The Brazilian Forest Code Rules and obligations Brasilia March, 2017

The new Forest Code – Three main obligations: Law # 12.651 / 2012 The new Forest Code – Three main obligations: 1st Rural Environmental Registraty – CAR Electronic registry that has all relevant information from the environmental characteristics for all rural property in the Rural

2nd Permanent Preservation Areas – APP Law # 12.651 / 2012 2nd Permanent Preservation Areas – APP Sensitive areas that must be preserved due to their location, such as surrounding rivers, hilltops and very steep areas

Law # 12.651 / 2012 3st Legal Reserve The maintenance of a percentage of natural vegetation of the property - varies according to the region in which a property is located

Law # 12.651 of 2012 Transition Rules

Law # 12.651 of 2012 Transition rules Adjustment process: 1. Registration in Rural Environmental Registry – CAR 2. Adhesion to the Environmental Regularization Program (PRA) – specific rules for each Brazilian State 3. Specifying how to adapt in a project - PRADA 4. Signing a commitment term 5. Implementing and monitoraring 6. The environmental suitability of the rural property to the Law

Law # 12.651 of 2012 Transition rules Project for Recovery of Degraded and Altered Land - PRADA: Specifying how to adapt Legal Reserve or Permanent Preservation Area deficits in a project

Permanent Preservation Areas - APP Regularization of Permanent Preservation Areas Re-planting native species and, if it´s a small property, the owner should mix that with exotic commercial species that can reach up to 50% of the total amount planted Properties of maximum sizes defined by region - ranging from 20 to 440 hectares Natural Regeneration by the isolation of the area, provided that this viability is technically identified

Regularização do déficit de Reserva Legal Legal Reserve Regularização do déficit de Reserva Legal Re-planting native species and the owner should mix that with exotic commercial species that can reach up to 50% of the total amount planted Natural Regeneration Regularization of Legal Reserve Using of land on another property held by the same owner Leasing an area on another property Compensation Donation to the Public Agency an area inside a Protected Area Forest Reserve Credits (CRA

Law # 12.651 / 2012 Transition rules Legal Reserve Compensation Limitations: • Clear cut (deforestation) had to be done prior to 2008 - the compensation cannot be used for deforesting new areas; • It should be done in areas which are in the same biome; and located in the same State or in prioritized areas in other States.

Law # 12.651 / 2012 Transition rules Legal Reserve Compensation Forest Reserve Credits (CRA) are instruments to allow Legal Reserve offsetting among rural properties. Legal Reserve Surplus Productive Area Legal Reserve Legal Reserve Deficit

Reserva Legal Donation of lands to the Public Agency in Protected Areas The Legal Reserve can be offset by the acquisition of properties inside Protected Areas, with the payment to the former owner, and the donation to the State. Compensation

Legal Reserve Exchange Online platform

Law # 12.651 / 2012 Transition rules Adjustment process: 1. Registration in Rural Environmental Registry – CAR 2. Adhesion to the Environmental Regularization Program (PRA) – specific rules for each Brazilian State 3. Specifying how to adapt in a project 4. Signing a commitment term 5. Implementing and monitoring 6. The environmental suitability of the rural property to the Law

Specific date defined by each State Law # 12.651 of 2012 Transition rules Ajustment process – Deadlines December 31, 2017 Register in the CAR Properties with liabilities must adhere to the Environmental Regularization Program (PRA) Specific date defined by each State The Period for owners to sign the Term of Commitment, after registering in CAR and getting the public analysis May 28, 2032 Every rural producer has to be in conformity with the Forest Code all over Brazil

Roberta del Giudice www.bvrio.org 16 16