GREEN CPR
FORTE 3 brings to agribusiness and rural landowners in Mato Grosso do Sul, Mato Grosso, Rondônia, the proposal to subsidize the issuance of the green CPR, through a project to implement the GREEN CPR, among others environmental preservation actions, with a team specialized in the area.
In October 2021, President Jair Bolsonaro signed the decree that created the so-called CPR Verde (Cédula de Produto Rural – Verde), a credit instrument made to finance reforestation activities and the 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 producers who are willing to preserve forests and apply environmental protection measures.
In practice, Green CPR is an instrument of Payment for Environmental Services (PSA)🇧🇷 “Whoever owns a rural property and preserves it, begins to receive Payment for Environmental Services for the first time. [The PSA] will bring billions to preserve the environment, forests, parks. Do you have a park, do you want to encourage conservation? Is the living tree worth more than the dead tree? Yes, if they pay for the preservation”, explained the minister of economy, Paulo Guedes, on the occasion of the launch of the measure.
Payment for the standing forest
The CPR-Verde is a document that allows the negotiation of “environmental deliverables”. that is, remuneration for actions such as the preservation of springs, biodiversity, reduction of greenhouse gases, among others, from green bonds that represent the standing forest or native forest on a particular rural property, or even in legal reserves.
In other words, it is the so-called “payment for the standing forest”, in which the rural producer who preserves native vegetation receives financial resources in return. The objective of the green CPR is to encourage environmental preservation within agribusiness.
“Brazilian agriculture has to be seen as a whole and you have the productive part, but you also have the forest conservation and recovery part. So CPR Verde is precisely for that, so that by encouraging the Payment for Environmental Services market, you have this backing for these products that aim to reduce greenhouse gases, maintain or increase the stock of forest carbon, which contribute to the reduction of of deforestation and degradation of native vegetation, conservation of biodiversity, conservation of water resources, soil and other ecosystem benefits that already come from the conservation and recovery of native forests”, explains the secretary of the Ministry of the Environment, Marta Giannichi.
How does CPR Verde work in practice?
In practice, it works like this: a rural producer who has a native forest conservation project, for example, can transform this initiative into an asset to be negotiated with a company or institution that wants to make a carbon offset or protect a certain area of interest. of biodiversity.
In order to be traded, this security must be certified by an independent entity. such certification must certify, for example, the amount of carbon that can be subject to the CPR Verde.
With the certification in hand, the two parties will define the clauses referring to the environmental asset, including, among other points, the forms of payment, which can also be made by an escrow account. It is worth remembering that the “Green CPR” can be issued by rural producers, associations and cooperatives.