Brazil auctions concession for 453,000 ha of national forest
For the first time, the Brazilian government has auctioned forest management concessions through the stock exchange. A total of 453,401 hectares in the Jatuarana National Forest (Flona), in Apuí, Amazonas state, were auctioned, divided into four Forest Management Units.
The four lots auctioned on the São Paulo Stock Exchange (B3) on Wednesday (May 21) can be sustainably managed for 37 years. The winning companies paid a total of BRL 13.3 million in fixed grants, the amount required to secure the concession contracts. According to the Ministry of the Environment and Climate Change, the concessions are expected to generate BRL 32.6 million per year and create around 2,800 direct and indirect jobs.
The largest lot was awarded to OC Prime Comércio e Industrialização de Madeiras Ltda, with a bid of BRL 244.98 per cubic meter of timber and a fixed grant of BRL 4 million.
The concession permits the sustainable use of timber and non-timber resources, including roundwood, heart of palm, açaí, Brazil nuts, as well as copaíba and andiroba oils.
“Brazil is demonstrating that economic development can be achieved without destroying its forests. The concession in the Jatuarana Forest is an example of an effective public policy, based on economic instruments that value standing forests, protect and enhance socio-biodiversity, and foster prosperity grounded in climate and social justice,” said Minister of Environment and Climate Change Marina Silva.
The project is overseen by the Brazilian Forest Service, part of the Ministry of Environment and Climate Change, with technical provided by the National Bank for Economic and Social Development (BNDES).
“One of the greatest benefits of forest management is that it keeps forests standing while generating income and employment for local communities, thereby ing the formalization of the local and regional economy. Additionally, it helps preserve biodiversity and sustain the provision of environmental services,” said Nelson Barbosa, Director of Planning and Institutional Relations at BNDES.
With Wednesday’s auction, the area of federal forests under concession in Brazil increased by 35 percent. The country now has approximately 1.3 million hectares of federal public forests under concession. According to the ministry, the goal is to expand this to 5 million hectares by 2027, as outlined in its multi-year plan.
