Government of Pará and Systemica sign the first concession for reforestation in Brazil with the use of carbon credits
The project will be developed in an area of 10,300 hectares and foresees an initial investment of R$ 258 million, generating about two thousand jobs in the APA Triunfo do Xingu
The Government of Pará and the company Systemica signed, this Monday (14), the contract for the first concession for reforestation of public lands in Brazil with the use of Restoration Carbon Credits (ARR). With a concession period of 40 years, the project foresees the recovery of 10,300 hectares of forest and the sequestration of 3.7 million tons of carbon equivalent. According to a study by the Pará government, the estimated investment is R$ 258 million, with an expectation of generating a total revenue of R$ 869 million, in addition to creating approximately 2,000 jobs in the region.
The state governor, Helder Barbalho, celebrated the consolidation of the public-private partnership that opens a new model of development for the region. "I think it is very important to take advantage of this moment so that we can make a great celebration of this public-private partnership that allows us to inaugurate a new model of economic development for the APA Triunfo do Xingu region. I am absolutely sure that the State of Pará today provokes itself to be a beacon for Brazil, to be able to present this model that certainly demonstrates its economic viability and the indication that this model should gain scale," he said.
Development Center
In addition to environmental benefits, an Integrated Action Plan has been developed by the state management to reinforce the State's presence in the APA Triunfo do Xingu, bringing a series of benefits to the community. A Development Center will be installed in the region, with a series of services for the population, which will also benefit from the public equipment.
"We are talking about expanding the presence in the social strategy, expanding the presence in the public safety strategy, the land regularization strategy, the environmental protection strategy, and of course, the economic-social development so that we can generate jobs and generate income for the local communities"
With the signing, the next steps will be the development, by Systemica, of the Restoration Plan for the area and the approval of the State, so that actions can begin in the territory.
Systemica has been present in the territory since 2022, when it began its conservation activities starting from the establishment of the "REDD grouped from the APA Triunfo do Xingu" project. More recently, it began investing in forest restoration projects, expanding its activities in Nature-Based Solutions focused on generating high-integrity carbon credits.
In the ecological restoration segment, degraded forest areas undergo a recovery process with the planting of native species through seeds or seedlings and the management of natural regeneration, ensuring the reconstitution of vegetation. This mechanism encourages the regeneration of degraded ecosystems and promotes long-term environmental benefits.
Munir Soares, executive director and co-founder of Systemica, highlighted the relevance of the signing and the next steps of the initiative. "Systemica has invested a lot in the innovative idea of the State. The first concession in Latin America in the context of restoration. Now, we have an important milestone which is the signing of the contract. After the contract signing, we will start developing studies to prepare a document that is very important, which is the forest restoration plan," he said.
It was the innovative approach to restore deforested areas with native biodiversity and inclusion of communities that caught the attention of the international consultancy Impact Earth. For Andrea Resende, Investment Manager of the consultancy, this first concession will be crucial to demonstrate the viability of the model that, if successful, could be replicated in the country on a large scale.
"This project stands out as an opportunity for ABF to participate in a pioneering project, with the potential to positively transform the way to restore already degraded lands in Brazil, with environmental impact through biodiversity, social impact through the generation of sustainable jobs, and scalability to meet national reforestation goals," she states.
Doctor Loredan, mayor of Altamira, stated that he is a partner of the project and congratulated the state management for the initiative. "Helder is a visionary manager and without a doubt this degraded region will gain a lot and I, as mayor, will be a partner of this project, I am already at your disposal," he said.
Fabrício Batista, mayor of São Félix do Xingu, highlighted his expectations for the project and reinforced the importance of societal understanding. "It is important for society to understand that now it has happened, so now it is to use the benefit that the municipality can have through this concession. So, this is our request, that both the company and the state government have this perspective, both for Altamira and for São Félix, so that our population can have these benefits as soon as possible," he stated.
Also participating in the agenda were the Secretary of Environment and Sustainability of Pará, Raul Protázio, the president of the Institute of Forest Development and Biodiversity, Nilson Pinto, the Secretary of Public Security, Ualame Machado, and the president of the Institute of Lands of Pará, Bruno Kono.
What is the Triunfo do Xingu Recovery Unit
Developed by the government of Pará, through the Secretary of Environment and Sustainability (Semas) and the Institute of Forest Development and Biodiversity (Ideflor-Bio) with participation from the Institute of Lands of Pará (Iterpa), the project foresees the concession of an area of 10,300 hectares in the Environmental Protection Area (APA) Triunfo do Xingu, in Altamira (PA). The region was illegally deforested and will be reforested through private initiative.
With a duration of up to 40 years, the concession aims to recover native vegetation and capture 3.7 million tons of carbon equivalent - the equivalent of 330,000 flights around the planet. In addition, the initiative is expected to generate about two thousand jobs in the region, one of the most impacted by illegal deforestation in the country.
The project is part of the state's commitment to reducing deforestation and valuing the living forest. Data from the Prodes system, from the National Institute for Space Research (Inpe), indicate that, between July 2023 and August 2024, Pará reduced deforestation by 28.4%. In June 2024, the state recorded the largest reduction in deforestation alerts for the month of June since 2019, with a 41% reduction, according to official data from the National Institute for Space Research (Inpe).
The concession model of the URTX also foresees the creation of a fire brigade in the area, training of local labor, and support for the bioeconomy production chains. The bidding document establishes shared responsibilities between the state and the concessionaire for training, awareness, and fire management in the surroundings. In addition, the concession makes land grabbing more difficult, ensures the maintenance of public land, and restricts illegal activities. The hiring of local workers and support for sustainable production chains are also part of the project.
New concessions – Governor Helder Barbalho has already announced that the state is preparing new bidding documents for reforestation in the APA Triunfo do Xingu.
The strategy reinforces the state government's commitment to forest recovery and sustainable development, consolidating Pará's role in the global environmental scenario. The state is preparing to host COP 30, an international conference on climate change.
Part of the funding for the execution of the URTX reforestation project was secured by the Amazon Biodiversity Fund (ABF), which receives exclusive advice from Impact Earth, an international consultancy with a strong presence in Brazil and formed by experienced professionals. The ABF was also present in the initial stage of Systemica's project, collaborating for participation in the public concession process and compliance with initial obligations.
