“I have a good area of Preserved Secondary Atlantic Forest, I would like to know where I can get information about the decree that created the Green Rural Product Card for payments for environmental services and how to obtain it in “practice”. Thanks."
This is a question we often get. After all, what is Green CPR?
The Rural Product Certificate is an old acquaintance of rural producers and Brazilian agribusiness. She was created by law 8,929/1994 with the intention of making possible the self-financing of agriculturalists in the investment of their crops.
The main difference between CPR Verde and traditional CPR is that, instead of being obliged to deliver an agricultural or livestock product (eg soy, corn, beans, etc.), the rural producer will commit to preserving the environment on his property. in exchange for financial resources.
Ie, is a credit instrument to finance reforestation activities and maintenance of native vegetation on rural properties. Through it, rural producers receive an incentive to preserve the environment in exchange for financial resources.
The idea is to combine companies, industries or people interested in environmental conservation with rural producers who are willing to preserve forests and apply environmental protection measures.
In the CPR mechanism, the farmer receives money from the issuance of the CPR of a certain rural product, which is often still in the sowing phase, with a promise to deliver the product after the harvest to his investor. In this system, there are clear protections for both sides and the product is tangible.
CPR Verde is regulated by the Decree No. 10,828, in October 2021, which authorized the issuance of CPR for rural products obtained from activities related to the conservation and recovery of native forests that result in the provision of ecosystem services (such as conservation of soil or water resources, forest carbon stock, etc).
As it is a non-tangible resource, it is foreseen in the decree that its issuance be certified by a third party for the indication and specification of the backed products. The biggest question comes from how to generate this title and offer it to the market.
As it is not foreseen in the Decree who these certifying institutions would be, it is a little confusing which is the first step to be taken. In any case, it is important to obtain as much information as possible about the area and the ecosystem service provided, that is, to understand what this service is and how to measure it.
Currently, the environmental services market is better consolidated for carbon, that is, for certified carbon credits. For the CPR-V to be backed, it is likely that the credit must be certified. It will be the same for the other services.
As it is a potential and expanding field, many of these questions will be answered over time and regulations will be developed to better guide the rural producer who wants to invest in it.
There is certainly a lot of potential at CPR Verde!