The document discusses a Payment for Environmental Services - Carbon (PES-Carbon) project in the State of Acre, Brazil. It aims to value the state's forests as a source of environmental resources for current and future generations. The key points are: 1) The project covers 5.8 million hectares and 35% of the state, home to 7,500 families across priority conservation and managed forest areas. 2) It aims to reduce deforestation to 59% below 2008 levels by incentivizing sustainable production, forest management, and carbon credit payments to limit pressure on forests. 3) Initial costs over 15 years are estimated at $482 million, with 87% directly supporting recipients and

1. Valuing Forest Asset STATE OF ACRE PAYMENTS FOR ENVIROMENTAL SERVICES – CARBON PROJECT PES-CARBON PROJECT

2. Territorial Managing Zones

3. Annual rate ofdeforestation (%) in theStateof Acre andAmazonRegion

4. Stateof Acre - 2008 88 % FOREST areas 5 -10 ha areas < 5 ha 12 % DEFORESTATION

5. Emissionofcarbon BiomassCarbon Lostofnutrients, waterandsoil Biodiversity Mostlikely to catch fire Deforestsandburns Forest Degradation Primary Forest Secondary Vegetation HighExtraction ofwood Extractionof non-woodenproducts Unexplored Forest Agricultureand extensivelivestock ImplementationandConsolidationofthe EEZ Adequate Policies and Technologies Intensification Consolidationofproductivechains Forest Management Conservation Valorizationof Forest Productsand Cultural BetterQualityof Living

6. EcologicalandEconomicalZoaning Market Clean, justandcompetitive Economybaesd ontheforest ValuingofEnviromental AssetsPlan Government BasicServicesof quality for all Territorial DevelopmentPlan Society Power to thecommunity

7. PSE carbon Project GuidelinesoftheValorizationPlan Social Inclusionwithincome Power to thecommunity Conservationofsocial-biodiversity Forest andmen Conservationof Waters Quality na Quantity – Integration Mitigationandadaptation to climatechange Recuperationoflandscapesandforestmaintainance

8. Valuing Forest Asset Recuperationofaltered areasProgram ValuingofEnviromentalAssetsProgram Reforesting Project (plantedforest) Accreditaionofproperty Project Regularizationof Passives Project Replacementofaltered areas Project Payment for EnviromentalServices Forest Managing Project Forest management ofmultiple use Agriculture andextensivelivestock AgroforestProperties Managementofnon-woodenproducts Fullprotection

9. Deforesting in 2007 (PRODES) Area= 1,9 millionha % oftheState = ~ 12%

10. ProjectedDeforesting for 2030 (SIM Amazonia) Area = 5.9 millions há % oftheState= 36 %

11. PSE carbon Project ObjectivesofthePES-Carbon Project To valuethe Forest ofAcre as a source ofenviromentalresourses for thecurrentand future generationsofAcre, oftheAmazonandoftheplanet.

13. Thedevelopmentofmechanisms to stimulatetheconservationoftheforest.

14. Measureandmonitoratethedeforestfromproperties to indiginouslands, SettlementProjectsorExtractivist Reserves.

16. PES – Carbon Project Stateof Acre PriorityAreas PA1 PA2 PA3 PA5 PA4 PA6 Population: 7,500 families Area: 5,800,000 ha Emission Reduction: 62,5 millions of tons of CO2 ( Until 2020)

18. 35% oftheState

20. 3,500 settled

21. 600 indigenous+ 100 medium/largeproperties (2442 peopleof 4 ethnicgroups)

22. PSE carbon Project EnviromentalServices Incentives (ISA) ACTIONS OF SUPERVISION AND CONTROL INCENTIVES Productiverestructuringoftheproperty Augmentationofproductivityandincome in agropecuaryandforestchains. Reductionofpressure over Forest Valorizationand use ofthe Forest CarbonCredits SellingCredits in Market Provisão do Serviço Ambiental Forest Protection Payment for EnviromentalServices

23. PSE carbon Project Sustainable Productive Actions Forest Management of Multiple Use Conservation Consolidades Forests Floresta Consolidadas Conserved Forests Managed Forests Forest Assets Valorization Sustainable use ofTerritory ValorizationofalltypesofForests

25. Continuous publication of data.

26. Continuous evaluation of uncertain estimates.

27. The use of high definition images.Basic Parameters of the New Methology

28. ManagingStructure NEW EXISTING Aggregateofall 3 counsels (CEMACT, CDRFS, CFE) Inspectionandvalidation ofreductedemissions Supervisionand Social Control Carbon Forest PlanScientificCommitee PES Carbon PPCD CoordinationUnit Coordinationofactionsofthe StateGovernment ValorizationofAssetPolicyManagingCommitee Coordinationandinspection IBAMA e IMAC StrategyAgainstDeforesting Center Coordinationofactionregardingwildfires andburningoftheforest Risk Management StateComitee Canbelinkedwiththe Global Change Department. Functionofverifying reductedemissions in the REDD projects Andtransmit data to thenational system ofrecords. Responsible for thecoordinationofthe PES Policy RegulationUnit EmissionsControl Center SEMA Executionofthe PES Policy, PPCD Monitoring Global ChangeDepartment Monitoringofthedeforestingand Monitoringofproperties MonitoringUnit UCEGEO Organizationofprivaterights for capturingpublicandprivate Resourses. Distribution to recipients andhiringofservices ATER serviceoffers in PriorityAreas Implementation FAF Forest AssetFund ATER ATER accreditationand PCPS monitoring PCPS Unit InvolvementofPriorityAreas stakeholders in theexecution Oftheprogramsactions PriorityAreaMonitoringCommitee InspectionandLicensing IMAC

29. PSE carbon Project PreliminaryCosts General costs for 15 yearsofproject: R$ 482 millions 87% directly to recipients 13% transactionalcostsandgovermentalserices

30. The Forest Society Power to thecommunity Social Resource ValuingofEnviromental AssetsNaturalResource Low-CarbonEnconmy EconomicalResource

31. PSE carbon Project FLORESTANIA ARCHTECTURE Conciliate economical growth with social inclusion and enviromentalconservation