Supporting the restoring of Araribóia and the Mosaico Gurupi
Project Developer
- Future of the Amazon Foundation
Size
- Large
- (8000000)
Maturity stage
- Mature for investment
Country
- Brazil
Financing mechanism
Contact
Rob de Laet
robdelaet@yahoo.com
Link
Environmental benefits
This project aims to support the local Guajajara people to defend and regenerate their forest territory which has been damaged by fire, logging and the invasion by surrounding farmers to clear land for cattle pasture, corn or soybean production, as well as supporting the future the Guajajara want for themselves.
Invited to help with protecting and restoring their forests we has been working on a plan to bring resources together to do so, firstly for the Araribóia area and after to all five Indigenous territories, the Indigenous chiefs have indicated they are very interested in support for forest protection and reforestation and economic benefits for the impoverished Indigenous peoples of the area.
Community benefits
From their share of the income from the Carbon Credits – subject to future prices of Carbon Credits – the Community should be able to transform out of the current state of extreme poverty:
The annual sale of carbon credits, which will be used to fund community projects, will incentivise the local communities to participate in and support the project objectives:
Payment for looking after the trees
The creation of ecologically and economically sustainable jobs for local communities in accordance with their wishes.
The stimulus of cultural activities connected to the Guajajara culture.
The building of ten district hubs for communication, information and education.
Enhancement of Perimeter protection
Strengthening of intercommunity decision making and allocation of funds for projects decided on by the communities.
Strengthening of cooperation with partners from outside the territory.
Business model
The aim is that the Investor will provide $7.95 million dollars required to pre-finance the project over the first five years. Most of the finance will go directly to payment for reforestation by the local people. The carbon credits that will be harvested from the project will be to the tune of 100.000 ton per year for the next 30 years. At an average price of 35 USD per ton, the total cashflow coming from the project will exceed 100 million USD over the duration of the project. At least half of that will go to the community, depending on the financier, this could go up to beyond 60%.