BIODIVERSITY CONSERVATION AND BUSINESS – IS THAT POSSIBLE? LET´S FIND OUT TOGETHER!

Large infrastructure enterprises in the Amazon are historically associated with high migratory flows, uncontrolled growth and relevant environmental impacts, challenging the articulation and planning ability of public policies and of companies that are established in the territory, as well as of local actors, in their capability to meet new demands and expectations.

However, there is another side of this story: the opportunities. These large investments can be the promoters of the dynamization of a green economy based on social, cultural and natural territorial assets, catalyzed by the resources generated and invested by the large entrepreneur.

There is no magic formula to equate the different conditions necessary to enable this transformative path. This is the challenge that we propose to face in our pilot project, which will be in the region surrounding the Jirau hydroelectric dam in the Brazilian Amazon (in Rondônia state). Our proposal aims to promote an environment favorable to territorial development based on the sustainable forestry chain, taking advantage of local potentials, fostering social participation and bringing strategic partners to this environment of transformation. How do we intend to promote this 'environment favorable to territorial development'? Our proposal is based on the following:

• Design of a financial mechanism that provides: (a) long-term planning; (b) diversification and complementarity of funding sources; (c) operation in niche markets; (d) social dialogue in decision-making;
• Diversified financial offer in terms of: funding sources, operation modalities (sponsor/supporter, catalyst, market enabler investor and impact investor) and agendas (investment goals and themes) which can enable environmental projects (a number of  investors have already shown interest in investing in this business model);
• Use of the wood stock derived from authorized vegetation suppression of the Jirau hydroelectric dam as an active promoter of the economic cycle, transforming an economically valuable asset that is usually wasted (wood ends up rotting) in capital to boost the local economy;
• Financing of forest management, reforestation, restoration and conservation activities, through: (a)  direct allocation of resources for these activities; (b) formalization and promotion of the forest production chain; (c) payments for environmental services; and (d) support to enabling elements (empowerment, R&D, entrepreneurship, certification, fiscal/economic instruments and others);
• Specialization and effectiveness of the investment, since the operational focus of the financial mechanism (based on public consultations and business plans) will be the underserved financing niches that directly or indirectly promote the viability of forest management;
• Demand for forest assets ensured by the implementation of a biorefinery for the production of low impact charcoal, absorbing the supply of timber and non-timber products and enabling and promoting forest economy (including the strengthening or development of other forest chains);
• Disincentive to illegal deforestation through the power of the demand and through financing the formalization of the production chain.

This is how, together with other valuable partners, we expect to create the necessary conditions for a sustainable territory, based on a model with high potential for replication once the right opportunities are identified. In Brazil, numerous and diverse forums discuss forestry opportunities, sustainable territories and the role of large enterprises in local development. By being part of them and incorporating their guidelines, we intend to face the challenge of implementing this model of development based on a low-carbon economy.

The model proposed can be better understtod by the image below and by acessing the following file :Enabling conditions analysis_innonatives.docx