• Lead-organizer: Boticário Group Foundation
  • 09:30 - 11:00
  • Date: 19 Jun 2012
  • Room: T-9

Institutional arrangements for projects of PES in Lat. America & Brazil

Organizing partners

Boticário Group Foundation for Nature Protection
World Bank
Minas Gerais State Attorney?s Office
Mitsubishi Corporation Foundation


The purpose of this roundtable is to present an overview of the projects on Payment for Environmental Services (PES) in both Latin America and Brazil until the present day. An overview will be presented of this tool by representatives from the World Bank and the initiatives by the Boticário Group Foundation (Oasis Project) in partnership with government agencies (Minas Gerais State Attorney?s Office) and private social investment (Mitsubishi Corporation Foundation) will be highlighted as a model of PES involving several stakeholders which has succeeded since 2006.

Detailed programme

Environmental services are those which are supplied by natural ecosystems and the species that form them, in order to sustain the conditions to the maintenance of human life on Earth (Daily, 1997), such as, for instance: air and water purification; mitigation of floods and draughts; pollination of both agriculture and natural vegetation; pest control; seed dispersal and nutrient cycling; the conservation of biodiversity, from which humankind depends for food, medicine and industrial development; climate regulation, an aesthetic and intellectual stimulus for the human spirit.
Each year, environmental problems grow due to high deforestation rates, pollution, and environmental degradation. As a result, the consumption of environmental services by society is exceeding the capacity of support from land and marine ecosystems. Why not, then, pay for them? When we consume a service or a product at a cost, a trend arises that its use occurs in a rational manner (Heal, 2000).
Within this context, the Payment for Environmental Services (PES) arises as an economic acknowledgement of the protection of ecosystems and the sustainable use of the soil, through the ?protector-receiver? and ?user-payer? concepts (Ministry of Environment of Brazil, 2011). This means that landowners who protect their natural areas, and as a result provide environmental services, can be awarded for their efforts in maintaining these services. Until 2008, the ?State of Watershed Payments? (Stanton et al. 2010) lists 127 PES projects being undertaken, with an estimated value of US$ 9.3 billion.
Launched in 2006 by the Boticário Group Foundation for Nature Protection - a Brazilian non-profit institution established in 1990 which has the mission statement of promoting and performing nature conservation actions, the Oasis project financially awards rural landowners who conserve natural areas in their properties. This initiative, which has been implemented in São Paulo (SP), Apucarana (PR), and São Bento do Sul (SC), has undergone a review and methodological evaluation because of the growing demand, giving way to a new, more flexible, model of PES calculation, which is capable of attending different social, economic, and environmental realities all over Brazil, which was created as part of the initiative?s national expansion process.
In addition to a new calculation formula for environmental valuation of properties, a computer system was developed for online management, as well as an implementation manual which helps partner institutions to plan and structure their local projects, to define the environmental valuation calculation, to select landowners, to monitor and assess results, as well as to seek possible financing sources.
Within this context, the State Attorney?s Office of Minas Gerais, in search of alternatives to establish biodiversity conservation mechanisms at the Serra da Moeda, to the southwest of Brumadinho (MG), sought the Boticário Group Foundation to establish a partnership aiming at the implementation of a PES project focused on the conservation of natural areas and their subsequent benefits to the availability and quality of water in the area.
This project provides the support from the State Attorney?s Office in making financial resources available for the implementation of the project as well as the partnership by the Associação Mineira de Defesa do Ambiente (AMDA) as local co-executor, for property registering and monitoring. The union of the potential of action by the State Attorney?s Office with the technical know-how by the Boticário Group Foundation is featured as an alternative to strategies ensuring the conservation of this watershed.
The Boticário Group Foundation is responsible for the management and operation of the Oasis Project, whose investment added to, between 2006 and 2011, approximately US$ 1.1 million. Throughout the project?s almost six years of activity, 226 landowners were awarded who are responsible for the protection of almost 2,500 hectares of Atlantic Forest and 714 springs in the various places where the project is being undertaken.
- Gunnars Platais, economist, is specialized in valuation of environmental services at the World Bank. Their contribution will be based on the lessons learned from the various projects in Latin América and in Brazil that they have led over the last years, emphasizing the importance of guaranteeing the sustainable financing for the initiatives.
- Carlos Eduardo Ferreira Pinto, Esq., an attorney from the Minas Gerais State Attorney?s Office, speaks about the strategy of working on watersheds, the advantages they present in the relationship with rural landowners, in the execution of projects and planning their actions. Approach on the financial aid provided by the World Bank and the partnership with the Boticário Group Foundation in the Oasis Project Brumadinho;
- Private social investiment in projects of payment for environmental services (lecturers from Mitsubishi Corporation Foundation)
- A representative from the Boticário Group Foundation for Nature Protection: presentation of the Oasis Project, the model of PES project involving several stakeholders, which has been developed since 2006.
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