Soy Moratorium: Third Anniversary
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1 Soy Moratorium: Third Anniversary Annual Report GTS Soy Work Group Carlo Lovatelli - ABIOVE Paulo Adário - Greenpeace Brasília DF July 28, 2009
2 Start: July 24, 2006 Objective: What is the Soy Moratorium in the Amazon Biome? Reconcile economic development and socio-environmental conservation in the Amazon Biome Commitment: Biome after July 24, 2006 Not to trade soy from deforested areas in the Amazon Participants: ABIOVE, ANEC, member companies, NGOs (International Conservation, Greenpeace, IPAM, TNC, WWF-Brasil) and, as of 2008, the Ministry of the Environment 2
3 Monitoring: Areas of Interest Amazon Biome (49% of Brazil s territory) 1 Priority states for monitoring Mato Grosso 2 2 Pará Rondônia 3
4 Criteria for Selecting Polygons Jointly Defined by Companies and NGOs 1. Areas deforested after August Polygons over 100 hectares 3. Municipalities with 5,000 hectares or more of planted soy in crop years 2006/07, 2007/08 and/or 2008/09 4. Municipalities totally or partially in the Amazon Biome 5. Polygons outside the protected areas 6. Pilot Monitoring Project: Deforestation < 100 hectares in the municipalities of Feliz Natal, União do Sul and Vera (Mato Grosso state) 4
5 The Difficulties of Monitoring Short period of time for monitoring selected polygons Adverse climatic conditions impede overflights Difficulties in refueling points for the planes along the route Locations that are remote and difficult to access by land High costs 5
6 State: Mato Grosso Analysis of Satellite Images Municipalities: Nova Maringá Deforested Area: ha PRODES 2007 PRODES 2008 Source: INPE, 2007 Source: INPE, 2008 Source: 2 nd Year of Mapping and Monitoring of Soy Moratorium ID
7 Land Use and Occupation Natural Regeneration Panoramic ZOOM 1 Panoramic ZOOM 2 Source: 2 nd Year of Mapping and Monitoring of Soy Moratorium ID
8 Monitoring of Results Year Monitored Polygons Monitored Area (ha) Area with Soy (ha) % with Soy 2007/ , % 2008/ ,896 1, % Soy is not anymore an important factor in the deforestation of the Amazon Biome 8
9 Polygons with Soy Planting ID Municipality State Total Polygon Area (ha) Soy Planted Area (ha) PILOT PROJECT 53 Feliz Natal MT Feliz Natal MT Feliz Natal MT Feliz Natal MT Feliz Natal MT Pilot Project Subtotal PRODES Feliz Natal MT Gaúcha Norte MT Querência MT Sinop MT Dom Eliseu PA Dom Eliseu PA PRODES 2007 Subtotal 1, , PRODES Feliz Natal MT PRODES 2008 Subtotal General Total 2, , Some of the properties in Mato Grosso state are in the process of being licensed by the environmental entity 9
10 Terms for Acquiring Soy in 2009 ABIOVE and ANEC members, which represent about 90% of the volume traded, did not acquire soy produced in areas deforested after July/2006, a situation identified in 12 properties The electronic recording system for purchases and payments by the companies was fed with data from these 12 properties 10
11 Terms for Acquiring Soy in 2009 Soy purchasing trading operations were automatically blocked and the corresponding payments involving the 12 properties that planted soy in areas cleared after the Moratorium was announced were not processed At the end of the season, there will be an external audit of the companies systems to check whether they bought soy from these 12 properties 11
12 Renewal of the Soy Moratorium Priorities 1. Revision of the monitoring methodology 2. Government zoning of the Amazon Biome 3. Financial compensation for avoiding deforestation 4. Stimulate registration of properties and encourage producers to comply with legislation 12
13 1. Review Monitoring Methodology 1.1. Reason: Change in the deforestation profile, with greater participation of polygons with less than 100 hectares and availability of new technologies for remote systems Objective: Increase and improve the sampling of polygons with less than 100 hectares, keeping the simplicity and operational feasibility of the current monitoring system Strategies: Analyze and propose changes to the next crop s monitoring; Seek academic support for preparing the sampling; Establish specific partnerships with INPE and/or RapidEye to preselect the polygons that need in loco verification. 13
14 Deforestation is Growing in Small Areas of the Amazon Biome < 100 ha > 100 ha Thousands of ha Source: INPE/PRODES. Prepared by: ABIOVE
15 Multitemporal Analyses from Spectral Curves Crop development is monitored through satellite images Ground cover [%] Apr 15 Apr 29 May 13 May 27 Jun 10 Jun 24 Jul 8 Jul 22 Aug 5 Source: RapidEye
16 2. Charge the Government with Compliance of Land Use Policies in the Amazon Biome 2.1. Reason: Private investments by rural and industrial producers need to be guided by definition of the regions destined for agricultural production Objective: Simplify the red tape and support ZEE (Ecological Economic Zoning) procedures in the states which have not yet approved or implemented them Strategies: Publish the importance of this tool for the private sector and charge the parties involved with greater agility in approval and implementation. 16
17 Ecological-Economic Zoning - Fundamental for Regional Development - ZEE allows reconciliation of agricultural/livestock production and environmental conservation - 69% of the Rondônia State are protected areas Source: SEPLAN-RO 17
18 Zoning Rondônia Adaptation by Zone Zones Area Area of the State Reserve Preserved Area Area in Use ha % % ha % ha % Zona 1 12,031, ,564, ,466, ,141, ,066, ,482, ,340, Zona 2 3,483, ,483, ,565, , Zona 3 8,336, ,336, ,808, ,375, ,153, Total 23,851, ,385, ,466, Source: SEPLAN-RO
19 3. Financial Compensation for No Deforestation 3.1. Reason: there is no incentive to compensate the farmer, who gives up the legal right to clear land to produce Objective: Propose and support remuneration mechanisms to put a value on forest conservation (international funds) and compensate the producer for not exercising his right to produce Strategies: Report on the Moratorium in Copenhagen and other forums to seek international funds. 19
20 Cost of Brazil s Environmental Policy Legal Reserve (80%) and Land Use Rights (20%) The producer needs to be compensated for avoiding deforestation and for rendering environmental services in the Legal Reserve Fontes: FNP 2008 Agrianual, Banco Central do Brasil, Banco Central da Argentina e Federal Reserve. Elaboração: ABIOVE. 20
21 International Responsibility Interview: Connie Hedegaard, Denmark s Minister of Climate and Energy Veja Magazine: Are you in favor of compensating countries such as Brazil or Indonesia for reducing deforestation? Hedegaard. This is a crucial point. If I were a Brazilian farmer with property in the Amazon, I could make money planting soy, but I would not profit by keeping the trees. I would need an incentive to do this. In the same way, we should create, through international negotiations, mechanisms to compensate the countries that are able to protect the forest. Source: Revista Veja, October 08,
22 Payment for the Environmental Service Producer Generates Benefits for Society Conservation of native fauna and flora and High Conservation Value Areas; Control over erosion and recovery of degraded soil by No Till; The increase in the area where solar radiation is reflected by No Till residue helps reduce global warming. 22
23 4. Stimulate Registration of Properties and Encourage Producers to Comply with Legislation 4.1. Reason: property registration through georeferencing with an environmental entity is the most advanced stage of improved Biome governance Objective: increase the number of registered properties and charge the Federal Government with supporting improvements to the structure of the state registration and licensing programs Strategies: Promote awareness campaigns among the producers; Hold meetings with state entities and the Ministry of the Environment; Create a stimulation system to comply with legislation and good practices through voluntary and remunerated verification. 23
24 Registration and Licensing Amazon Biome - Definition of Legal Reserve Area (80%) and Permanent Preservation Areas - Protect High Value Conservation Areas
25 Permanent Preservation Area - Varies from 30 to 500 meters on each margin according to the width of the water course - Protects the riparian forest, avoids silting and contamination of the water courses
26 ABIOVE and ANEC Proposal: A New Verification System Rural property certification system: voluntary and remunerated Simple, representative and transparent Adequate for the Brazilian producer s reality regarding the global consumer s wishes National reach Partnership with the NGOs of the Soy Moratorium Audited by national and international companies/entities 26
27 General Principles 1. Legal compliance 2. Social responsibility 3. Environmental sustainability 4. Best agricultural practices 27
28 Pillars of Verification System Soy Moratorium Pact for eradication of degrading working conditions Brazilian social and environmental legislation Metrics system continued improvement Other certification systems 28
29 Main Aspects of the Renewal 1. Improve the monitoring process 2. Define the Ecological-Economic Zoning (ZEE) for the Biome 3. Register properties and compensate producers for avoiding deforestation 4. Verification system that is wide-reaching, simple, representative and transparent 29
30 All this information is available on the site STTR de Santarém 30
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