BRAZILIAN NGOS CALL GOB FOR TFCA TALK

UNCLAS SECTION 01 OF 02 BRASILIA 002449 SIPDIS SIPDIS DEPT PASS USAID TO LAC/RSD, LAC/SAM, G/ENV, PPC/ENV TREASURY FOR OASIA (NLEE, JHOEK) AND KBERG USDA FOR FOREST SERVICE: LIZ MAHEW INTERIOR FOR DIR INT AFFAIRS: K WASHBURN INTERIOR FOR FWS: TOM RILEY INTERIOR PASS USGS FOR INTERNATIONAL: J WEAVER JUSTICE FOR ENVIRONMENT AND NATURAL RESOURCES: JWEBB EPA FOR INTERNATIONAL: CAM HILL-MACON USDA FOR ARS/INTERNATIONAL RESEARCH: G FLANLEY NSF FOR INTERNATIONAL: HAROLD STOLBERG E.O. 12958: N/A TAGS: SENV EFIN EAID TBIO ECON SOCI XR BR SUBJECT: BRAZILIAN NGOS CALL GOB FOR TFCA TALK -------------- SUMMARY -------------- ¶1. A group of Brazilian NGOs invited the Ministry of the Environment and the Brazilian Treasury for a discussion about including Brazil in the debt conversion/reduction process under the TFCA (Tropical Forest Conservation Act). To date, no formal agreement has been made with the USG under the TFCA. This meeting was intended to spur the process. End Summary. -------------- DISCUSSION -------------- ¶2. NGOs Instituto Socioambiental, The Nature Conservancy - Brazil, and RMA (Network of Atlantic Rainforest NGOs) called representatives from the Brazilian Treasury and the Ministry of the Environment for a meeting on November 13 in Brasilia. The objectives were: (1) to create a baseline of knowledge among all actors as to the concept and processes of debt conversion/reduction under the Tropical Forest Conservation Act (TFCA); (2) to recognize the representatives of the groups involved (Treasury, Ministry of the Environment, and NGOs); (3) to set an agenda for actions taken by each group. ¶3. The meeting brought together four representatives from the Brazilian Treasury, one representative from the Ministry of the Environment, and representatives from three other NGOs (ISPN, FUNATURA, and INESC). ¶4. The Ministry of the Environment stated that a formal letter was sent a few months ago to the Brazilian Treasury, which demonstrated its interest in debt conversion/reduction, but no reply had been received to date. Representatives of the Treasury opined that the process must have been stalled by recent changes in staffing. Both sides agreed it will be important to set a meeting together to deepen the discussion and define the role each Ministry would play. -------------- NEXT STEPS -------------- ¶5. The Brazilian Treasury pointed to the importance of compiling a matrix of all past discussions on the subject in order to form a concrete decision within the Brazilian government before approaching the USG. (Comment: This lack of coordination lends to the impression that there has been little movement on this issue by the GOB since the TFCA proposal was first presented to them. End Comment. While hopeful that the GOB will soon conduct meetings to resolve the point of where this issue stands, the event organizers (NGOs) plan to contact a broader network of organizations in order to eventually create a formal proposal.) -------------- BRAZILIAN STATE OF ACRE TAKES THE LEAD -------------- BRASILIA 00002449 002 OF 002 ¶6. Although the Brazilian Federal Government does not yet have a formal agreement under the TFCA, the State of Acre - which has 90 percent of its territory covered by Amazon forest - has prepared a draft law which attempts to institutionalize the concept of Compensation for Environmental Services. (Note: please contact Larissa Stoner to obtain a copy of this draft law. End Note.) The bill is currently under discussion and will be sent for vote in Acre's Legislative Assembly in December. According to one press report, the government in Acre also intends to create an institutional environment which would allow 'debt for nature swap' processes within the state. -------------- COMMENT -------------- ¶7. This meeting was in a sense a 'wake-up call' for those involved that action must be taken before the idea is forever lost in the Brazilian bureaucracy. While many doubts about the process itself will need to be clarified, it seems that the GOB and civil society are taking a positive step forward in at least starting the dialogue. Given Brazil's recent interest in creating a post-Kyoto mechanism for paying developing countries to slow and/or stop deforestation as part of their contribution for combating global climate change, the inability of the GOB to finalize an agreement under the TFCA is puzzling. End Comment. CHICOLA