Matchfunding was launched at COP26 last year and is expected to raise R$686m
11/17/2022
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Bruno Aranha — Foto: Leo Pinheiro/Valor
Brazilian development bank BNDES and Petrobras announce on Thursday, at COP27, in Egypt, the first call for proposals of the Floresta Viva (Forest Alive) program, a collective financing program for the restoration of Brazilian forests and biomes. The initial selection, of R$44.4 million, will invest in up to nine projects in the area of mangrove and sandbanks restoration on the coast of the country.
The match funding led by the BNDES was launched at COP26 last year and is expected to raise R$686.27 million through the adhesion of 15 companies and the bank’s own contribution of R$250 million. Each company participated with a slice and only Petrobras, the main partner, committed to injecting R$50 million over five years. Besides the oil company, mining company Vale and transnational companies such as Heineken and Nestlé, whose adhesion was announced at COP27, are also participating, said Bruno Aranha, the bank’s head of environment credit.
The project’s first call for proposals is aimed at non-profit civil associations, private foundations, and cooperatives. In this first phase, the proposals must contemplate the restoration of at least 200 hectares of area, a total of 1,800 hectares of mangroves and sandbanks located in the three macro-regions defined in the National Action Plan for the Conservation of Threatened Species and Socio-Economic Importance of the Mangrove Ecosystem (PAN Mangrove), prepared by the Chico Mendes Institute for Biodiversity Conservation (ICMBio). They are the so-called North Coast, as well as the area from the Northeast to Espírito Santo and the South and Southeast.
The amount of almost R$50 million will be divided equally between BNDES and Petrobras. According to the social responsibility management of the oil company, the contracts are expected to be signed in the first quarter of next year. Those interested have until January 31 to submit proposals. Institutions that have been legally constituted for at least two years and have proven experience in executing ecological restoration projects are eligible to participate.
“The projects can be certified for the emission of carbon credits and the intention is that they will be distributed among the partners in proportion to their donations. In this sense, the fund allows a great laboratory for national and international companies about the certification process of projects for carbon credit emission”, explains Mr. Aranha.
According to the general manager for social responsibility at Petrobras, Rafaela Guedes, it was in this context that the commitment between the oil company and the development bank was made. She highlights the importance of mangroves, a transitional ecosystem between the terrestrial and marine environments, with great potential for carbon storage. The vegetation — which is also a source of income for local communities — suffers from intense degradation due to the intense economic and real estate exploitation of the Brazilian coast.
To select the projects and monitor the application of resources, Petrobras and the BNDES selected the Brazilian Fund for Biodiversity (Funbio) as the professional manager of the project through a public call concluded in April. The contract is for seven years, a term that can be extended with new partners are added.
*By Paula Martini — Rio de Janeiro
Source: Valor International