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Avoided Deforestation (REDD) and Indigenous ... - Amazon Fund

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ecognized as precedent to the formal organization of Brazil as a State) <strong>and</strong> the Union’s ownership<br />

of the l<strong>and</strong> as instrumental in allowing the Union to protect such Brazilian Indians’ fruition rights. 27<br />

In light of the above, we conclude that the project activities related to sustainable<br />

management of the forests <strong>and</strong> the resulting economic benefits being reverted to the Surui are<br />

in accordance with the Constitution <strong>and</strong> legislation which reserves to the Brazilian Indians (i) the<br />

exclusive use <strong>and</strong> sustainable administration of the demarcated l<strong>and</strong>s as well as (ii) the economic<br />

benefits that this sustainable use can generate. This is consistent with other precedents pertaining<br />

to benefits for Brazilian Indians such as the extraction of forest products, sustainable agriculture,<br />

sale of products/artifacts made of forest’s raw material.<br />

Our analysis also concludes that the concept of the project is also in accordance with the<br />

following Brazilian Environmental Laws: Federal Law Nº 4,771/65 (Forest Code) <strong>and</strong> its Federal<br />

Decree Nº 5,975/06; Federal Law Nº 6,938/81 (National Environmental Policy); Federal Law Nº<br />

9,985/00 (Conservation Units National System) <strong>and</strong> its Federal Decree Nº 4,340/02; Federal Law<br />

Nº 11,284/06 (Management of Public Forests) <strong>and</strong> its Federal Decree Nº 6,063/0. 28 It goes without<br />

saying that the actual implementation of the project shall be in compliance with such legal<br />

requirements, including those related to sustainable forest management.<br />

Ownership of the Projects’ CERs or VERs<br />

By identifying the Brazilian Indians’ exclusive constitutional rights over the sustainable<br />

use of the demarcated l<strong>and</strong>s, we conclude that the economic benefits of such use, such as the<br />

payments for carbon credits deriving from CDM or voluntary market transactions, belong to the<br />

Surui. A pre-condition for the fulfillment of this economic benefit guaranteed by the Brazilian<br />

Constitution is the recognition that ownership of any CERs (Certified Emission Reductions under<br />

the Clean Development Mechanism of the Kyoto Protocol) <strong>and</strong> VERs (Verified Emission Reduction<br />

under the Voluntary Market) belong to the Brazilian Indians.<br />

The international regulations on climate change, specifically the UNFCCC <strong>and</strong> the Kyoto<br />

Protocol, defer to national legislation of host countries on the issue of ownership of CERs. The<br />

ownership of VERs follows the same principle.<br />

27 This conclusion is supported by the systematic analysis of articles 20, XI, 225 <strong>and</strong> 231 of the Brazilian<br />

Constitution <strong>and</strong> infra-constitutional legislation <strong>and</strong> legal doctrine.<br />

28 In lieu of space limitations for this paper, we will restrict our comments to some aspects of Federal Law Nº<br />

11,284/06 (Management of Public Forests) <strong>and</strong> its Federal Decree Nº 6,063/0, as further discussed below.<br />

132 Av o i d e d d e f o re s t A t i o n (redd) A n d i n d i g e n o u s p e o p l e s: experiences, chAllenges A n d o p p o r t u n i t i e s in t h e A m A zo n c o n t e x t

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