1 Public Disclosure Authorized Document of The World Bank Public Disclosure Authorized Public Disclosure Authorized FOR OFFICIAL USE ONLY INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT PROGRAM DOCUMENT FOR A PROPOSED FIRST PROGRAMMATIC REFORM LOAN FOR ENVIRONMENTAL SUSTAINABILITY IN THE AMOUNT OF US$ MILLION TO THE FEDERATIVE REPUBLIC OF BRAZIL Report No BR Public Disclosure Authorized July 26,2004 Environmentally and Socially Sustainable Development Unit Brazil Country Management Unit Latin America and the Caribbean Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.
2 CURRENCY EQUIVALENTS Currency Unit = Real EXCHANGE RATE December 31, R$2.65 = US$ 1 December 31, R$3.52 = US$ 1 December 31, R$2.90 = US$ 1 WEIGHTS AND MEASURES Metric System FISCAL YEAR January 1 - December 31 Vice President: Country Director: Lead Economist: Sector Director: Sector Manager: Task Manager: David de Ferranti Vinod Thomas Joachim von Amsberg John Redwood Abel Mejia Luiz Gabriel T. Azevedo
3 AAE ANA ANEEL APP BNDES BOD BR-163 CAS CDM CITES CNRH CONAFLOR CONAMA CONASQ c02 EC EMB I E.MBRAPA EMS EnvPRL EPE FA0 FDl FNMA GDP GEF GMO GOB IBAMA ICMS INPE IOF PEA MDGs MDG I MDG 4 MDG 7 MMA MIME MP MT NGOF OECD OEMA P2R2 PAS PCF PNF PNRH PPA PRL PROAGUA PROCEL FOR OFFICLAL, USE ONLY ABBREVIATIONS AND ACRONYMS Avaliaylo Ambiental EstratCgica &encia Nacional de Aguas Aghcia Nacional de Energia ElCtrica kea de Proteylo Permanente, Banco Nacional de Desenvolvimento Econamico e Social Demanda Bioquimica de Oxigenio Rodovia Federal que liga Cuiabi a Santadm Estrattgia de Assistsncia para o Pais Mecanismo de Desenvolvimento Limpo ConvenyBo sobre o comtrcio intemacional das esp4cies da fauna e da flora selvagens ameayadas de extinylo Conselho Nacional de Recursos Hidricos Comisslo Coordenadora do Programa Nacional de Florestas Conselho Nacional de Meio Ambiente ComissHo Nacional de Seguranya Quimica Gis CarbGnico Emenda B Constituiylo hdice de Titulos da Divida de Mercados Emergentes Empresa Brasileira de Pesquisa Agropecufia SISNAMA - Sistema Nacional do Meio Ambiente Emprtstimo de Reforma Programitica para o Programa de Sustentabilidade Ambiental Empresa de Pesquisa Energttica OrganizaG2o das Naydes Unidas para Agricultura e AlimentayHo Investimento Estrangeiro Direto Fundaygo Nacional de Meio Ambiente Produto Intemo Bruto Fundo Global para o Meio Ambiente Organismos Geneticamente Modificados Govemo do Brasil lnstituto Brasileiro do Meio Ambiente e dos Recursos Naturais Renoviveis lmposto sobre CirculaCBo de Mercadorias e Services lnstituto Nacional de Pesquisas Espaciais Imposto sobre Operayks Financeiras lnstituto de Pesquisa EconBmica Aplicada Metas de Desenvolvimento do Milenio Meta de Desenvolvimento do MilCnio No 1 - Erradicar a extrema pobreza e a fome Meta de Desenvolvimento do Milenio No 4 - Reduzir a mortalidade infantil Mrta de Desenvolvimento do Milenio No 7 - Garantir a sustentabilidade ambiental Ministtrio do Meio Ambiente Ministtrio de Minas e Energia Minirttrio Publico Ministtrio do Turismo Organizaydes NBo Govemamentais Organizay5o para CooperaGZo EconBmica e Desenvolvimento OrgHos Estaduais de Meio Ambiente Produtos Quimicos Perigosos Plano AmazBnia Sustentivel Fundo de Prot6tipo de Carbono Programa Nacional de Florestas Plano Nacional de Recursos Hidricos Plano Plurianual Einprestimo de Reforma Programbtica ProsguaiSemi-brido Programa de Combate ao Desperdicio de Energia ElCtrica Strategic Environmental Assessment National Water Agency National Electric Energy Agency Permanent Protected Areas National Bank for Economic and Social Development Biochemical Oxygen Demand Federal highway that connects CuiabA to SantarCm Country Assistance Strategy Clean Development Mechanism Convention on Intemational Trade in Endangered Species of Wild Fauna and Flora National Water Resources Council Coordination Committee of the National Forest Program National Environmental Council National Chemical Security Commission Carbonic Gas Amendment to the Federal Constitution Emerging Markets Bond Index Brazilian Agricultural Research Company Environmental Management System Programmatic Reform Loan for Environmental Sustainability Program Energy Research Company Food and Agriculture Organization of the United Kations Foreign Direct Investment National Environmental Fund Gross Domestic Product Global Environmental Facility Program Genetic Modified Organisms Govemment of Brazil Brazilian Institute for Environment and Renewable Natural Resources State Sales Tax National Space Research Institute Tax on Financial Transactions Institute for Applied Economic Research Millennium Development Goals Millennium Development Goal #1 - Eradicate Extreme Poveny and Hunger Millennium Development Goal #4 - Reduce Child Mortality Millennium Development Goal #7 - Ensure Environmental Sustainability Ministry of Environment Ministry of hiining and Energy Public Prosecutor s Office Ministry of Tourism Non-Gowrmnental Organizations Organization for Economic Co-operation and Development State Environmental Agencies Hazardous Chemical Products Sustainable Amazon Plan Prototype Carbon Fund National Forestry Program Water Resources National Plan Multi-Year Plan Programmatic Reform Loan Federal Water Resources Management Project National Program to Combat Electrical Energy Waste This document has a restricted distribution and may be the performance of their official duties. Its contents may not be otherm7ise disclosed without World Bank authorization.
4 PRODES PROINFA RFPP RL SEA SAL SELIC SINGERH SIPAMISIVAM SISNAMA SNUC SRH SWAP TAC TAL TC TFP UNDP WG WWF ZEE Programa de DespoluiqBo de Bacias Hidrogrlficas Programa de Incentivo i s Fontes Altemativas de Energia Elktrica Programa Piloto para a ProtepBo das Florestas Tropicais do Brasil Reserva Legal AvaliapBo Ambiental Estratkgica Emprtstimo de Ajuste Estrutural Sistema Especial de LiquidapBo e de Custddia Sistema Nacional de Gerenciamento de Recursos Hidricos Sistema de ProtepBo da Amazbnia / Sistema de Vigillncia da Amazbnia Sistema Nacional do Meio Ambiente Sistema Nacional de Unidades de ConservapBo da Natureza Secretaria de Recursos Hidricos Instrumento de Abordagem Setorial Termo de Ajustamento de Conduta Emprkstimo de Assistencia Tkcnica Comite Tkcnico Produtividade Total dos Fatores Programa das NapBes Unidas para o Desenvolvimento Grupo de Trabalho Fundo Mundial para a Natureza Zoneamento Ecoldgico Econbmico Water Basins Restoration Program Brazilian Renewable Energy Incentive Program Pilot Program to Conserve the Brazilian Rain Forest Legal Reserves Strategic Environmental Assessment Structural Adjustment Loan Clearance and Trustee System National Water Resource Management System Amazon Protection System / Amazon Surveillance System National Environment System National System of Conservation Units Water Resources Secretariat Sector-Wide Approach Conduct Adjustment Agreement Technical Assistance Loan Technical Committee Total Factor Productivity United Nations Development Program Working Group World Wildlife Fund Environmental-Economic Zoning
5 BRAZIL FIRST PROGRAMMATIC REFORM LOAN FOR ENVIRONMENTAL SUSTAINABILITY Table of Contents LOAN AND PROGRAM SUMMARY... EXECUTIVE SUMMARY Introduction The Economy and Environmental Sustainability... 3 A. Recent Economic Developments Annexes B. Economic Growth. Poverty Reduction and Environmental Sustainability... 7 Environment in Brazil A. Main Environmental Issues B. Environmental Management in Brazil C. Major Recent Advances D. Government Program- Environmental Reform Agenda (PPA ) E. Future Improvements to Environmental Policy The Programmatic Framework and the Proposed Loan Program. 34 A. Objectives. Structure and Justification B. Program Content and Design C. Analytical Underpinnings D. Design of the Proposed First Loan E. Loan Amount. Conditions. and Arrangements Links to the CAS and other Bank Group Operations A. Link to the Country Assistance Strategy B. Complementarity with Other Operations C. Review and Lessons Learned from Other Operations Risks and Risk Mitigation A. Risks B. Risk Assessment and Mitigation i iv Annex I: Annex II: Annex 111: Annex IV: Annex V: Annex VI: Annex VII: Annex VIII: Letter of Development Policy. Portuguese version. Original Letter of Development Policy. English version. Translated Policy Matrix The Matrix of the Government Program Protected Areas Recent Trends in the Deforestation of the Brazilian Amazon Environmental Responsibilities by Level of Government Environmental Licensing in Brazil Federal Public Expenditures in Brazil
6 Annex E: Programs of the Ministry of Environment for Annex X: List of Bank s Analytical Work Annex XI: IFC S Environmental Activities in Brazil Annex XII: IMF Note Annex XIII: Statement of Loans and Credits Annex XIV: Brazil Statement of IFC Held and Disbursed Portfolio Annex XV: Country at a Glance This Program Document was jointly prepared by Luiz Gabriel Azevedo, Sergio Margulis, Gar0 Batmanian, Dorte Verner, Josef Leitmann, Mark Thomas, Maria ValBria Pena, ZezB Weiss, JosB Augusto Carvalho, Fldvio Chaves and Juliana Garrido under the supervision of Abel Mejia and Joachim von Amsberg. Consultants were Luiz Noronha, Alexandre Fortes and Christoph Diewald. Comments and inputs were provided by Todd Crawford, Jan. P. Bojo, Guillermo Perry, Mauricio Carrizosa, Harold Bedoya, Adriana Moreira, Lilian Pena, Gregor Wolf, Robert Schneider, Daniel Gross, Dan Biller, John Redwood, Kenneth Chomitz, Lisa da Silva, Angela Furtado and Mauro Azeredo, Ernest0 Sanchez-Triana, Martin Gambrill, Kulsum Ahmed, Mary C. Sheehan, Regis Cunningham. Peer reviewers were Paulo Guilherme Correa and Aziz Bouzaher. The team is grateful to Tatiana Teles, Greicy Amjadi, Cristina Roriz, and Lilian Santos for logistics and support.
7 BRAZIL FIRST PROGRAMMATIC REFORM LOAN FOR ENVIRONMENTAL SUSTAINABILITY LOAN AND PROGRAM SUMMARY Borrower: Implementing Agency: Poverty Category: Amount: Terms: Commitment Fee: Front-End Fee Objective: Description: Federative Republic of Brazil Ministry of Finance and Ministry of Environment Not Applicable US$ million (single tranche) Fixed-spread loan in US dollars, with a repayment period of 17 years including five years of grace percent per annum during the first four years and 0.75 percent per annum thereafter on undisbursed loan amounts, beginning to accrue sixty days after the loan agreement i s signed. 1 percent of the loan amount, to be financed under the loan. The principal objective of the proposed program is to support Brazil s goal of balancing economic growth with social development and the maintenance and improvement of environmental quality. In line with the CAS, the program would contribute to the objective of a more sustainable Brazil to reduce poverty and achieve a higher quality of life for all Brazilians in both rural and urban areas. A sustainable Brazil will also be a source of competitiveness and provide wealth for the future. The proposed loan forms a significant part of the Bank s overall assistance strategy to an innovative, committed, and high-performing client. The proposed loan will support environmental sustainability through policy reforms focusing on two major areas: (i) increasing the effectiveness and the efficiency of the environmental management system; and (ii) mainstreaming environmental sustainability in selected sector policies and programs. This loan would be the first operation in a series of up to three loans over a four-year period, possibly totaling US$ 1.2 billion. The proposed operation does not involve additional spending and focuses on policy and institutional changes that should lead to more effective and efficient environmental management. A companion Technical Assistance Loan of up to US$ 10 million is planned to follow this operation. The program is expected to result in the improvement of
8 Benefits Risks environmental conditions in the medium and long term. The set of policy and institutional reforms supported by the proposed loan include: (a) increasing the transparency and social control of the environmental management system (EMS); (b) improving the effectiveness of the EMS through better coordination and clearer definition of responsibilities among the three levels of government; (c) increasing the use of economic instruments as compared to commandand-control mechanisms; (4 promoting sustainable development in the Amazon and the protection of other key ecosystems; (e) improving water resources management through increased decentralization, improved local management and increased financial autonomy; and promoting the upstream inclusion of environmental sustainability concerns in sector policies and programs, as well as in the planning and implementation of major development projects. The short-term benefits of the project include a more effective and responsive environmental management system, which will improve the business environment in the country. It will also signal to society as a whole GOB S serious commitment to the long-term environmental sustainability of its development path. The loan will contribute to the establishment of a framework for dialogue and improved collaboration on environmental sustainability among key sectors in the Government, as well as the private sector and civil society. The loan also reduces external vulnerability by covering part of Brazil s external financing requirements and bolstering net international reserves. The loan is proposed on the basis of a continuous and sound management of the macro economy which is assessed as part of the ongoing dialogue and review. The project s longer-term benefits entail welfare gains associated with improved environmental conditions in the country, which should in principle accrue proportionally more to poorer populations. If successfully implemented, the policies supported by the loan will contribute to: improving Brazil s environmental management system; while increasing the sustainable management of water resources, forests and biodiversity; strengthening the capacity to respond to environmental emergencies; and incorporating of environmental concerns in the planning and implementation of major development projects (mainstreaming), among others. This will result in improved environmental quality, which will in turn foster sustainable growth and economic development. The companion technical assistance loan (TAL) will contribute to building the knowledge base required for the advancement of the reform agenda and to improving the Government s capacity to both monitor environmental indicators and manage the implementation of priority programs for results. The proposed loan is the Bank s first programmatic reform loan package in Brazil to support environmental sustainability strictly through policy.. 11
9 reforms. For this reason, the more concrete impacts of the project and program in terms of improved environmental conditions, which are naturally its ultimate objective, require a longer period to materialize. Its impacts should therefore not be assessed based on short-term changes in environmental conditions, but in terms of policy reforms and institutional conditions leading to them. The risk of failure is higher for a novel operation simply because there is less past experience to draw from, and thus a higher degree of uncertainty. The following risks have been identified: (a) the environmental reform agenda is not carried out adequately, i.e. not in the agreed scope or within the expected timeframe; and/or (b) reforms are carried out as agreed, but do not have the desired impacts in terms of the behavioral changes of economic agents, environmental quality and natural resource conservation. The latter is more technical in nature and depends on the complex links between environmental policies and outcomes. This is an important risk in light of the complexity of environmental effects, but it is an issue faced by all countries and requires continued attention. The possibility of the reform agenda not being carried out as planned is considered a high risk. This is primarily because of macroeconomic, coordination and institutional risks. First, the economy remains vulnerable to external shocks and social and political pressures that could dilute the Government s focus on the sustainability agenda; second, lack of coordination among the key stakeholders could affect program implementation; third, discussions on future reforms and the approval process by the Congress could take longer than estimated;fourth, a change in leadership in individual ministries could lead to a delay in the implementation of the reforms; and fifth, vested interests could oppose and delay the implementation of key elements of the reform agenda. These risks have been explicitly recognized and have been partly mitigated by: (i) complementary operations; (ii) the proposed technical assistance loan; (iii) transparent and participatory preparation; (iv) upstream consultation with civil society; (v) strong Government ownership; (vi) due diligence; (vii) realistic expectations; and (viii) a programmatic framework that is flexible. All things considered, the program s overall risk is high. On the other hand, if it is successful, the potential returns would be far higher, and hence the strong justification for the proposed operation. Financing Plan Net Present Value Single tranche disbursed after effectiveness Not Applicable Project ID Number PE-P LEN-BB
10 EXECUTIVE SUMMARY 1. This document proposes a First Programmatic Reform Loan for Environmental Sustainability of US$ million to the Federative Republic of Brazil. This loan would be the first in a series of up to three loans over a four-year period, possibly totaling US$ 1.2 billion, and support key measures within a broader government program for the reform of environmental management. The loan would be accompanied by a separate Technical Assistance Loan (TAL) of up to US$ 10 million. The strategic objective of the program is the consolidation of the process to revitalize environmental policy in Brazil. The expected outcome of the program over the course of four years would include significant improvements in the environmental management system and a reversal in a few selected but critical environmental trends. The program and proposed loan provide direct support for sustainability, which together with equity and competitiveness, is one of the three pillars of the CAS and of the Government's own strategy. Objective and justification 2. The principal objective of the proposed program is to support Brazil's goal of balancing economic growth with socio development and the maintenance and improvement of environmental quality. In line with the CAS, the program would contribute to the objective of a more sustainable Brazil, to reduce poverty and achieve a higher quality of life for all Brazilians in both rural and urban areas. A healthy natural and physical environment provides basic services in both urban and rural areas in a sustainable and efficient way (MDG 7). It will build on the country's comparative advantage in natural resources while also conserving them. A sustainable Brazil will also be a source of competitiveness and provide wealth for the future. 3. The proposed programmatic policy-based loans would complement existing programmatic approaches involving both investment and capacity building in such key priority areas as: public sector environmental management at the national and subnational levels (NEP II), soil conservation and micro-basin management in the south and southeast, water resource management in the northeast, biodiversity conservation and forest management in the Amazon (PPG7, ARPA, PROARCO, etc.), and urban sanitation improvements, etc., with which the Bank and GOB'S other partners (IDB, KfW, USAID, IFC, WWF, etc.) have been closely involved over the past two decades. Together, this unique combination of adjustment, investment, and institutional strengthening lending represents one of the most -- if not the most -- complete and comprehensive "packages" of Bank support to environmental improvement and sustainable development anywhere in the world. 4. The loan would build on recent analytical work. The program rests on a solid foundation, stemming from a body of analytical work carried out by the GOB, the Bank, bilateral institutions (KfW, USAID, DFID, etc.), the IDB, Brazilian and international researchers, and NGOs (e.g. IMAZON, PAM, ISA, SOS Mata Atliintica, WWF, CI, iv
11 TNC, etc.) over the past two decades. The results of much of this work have been used and summarized in the Policy Notes prepared by the Bank for the current administration. Economic and sector work has focused primarily on the following topics: (i) the sustainable development of the Amazon, including forest management; (ii) causes and dynamics of deforestation; (iii) water resources management; (iv) urban water supply and sewerage issues and their health impacts on the poor; and (v) urban air and water pollution issues and their impact on the poor. 5. The Government has requested an adjustment operation from the Bank to support its environmental sustainability program and to mainstream environmental objectives more firmly in its broader development agenda. This choice for a programmatic policy-based operation follows the recently completed CAS, which indicates that policy-based (or adjustment) lending aims to galvanize and support policy reforms. Experience shows that programmatic adjustment lending, which shifts the emphasis to lending in response to reforms already enacted rather than conditioning loan disbursements on predefined government actions, increases countries commitment to reforms. Brazil s external vulnerability makes the flexibility of programmatic lending especially advantageous. Given the Bank s small financial role, such programs require a strong lead from the Government. 6. Brazil has used the programmatic framework successfully in the recent past, with two loans each made under the Fiscal Reform Programmatic Structural Adjustment Loan series and the Financial Sector Programmatic Structural Adjustment series. More recently (June 2003), a programmatic loan series in the area of human development policies, and a loan series focusing on sustainable and equitable growth (January 2004) were launched. The currently proposed operation focusing on environmental sustainability would lead to one broad program of policy-based lending in each of the CAS thematic areas. 7. The proposed loan forms a significant part of the Bank s overall assistance strategy to an innovative, committed, and high-performing client. In recent years Brazil has cemented a development strategy that combines reinforcing the disciplined approach to macroeconomic management, establishing best-practice social programs targeted at the poor, consolidating progress in health and education, tackling microeconomic reforms to ignite growth, and building the institutional bases for environmental sustainability. The proposed loan should therefore be seen in the wider context of support to a coherent development strategy in Latin America s largest economy. The Government s approach 8. There are indications that the Government will grasp the opportunity to focus on the sustainability agenda, but also concerns that the opportunity may pass, and that environmental indicators may deteriorate. Lagging behind on the Brazil Equitable - Competitive - Sustainable - Contributions for Debate, prepared in 2002 and published in Of special relevance for the EnvPRL are chapters 8,9, 10 and 11. V
12 sustainability pillar could have a significant impact on Brazil s overall development agenda. The proposed operation is intended to consolidate the emerging trend toward a stronger focus on sustainability and support the Government s efforts to avoid backsliding. The current administration team has already made some clear commitments to implement a model of sustainable development, maintaining and furthering existing initiatives and pursuing necessary advances in the country s environmental management system (EMS). Continued progress has been observed in the management of water resources, in creating a more concerted effort to address the problem of deforestation in the Amazon, in promoting a dialogue with sector ministries and other levels of government, and involving civil society in reviewing instruments, norms, and regulations in various fields. 9. The proposed programmatic operation recognizes the Federal Administration s renewed commitment to address the major environmental problems and challenges facing Brazil, mainstreaming the environment by synchronizing environmental objectives with the government s broader development objectives. Also, the proposed operation endorses the recent evolution of the EMS and the Federal Administration s vision for its longer-term reform. 10. The proposed operation does not involve additional spending and focuses on policy and institutional changes that should ultimately lead to a more efficient and effective environmental management. If successfully implemented, the loan will contribute to: improving Brazil s environmental management system; increasing the sustainable management of water resources, forests and biodiversity; increasing capacity to respond to environmental emergencies; and increasing the incorporation of environmental concerns in the planning and implementation of major development projects (mainstreaming), among others. This will result in improved environmental quality to foster sustainable growth and economic development. The supported reforms are entirely in line with what the Bank also considers key improvements in the country s environmental management system. This should come as no surprise, given the excellent long-lasting relationship between the Bank and the Government in the environmental area, allegedly one of the strongest among all sectors. 11. The proposed programmatic policy-based approach, divided into three stages with clear triggers will provide the right incentives to sustain progress in mainstreaming environmental considerations in sector policies, which is one of the major pillars of the improvements needed in the national environmental management system. It will also help align the interests of the Finance Ministry, which can influence many of the sectoral ministries where mainstreaming is necessary, with environmental management concerns, thus being of interest to the Environment Ministry as well. The loan helps to build coordination across ministries, an important dimension reflected in the Development Policy Letter as well. 12. This program is justified by the sound overall economic management of the Government. As detailed in the CAS and other recent Bank documents, Brazil s govemment is effectively addressing the double challenge of macroeconomic
13 vulnerability and fiscal constraints as well as social deficits. Financing provided under this loan will help meet Brazil s external financing requirements as well as its public sector borrowing requirements. The structure and content of the program 13. The strategy for this first proposed operation is to focus on the GOB S shortterm policies and programs that can lay the foundation for supporting the achievement of its long-term objectives for environmentally sustainable economic development and poverty reduction. It is divided into two main components: (a) the first focuses on issues under the more direct influence and control of the Ministry of Environment - institutional strengthening, better coordination of the National System of Environment Management (SISNAMA), and flexible instruments and social control; and (b) the second focuses on issues the resolution of which depends on a high degree of involvement and collaboration across specific economic sectors, i.e., on mainstreaming. 14. Specifically, the first loan would support the following reforms and actions that are critical and strategic for attaining the program s overall desired outcomes and underpinning the Government s commitment to a change in the direction of its environmental policy: Improving the effectiveness of the environmental licensing process and integration among the three levels of government, providing for clearer definition of functions and responsibilities, and eliminating gaps and overlaps in the licensing process; Approval of the transparency law to allow public tracking of the licensing process, so as to contribute to clearer rules of the game and improved efficiency by increasing social controls; Establishment of a public career category of environmental specialists and hiring of new staff for MMA and IBAMA with the objective of improving institutional effectiveness; Approval of a law establishing the conditions and means for water basin management to allow basin agencies to serve as the executing arm of basin committees and to collect bulk water tariffs; Creation of an inter-ministerial working group to work on plans for the prevention and control of deforestation followed by the launch of the first action plan for controlling deforestation in the Amazon and introducing sustainability in its growth strategies; Establishment of an inter-ministerial working group for the sustainable development of the BR-163 region in the Amazon, allowing for the implementation of a zoning exercise (ZEE) prior to the future paving of the road in the Amazon region; Approval of the Atlantic Rainforest Law by the House of Representatives, which represents a first important step towards the consolidation of a legal framework vii