METHODOLOGICAL GUIDE

Presentation and Evaluation of Forest Carbon PSA Projects

in Small Properties and Communities in the Amazon
 METHODOLOGICAL GUIDE
Presentation and Evaluation of Forest Carbon PSA Projects
in Small Properties and Communities in the Amazon
Technical Sheet
Document developed by Idesam
order from Natura Cosméticos S/A.

AUTHORS:
Idesam
Pedro Gandolfo Soares Cataloging Card
Ycaro Verçosa dos Santos
Isabele Goulart
Librarian CRB-11 287
Mariano Colini Cenamo
Cristiano Alves S196g Soares,PedroGandolfo.

Natura Cosmetics S/A Methodological Guide: Presentation and Evaluation of Projection

forest carbon PSA in small properties and
Talia Manceira Bonfante communities in theAmazon. / Pedro Gandolfo Soares; Isabele
Goulart;MarianoColiniCenamo;CristianoAlves;TalíaBonfan-
te.–IDESAM/Natura,2017.
PANEL OF REVIEWERS:
Florian Reimer (South Pole Group) 36p.
ISBN978-85-64371-24-8
Osvaldo Stella (IPAM)
Rodrigo Junqueira (ISA) 1. Manejo florestal 2. Produção madeireira – Amazônia 3.
[Link],[Link],Mariano
[Link],[Link],TalíaV.Título
EDITING:
CDD 333.759811
Ana Medeiros 22nd ed.
CDU 630(811)
Glossrio
CAR - Rural Environmental Registry
CCB – Climate, Community & Biodiversity Standards
CLPI - Free, Prior and Informed Consent
DBH – Diameter at Breast Height (1.30 m)
FE - Emission Factor
GHG – Greenhouse Gases
GPS – Global Positioning System
IDESAM – Institute for Conservation and Sustainable Development of the Amazon
INPE - National Institute for Space Research
PRODES - Project for Estimating Deforestation in the Amazon/INPE
PSA – Payment for Environmental Services
RECA – Economic Reforestation Consortium Densified
REDD+ – Reducing Emissions from Deforestation and Forest Degradation
RR - Reference Region
SAF - Agroforestry Systems
GIS - Geographic Information System
VCS – Verified Carbon Standard
 Summary
Introduction 6
Chapter 1: Key Elements for Carbon PSA Project Development
Forestry in Small Properties and Communities 8
1 - Scope and type of the project 9
2 - Project location and regional context 10
3 - Identification of the agents providing environmental services 10
4 - Project Objectives 11
5 - Definition of the project's governance model 11
6 - Duration of the project (“creditation period”) 13
7 - Description of the agents and vectors of deforestation in the project area 13
8 - Activity Plan 14
9 - Analysis of additionality 14

Chapter 2: Methodological Components and Climate Benefit Accounting

Generation of emission reductions and carbon stocks 15
Step 1. Structuring the baseline scenario (or reference scenario) of the project 15
Step 2. Calculation of historical deforestation rates in the Reference Region 17
Step 3. Definition of reservoirs and carbon stock 19
Step 4. Approach for leaks 19
Step 5. Definition of technical reserve of the project 20
Step 6. Quantification of GHG emission reductions 21
Step 7. Strategies and procedures for monitoring the Project 22
Step 8. Third-party evaluations 24
Step 9. Information registration and management 24

Annexes 25
Annex I - Elements for CLPI processes 25
Annex II - Proposal for the model for presenting the project's activities 27
Annex III - Proposal for criteria for defining the Technical Reserve of the project 29
6
Introduction

7
 Introduction

The proposal to create a simplified "Methodological Guide" projects related to the generation of environmental services, bringing focus
for presentation and evaluation of Payment Projects carbon stock maintenance actions through reduction
for Forest Carbon Environmental Services (PSA) in of emissions generated by deforestation in small properties and
Small Properties and Communities in the Amazon communities in the Brazilian Amazon. This methodological approach has as
was motivated by three (03) main reasons: (i) small fundamental premise to offer a credible, consistent tool,
farmers, important providers of environmental services, simplified and low-cost application for companies, producers
for years they have been playing a fundamental role in and communities.
conservation of forests and consequently in the reduction For the construction of the methodology proposed here, in addition to the expertise of
of greenhouse gas (GHG) emissions in the Amazon
Institute of Conservation and Sustainable Development of the Amazon
they need to be recognized and rewarded for these (Idesam) and Natura Cosméticos S.A. conducted a comprehensive technical analysis
efforts; (ii) companies that support projects and communities It is a methodological framework of existing certification standards, such as the 'Guide
localities need practical and transparent tools Methodological” of the Forest Carbon Partnership Facility (FCPF)¹ of the Bank
to assess and account for the impacts of your projects and Global and methodologies of the Verified Carbon Standard - VCS². The pro-
activities for climate, biodiversity, and conservation of
the process also included the structuring of a Review Committee
forests and; (iii) the methodologies and certification standards
formed by experts on the topic of Forest Carbon PSA for
currently available (e.g., VCS, CCB, etc.) are high cost analyses and reviews of the proposed methodology.
of transaction and barely applicable rules to micro projects and
small scale, which ultimately make such projects unfeasible. It is worth emphasizing, still, that this guide is a living document that
It will be reviewed periodically, aiming to maintain the connection and with-
This document presents a proposal for a presentation of
understanding of conservation agents and service providers
forest carbon PSA projects and a practical guide, inspired environmental in the Amazon.
in the consolidated methodologies for evaluation and monitoring of

¹[Link]
[Link]

8
Applicability of this Methodological Guide: Document structure

This Methodological Guide was developed for application in projects of This document is organized into two sections:

1
Payment for Environmental Services (PES) developed by
Initial considerations for the development and presentation of a
communities and small farmers in the Amazon. In general terms, the
forest carbon PSA project (conservation and deforestation)
the project must meet the following basic characteristics:
avoided), as well as an explanation of the main concepts that must be
• Being a small-scale project (mostly composed of used for project design in small properties and co-
producers with rural properties of up to 4 fiscal modules; traditional communities;

•
•
Located in the Amazon biome;
Related to the logics of 'avoided deforestation' and 'reduction of'
deforestation
2 Stages and methodological criteria aimed at accounting and
monitoring of climate benefits and generation of Reduction
of Emissions - RE (reference scenario, project scenario, increment
of stocks, etc.)
• Associated with the promotion of sustainable local production chains and to
land and environmental regularization at the local level;

• That includes a diversity of actors (farmers, producers

and/or extractivists) who support and work with development
the local production chains.

9
 Chapter 1
Key elements for the Development of PSA Projects
Forest Carbon in Small Properties and Communities

10
 Key Elements for the Development of PSA Projects
Forest Carbon in Small Properties and Communities

ACurrently, there is a series of certification standards. and certification standards aimed at voluntary markets of
focused on deforestation reduction project evaluation carbon. This Methodological Guide has as its fundamental objective
in tropical forest [Link] vast majority of these standards, include small farmers of the Amazon in mechanisms
meanwhile, it ended up becoming very complex, difficult the payment strategies for linked environmental services
application in mosaic regions of small rural properties, the reduction of GHG emissions from deforestation in a way
resulting in high transactional costs for its application and transparent and simplified, always valuing good practices of
monitoring. design and presentation of projects and, above all, measurement and
monitoring of climate benefits.
Even though it is possible to "group" projects to scale up
and reducing methodological costs, this practice generates other costs As a starting point, to begin the design of a project
and project management problems due to characteristics PSA in smallholder areas in the Amazon, some
such as: (i) fragmentation and heterogeneity of forests, (ii) high preparatory actions are necessary to ensure the due
number and dispersion of participants; (iii) diversity of actors inclusion and participation of local actors in decision-making and
and the legal, land, and environmental conditions of the properties and initial assessments of the development potential of this project.
communities, (iv) different demands and sharing agreements of Thus, the first steps for project development
benefits arising from payments for environmental services, among of PSA, are:
others.
Many lessons and learnings have been taken during the last 10
years with the creation, development, and implementation of projects

11
 1) Preparation of technical and economic feasibility study: Annex I of this document presents some additional elements.
for the design of a CLPI process. It is essential that all
Focused on a preliminary assessment of the potential of the target region
stages are properly recorded (minutes, photos, documents) and that
project to develop a PSA project. The feasibility study
prove how the process of consultations and discussions about the
must therefore evaluate:
project).
a. Location of the project and rural properties that may come to be
After the preparatory stages have been completed - and there is acceptance and
part of the project;
leveling on the objectives of the PSA project - moving on to the next stage
b. Dynamics of deforestation and land use in the properties and region of design and presentation of the project. Initially, some elements-
of the environment; keys should be considered in the design and presentation of a project
of Forest Carbon PSA aimed at small rural properties
c. Governance and participation systems (through local associations,
and traditional communities. They are:
producers cooperatives, etc);
d. Estimates of expected costs for development and
project management (and field activities), and the feedback 1. Scope and type of the project
expected with the PSA initiative.
Every project must begin by defining what the main action is to be.
developed, monitored and evaluated, as well as the benefits
2) Development of the Free Consent process, expected for the weather.
Prior and Informed (CLPI):

The CLPI is a key stage in the development of PSA projects. In this

In this stage, workshops with local producers should take place. Guiding questions:
for presentation and discussion of: What is the scope of the project?
•
a. project objectives;
Project for reducing emissions from deforestation and degradation
b. productive and social impacts that the project aims to generate; forestry, etc

c. initial results obtained during the Feasibility Study; • What specific activities will be proposed for the
achievement of the action defined above?
d. parceiros e instituições que poderão colaborar;
e. understand the demands and needs of local producers who Ex.: Açõesdereflorestamentosdeespéciesnativascomviéseconômico
can be served by the PSA project; (oils, fruits, essences, wood); agroforestry plantations, practices
productive consortia (silvopastoral or agrosilvopastoral activities);
f. rights and duties of each institution and producer participating in the project. community forest management, etc.
12
2. Project location and regional context 3. Identification of the service provider agents
environmental services (beneficiaries)
Brief description of the location where the activities are conducted (district,
municipality, region, state). The description of the geopolitical context and use The project design must assess and identify who the actors are.
from the land and the inclusion of location maps is essential. that are actually ensuring the provision of environmental services and the
generation of emission reductions (conservation agents), through
from the implementation of sustainable productive practices - in other words, who

Guiding questions: they will indeed be the beneficiaries of a PSA project.

• Where is the initiative being developed? Important to present

the specific location where the activities will be carried out,
Guiding questions:
as well as municipality, state, and biome.
• Who comes from defeating promoting the benefit of the land, avoiding
• What are the geographical limits for the implementation of actions?
deforestation in the region or ensuring forest conservation
proposals (which will be monitored and evaluated in terms of
(provision of environmental services), through productive practices
generation of emissions reduction?
sustainable and forest restoration?
lots or rural properties participating in the project.
• Are there land use conflicts in the project areas?
• In summary, what was the history of occupation of the region?
• What processes are underway in the region aimed at
• What are the main economic and productive activities? land regularization of the involved properties (collective efforts of
developed in the environment and in the project area? Terra Legal Program, etc)? How can the PSA project support the
participation of local communities in these actions?
• What are the main influences that direct land use
in the region (proximity to urban centers, access roads,
lack of application of laws, lack of economic alternatives, etc.)?

• What are the main limitations and obstacles to the

development of sustainable production actions in the region?

Lack of knowledge of productive techniques? Lack of

continued technical assistance? Lack of credit lines
specific? Difficulty in obtaining inputs and cultivars of
Quality? Lack of connection with the market?

13
 4. Project Objectives 5. Definition of the project governance model
The objectives and expected results with the implementation of the actions a) Structuring a governance model
proposals, both for the climate and for social development The development of projects with small farmers or
local economic factors should be clear to the project proponents. local communities require a prior social organization of the
participants. It is essential to be clear about who the institution will be.
project leader and what their roles and responsibilities will be in
Guiding questions: coordination and implementation of the proposed activities. It is very
it's difficult to develop individual projects with each producer (the costs and
• What results does the project expect to achieve? operations will practically render the project unfeasible). To that end, the same
Reduction of deforestation in the region from development they must have some form of organization that represents them, whether it is a
of sustainable productive practices; restoration of degraded areas company, cooperative, association of communities or representation
with a productive bias; strengthening governance over resources created specifically for the purposes of the project.
natural to the region.

• What were the motivations that led to the design of this project?
Guiding questions:
of forest carbon?
• What is the proposing organization of the project, how was it elected and
Ex. 1: Perception of the increase in deforestation pressure and
wood extraction in the region; the project's location will be affected what is your way of representing producers and communities
for new infrastructure works; lack of enforcement of laws of involved with the project?
monitoring and technical assistance to producers. • Are there partner organizations or institutions (technical partners
Example 2: Perception of opportunities aimed at income generation the commercials)?
based on sustainable production models and practices; improvement of
• What will be the 'roles and responsibilities' of each institution
quality of life of local populations; maintenance of stocks
project participants?
of forest carbon and provision of environmental services.
• How many producers (number of lots/properties) are there?
• What local changes does the project intend to generate?
involved with the project? How will the criteria be defined for
Example 1: Improve local social organization; expand scale of participation?
production; include new productive techniques; etc
• What will be the mechanisms for participatory construction of
project and agreement of decision-making?

14
• What will the decision-making processes of the project be like? In • What are the criteria used for the distribution of benefits?
Which instances? Listening and resolution systems will be adopted.
Payment according to forest area, production area
of conflicts?
agroforestry, property productivity, regularity
environmental, sustainable productive activities?
b) Structuring the benefits distribution proposal
The project must include a proposal for the distribution of benefits.
Annex I presents elements and guidelines applied in experiences
discussed and agreed upon by the participants of the project (beneficiaries, PSA predecessors in the Amazon that can support development
technical team and project partners). The proposal must involve the of processes of Free, Prior and Informed Consent (FPIC) and
ways of distributing benefits (financial resources, human resources, participatory construction of PSA projects

materials, etc.) that will be generated from the provision of services

environmental aspects in the project areas, as well as the frequency of
distribution of benefits and responsibilities.
6. Duration of the project (period of
accreditation
The proponents of the project must present the key milestones and
Guiding questions: reference dates, such as:

• What is the main expected benefit of the project?

It is important to highlight that a PSA initiative does not involve
Guiding questions:
necessarily financial compensation. Other forms of support
the demands of the participants can also be considered: • What is the formation date (year) of the group/organization that is
proposing the project (cooperative, association, etc.)?
Support for asset transfer (such as obtaining a)
title of ownership), the offer of services to the community, • What is the start date for activities aimed at reduction of
investments in infrastructure, technical assistance, among others. deforestation, reforestation (SAFs, etc.) in the region?

• What will be distributed? • What is the start date from which the generation will be accounted?
Financial resources, technical assistance, right to machine hour; of emissions reduction by the project?
access to supplies; etc. • Project duration in years (for how long the
• Who will be entitled to the benefit? The project aims to monitor the generation of emission reductions?

participants producers of the project; cooperative/association The start of the crediting period can be retroactive (considering
which represents the producers; both. previous years) as long as the logic for such a claim is justified.
15
 It is suggested that the project operates on a medium/long-term horizon.
in order to generate a mutual commitment between the payer (partner
7. Agents and vectors of deforestation
commercial) and local populations (providers), as recognition of forest degradation
historical role played by local actors in the provision of services
environmental. For this section, the main causes that generate should be evaluated
deforestation and forest degradation in the region, as well as the
Long-term projects can adopt 'periods of strategies.
actors and underlying causes.
"revision" and "project balances", flexibilizing the commitment period.
Ou seja, uma iniciativa de longo prazo pode ser trabalhada em sub- Deforestation: Clear-cutting of the forest. Replacement of an area of
periods, allowing for the entry and exit of participants throughout the
forest to an open area (pastures, agriculture, etc).
project cycle.
Forest degradation: Selective logging or extraction of trees. The area is
stays like a 'poorer' forest and loses its characteristics
original native vegetation.

Guiding questions:
• What causes deforestation in the region? What are the main
causes that lead to deforestation in the surrounding areas of
project?

• Who are the agents (actors) that promote deforestation in

region?

• These actors that promote deforestation, violate laws and

federal or local regulations?

Annex II presents a spreadsheet model that can be used.

to describe the proposed activities and budget forecast for
execution.

16
8. Proposal for Activity Plan: 9. Analysis of additionality
PSA projects may be accompanied by an Activity Plan It involves an assessment and survey of the positive actions that are
focused on strengthening actions to reduce deforestation and the being implemented in the areas of the project and that contribute directly
forest degradation in the project areas. The related definitions for forest conservation, the reduction of emissions from deforestation
to the Activity Plan that will be developed and the allocation of resources and/or the strengthening of sustainable production chains (restoration
It should ideally be the subject of discussion in preparatory processes, forestry, Agroforestry Systems, etc). It is important to highlight which
such as in the processes of Free, Prior Consent and these are the positive actions being developed, who is promoting them
Informed (CLPI) of the project. actions and how they counterpose with traditionally activities
developed in the areas surrounding the project.

Guiding questions:
Guiding questions:
• What activities should be strengthened to curb the
advance of agents and vectors of deforestation and degradation • What activities are being developed to prevent the
forests listed above? deforestation in the project areas?

• Who will be responsible for the implementation of these actions? • How they contrast with the use of conventional land in the surrounding area
the areas of the project?
• Who are the partners that can help implement or
coordinate these actions? • Who is promoting these activities?

• What is the deadline for executing these actions? • What are the main challenges for implementation and
maintenance of these activities?
• What is the estimated annual budget for the implementation of these?
actions? • What strategies are adopted by the project to overcome
these challenges?

• There is a possibility of increasing the scale of activities.

developed for other properties and neighboring areas? Which ones?
What are the obstacles and opportunities?

17
 Chapter 2
Methodological components and Climate Benefits Accounting
Generation of emission reductions and carbon stocks
 Methodological components and Climate Benefits Accounting
Generation of emission reductions and carbon stocks

Step 1: Structuring the baseline scenario Case study:

Suruí Forest Carbon Project
(or reference scenario) of the project:
The first methodological step for the construction of a [Link]
Carbon Payment for Environmental Services Project
Florestal, voltado a geração de reduções de emissões pela The baseline scenario has a validity period of up to 10 years.
reduction of deforestation (or avoided deforestation) in
project areas include the definition of the baseline scenario (or After this period, the principles and assumptions used must be
reference scenario) of the project. reassessed and the baseline revised.

Its structuring should consider the following issues: To complement the answers to the questions above, some steps
are necessary:

Stage 1: Definition of the project area

Guiding questions:
The project proponent must define the geographical limits of the area(s)
• What would be the expected land use for the area? of the project:
of the project in the absence of the implementation of the activities project
(sustainable productive activities, extractivism, actions of The project area(s) must primarily be forest areas.
forest conservation, etc. native, located within the lots or rural properties that make
part of the PSA project. These forest areas should be monitored
Abandonment of the area, occupation by surrounding producers for periodically and, if they remain preserved over the
opening of pastures, etc. time, they may generate emission reductions following the logic of
Which areas would be affected in the absence of the implementation of the "avoided deforestation", that is, avoiding the deforestation anticipated in
•
project activities? project baseline scenario.

Forest areas within the lots of participating producers

of the project; areas located near the main roads
of access to the lots.
19
 The size of the project area may vary depending on the reality. of deforestation) access areas of native forests in the lots or
the context of the region. It is recommended, however, that the area(s) rural properties. The access roads can be highways, roads,
the project has a scale (when added together) that justifies the streams, rivers, that provide access to the project areas.
development of the PSA project and that can generate a return
After identifying and mapping the access routes, the next step is
satisfactory in terms of emission reductions by the project. These
create a 'belt' that encompasses the areas that make up the project of
analyses should be explored and discussed in the preparatory stages
PSA (lots and/or rural properties) and the main access routes. The
of the project (as in the Technical and Economic Feasibility Studies)
the belt must include and represent the areas of "direct influence" over
the project areas.
Case study:
Carbon Project RESEX Rio Preto Jacundá

[Link]

Case study:
Xingu Springs Carbon Project

[Link]
Carbono Nascentes do Xingu_PDD CCB 09Sep14.
pdf

Stage 2: Definition of reference region

The reference region is used to evaluate the dynamics of use of

land in the surrounding areas of the project (or outside the lots that participate
of the PSA project). This evaluation is important to justify what would be
the most likely land use in the project areas in the scenario line
baseline (that is, in the absence of the activities related to the project)
the sustainable productive actions) and what would be the average rates
expected conversions of forest areas to other uses.

A fundamental point that must be analyzed to determine the

the reference region of the project is related to what would be the
access roads that would allow external actors (agents) Figure 1. Reference area used for the RECA PSA project.

20
 Direct influence areas are understood to be those in which the Stage 1: Annual calculation of land use changes for the past 10 years
deforestation dynamics are the most likely to occur in the
prior to the start date of the project's crediting period
project areas, in the absence of proposed or supported activities
by PSA initiative (baseline scenario). The calculation of rates and land use changes in the reference region
the main objective is to determine the average deforestation rate
what will be considered for the project's baseline scenario. The
The belt can be made by adopting a radius of 3 to 5 km in relation to calculations must be performed in Information Systems program
at the boundaries of the lots and properties participating in the project and the roads
Geographic (GIS)³ taking into account the "reference period" of
identified access.
project, consisting of the 10 years prior to the start date of the project.
It is recommended that the Reference Region be a continuous area and
that has a total area of about 20 to 40 times the size of the Information about forest areas and deforestation
project areas. can be obtained from the official data of the Brazilian government (Project
PRODES – Monitoring of the Brazilian Amazon Forest by
Satellite), produced by the National Institute for Space Research.
The Reference Region will then be used to calculate the rates.
deforestation rates in the project's baseline scenario, The annual deforestation data from PRODES Digital covers
the Brazilian Legal Amazon since the year 2000, making it possible to obtain
as presented in the following section:
annual rates from 2001 to 2014 (last data available).

Step 2: Calculation of historical deforestation rates After obtaining the SHAPEFILE information from PRODES-INPE,
files should be designed for a planar coordinate system
in the Reference Region Universal Transversal Mercator - UTM in its designated zone4.
It is recommended to use the DATUM WGS1984. The DATUM and the system of
After defining the project area eligible for credit generation coordinates must be standardized in all files.
and the limits of the reference region, the next step is to carry out the
calculations of historical deforestation rates observed in the Region
of Reference, which will be used to construct the line scenario
project base.

Recommended free program: QGIS: [Link] ; Recommended paid program: ArcGIS: [Link]
3

4In the case of the RECA project, the correct UTM zone is 19S.

21
 For area calculations, the Albers projection should always be used. Reference period: Period of 10 years prior to the start date of
Equal Area Conic Projection. project.

Using the SHAPEFILE from PRODES, only the ... The average annual deforestation rate (%/year) for the region of
area of the project reference region and calculate the initial forest area reference is then calculated by the following formula:
in year t1 (referring to the first year of the project's reference period).
Then, the same procedure is followed for year t10. Stage 2: Analysis of the expected future pressures on the region
(last year of the project's reference period - which is configured as
In addition to the analyses of historical deforestation rates, the
the year prior to the project start date.
project proponents may also include an analysis of the
The logic in carrying out the calculations of deforestation rates in future deforestation pressures that may pose risks
Reference Region (RR) of the project using only information for forest conservation in the project area. These analyses may
of forest remnants is to obtain greater accuracy in the rates come to compose adjustments in the historical rates observed in recent years,
calculated, which will consist only of the loss of forests including a component of future risk to forest conservation
natives from year 1 of the reference period (t1) to year 10 (t10). in the region.

Reference period: Period of 10 years prior to the start date of New infrastructure works (highways, hydropower plants, etc.),
project. road paving, expansion of agricultural areas, expansion
of urban centers, population growth, etc.
The average annual deforestation rate (%/year) for the region of
the reference is then calculated by the following formula:

(((forest t1 - forest t10) / forest t1) / 10) x 100 Guiding questions:

• There are infrastructure projects and undertakings planned.
In addition to the PRODES System (the official government system of Brazil), various in official government plans/communications (federal, state and
other land use monitoring platforms are being municipalities) for the project region?
developed. These alternatives deserve to be analyzed by the
proponents, in the development of spatial analyses and calculations of • The environmental impact studies (EIA/RIMA) of such
land use changes.
ventures are available and present the potentials
impacts on forest conservation in the region?
["They are: MapBiomas; Global Forest Watch; OpenForis."]

22
• There are publications and scientific papers that present Step 4. Approach to leaks
scenarios and projections of average coverage loss rates
forestland for infrastructure works, such as those planned for the The concept of leakage refers to potential emissions that arise
reference region? to occur outside the project areas and that are directly attributable
the conservation and deforestation control actions carried out by
PSA initiative. It is a very common concept for carbon projects.
Step 3. Definition of reservoirs traditional, developed in large continuous areas of forests
the carbon stock tropical.
To allow for the calculations of the expected emissions in the baseline scenario In small-scale projects, the concept of leaking must be
based on the project, it is necessary to determine the carbon reservoirs evaluated according to the logic and criteria of applicability determined
that will be monitored and calculate the average carbon stocks in for this Methodological Guide. The following questions can help to
project areas. In general, the main carbon reservoirs in define the probability of leaks occurring due to
will be contemplated, are: structuring a small-scale PSA project in areas of
rural producers and family farmers.
1. Mandatory reservoirs (reference values):
The PSA project and the proposed forest conservation actions
a. Biomassa acima do solo: 132,3 tC/ha5
they can change the behavior of external actors (agents of
b. Biomass below ground: 21%, in relation to biomass by trees deforestation) that would begin to seek new areas to deforest,
starting from 10 cm DAP6 due to conservation actions in the Project Areas?

2. Calculation of the Project Emission Factor (FE): The size and scale of the project areas justify this change.
of behavior by external actors?
a. Sum of the reservoirs that will be monitored and accounted for and
subtraction of the average expected carbon stock in the post- scenario (iii) About the participants of the PSA project (rural producers): the
deforestation (secondary vegetation): 12.82 tC/ha7(Markov Matrix). the project will formalize a term of cooperation and/or adherence to
project, generating a commitment from producers not to use the
resources obtained from the PSA project for the opening of new areas
native forests?

5Source: Federal Decree 7.390/2010

6Nogueira, 2005
7Fearnside 1996 ([Link]

23
 What agreements are established for those who fail to comply? Step 5. Definition of the project's technical reserve
the commitments made?
The technical reserve represents a good practice of developers and
Finally, the project proponents consider the risks of leakage. project partners of PSA, aimed at establishing an "insurance" against
Are mentos high, medium, or low? Why? unexpected events that may occur during the implementation of the project
and that prevents the generation of the expected emission reductions
The values presented should be evaluated as values of initially (withdrawals from participation, wildfires, invasions, etc).
reference, which may be used if there are no local data,
generated, for example, by biomass inventory activities in
Due to the duration of a PSA initiative, from medium to
Forests in the region or scientific work. Data collected locally. in the long term, the Technical Reserve becomes an important instrument of
are naturally more accurate and should always be prioritized in risk mitigation and ensuring the environmental integrity of the project.
regarding reference values.
The technical reserve would be composed of a certain percentage.
Projects located in transition areas (such as savanna areas) of the climate benefits generated by the project that will be retained
they must adjust the values of the carbon stocks adopted by
hectare, through surveys and biomass inventories for a predetermined time. This reservation can return to the
conducted locally. project accounting in case no unforeseen events occur that affect the
generation of emission reductions.

The Technical Reserve can gradually return to accounting for the

project, for example every 5 years, unless unforeseen events occur or
unplanned emissions by the project.

Annex III presents a proposal for the calculation of Technical Reserve

in PSA projects.

The PSA RECA Project adopted a technical reserve of a total of 20% of

emission reductions achieved by the project.

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Step 6. Quantification of GHG emission reductions
The expected emission reductions to be generated by the project, gross and net, as well as the amount of credits that will be retained as
Technical reserves must be presented following the structure below:

Monitoring After the fact After the fact

Baseline
(project emissions) Reductions in gross emissions
(after the fact)
Change in inventories of
What year Change in carbon stocks Technical reserve Reductions in net emissions
carbon
project
annual now. annual now. annual now. annual now. annual now.

tCO2-e tCO2-e tCO2-e tCO2-e tCO2-e tCO2-e tCO2-e tCO2-e tCO2-e tCO2-e

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 Step 7. Strategies and Procedures for Based on these two parameters, it is possible to calculate the results.
Project Monitoring affected by the project during the monitoring period, namely:

A fundamental part of the design of a Carbon PSA project is the a) Taxa de desmatamento nas áreas do projeto (%/ano): Divisão simples
definition of the procedures and monitoring parameters of two parameters b/a;
activities and results of the project. The monitoring should indicate
increase in deforestation in year i / remaining forests
clearly and objectively, what was the performance achieved by the project,
nativas no mesmo ano i) x 100;
over a certain period of time, regarding forest conservation
and generation of emission reductions. For this, some steps are b) Reduction of deforestation verified in the project areas:
necessary: Subtraction of the expected deforestation in the baseline scenario of
project in year i in relation to the increase verified in the same year i
Stage 1: Parameters to be monitored
(parameter b);
The proponents of the project must determine the parameters to be
monitored and what will be the frequency and responsible person for each c) Emission reductions generated by the project: Multiplication of
reduction of deforestation calculated in item 'b' by the emission factor
evaluation. The monitoring must be carried out covering
of the project.
all areas of the project. Basically, the project should encompass
the following parameters:

Parameter Objective Periodicity Responsible (is) Method Source

Analysis of the areas of
forests through the PRODES (official source)
a) Forest area Calculation of the remainder
Project proponent PRODES system or Global Forest Watch
remaining in the forest, in hectares, in Annual
technical partners alternative platform of MapBiomas
project areas project areas
monitoring of use of OpenForis
land
Calculation of the annual area of Analysis of deforestation
in the areas of the project through PRODES (official source)
b) Increase of forest converted into
Project proponent of the PRODES system or Global Forest Watch
deforestation in non-forest vegetation Annual
parceiros técnicos alternative platform of MapBioma
project areas (deforestation) in the areas
monitoring of use of OpenForis
of the project
earth

26
Baseline Scenario Updates

Additionally, it is suggested that the project's baseline scenario (or reference scenario) be updated within a maximum period of up to 10 years.
count from the project start date.
The reassessment of the baseline scenario involves updating the assumptions and observed deforestation rates in the reference region of
project.

Parameters to be monitored and updated for the review of the baseline scenario

Parameter Objective Periodicity Responsible Method Source

Update the limits of

PRODES (source
reference region of
official
project, considering the In up to 10 years See Step 2 (above):
Geographical limits of the region of Project proponent Global Forest
batch in/out after the date of Definition of the region of
reference / technical partners Watch
areas of rema forests project start reference
MapBiomas
newborns and new ways
OpenForis
access

Area of remaining forests in

years t1 and t10 in the reference region
of the project
Analysis of the areas of PRODES (source
Calculation of the remainder
t1 = year 1 of the reference period forests through the official)
the forest area, in hectares, In up to 10 years
updated (e.g. if the revision occurs Project proponent PRODES system or Global Forest
in the reference area after the date of
in 2020, t1 becomes 2010 / technical partners alternative platform Watch
updated project, project start
in the years t1 and t10
of monitoring of MapBiomas
t10 = last year of the period of land use OpenForis
reference (e.g. if the review takes place
in 2020, the t10 becomes 2019)

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 After updating and monitoring the above parameters, one should proceed. Step 9. Registration and management of information
with the calculations:
A process of great importance for medium project management
(i) Update of the average deforestation rate to be used in the long term is related to the management and recording of information
project baseline scenario (see Step 1 above: Annual calculation of about the project. It is necessary to define procedures and strategies to
land use changes for the 10 years prior to the start date of ensure that information does not get lost over time, whether
project crediting period; due to the change of the teams that started the project, change of computers and
equipment that contained the project information, etc.
(ii) Update the analyses of the agents and vectors of deforestation in
project area (see component 7, above: Agents and Vectors of First of all, it is suggested that the proponents standardize the
Deforestation and Forest Degradation. storage and backup of the main project information in
cloud, ensuring that they are available and accessible at any
Step 8. Third-party evaluations place and on any computer (as long as you have the password and login)
access).
A good practice adopted by Carbon Projects, whether they are about
forest character or other scopes, is to have an evaluation
The term 'cloud' refers to online storage spaces, such as
from the third party after the completion of the drawing and monitoring of
like: Google Drive and Dropbox.
project.

The principle is to have an impartial assessment, conducted by an institution. The files stored in the cloud must follow a model for
with prior knowledge in the topics of forest carbon and identification of the document version (version control), which may
development of environmental projects, to ensure that all use numbering (version 1.0, 2.0, 3.0, final) or related to date
the premises, calculations, and approaches developed by the project are of update (version 10/may/2017; 05/june/2017; etc). This control
robust, correct and do not violate the basic principles of (i) integrity It is of utmost importance for the updated information to be
environmental of the climate system, (ii) transparency of the information available and duly identified and organized.
and decision-making, and (iii) participation in development and
implementação do projeto (atendimento aos princípios de salvaguardas Finally, it is important to rely on a person or institution
socio-environmental). At the end of this process, the reviews and recommendations responsible for the storage and control of information of
they must make the project more robust and complete. project (documents, spreadsheets, participant registration, reports
of monitoring, etc). Usually, this responsible institution
for storage is the proponent of the project, which must be the most
interested in keeping information organized and available for
future evaluations, audits, and in other cases.

28
Annexes
 Annex 1
Elements for CLPI processes

Elements and Guidelines for Process Development Suggestions for topics to be addressed during workshops:
from "Free, Prior and Informed Consent" for Initiatives (i) Concepts related to Climate Change and REDD;
of PSA to Small Farmers in the Amazon.
(ii) The operation of a PSA and REDD project in practice;
Objective:
How carbon is measured and monitored;
Construction of a participatory process for design and 'pact'
two objectives of a PSA initiative. Pricing and emissions reduction markets;
Project duration time;
Premises:
(vi) Roles & responsibilities of the parties involved (rights & d-
Mapping of the actors (rural producers, traditional communities) veres);
- providers of environmental services - who will be part of the Project of
PSA. Joint mapping of the potential risks and benefits involved
in a carbon project;
Evaluate the current organizational structure and previously agreed divisions.
by group (e.g., division by producer group, production lines, (viii) Construction of risk mitigation plans;
nuclei, etc).
ix) Benefit sharing mechanisms;
Map the flow and agenda of these groups and general meetings,
Environmental adequacy of properties;
assemblies, etc.
Rural Environmental Registry;
Fundamental objectives:
(xii) among others.
Build and agree on the project rules (rights and duties).
Build and agree on processes for distributing benefits.
Identify main demands and production bottlenecks.

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Suggestions for guiding questions for a CLPI process General recommendations:
What is climate change? The main questions raised by the participants during
the CLPI process must be recorded and discussed;
What is a avoided deforestation project? And of forest restoration?
restal? Facilitators should propose referrals and responses for each
questioning and debating them with the group in the upcoming workshops;
How do these projects contribute to the climate?
The participation in the CLPI meetings must be recorded through
Who can participate in a project of this nature?
attendance list;
Who will be the proposing institution for the project? And who will be the partners?
There must be prior notice of the occurrence and free access to the
technical and commercial services?
meetings.
How will decisions about the project be made? And how will they be?
communicated and agreed upon?

What are the main productive challenges in the region?

What will be the conflict resolution mechanism of the project?
What are the responsibilities, rights, and duties of the participants
of the project?

What commitments and pacts must be made?

How will the benefits distribution strategy be?
What is the start date of the project and the duration period? Will there be a period...
two reviews and 'balance' of the project?
How will the project review processes work?
What are the areas that will participate in the project? How will they be?
defined?
What will be the monitoring strategy adopted by the project?
Who will be the people/communities affected by the project?
What are the roles of the public sector and local authorities in face of
to the project's activities?

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 Annex 2
Proposal for a model for presenting the project's activities

Funds Gap
BUDGET (R$) TOTAL
Presentation of Project Activities Responsible Available Carbon
(R$)
Year 1 Year 2 Year 3 Year 4 Year 5 (R$) Source (R$)
1. Coordination and governance (team)
Project Coordinator
Coordinator of productive activities
Coordinator of monitoring and social impacts
Strategic studies: legal, agents and vectors of
deforestation, administrative
2. Development of productive activities
Implementation of new productive areas
Technical assistance
Equipment
Cattle ranching and silvopastoral

Implementation of productive units

Inputs
3. Land use monitoring
Annual land use monitoring (GIS)
On-site monitoring (in the project areas)
Logistics (fuel, transportation)
Daily rates
Social and productive surveys

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 Funds Gap
BUDGET (R$) TOTAL
Presentation of Project Activities Responsible Available Carbon
(R$)
Year 1 Year 2 Year 3 Year 4 Year 5 (R$) Source (R$)
4. Infrastructure and equipment
Office maintenance
Vehicles
Computers and equipment (software, GPS,
cameras
5. Maintenance costs
Office maintenance
Vehicle maintenance
Travel and partner prospecting
[Link](R$)

33
 Annex 3
Proposal for a model for presenting project activities

1 - Qualifications and previous experiences of the organizations involved in the management and Observation/
Response Punctuation
project implementation: justification

a. Local producers and technical support institutions (in the design and implementation of Yes 1 point
REDD+ project has a cooperation agreement and a history of partnerships and work.
together (more than 5 years of partnership). No 3 points

b. The technical team has previous experience with design and validation of projects. Yes (which projects) 1 point
REDD+ tokens based on internationally approved standards (e.g. VCS, CCBA)? No 3 points
c. The management and implementation team has individuals with significant experience. Yes 1 point
and proven to undertake actions to combat deforestation in
project areas (at least 5 years of experience in project development No 4 points
REDD+)?
d. The management and implementation team is based/headquartered at the location of project execution. Yes 1 point
What's up? No 3 points
100% of the project participants
2 points
foram consultados
e. Local producers involved in the project were duly consulted and informed
More than 50% of the participants of
modes about project objectives, rights and duties, and responsibility (through 4 points
project was consulted
of the process of Free, Prior and Informed Consent)?
Below 50% of the participants
8 points
from the project were consulted
There was no CLPI Prerequisite
f. For restoration: The producers made some commitment to maintain and care Yes (contracts, terms of responsibility-
0 points
the reforested areas? ability, etc.
No 4 points

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 All documents related to the CLPI must be available to the project evaluators.

Observation/
Response Punctuation
justification
100% adherence 1 point
Are local producers adhering to the CAR? More than 50% adherence 3 points
Below 50% adherence 5 points
No 15 points

2 - Risks related to external factors, beyond the control of

project proponents

Yes 5 points
a. There are government plans for the construction of infrastructure works in
region, that may impact the areas participating in the REDD+ project (highways,
hydroelectric plants)? No 0 points

3 - Risks regarding project leaks

Low 0 points
Risks of leaks due to project activities Medium 5 points
High 10 points
Short (up to 10 years) 3 points
4 - Duration of the project Medium (10 to 20 years) 5 points
Long (more than 20 years) 7 points

Definition of the project's technical reserve: Sum of the above results (internal risks + external risks).
Proposal for a timeframe for the technical reserve to return to the project's accounting: Every 5 years, unless unforeseen events occur that prevent it from happening.
permanence of credits.

35