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

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provided by more recent policies established by the Federal Government. 38 In that regard, any<br />

allocation of a portion of the economic results of the project by the Surui to Funai should be<br />

considered on a voluntary basis from a project governance st<strong>and</strong>point.<br />

<strong>REDD</strong>: Some Discussions in Light of a Possible Future Regime<br />

Although our initial legal analysis focuses on the afforestation <strong>and</strong> reforestation aspects<br />

of the Surui project, we were able to further consider some aspects related to <strong>REDD</strong> projects<br />

in the absence of national <strong>and</strong> international regulations regarding <strong>REDD</strong>, based on the overall<br />

objectives of <strong>REDD</strong> projects (conservation of forests <strong>and</strong> sequestration of GHGs) <strong>and</strong> the overall<br />

legal framework in place. However, the current absence of specific Brazilian legal requirements<br />

regarding <strong>REDD</strong> projects may be impacted by the Brazilian ratification of a possible future <strong>REDD</strong><br />

international regime. In this scenario, provided that some kind of agreement is reached in the<br />

near future, the ultimate <strong>REDD</strong> legal regime will be conditioned to (i) the extent that <strong>REDD</strong> credits<br />

will be recognized as a tradable right in the international market <strong>and</strong> (ii) the possible impact of<br />

<strong>REDD</strong> credits in future Brazilian emission reduction targets m<strong>and</strong>ates, if any.<br />

The combination of those factors, among others, may trigger a more or less interventionist<br />

approach by the Government in trying to define a specific <strong>REDD</strong> legal regime in Brazil. In theory,<br />

some level of restriction on such rights may be possible, depending on the existence of a regulated<br />

market (for example, through taxation of economic benefits deriving from <strong>REDD</strong> projects). Such<br />

regime may or may not seek to include some innovation regarding ownership of carbon credits<br />

vis-à-vis the general rule in place, whereby carbon credit ownership is connected to the main rights<br />

attached to each project activity. (The person or group who owns the economic results of the<br />

project activities that generate the credits, or is a legal beneficiary thereof, owns the credits). 39<br />

Regardless of the ultimate design of a Brazilian <strong>REDD</strong> Strategy <strong>and</strong> its corresponding legal<br />

<strong>and</strong> policy contours, its legality will depend on its alignment with the Constitution, including the<br />

38 Federal Decree Nº 4.645 of March 25, 2003, Art. 25 (amending Law Nº 5.371 of December 5, 1967, which initially<br />

established Funai). Funai is merely entitled to take care of <strong>and</strong> manage the <strong>Indigenous</strong> Heritage of Brazilian<br />

Indian Communities that are isolated or do not have the capability to defend <strong>and</strong> represent their own interests.<br />

The situation of the Suruí Community is different in that its members have organized themselves by constituting<br />

Associação Metareilá do Povo Indígena Suruí which has represented their interests since 1989.<br />

39 Under a more restrictive international scenario, some stakeholders have suggested that some governmental<br />

interventionist approach over credit ownership may be necessary to assist the country in complying with a<br />

possible m<strong>and</strong>ated emission reduction target in a future international regime, thus avoiding the risk of double<br />

counting credits arising from Brazilian forests.<br />

138 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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