasing. In February, the country launched an initiative to lay the groundwork for a common framework on ‘bioeconomy’ as a part of its G20 Presidency.

PRICES AND BUYERS

Developers have not yet determined the price or the number of credits the pilot will generate, though the hope is to sell them at around $20-25 per unit, Tessari said.

As for potential buyers, Meu Pe de Arvore’s Hungria said the company is already in touch with several partners interested in purchasing the credits, including Germany-headquartered chainsaw maker Stihl and Dutch airline company KLM.

According to InCarbon’s CEO, the company is still in the process of identifying a registry. “For the moment, we will fully count on Life Institute for listing the certificates related to the pilot project, but we will explore other alternatives once the initiative is implemented,” Tessari said.

Besides credits, Tessari said the project would also rely on philanthropic donations channelled into a fund managed by Brazilian investment group Tre.

Life Institute is involved in two other separate conservation and restoration projects aimed at generating biodiversity credits within the Pantanal and the Atlantic Forest biomes.

The standard told Carbon Pulse in July that the projects have already completed the initial assessment, conducted by independent third parties, and are currently in the final phase of the validation process.

By Giada Ferraglioni – giada@carbon-pulse.com

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