1. Increase in protection of priority biodiversity areas

2. Bottom line
Trading has the potential to substantially reduce costs of achieving aggregate conservation objective
Bigger trading domains reduce compliance cost, improve biodiversity protection
But is it implementable?

3. RL enforcement and trading in Brazil: current situation
Trading allowed by Provisional Law 2166 (preferably within microbasin, basin possibly; also compensate by purchasing gazetted for parks)
SISLEG, Parana: early stages of implementation
Mato Grosso: Innovative RL enforcement program

4. Trading Domains in Parana: Biome-Basin combination
Parana decided to divide their territory into a relatively small number of zones.

5. FEMA (Mato Grosso) System of Environmental Licensing and Control
Credit: FEMA

6. Generalizability? Within Brazil
Outside Brazil: introduce tradeable obligations as a substitute for existing strict regulations on forest clearance?

7. End of presentation