Federative Republic of Brazil MINISTRY OF ENVIRONMENT ... · Secretary: José Pedro de Oliveira...

Federative Republic of Brazil

President: Fernando Henrique Cardoso

Vice-President: Marco Antonio de Oliveira Maciel

MINISTRY OF ENVIRONMENT

Minister: José Sarney Filho

Executive Secretary: José Carlos Carvalho

SECRETARIAT FOR BIODIVERSITY AND FORESTS

Secretary: José Pedro de Oliveira Costa

Director of the National Forest Program: Raimundo Deusdará Filho

NationalForest Program

PNF

Ministry of Environment – MMA

Luis Eduardo Magalhães Information and Documentation Center – CID Ambiental

Esplanada dos Ministérios – Bloco “B” – Térreo

80068-900 – Brasília – DF - Brazil

Tel: 61 317-1235

Fax: 61 224-5222

e-mail: [email protected]

National Forest Program Directorate – DIFLOR

Tel: 61 317-1140

61 317-1493

Fax: 61 323-7936

e-mail: [email protected]

Brazilian Institute for Environment and Renewable Natural Resources – IBAMA

Tel: 31 316-1000

www.ibama.gov.br

Printed in Brazil

NATIONAL FOREST PROGRAM – PNF. Brasília: MMA/

SBF/DIFLOR, 2001, 54p.

1. Forest policy. 2. Forest products. 3. Forest extraction. 4.

Traditional populations. 5. National Forest Program – Prepara-

tion. I. Brazil. Ministry of Environment.

CDU (1997) 630*97

ISBN:

NationalForest Program

PNF

Brasília, Brazil2001

Ministry of Environment – MMASecretariat for Biodiversity and Forests


Ministry of Environment – MMASecretariat for Biodiversity and Forests


Director of the National Forest Program Raimundo Deusdará Filho

Manager of the Sustainable Use ofForest Resources Project Newton Jordão Zerbini

Manager of the Reforestation andRecovery of Degraded Areas Project Hélio dos Santos Pereira

Technical Coordination Ednardo de Freitas Machado

Technical StaffAlan Veiga Viegas Aloysio Costa JuniorEliete Mattioli A. de Sousa Fernando Luiz da Fonseca RamosGuilherme Alves Bruno Jorge Henrique MoritzenLouis Albert Tranquillin Luciana do Nascimento LockLuis Dario Gutierrez Mere Marcelo Lemos da Fonseca RamosMaurício Savi Míriam ProchnowRicardo Aguilar Galeno Victor Alexandre Bittencourt Sucupira

Technical and Administrative SupportAdriana de Freitas Silva Alessandra Pedrosa GomideArapuã de Souza Brito Carla Lobo BeniniCristiane Araújo Safe Carneiro Danielle Lemos SaidEliana Jorge Leite Fátima Wanderley da Costa

Regional Support Units (Mid-South, Northeast and North)Adailton José E. de Carvalho Ademir Soares dos SantosAntonio Carlos Hummel Anette Maria de Araújo LealEduardo Eustáquio Grossi de Moraes Enílima da Cruz Moraes BraidFrancisco Carneiro Barreto Campello Geraldo Leal JúniorJorge Luiz Batista de Lima José Ricardo A. LimaLaura Lago Maria Auxiliadora GariglioNewton Duque Estrada Barcellos Ricardo Carneiro Barreto CampelloSônia Maria C. Carvalho Taciano de Caldas Coelho

Interministerial Working GroupMinistry of Environment – Raimundo Deusdará Filho (coordinator) Florestar Program – Raimundo Deusdará Filho – DIFLOR/SBF (manager) Sustentar Program – Antônio Carlos do Prado – DIREN/IBAMA (manager) Florescer Program – Gisela Damm Forattini – DIRCOF/IBAMA (manager)Ministry of Agriculture and Food Supply – Paulo Luis Valério BorgesMinistry of Development, Industry and Foreign Trade – José Paulo Rodrigues de CarvalhoMinistry of Agrarian Development – Vitória Regina BezerraMinistry of Science and Technology – Maurício Otávio Mendonça JorgeMinistry of National Integration – Mary Dayse KinzoMinistry of Planning, Budget and Management – Pedro Antônio Bertone Ataíde

ConsultantsAdalberto Oliveira Veríssimo Joaquim Carlos GonçalezNelson Barboza Leite Roberto Smeraldi (Friends of the Earth – Amazon Program)Virgílio Maurício Viana

EditingCoordination and Graphic Design: Alô Comunicação Revision: Katia AguiarTranslation: Maria Claudia Costa Vargas

Photos(on file) Juan Pratginéstos and Reuber Brandão

This publication had the financial support of the United Nations Food and Agriculture Organization - FAO

Contents

FOREWORD ............................................................................................... 09

INTRODUCTION .......................................................................................... 11

ACRONYMS ............................................................................................... 15

BACKGROUND ........................................................................................... 17

OBJECTIVES ............................................................................................... 25

JUSTIFICATION ........................................................................................... 26

THEMATIC LINES ........................................................................................ 28

Expansion of planted forest base ................................................................. 28

Expansion and consolidation of native forest management in public areas ........ 29

Management of native forests in private areas ............................................... 32

Monitoring and control ................................................................................ 33

Traditional and indigenous populations .......................................................... 36

Forest education, science and technology ..................................................... 37

Forest environmental services ..................................................................... 38

Institutional strengthening and forest extension ............................................. 40

Modernization of forest based industries ....................................................... 41

Market and the trade of forest products ....................................................... 42

STRATEGY FOR IMPLEMENTATION ................................................................ 45

ANNEX ...................................................................................................... 49

BIBLIOGRAPHY........................................................................................... 51

8

Ministry of Environment

9

National Forest Program – PNF

Predatory exploitation, burnings and fires have been a constant threat to the conservation of the Brazil-

ian forest heritage and to the sustainable use of its resources. The degradation we have been witnessing

places the conservation of soil, water resources and biodiversity equally at risk, as they are all intrinsically

dependent on the preservation and sound use of our forests.

In an attempt to resolve this problem, we have increased environmental control by strengthening

surveillance and encouraging companies to adapt themselves to existing legislation. At the same time, we

have sought to encourage the sector to adopt sustainable technologies such as forest management. Fortu-

nately we have been seeing an increasing number of stewardship initiatives, given the pressure of the

consumer market and public opinion for guarantees of the sustainable origin of forest products. We

lacked, however, the technical and legal framework, which, together with the Forest Code, could establish

guidelines for use of forests in Brazil, within the new model of sustainability recommended in the Rio

Declaration and Agenda 21. It was in this context that the National Forest Program, which we are now

presenting, was conceived.

The objective of the National Forest Program, determined by Decree No. 3420, dated April 20, 2000,

is to promote sustainable forest development, harmonizing economic use with the protection of ecosys-

tems, and making forest policy compatible with the other public policies, so as to promote the expansion

of markets both at home and abroad and the institutional development of the sector.

To draft the program, numerous suggestions were gathered through a process of public consultation,

involving more than 600 institutions in the forestry sector, including social movements, environmentalist

organizations, the academic community, professionals, small and medium sized forestry producers and

businessmen, among others. The Interministerial Working Group also made decisive inputs; it included

representatives form the Ministries of Agriculture and Food Supply, Science and Technology, National

Integration, Agrarian Development, Development, Industry and Foreign Commerce, and Planning, Bud-

get and Management, under the coordination of the Ministry of Environment.

The national territory is covered by approximately 5.5 million sq km of native forests. Of this total, 2/3

comprises the Amazon Forest; the rest consists of the Cerrado, Caatinga and Atlantic Forest and associated

ecosystems.

Forest activity has been essential for the economic growth of the country, contributing annually to 4%

of the GDP and 8% of exports. The main items are short fiber pulp, paper, furniture, panels, sawnwood

and processed wood. The sector further contributes significantly to the generation of tax revenues and

provides more than 2 million direct jobs, most of them related to the exploitation and processing of native

timber. The planted forests, in turn, contribute to the preservation of natural areas and to the development

of a modern industrial sector, representing a source of raw materials for products with high added value

and for the paper and pulp sector and the charcoal-based steel industry.

Foreword

10


Brazilian forests are capable of bearing the sustainable use of timber resources but must continue to

offer environmental services such as conservation of biodiversity, protection of sources and carbon fixa-

tion, which contributes to climatic equilibrium. Because of their multiple uses, forests should also maintain

their qualities for other activities such as ecotourism and extractivism.

In the Amazon, for example, extractivism (sustainable extraction of resources) has considerable signifi-

cance for the income of approximately 1.5 million people. More than 300 indigenous peoples and thou-

sands of traditional communities live in these forests. Forest resources are of the utmost importance to

both their culture and their economy. These people also possess empirical knowledge of the natural

ecosystems, a valuable instrument for developing sustainable management systems for our forests.

Harmonization of all these aspects is the focus of the National Forest Program, the main goal of which

is to encourage and catalyze promising activities for sustainable development and conservation of forest

ecosystems, acting in synergy with the demands of the various social and economic segments involved.

In this way Brazil reaffirms its commitment to sustainable development, which presupposes mainte-

nance of forest integrity, respect for traditional and indigenous peoples, income generation and sharing of

benefits among the various economic and social agents involved in the forest productive chain.

José Sarney Filho

Minister of State for the Environment

11


Introduction

After President Fernando Henrique Cardoso began his second mandate in early 1999, a vigorous

discussion of Brazilian forest policy ensued. This process was concluded recently with the advent of several

important initiatives for the sector, including the creation of the Secretariat for Biodiversity and Forests, the

revision of the Brazilian Forest Code, the federal law that established the National Protected Areas System

and the launching of the National Forest Program.

During this period, environmental management underwent deep reformulation with respect to concept

and organizational structure. In addition to the traditional management model based exclusively on the

command and control mechanisms of the state, the new institutional mission of the Ministry of Environ-

ment embodied the concept of sustainable development, particularly with respect to policies on conserva-

tion and use of forest resources. At the same time, the policy and regulatory responsibilities that remained

under IBAMA were incorporated in the basic responsibilities of the MMA, turning IBAMA into an essen-

tially executive and operational institution.

This concept led to the creation of the SECRETARIAT FOR BIODIVERSITY AND FORESTS,

bringing to light the political importance of the forest sector within the public administration, while re-

establishing the institutional identity in managing forest activities, raising it to the status of a Secretariat of

State, in the highest levels of the Federal Government. The aim of the Secretariat is to propose policies and

regulations, define strategies and implement programs and projects on issues related to forest policy,

bearing in mind that more than 70% of the Brazilian biodiversity is associated to the forest ecosystems

distributed throughout the Atlantic Forest, Amazon Forest, Caatinga, Cerrado and Pantanal biomes.

To formulate and implement forest policy, the Secretariat has a specialized Directorate, responsible for

managing the projects and activities that are part of the National Forest Program, in addition to proposing

instruments and regulations applicable to forest management and coordinating actions that aim to ensure

the sustainable use of forest resources.

While these measures of institutional strengthening were being carried out, the Forest Code was re-

viewed and updated. The changes were submitted to the National Environment Council (CONAMA) for

analysis. The final draft, approved in the Council plenary, was adopted in full by the President of the

Republic, when Provisional Act No. 1956 was re-enacted.

The text approved by CONAMA sought to harmonize the ecological, economic and social aspects that

are inherent to forest activities by means of broad discussions with all stakeholders, including government

bodies, professional associations from the private sector and environmentalist entities. These discussions

led to five regional meetings, 21 state meetings, 73 sectoral meetings, with the direct participation of more

than 7,800 people, representing 890 different entities.

The conceptual framework on which the CONAMA proposal was based took into consideration the

strengthening of command and control mechanisms for illegal and predatory deforestation, the adoption

12


of economic incentives for conserving private forests, recovery of ecosystems drastically affected by human

action, the advancement of knowledge and the regulations for accessing biological diversity, the impor-

tance of reforestation and forest management, the generation of income and jobs for the populations,

bearing in mind the constitutional mandate awarded the federated states to legislate complementarily to

the federal government in forest matters.

With the new legal text transformed into a Provisional Act (legally binding), the Federal Government

begins to consider the Brazilian Amazon to be a territory clearly intended for forest activities, in which the

forest management and agro-silviculture activities should have priority, as opposed to the classic model

based on deforestation. Likewise, protection of the forest heritage in other regions of the country needs to

be considered, as well as the strategy for conserving the natural resources base, particularly conservation of

land and water, whose availability, in terms of quality as well as quantity, depends on forests, and are of

direct interest to farmers and rural producers.

Together with the revision of the Forest Code, with the advent of Federal Law No. 9985, sanctioned by

the President of the Republic on 18 July 2000, Brazil consolidated the legal framework and established the

National Protected Areas System, with clear definitions of the guidelines to be applied to specially protected

areas, including management, administrative responsibilities, management categories and property owner-

ship. Previously, the protected areas were provided for in six different legislative instruments, leading to

difficulties in institutional and administrative coordination.

Besides the group of protected areas with indirect use, the law establishing the National Protected Areas

System enshrined the definition of the sustainable use areas, whose basic objective is to make the conser-

vation of nature compatible with the sustainable use of natural resources. Among the sustainable use areas,

four categories are of direct interest to forest policy, namely: National Forests, Extractive Reserves, Sus-

tainable Development Reserves and the Private Natural Heritage Reserve.

Concluding the efforts undertaken institutionally and in the legal arena, the National Forest Program

was launched with the aim of re-coordinating the Brazilian forest sector, updating sectoral guidelines,

incorporating new management concepts, identifying financing sources and introducing new sustainability

models with a view to lending greater consistency and substance to the new Forest Policy that the country

desires to implement.

The existence of laws, regulations and official documents, even though they may be technically perfect,

does not mean that a policy is being carried out. It is possible to formulate public policies without the

support of the community, but without this support no government action survives. Its implementation

depends on the mobilization and engagement of the political, economic, social and environmental actors,

whose coordinated action is essential for a national or regional policy to be successful and not just be left to

its own words.

The National Forest Program, institutionalized by Presidential Decree No. 3420, dated 20 April 2000,

was conceived as the locus of the action, the bringing together of projects and activities identified by the

demands of the public and that, for this very reason, must be the key to the solution of the forest problems

that lead the sector away from its sustainable path. Drafting of the program was based on suggestions

originating in broad consultation, the broadest ever carried out to define public policy for the sector,

mobilizing more than six hundred institutions connected to forest activities.

13


As a result of the measures adopted up to now, the forest sector was included, for the first time, in the

country’s strategic planning in the Government’s Multi-Year Plan 2000-2003, under three program ac-

tions corresponding to (i) Expansion of Planted Forest Base, (ii) Sustainable Use of Native Forests, and (iii)

Prevention and Control of Deforestation and Forest Fires.

The thematic lines of the National Forest Program, with their respective aims and objectives, are the

guidelines for planning and action by the Brazilian Government, around which public and private efforts

will be coordinated with the goal of conservation and sustainable forest development.

José Carlos Carvalho

Executive Secretary


14


15


BASA Amazonian Bank

BB Bank of Brazil

BDMG Development Bank of Minas Gerais

BNB Northeast Bank of Brazil

BNDES Brazilian Economic and Social Development Bank

CDM Clean Development Mechanism

CNPT National Traditional Populations Council

CONAMA National Environment Council

CREA Regional Engineering, Architecture and Agronomy Council

DIFLOR National Forest Program Directorate

DIRCOF Environmental Control Directorate

DIREN Renewable Natural Resources Directorate

DOU Official Gazette

EMBRAPA Brazilian Agricultural Research Corporation

FAO United Nations Food and Agriculture Organization

FAT Worker Assistance Fund

FCO Mid-West Constitutional Financing Fund

FINAM Amazonian Investment Fund

FINOR Northeast Investment Fund

FLONAS National Forests

FLORESCER Program to Prevent and Combat Deforestation, Burnings and

Forest Fires

FLORESTAR Program to Expand the Planted and Managed Forest Base

FNE Northeast Constitutional Financing Fund

FNMA National Environment Fund

FNO North Constitutional Financing Fund

FUNAI National Indian Foundation

FUNATURA Pro-Nature Foundation

GDP Gross Domestic Product

GEF Global Environment Facility

GTI Interministerial Working Group

IADB Inter-American Development Bank

IBAMA Brazilian Institute for Environment and Renewable Natural

Resources

IFF Intergovernmental Forest Forum

IMAZON Amazon Man and Environment Institute

Acronyms

16


INCRA National Colonization and Agrarian Reform Institute

INPE National Space Research Institute

IPF Intergovernmental Forest Panel

IRBD World Bank

ITTO International Tropical Timber Organization

JICA Japan International Cooperation Agency

MDA Ministry of Agrarian Development

MDF Medium Density Fiberboard

MDIC Ministry of Development, Industry and Foreign Trade

MET Ministry of Sports and Tourism

MIN Ministry of National Integration

MMA Ministry of Environment

MPOG Ministry of Planning, Budget and Management

MRE Ministry of Foreign Relations

NGO Non-Governmental Organization

OSB Oriented Strand Board

PEA Economically Active Population

PNF National Forest Program

PPA Multi-Year Plan of the Federal Government

PPG7 Pilot Program to Conserve the Brazilian Rain Forest

PREVFOGO National System for Preventing and Combating Forest Fires

PROARCO Program for Prevention and Control of Slash and Burn Practices

and Forest Fires in the Amazon Deforestation Belt

PRODES Program to Assess Deforestation in the Brazilian Legal Amazon

PRODESQUE Project to Monitor and Control Deforestation and Burnings in

the Amazon

PROECOTUR National Ecotourism Program

PROMANEJO Project to Support Forest Management in the Amazon

PRONAF National Program to Strengthen Family Agriculture

RESEX Extractive Reserve

SBF Secretariat for Biodiversity and Forests

SBS Brazilian Silviculture Society

SCA Secretariat for Amazonian Coordination

SDI Secretariat for Integrated Development

SEAIN Secretariat for International Affairs

SEBRAE Brazilian Service to Support Small Business

SENAI National Industrial Training Service

SNUC National System of Protected Areas

SUSTENTAR Sustainable Forests Program

UN United Nations Organization

ZEE Ecological-Economic Zoning

17


Realization of the importance of the Brazilian forestry sector in the organizational structure of the direct

administration of the federal government led to the creation in 19991 of the Secretariat for Biodiversity and

Forests (SBF), at the Ministry of Environment.

The SBF is responsible for proposing policies and regulations, defining strategies and implementing

programs and projects in areas related to preservation, conservation and shared management of the

sustainable use of natural resources and biodiversity; reforestation and recovery of altered areas; the

sustainable use of forests and prevention and control of forest fires and burnings, among others.

Within the SBF, it is the National Forestry Program Directorate (DIFLOR) that is responsible for propos-

ing environmental regulations and instruments; promoting, coordinating and integrating actions that en-

sure the sustainable use of forest resources, reforestation and recovery of altered areas; and encouraging

measures that ensure prevention and control of forest fires and burnings2 .

The federal government’s multi-year plan, PPA 2000-2003, and the General Federal Budget – OGU

2000, included the forest sector in three program lines: Expansion of the Planted and Managed Forest

Base – Florestar; Sustainable Forests – Sustentar; and Prevention and Combat to Deforestation, Forest

Fires and Burnings - Florescer.

It is worth mentioning that in the Study of the National Integration and Development Axes of the

Avança Brasil Program, a sum of US$ 7.8 billion was allocated as Opportunities for Public and Private

Investments for the period 2000-2007 in the area of environment. Out of this total, US$ 1.6 billion refer

to business opportunities in forests.

Although the final configuration of the PPA 2000-2003, the Federal Budget 2000 and the Avança Brasil

Program were favorable to the forest sector, there is need for a more comprehensive program to deter-

mine a set of solutions for the main problems and demands of the sector.

Some recent studies and papers support this conclusion, such as “Brazilian Ecosystems and Main

Development Macro Vectors: Input for Environmental Management Planning” (MMA, 1995); “Diagnosis

and Assessment of the Brazilian Forestry Sector” (Ibama/Funatura/ITTO, 1996); “Guidelines for a Na-

tional Forest Policy” (MMA, 1997); “Plan of Action for the Atlantic Forest” (MMA, 1998); “Positive

Agenda for the Brazilian Forest Sector” (MMA/FAO, 1997); “Project to Support Forest Management in

the Amazon – ProManejo” (MMA/Ibama, 1999); and the “Positive Agenda for the Amazon” (MMA,

2000).

Background

1. Decree No. 2972, dated 26 February 1999, which approves the Structure of the Ministry of Environment

2 . Directive No. 255, dated 9 July 1999, which approves the By-Laws of the Secretariat for Biodiversity and Forests of the


18


In this context, the National Forest Program (PNF) was created through Decree No. 3420, dated

April 20, 2000, published in the Official Gazette on April 22, 2000. The Decree established that the

formulation and definition of the institutional and community scope, goals, priorities, means and mecha-

nisms of the PNF were to be carried out in a participatory manner, welcoming suggestions from the

Brazilian public.

Thus, with the aim of meeting this decree, and to begin coordinating the demands of the various

segments of the public involved in the forestry sector, a basic document was drafted in preparation for the

National Forest Program in April 2000, based on studies carried out by the MMA, Ibama, environmental

and social NGOs, teaching and research institutions, and organizations from the forestry-based private

sector. Also considered were the results of the discussions in the National Environment Council (CONAMA)

on the restructuring of the Forest Code (Law No.. 4771, dated September 15, 1965). This basic docu-

ment was also made available on the Internet, thus providing inputs for the first consultation stage.

Consultations began in April 2000, with participation in congresses, seminars, workshops, meetings

and other events in the forestry area, and are continuing in a participatory and integrated manner, with the

aim of improving and enhancing the performance of the various forestry sector agents, particularly social

movements, and the incorporation of new demands of other segments interested in forestry issues, during

the implementation of the PNF.

Source: Avança Brasil Program, 1999

19


Presentation and discussion of the initial proposals of the National Forest Program took place in differ-

ent regions of the country and involved more than 600 institutions of the sector, small and medium sized

forest producers, social movements, environmentalist organizations, academia, professionals, business-

men, researchers and representatives of all levels of government, altogether around 1200 persons2 . The

results were quite significant, considering the limitations of time and available financial resources.

Among the main demands put forward during this initial stage of the consultation process were: less

bureaucracy and simplification of regulatory instruments; decentralization of forestry fostering actions;

creation and greater suitability of credit lines and financing, compatible with the specificities of the period

of duration, a grace period and maturation of sector undertakings; stability of norms, particularly legisla-

tion; training and capacity building of human resources; strengthening of research institutions; and imple-

mentation of a forestry extension and technical assistance service. Also considered important were specific

studies to improve institutional management, particularly with respect to the feasibility of creating a na-

tional forestry agency; support to small and medium sized rural producers in developing agroforestry

activities; modernization of the industry; and consolidation and expansion of the National Forest Network

– FLONAs, as well as of state and municipal networks.

The prominent position that Brazil occupies among nations discussing forestry issues should be noted.

Based on a consolidated posture at the United Nations Conference on Environment and Development

(Earth Summit), where the Declaration of Principles for the Sustainable Development of All Types of

Forests was signed, the country has also actively participated in the discussions within the Intergovernmen-

tal Forum on Forests (IFF), which supplanted the Intergovernmental Panel on Forests (IPF).

The National Forest Program also represents the commitments undertaken by the Brazilian Govern-

ment with the United Nations regarding one of the IFF proposals for action, which recommends that each

country should establish its national forest program.

Brazil has the largest area of rain forests in the world, and approximately 65% of its territory (5.5

million square kilometers) still have some kind of forest cover. Two-thirds of this area is made up of the

Amazon Forest, while the rest includes the Atlantic Forest, the Caatinga, Cerrados and associated ecosys-

tems. It holds the largest biological diversity and is simultaneously the largest producer and consumer of

tropical timber.

Brazil’s history has been marked by a mistaken model of rural development. Forests have not been

treated in accordance with the required model of excellence, in spite of their importance for mankind,

essential as they are to ecological equilibrium and as one of the pillars of sustainable development. Because

Environmental and socioeconomic context

3. The consultation process was optimized by including the needs previously identified by other programs and/or actions

developed by the MMA, such as the “Positive Agenda for the Amazon” (item – economic activities for generating alternative

income and jobs – forest sector), carried out by the Secretariat for Amazonian Coordination.

20


of the manner in which resources have been exploited, the Atlantic Forest today only has 7.3% of its

original area. Pressures today are also having major impacts on the Caatinga, Cerrados and Amazon

Forest.

There are several factors that characterize the degradation of Brazilian ecosystems. Particularly signifi-

cant are the use of technologies that are incompatible with good economic use of resources, and the

problems in forest activity management. Public policies and government actions have not had the compre-

hensiveness and depth required to encourage the sustainable use of forests by uniting ecological and

economic aspects related to the conservation of biodiversity. Promotion of reforestation in altered areas

and management of remaining native areas have only been adopted recently.

The sustainable use and value-enhancement of forests, as producers of environmental goods and

services, generators of wealth and income, are the most appropriate ways of promoting their sustainability

and protecting of the Brazilian forest heritage.

The unquestionable Brazilian forestry potential and comparative advantages, mirrored in the extensive

areas of native forests, and the fact that Brazil is at the forefront of technology in terms of training and

management of rapid growth forests, guarantee the international competitiveness of our timber industry.

The chronic lack of resources for investments, at terms and rates that are compatible with the long

period required for implementing and managing native and planted forests, in addition to the non-eco-

nomic compensation for the services rendered by forest areas – regulation of the hydrological system, less

harsh climate, soil conservation, biodiversity protection, among others – have led to decreasing rates of

commercial planting and sustainable management.

The economic stability of the country, however, allied to the globalization of the economy has attracted

foreign capital and incorporated new technologies in the forest based industries, increasing the demand for

raw materials originating in the forest.

The current production of native forests is concentrated in the Amazon region. Plantations, situated

mostly in the South and Southeast of Brazil, ensure the supply of forest raw materials for the furniture

industry, steel mills, timber processing and pulp and paper.

Brazil, the largest producer and consumer of tropical timber in the world, still has a modest participa-

tion in the international trade of forest products, with the exception of short fiber pulp. In regard to tropical

timber, Brazil contributes 4% of the global market.

This situation already shows signs of change as the trend towards depletion is confirmed in areas of

tropical timber production in Southeast Asia – main exporters – and because of the internal policy condi-

tions that foster growth of the Brazilian economy and exports.

In order to be competitive in the international market it is necessary for Brazil to modernize itself and

to ensure high social and environmental standards in production, given the requirements of both domestic

and foreign markets. In some European countries such as England, the Netherlands and Germany, forest

certification is becoming important in the trade of tropical and temperate timbers. It is important to note

that the Brazilian government believes that the forest certification process should be a voluntary one,

deserving complete support because of its importance as one more instrument for consolidating and

21


The predatory model of economic use of native forests in the South and Southeast is being replicated

in the Amazon. The same system of timber extraction practiced in the Pine Forests and the Atlantic Forest

is taking place in the Amazon region.

The efficiency of the Brazilian forest sector has been threatened by non-sustainable management prac-

tices, clearance and fires. Current commercial use of timber in the Amazon is one of the most dynamic

activities, but is carried out in a largely irrational manner, and thus may lead to deforestation and economic

and social impoverishment of the region in the medium and long terms.

The South and Southeast, which exported timber until the seventies, are today totally dependent on

timber coming from the North. The main characteristic of the exploitation of native forests, especially the

Native forests

fostering sustainable management.

It is essential to adopt a management system for native forests in the domestic market, to increase

plantations and to expand and consolidate protected areas of sustainable use, which permit the use of forest

resources (national, state and municipal forests, extractive reserves and sustainable development reserves).

22


Amazon, is the synergy with the expansion of the agricultural frontier. These dynamics have been giving

rise to the unorganized occupation of the area.

Commercial exploitation of timber and non–timber products, when managed appropriately can con-

tribute to social and economic development and job and income generation for the populations involved.

The benefits arising therefrom are: increased productivity and reduced waste and work related accidents,

reduced negative impact on biodiversity and preservation of plant cover, and related services.

The Amazon contributes more than 30 million cubic meters of logwood, corresponding to approxi-

mately 85% of annual production from native forests. Most of this goes to the domestic market, making

the country the largest tropical timber consumer in the world. As a rule, processing of logs is inefficient,

with an efficiency of only 33% of removed stock, engendering an unacceptable level of waste.

Production of firewood from the Caatinga, with 55 thousand square kilometers, is responsible for

about 35% of the energy supply of the Northeast. The use of forest resources represents an important

source of income of the semi-arid region, generating more than 700 thousand jobs, particularly during the

dry season. Most of this extraction, however, is carried out without appropriate management. Several

sustainable development initiatives have been successfully adopted, proving that this system is capable of

maintaining forest use continuously, besides contributing to an improved quality of life and conserving

water resources.

The timber industry, which carries out mechanical processing of timber, is responsible for 1% of GDP.

In regional terms, this share is still more significant. In the Legal Amazon, for example, it represents 15%

of the local GDP and employs 5% of the economically active population. In the States of Mato Grosso and

Pará, about 10% of the total taxes collected originate in forest activities.

Extraction of non-timber forest products, such as heart of palm, Brazil nut, natural rubber, essences

and plant therapeutic products, among others, have seen a steep decline over the past three decades. In

the Caatinga and Atlantic Forest, this has occurred as a result of deforestation. In the Amazon, there

were three contributing factors: low productivity, competition with similar or synthetic products on a

commercial scale and inadequate government incentives. One of the classic examples of this phenomenon

is the decrease in the production of natural rubber from 17 thousand tons, in 1989, to less than 4

thousand tons in 1996.

As a rule, the commercial exploitation of these products is extensive, with relatively small environmental

impacts, with the exception of heart of palm extraction, which has been causing great damage. The Brazil

nut, natural rubber, essences and plant therapeutic agents, for example, need to incorporate new tech-

niques for suitable processing and management. This will certainly ensure immediate socioeconomic ben-

efits, by reducing rural exodus, improving quality of life and the environmental sustainability.

Indigenous and traditional populations have a close connection to the conservation and sustainable

use of forests. These communities are distributed sparsely over an area of more than 130 million

hectares. Their ethno-ecological knowledge of forest resources is generally undervalued and underused

in formulating development strategies, in spite of representing a valuable capital for promoting sustain-

able use of nature.

23


Forestry development based on silviculture took place at three points in time. Before 1966, it supplied

the incipient national steel industry and railways. From 1967 to 1987, the reforestation programs with tax

incentives resulted in a significant growth of this activity. From 1988 on with the end of these incentives,

there was a reduction in the rate of planting - which did not prevent this activity from structuring itself, and

becoming valuable to the national economy. The paper and pulp sector managed to achieve international

competitiveness, changing Brazil’s position from importer to exporter of these forest by-products, besides

placing Brazil as a leader in technology for rapid growth plantations with high productivity species.

During this period there was heightened technological development in the planted forest base sector,

with investments of around US$ 10 billion, doubling the productivity in the eucalyptus and pine plantations

from 20 cubic meters/hectare/year to 40 cubic meters. Silviculture contributed to reducing the anthropo-

genic pressure on forests, making possible conservation of extensive native areas, particularly the Atlantic

Forest.

Forest plantations occupy approximately 6.4 million hectares (64 thousand square kilometers), 4.8

million of which are eucalyptus and pine. Most are situated in the states of Espírito Santo, Minas Gerais,

São Paulo and Paraná, and are designed for the production of paper and pulp, charcoal for steel mills,

panels, furniture, sawnwood, resin, essential oils and rubber.

The paper and pulp sector consumes 108 million cubic meters a year of timber originating in planta-

tions for industrial use, corresponding to 400 thousand hectares of harvest. In terms of foreign trade, the

country supplies 2% of the paper and pulp market, 3.5% of the worldwide fiberboard industry; 8% of hard

boards; and 2% of particleboard.

In the case of rubber, most of the production comes from planted forests, in an area estimated at 200

thousand hectares. Brazil, which once was the world’s greatest exporter, today imports around 50% of the

internal demand, calculated at 170 thousand tons/year. This shows the need to invest in new plantations.

The Forestation/Reforestation Program executed from 1967 to 1987 led at the time to an excess of

timber supply. When it ended, expanding consumption became out of step with the supply of raw material.

To restart investments in forest plantation, one of the main needs is to establish lines of credit, with a profile

suitable for the long term nature required by forest undertakings. The Minas Gerais Development Bank,

for example, has been having successful experiences in the area of silviculture, operating a credit line of

around US$32 million to support reforestation in small and medium sized rural properties (Fazendeiro

Florestal).

Forest plantations

24


Environmental services

Native and planted forests provide environmental goods and services that are essential to conserve

biodiversity, maintain water resources, conserve soil, recreation and leisure, retain sediments and regulate

climate.4

It is essential to encourage the sustainable use of biodiversity in private properties. In critical regions

such as the Atlantic Forests, rural landowners own most of these areas. Recently the Federal Government

began to support these landowners in the recomposition of the areas of permanent preservation and in the

adoption of agroforestry systems and formation of ecological corridors.

Forests also have an unique role in the conservation of water resources. Deforestation leads to their

degradation, jeopardizing urban water supply, hydropower generation and agricultural irrigation.

The Atlantic Forest is localized in an area of higher demographic density and has undergone major

conversion of its forests to other alternative uses of soil. This results in the fact that the small and frag-

mented forest remnants have an essential role in supplying environmental services, particularly conserva-

tion of river basins and freshwater stocks.

Estimates indicate that in this biome the need for reforestation is greater than 10 million hectares,

particularly in the ciliary forests and hillsides, to ensure water resources to more than 100 million inhabit-

ants.

Ecotourism also has a close connection to conservation and recovery of the forest cover. Forests

almost always represent an essential component of landscape management, with the aim of developing

this activity.

It is expected that ecotourism will show accelerated growth over the next few years, particularly be-

cause of the measures being adopted by the Ministry of Environment, together with the Ministry of Sports

and Tourism, such as the National Ecotourism Program – Proecotur.

The PNF also intends to offer opportunities for creating and consolidating instruments in which the

forest activity may contribute to diminishing the planet’s climate change. This will be carried out in part-

nership with other government agencies, scientific communities, environmentalist organizations and social

movements.

4. Environmental services are the conditions and processes through which forest ecosystems and the species that constitute

it maintain and sustain human life (Dayle 1997).

25


The general objective of the PNF is to promote sustainable forest development, making resource use

compatible with the protection of ecosystems and making forest policy consistent with all the public

polices, encouraging the institutional strengthening of the sector.

The National Forest Program is an instrument to “develop the country making use, without destruc-

tion, of our green territory”, as stated by His Excellency the President of the Republic, Fernando Henrique

Cardoso, at the launching of the PNF during the radio program, The President’s Word, during the Day

of the Tree commemorations, on September 21, 2000.

In specific terms, the PNF intends to encourage the sustainable use of native and planted forests;

foster reforestation activities, notably in small rural properties; recover permanent preservation areas, legal

reserves and altered areas; support economic and social initiatives of the traditional and indigenous popu-

lations that live in the forests; repress illegal deforestation and the predatory extraction of forest products

and byproducts, as well as prevent and contain forest fires and burnings.

It also aims to promote the sustainable use of production forests, be they national, state or local; to

support the development of forest based industries and expand internal and external markets for products

and byproducts, as well as to enhance the value of environmental, social and economic aspects of the

services and benefits provided by public and private forests and encourage the protection of biodiversity

and ecosystems.

Objectives

26


Forests are essential to conserve biological wealth, to produce environmental goods and services, to

generate income and jobs and to the country’s economic development. The PNF will ensure the insertion

of the sector into the government’s priorities, altering the historical and cultural practice of predatory use

of forest resources.

With the aim of making forests one of the vectors of sustainable development, the Program will seek,

among other aspects: to enhance value of scientific and empirical knowledge in defining management and

conservation systems; to adopt silviculture practices that ensure the socioeconomic and biological

sustainability of forests; and to consolidate the active participation of economic agents, social and environ-

mental NGOs, state and local governments, and teaching and research institutions in its formulation and

implementation.

With a suitable forest policy, Brazil will be able to take on the role of leader in promoting sustainable

development in the new millennium. This will allow the country to meet its international agreements and

stake out a place in the world scenario, through positive results achieved in its actions for preserving,

conserving, sustainable use and recovery of altered areas.

Globalization of markets and the economic stability obtained by Brazil over the last few years, with the

adoption of significant structural reforms, brought foreign investments to the sector and incorporated new

technologies in the forest based industry. Most of these investments were supported by the potential of

planted forests.

Although the scenario is a positive one with regard to capital and investments, it can be foreseen that in

the medium and long terms difficulties may arise. Recent studies have projected a deficit of forest raw

material from reforestation. This jeopardizes the potential for expansion of important segments, such as

paper and pulp, furniture and steel mills, with the use of charcoal, production of plates and sawnwood,

among others.

The basic purpose of promoting increased foreign investments is that forest activities meet the highest

social, economic and environmental standards, preferably certified by an independent organism, recog-

nized internationally, as part of the process of adopting voluntary forest certification.

Brazil’s participation in the external market for timber and non-timber products originating in native

forests may be affected by the low level of adoption of sustainable management practices. There is

growing difficulty in maintaining and expanding the market for products obtained from non-sustainable

systems.

Justification

27


28


The PNF is organized along two lines: a productive one and a structuring one. The first involves

actions for sustainable forest management; creation and implementation of protected areas with sustain-

able use; recovery of altered areas; forest replacement and stewardship; production, industrialization

and commercialization of forest products; agrosilviculture; and support to traditional and indigenous

populations.

The structuring line includes actions for adapting legal and regulatory instruments, particularly the

restructuring of the Forestry Code; monitoring and control; information systems; forest extension; institu-

tional strengthening and management; training and capacity building of human resources; education,

science and technology.

From this point of view, the PNF was conceived along thematic lines, considering the demands pre-

sented during the consultation process and the projects/activities included in the PPA 2000-2003.

Thematic Lines

Expansion of planted forest base

Currently most of the plantations are being carried out by productive sectors and some states. How-

ever, investments in plantation are less than required. Studies carried out by the Brazilian Silviculture

Association and sectoral associations have identified the existence of an imbalance between supply and

demand for timber, to meet the growth projections for forest based industries from the beginning of the

decade.

The trends indicate high growth rates for the paper and pulp sector. This process will accelerate over

the next few years with the implementation or expansion of production units. At the moment, the paper

and pulp industry is limited in its expansion, since timber stocks do not permit meeting domestic market

demands, neither will they allow Brazil to maintain its position in the international market in the medium

and long terms.

In the production of sawnwood, in regions where native forests are scarce, it is possible that there will

be a gradual replacement of raw material from primitive forests by those produced in reforestation. The

rate of replacement will depend on the technological development with eucalyptus species that tend to

occupy part of the market that is today dominated by the production of timber of native origin.

An accentuated growth in the production of reconstituted timber panes is projected. There are projects

being implemented and prospects for a new fiberboard manufacturing plant – Medium Density Fiber-

boards and Oriented Strand Boards, which should occupy markets that today belong to plywood and

sawnwood. Sheets of pine logs may replace those produced with native timber.

29


In the charcoal and firewood sector, projections indicate a growing demand for planted forests to

replace those of native origin. More than 20 million hectares of lands altered by agriculture and ranching

may be incorporated into the planted base for this purpose.

OBJECTIVE

To expand the planted forest base, seeking to integrate small and medium sized rural properties into the

productive process.

AIM

To plant 630 thousand hectares of forests.

STRATEGY FOR ACTION

Provide technical and financial support for small and medium sized rural producers to plant forests;

encourage associations or cooperatives for forest replacement; consolidate regional centers for develop-

ment, based on planted forests, in order to add value to the products throughout the productive chain;

strengthen ecological-economic zoning and promote technical assistance.

To act together with the Ministry of Agrarian Development to enable mechanisms for incorporating

forestry activities within the National Program to Strengthen Family Agriculture; with the Ministry of

Development, Industry and Foreign Trade to expand the programs that foster integrated forestry in the

timber industry. At the Ministry of National Integration, negotiate more flexible application of resources of

constitutional financing funds and fiscal investment funds, according to the particularities of the sector5 .

To simplify the legal and administrative procedures for planting, harvesting, transport, processing and

trading of forest products and byproducts originating in reforestation, bringing silviculture up to par with

agricultural plantations.

To resize the programs to expand the planted base as a function of the existing consumer market;

ensure the participation of small and medium sized rural producers; regulate forest replacement; improve

monitoring of forests; and support the extension services of state and local governments.

Expansion and consolidation of native

forest management in public areas

In accordance with Law No. 9985, dated July 18, 2000, which created the National Protected Areas

System, the national, state and local forests, extractive reserves and sustainable development reserves make

up the Group of Sustainable Use Units and are intended to make nature conservation compatible with the

rational use of part of their natural resources; and promote the multiple use of forests and scientific

research.

5. Mid-West Constitutional Financing Fund – FCO; North Constitutional Financing Fund – FNO; Northeast Constitutional

Financing Fund – FNE; Amazonian Investment Fund – FINAM; Northeast Investment Fund- FINOR.

30


These areas also have a relevant role in maintaining forest cover (untouchable areas); in the permanent

production of environmental goods and services; in ensuring the supply of timber and non-timber prod-

ucts; in the reduction of predatory exploitation and illegal deforestation; generation of jobs and income;

territorial management of soils suitable for forestry; and in the regulation of prices and markets (strategic

stocks of natural resources).

The sustainable use units can act as buffer zones between the private forest areas and the full protection

units (national parks, biological reserves, ecological stations, natural monuments and wildlife sanctuaries).

In Brazil, national and state forests (FLONAS) cover an area of 165 thousand square kilometers.

FLONAS make up just 1.6% of the Legal Amazonian territory. This area, properly managed, would only

be enough to supply 11% of the log consumption in the Amazon. To supply the current demand of the

timber sector, it would be necessary for these areas to cover 14% of the Amazon. In countries where

forests have a strong share of the economy, FLONAS occupy the following areas: US - 8%, Malaysia –

14% and Indonesia – 27%.

Expansion and consolidation of a national forest network have advantages over the production model

largely based on forest management in private properties, since they permit making raw materials available

to industries in a permanent, continual, regular and stable manner according to market needs; enable

greater enhancement of value and more profitability in use, since use by the private sector does not incur

the costs of land investment; imply a reduction of certification costs; and enable the communities of the

unit and surrounding areas to have access to forest resources.

OBJECTIVES

To expand and consolidate the base of managed forest in public areas and improve the management of

sustainable use units.

AIMS

To expand national, state and local forests in the Legal Amazon by 50 million hectares by 2010. Of this

total, at least 10 million hectares should be established by 2003.

To ensure that current and future FLONAS can supply at least 10% of the demand for Amazonian logs

by the year 2003.6

To increase to 1.5 million hectares the national, state and local forests in the Northeast by the year 2010

to supply the demand for timber, non-timber products and for rural use in the region.

To propose the expansion of extractive reserve areas.

Mono snomo dofomo ono

snomo dofomo ono snomo

dofomo ono snomo dofomo

ono snomo dofomo

6. Considering a log production equivalent to 28 million m3 ; a rotation cycle of 30 years and an average logging intensity of

20 m3 per hectare. It is estimated that on average 50% of the area of each FLONA can be set aside for logging. The rest

would be permanent preservation areas (margins of rivers, hillsides), zones with no economic value (vine areas, low

volumetry) and community use areas.

31


STRATEGY FOR ACTION

To prioritize the creation of FLONAS within the economic radius of the main logging centers and

timber producing regions of the Legal Amazon (west of Pará, extreme north of Mato Grosso, southeast of

Amazonas, north of Rondônia and Acre); in lands of which INCRA (the National Institute for Colonization

and Agrarian Reform) has taken possession, and other unoccupied government areas situated in forest

regions in the Amazon and the Northeast.

To create national, state and local forests throughout the country as strategic reserves of renewable

natural resources, as well as to expand extractive reserves for the benefit of the traditional populations.

To implement FLONAS in the Amazon region in areas with greater economic accessibility. In the

Northeast region and in the States of Goiás and Mato Grosso do Sul, prioritize the creation and implemen-

tation of national forests in the areas with greatest firewood demand.

Demarcation, preparation of management plans and administration of FLONAS should occur concur-

rently to the steps required to enact a Federal Law establishing the “Regime of Forest Concessions”.

32


Management of native forests

in private areas

The recognition of the importance of forest issues by the Brazilian population and the need to change

the model of access and use of the country’s forest resources, particularly in the Amazon region, may be

verified by the recent discussion on the proposals for revision of the Forest Code and the clear position of

the Government and the Ministry of Environment in favor of the conservation and sustainable use of

forests.

Among the conditions which have most frequently been said to hamper the adoption of sustainable

management practices of the native Amazon forests are the abundance of forest resources and ease of

access, which cause great distortions in the behavior of economic agents; the high level of waste and the

insignificant concern with sustainability; the pattern of itinerant exploitation; and market and price charac-

teristics that do not lead to correct and effective capture of the resource’s economic income, be it by the

local population or by the government.

The combination of economic and social factors which condition the exploitation of forests contributes

to overuse, predatory exploitation of forest resources and their replacement by other alternative uses of the

land. The causes of deforestation are associated with, among other factors, the high concentration of

private ownership of property; low levels of agricultural and ranching productivity, which exert pressure

for opening up new frontiers; inequalities in income distribution, which create excess manual labor; and

low prices of standing timber.

All these conditions create a system of unfair competition between the supply of forest raw materials

originating in deforestation and those originating in sustainable management.

It is necessary to promote actions to improve the socio-environmental quality of the production sys-

tems of native forests in private properties, reducing the operational costs of stewardship at the expense of

predatory use, making it economically more attractive than the alternative uses of the land.

To encourage the development of forest activities that are ecologically, socially and economically sus-

tainable, that is to make forest management competitive, is a challenge that requires a growing operational

capacity of the government, through its fostering, command and control structures, given the continuous

pressure that the forest resources undergo and will continue to do so.

OBJECTIVE

To expand the adoption of sustainable management systems, including those intended for the legal

reserve of rural properties, in the terms of Provisional Act No. 1956-33, which altered the provisions of the

1963 Forestry Code.

AIMS

To incorporate into the system of sustainable management an area of 20 million hectares in private

properties that have native plant cover in the Amazon and 560 thousand hectares in the Northeast, by the

year 2010.

33


Monitoring and control

STRATEGY FOR ACTION

To promote sustainable management in the areas with potential for production and to disseminate this

practice effectively, with the aim of ensuring forestry activities in fairer and more appropriate conditions of

economic competitiveness with the alternative uses of land, which, historically, have been favored, resulting

in extensive conversion and loss of plant cover, and at a rate that is no longer admissible today.

To enable mechanisms to incorporate forest management activities in small and medium sized proper-

ties in PRONAF. Actions will be coordinated with the managers of FCO, FNO, FNE, FINAM and FINOR,

to adjust their criteria for financing the technical aspects of management, in order to enhance the value of

standing forests.

To favor the supply of forest raw materials originating in sustainable management, by simplifying legal

and administrative regulations, particularly in the cases of community forest management.

The main characteristic of forest exploitation in the ecosystems of the Cerrado, Caatinga and Amazon

Forest is the repetition of the model of occupation and conversion of these areas to alternative uses of land,

based on clear cutting, which led to the destruction of large areas of the original Atlantic Forest.

In spite of recognizing the importance of adopting a set of economic and financial instruments that

promote forest development on a sustainable basis, it is not possible to overlook the need to intensify the

application of command and control measures by the various levels of government, geared towards the

reduction of illegal deforestation.

The efficacy of changing the logic of supply of raw materials coming from a network of national, state

and local forests and private areas undergoing sustainable development is intrinsically related to enforce-

ment of the prohibition of conversion of native vegetation to other uses of land.

The main technological instrument that allows improvement of control and inspection activities, pro-

viding efficiency, speed and economy in the programmed actions is, without a doubt, monitoring by

remote sensing. The information produced by IBAMA and the state environment bodies enable a more

precise and efficient command and control systems for the use of forest resources.

OBJECTIVE

To maintain the integrity of forests, reducing illegal deforestation, accidental burnings and forest fires.

AIMS

To expand monitoring of the use of forest resources throughout the national territory (Atlantic Forest,

Cerrados and Caatinga), establishing plans of action for prevention, control and combat of illegal defores-

tation, accidental burnings and forest fires in each biome.

To reduce burnings, forests fires and the predatory extraction of timber and non-timber products.

To review the regulatory instruments that grant deforestation authorizations.

34


To support decentralization of monitoring, control and inspection activities.

STRATEGY FOR ACTION

To intensify monitoring, control and inspection actions in all biomes, strengthening the initiatives of

IBAMA, INPE (National Space Research Institute) and state environment agencies.

To support supervision and technical inspection in approximately 3000 sustainable forest management

plans, mostly in the Amazon, which are being implemented by the private sector.

To assist in coordinating various programs, projects and actions for command and control, such as the

National System for Prevention and Control of Forest Fires (PREVFOGO); Program for Prevention and

Control of Slash and Burn Practices and Forest Fires in the Amazon Deforestation Belt (PROARCO); the

Amazon Stay Legal Program; the Project to Monitor and Control Deforestation and Burning in the

Amazon (PRODESQUE); and the Program to Assess Deforestation in the Brazilian Legal Amazon

(PRODES).

To develop plans of action to reduce, prevent and combat fires, accidental burnings and illegal defores-

tation for each biome, bearing in mind the improvement of existing structures of monitoring by satellite

imagery.

To expand efforts for controlling trade and the flow of transport of forest products of native origin

throughout the country, implying inspection of source, origin and destination of timber that supplies the

companies that industrialize, trade and consume forest products.

To assess the regulation of forestry activities, ensuring the balanced participation of the representatives

of the productive, social and environmental sectors.

To outline instruments to induce switching supply of raw materials originating in illegal deforestation to

those originating in sustainable forest management, altering the prevailing logic, which favors clear cutting

to the detriment of forest management.

To consider the possibilities of allowing outsourcing of inspection services, wherein the technical staff

would be held administratively and criminally responsible, in partnership with Regional Boards for Engi-

neering, Architecture and Agricultural Sciences (CREAs), without foregoing the essential role of inspection

and auditing by the bodies responsible for enforcement in environmental and forestry issues.

To update the information on areas with potential risks for burnings and fires, using meteorological

and human occupation data and vegetation indices, thereby producing identification maps for each state.

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36


Traditional and indigenous populations

The effective implementation of a new model of sustainable forest development for the Brazilian Ama-

zon centered on economically feasible, socially fair and environmentally balanced actions faces a series of

challenges, particularly with respect to support for traditional and indigenous populations. Among these

challenges are the regulation of the lands of the extractive reserves (RESEX) and the indigenous lands, with

resolution of conflicts related to access to natural resources; strengthening of community organization in

regions characterized by a still incipient mobilization process; generation of income alternatives in a situa-

tion that does not favor the traditional exploitation model; and the promotion of environmental conserva-

tion in extensive areas with high degrees of biodiversity, submitted to external human pressures of various

types.

We should highlight the importance of seeking to harmonize the interests of the community with

environmental conservation, given the significance of the ethno-ecological knowledge that these popula-

tions possess, allied to the potential for forest production existing in their lands. Technical support, together

with sustainable management and the multiple use of forests and empirical knowledge, is essential to

improve the quality of life of these communities.

Along this line, the Secretariat for Amazon Coordination (SCA) and IBAMA, with strong financial

support from the Pilot Program to Preserve the Brazilian Rain Forests – PPG-7, have been carrying out

actions through the Extractive Reserves Project, to support the peoples that live in and depend on

forests. The first stage of this project, concluded in 1999, allowed its beneficiaries to achieve several

goals, such as co-management with the government; adding value to the goods produced; and im-

proved processing, storage, transport and commercialization of traditional extractive products, particu-

larly nuts and rubber.

OBJECTIVES

To support and promote the incorporation of traditional and indigenous populations into the produc-

tive process, ensuring their subsistence and the sustainability of the areas with potential for sound and

multiple forest production, bearing in mind the context outlined in the Positive Agenda for the Amazon.

AIM

To expand the implementation of programs, projects and activities involving the federal, state and local

governments, NGOs and other segments of the productive and social sectors that enhance the value of the

knowledge of traditional and indigenous populations.

STRATEGY FOR ACTION

To analyze and promote studies which permit the use of the territory of extractive reserves and indig-

enous lands by the government, in agreement with local communities, for the sound use of these areas and

to include them in internal and external markets.

To outline and demonstrate the economic, social and environmental feasibility of establishing a sustain-

able forest development fund to support traditional and indigenous populations, directed towards techno-

logical capacity building, dissemination of forest management practices, multiple uses, agroforestry and

forest education.

37


Forest education, science and technology

In order to make better use of the potentiality of empirical, technological and scientific knowledge of

forestry issues, it is necessary to promote studies and forest education actions. There are successful

examples in scientific and technological forest development based on programs implemented in partner-

ship with universities and private companies, such as those that led the paper and pulp sector to reach high

forest productivity levels with intense value adding.

Low productivity is predominant both in plantations, specially in small rural properties, and in native

forest management areas. Low levels of efficient use of raw materials and high levels of waste are seen in

several segments of the forestry sector. Reduction of the waste generated particularly by small and medium

sized timber industries is one more challenge to be met.

Costs to promote the recovery of permanent preservation areas, of legal reserves or degraded

areas have decreased substantially over the past decade. For most rural producers, however, such

investment is still prohibitive. It is necessary to decrease costs and improve the technical quality of

these activities.

OBJECTIVES

To seek improved forest productivity, reducing waste and adding value to forest products. To expand

and update higher education and technological forestry education.

AIMS

To increase the productivity of small and medium sized rural properties with forest plantations by 50%

by the year 2010, with the ensuing reduction of recovery and restoration costs for the permanent preser-

vation areas, legal reserves and degraded areas.

A 30% reduction in the generation of wastes in native forests sawing mills.

To support projects and activities that use waste from the timber industry.

STRATEGY FOR ACTION

To direct investments in forest technologies to the development centers, particularly to those segments

that have low productivity. In the area of forest science, to channel resources, by means of competitive

processes, to research institutions, both governmental and non-governmental.

To establish a special program to support forest technological development with traditional and indig-

enous populations. To hold awareness workshops for federal, state and local government bodies active in

the environmental and forestry areas.

To provide special attention to non-timber products, as a means of adding value to standing forests.

To prepare and publish dissemination material with information on the various segments of the sector

and to support restructuring of higher and technological forestry education curricula.

38


Forest environmental services

Forests produce different types of goods and environmental services, among which are carbon fixation

to attenuate climate changes; protection of water sources; conservation of the margins of waterways and

preservation of biodiversity; besides the positive indirect effects of other economic activities, such as pro-

tection and dissemination of pollinating agents and natural enemies, which may be used to combat pests

and disease of commercial agricultural cultures.

Indirect financial return from these services may be obtained, for example, by applying part of the

water tariff in the recovery of the areas of permanent preservation of river basins. Another initiative is

payment for carbon fixation in financing for forest plantation in altered areas.

Establishing a value for environmental services rendered is essential to encourage forest activity, to

revert the expansion of the agricultural frontier and counterbalance economic incentives for the primary

sectors of the economy. This may stimulate the recovery of environmental protection areas, the manage-

ment of native and planted forests, and the expansion of reforestation and agroforestry systems.

One of the instruments that enhance the value of environmental services and the benefits of forests and

enables implementation of international commitments under the United Nations Framework Convention

on Climate Change is the Clean Development Mechanism (CDM), which is to be operated in accordance

with the principle of common but differentiated responsibilities, according to the particularities of each

country.

OBJECTIVE

To enhance the economic value of the environmental services provided by forests, particularly carbon

fixation and conservation of water sources.

AIMS

To recover 100 thousand hectares/year of permanent preservation forests in priority areas of river

basins.

To create mechanisms to attract internal and external financial resources to protect, recover and restore

permanent preservation areas.

STRATEGY FOR ACTION

To participate together with other government bodies in the different fora where the legal framework is

being developed for the environmental services provided by forests. Emphasis should be given to climate

issues, value enhancement and payment for forest services like protection of springs for public water

supply, and protection of waterways.

To mobilize a national campaign for recognition of the importance that the different forest typologies

have for the improvement of the quality of life and their relation to other natural resources.

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40


Institutional strengthening

and forest extension

Institutional management for sustainable use and forest conservation should be decentralized, simplify-

ing the bureaucracy and making the management of the use of forest resources more efficient. Institu-

tional strengthening – including services for technical assistance and extension – is an essential requirement

to meet the goals established in the PNF.

Currently, financing of forest recomposition and production activities is inadequate and lacks sufficient

volume. It is necessary to create new mechanisms to make these activities more dynamic. One of the

proposals drafted during the consultation process of the PNF was the creation of a sectoral fund, with

resources from part of the taxes generated by the sector and by the environmental fines.

OBJECTIVE

To improve the institutions, decentralizing responsibilities and activities, ensuring greater flexibility of

the management process, including allocation of material and financial resources and facilitating technical

assistance and forest extension services.

AIMS

To carry out studies to identify alternatives for institutional strengthening, as a complex economic

activity with a diverse nature, which requires structural changes and stable rules to ensure its credibility.

To create a forest development fund, with a budget of US$ 50 million a year.

To hold professional refresher courses and improve the physical structure of forest institutions.

To create or consolidate forest extension programs in the states, the Federal District and municipalities.

To establish a mechanism (“Simples Florestal”) to enhance the value of sustainable management through-

out the country at all levels, particularly at the community.

STRATEGY FOR ACTION

To develop institutional coordination with federal, state and local environmental/forest bodies, with the

aim of undertaking commitments to carry out decentralization of forest management. These actions,

which are organizational and regulatory, should cover production, extension, conservation and recovery of

altered areas.

Activities associated to the management of native forests, value enhancement of environmental services,

capacity building, training and physical improvement of institutions deserve special attention and should be

the basis for negotiations and formalization of the institutional strengthening process.

Financial resources may be made feasible by the creation of a forest development fund, making use of

the experience applied in other institutions.

41


Modernization of forest based industries

Forest based industries have ample possibilities of competitiveness in a global market, in so far as they

seek to reduce production costs, increase productivity and a constant improvement in the quality of

products and in environmental management. There is, however, the need for significant technological

improvement in these industries.

It is important to frequently modernize the processing of native timber in the Amazon, because of the

incipient qualification of the manual labor used, particularly in the saw mills, where there is a high degree

of wastage of raw materials, with an average yield of 35 to 40%. The high generation of waste results in

greater environmental impacts, both in forests and industries. Furthermore, it tends to raise production

and processing costs of forest raw materials. The situation for non-timber products is similar.

Part of these issues are closely related to the program included in the Avança Brasil called the Competi-

tiveness Forum, coordinated by the Ministry for Development, Industry and Commerce (MDIC). The

objective of this Forum is to develop activities that increase the capacity for competitiveness of the Brazilian

productive sector in global markets, to generate jobs, occupation and income, improved balance of pay-

ments and regional technical development.

The activities in this program will diagnose the main problems of, initially, 12 productive chains – set of

economic activities that progressively coordinate themselves from the beginning of the development of a

product. Among these are the productive chains of civil construction and timber and furniture.

Because of the interfaces with the Competitiveness Forum and the institutional mandate of the Minis-

tries of Environment and of Development, Industry and Commerce, the PNF will contribute to the study

in productive chains that use forest resources.

OBJECTIVES

To provide conditions for technological improvement with the aim of maintaining and increasing com-

petitiveness and reduce wastes. To raise the added value of the forest based industry, promoting capacity

building and specialization of manual labor. To induce alternative use for timber originating in forest

plantations and to encourage processing of species that are less known in the marketplace.

AIMS

To improve efficiency in processing of logs by saw mills and laminators in the Legal Amazon from the

current 35-40% to 50-60% by the year 2003.

To increase the added value of processed wood products from 25% to 40% by the year 2003.

To seek efficiency in the processing of non-timber products, particularly those processed by traditional

and indigenous populations, including capacity building of manual labor and modernization of approxi-

mately 10% of forest based industry.

STRATEGY FOR ACTION

To support access to financing sources compatible with the required forest-industry investments allied

42


to development of studies to create tax mechanisms comparable to those existing in competing countries in

the global forest market.

To support reduction of bureaucracy and to encourage exports. To promote less taxes in importing of

machinery and equipment. To expand the availability of training for the forest sector, by allocating re-

sources from the Fund to Support Workers (FAT) for the SENAI/SEBRAE systems, as well as for other

existing training and capacity building centers (universities, private companies and NGOs).

To coordinate joint actions with the MDIC, strengthening the relationship of the National Forest Pro-

gram with the Competitiveness Forum Program, in the field of timber and furniture industries.

Market and the trade of forest products

The expectations with regard to the growth of the national economy and growing share of the forest

sector in the market, indicate that the internal demand will remain significant. The recent government

program for expanding Brazilian exports from US$ 50 billion to US$ 100 billion takes into account the

expansion potential of the share of the various segments of the sector.

In April 2000, the first “Group of Certified Timber Buyers” was created in the country. This group,

made up initially of 45 companies that use forest products and byproducts, already represents an equivalent

demand of 5% of native timber and 10% of planted timber, made available per year.

In spite of the numerous opportunities and conditions that indicate a larger share of the forest sector in

the international tropical and planted timber markets, described above, a growing trend may be seen in

the demand for timber with environmental quality and greater added value.

It is opportune to consider the comparative advantages that Brazil has with respect to the other com-

peting countries, particularly those of temperate regions, when dealing with products and byproducts

originating in planted forests. The growth in the level of income and of the environmental awareness of

consumers in the country, allied to a growing demand, suggests a growth in the demand for products from

a managed area in the internal market.

OBJECTIVES

To expand and increase the share of the forest sector in internal and external markets, adding value to

Brazilian forest products and byproducts, particularly those coming from areas of sustainable management

and reforestation.

AIMS

To increase Brazil’s share of the world tropical timber market from 4% to 10% by the year 2010.

To increase exports of timber from sustainable origin from less than 5% to, at least, 30% by the year

2010.

To encourage the increase in the share of forest products and byproducts with greater added value

43


(processed and furniture) in Brazilian exports to 30% by 2010.

To maintain its leadership position in the paper and pulp both domestic and foreign markets.

STRATEGY FOR ACTION

To increase the share of Brazilian forest products in the international market it will be necessary to

invest in training and capacity building of manual labor; to modernize the industry, particularly the saw-

mills; to support the sustainable management of native forests; and to expand the areas of forest plantation.

To strengthen the marketing of our activities and support the promotion, abroad, of new species of

wood and non-timber products.

The production from native forests has a variable situation. The industries that acquire timber from

non-sustainable sources have managed to achieve a certain level of competitiveness, due to the low cost of

the raw material. This situation will tend to change with the growing demand for complying with environ-

mental regulations and with the increase in pressure for certification of forest products.

The companies interested in raw materials of managed origin have difficulties in obtaining timber from

legal and sustainable sources. The expansion of national forest areas will contribute to attenuate this

situation, as will the adoption of the “Simples Florestal” mechanism, previously mentioned.

44


- To plant 630 thousand hectares of forests

- To expand national, state and local forests in the Legal Amazon by 50 million hectares by2010, at least 10 million by 2003.

- To ensure that current and future FLONAS can supply at least 10% of the demand forAmazonian logs by the year 2003.

- To increase to 1.5 million hectares the national, state and local forests in the Northeastby the year 2010 to supply the demand for timber, non-wood products and for rural usein the region.

- To propose the expansion of extractive reserve areas.

- To incorporate into the regime of sustainable management an area of 20 million hectaresin the Amazon and 560 thousand hectares in the Northeast by the year 2010.

- To expand monitoring of the use of forest resources throughout the national territory- To reduce burnings, forests fires and the predatory extraction of timber and non-wood

products.- To review the regulatory instruments that grant deforestation authorizations.- To support decentralization of monitoring, control and inspection activities.

- To expand the implementation of programs, projects and activities, involving the federal,state and local governments, NGOs and other segments of the productive and socialsectors, that enhance the value of the knowledge of traditional and indigenous populations.

- To increase the productivity of small and medium sized rural properties within 10 years.- To enable operational techniques to reduce recovery costs of altered areas and recovery

of permanent preservation areas.- To support projects and activities that use wastes from timber industries.- 30% reduction in the generation of wastes in native forests sawing mills.

- To recover 100 thousand hectares/year of permanent preservation forests in priorityareas of selected river basins.

- To create mechanisms to attract internal and external financial resources to protect,recover and restore permanent preservation areas.

EXPANSION OF PLANTEDFOREST BASE

EXPANSION AND CONSOLIDATION OFNATIVE FOREST MANAGEMENT IN

PUBLIC AREAS

MANAGEMENT OF NATIVE FORESTSIN PRIVATE AREAS

MONITORING AND CONTROL

TRADITIONAL AND INDIGENOUSPOPULATIONS

FOREST EDUCATION,SCIENCE AND TECHNOLOGY

FOREST ENVIRONMENTAL SERVICES

CONSOLIDATED TABLE OF AIMS AND THEMATIC LINES

THEMATIC LINE AIMS

INSTITUTIONAL STRENGTHENINGAND FOREST EXTENSION

MODERNIZATION OF FOREST

BASED INDUSTRIES

MARKET AND THE TRADEOF FOREST PRODUCTS

- To carry out studies to improve forest management- To create a forest development fund, with a budget of US$ 50 million a year.- To hold professional refresher courses and improve the physical structure of forest

institutions.- To create or consolidate forest extension programs in the states, the Federal District and

municipalities.- To establish the “Simples Florestal” to enhance the value of sustainable forest

management.

- To improve efficiency in processing of logs to 50-60% by 2003.- To increase the added value of processed wood to 40% by 2003.- Capacity building of manual labor and modernization of approximately 10% of forest

based industry, by 2003.

- To increase Brazil’s share of the world tropical timber market from 4% to 10% by the year2010.

- To increase exports of timber from sustainable origin from less than 5% to, at least, 30%by the year 2010.

- To encourage the increase in the share of forest products and byproducts with greateradded value (processed and furniture) in Brazilian exports to 30% by 2010.

- To maintain its leadership position in the paper and pulp in both domestic and foreignmarkets.

45

National Forest Program – PNFStrategy forImplementation

It should be remembered that the PNF is a nationwide program, its execution the responsibility of the

various actors in the forest sector: IBAMA, the states and the Federal District, municipalities, non-govern-

mental organizations, business sectors, research and teaching institutions and others.

It remains for the Ministry of Environment (SBF/DIFLOR) to carry out, in participatory and inte-

grated manner, formulation and coordination of the PNF.

Its subprograms and projects, in harmony with the thematic lines, should preferably be distributed by

geographical region and biome and, later, by river basins and national integration and development axes,

cumulatively.

Different financing sources are foreseen to make up the financing structure for the implementation and

execution of the National Forest Product: the National Treasury; the Multi-Year Plan (PPA); credit and

financing lines; funds; national and international programs; partnerships; grants; bilateral and multilateral

agreements; technical cooperation; fiscal arrangements; states; and the private sector, among others7 . The

estimated financial potential for the fiscal year 2001, according to the demands shown in the initial stage of

the consultation process, is around US$ 329 million.

The projects will be selected according to the operational criteria and mechanisms of each financial

institution or donor. In the case of access to PPA resources, local demands may be submitted in two ways.

The first, through agreements, based on the PNF budget, where the projects will be selected through

a management council, which will have the participation of representatives of the various sectors of society,

to be designated by the Ministry of Environment. The SBF technical staff, with the possible support of

consultants, will assess the feasibility of approval of the requests submitted to DIFLOR. The second way

will be through parliamentary amendments, when approved by the National Congress will become part of

the budget of the Ministry of Environment.

The projects will be selected according to their meeting the following criteria: social benefits, environ-

mental sustainability; economic feasibility; environmental benefits; multiplying effect; technological inno-

vation and quality; synergy with other activities in line with local or regional sustainable development;

degree of interinstitutionality; and addition of value to forest products.

7. For example, Florestar, Sustentar, Forescer, other programs of the PPA/MMA, Programs of the PPA/Federal Govern-

ment; Embrapa, BB; BASA; BNB; BNDES; IADB; IRDB; GEF; BDMG; green/ecological tax; FNMA; Land Bank;

PRONAF; Constitutional Financing Funds; Investment Tax Funds; Sectoral Funds; FAO; State Forest Programs; CDM

(afforestation/ reforestation) ; Compulsory Forest Replacement; and ITTO, among others.

46


Following this, a multimedia structure should be built, directed to conferences, debates, for receiving

and sending comments and suggestions through an online information system specially developed for this

purpose. This process will involve the creation of permanent working groups with representatives from

social and economic segments.

This structure is available for those interested at www.mma.gov.br/florestas - with a model for regis-

tering plans, programs, projects activities and request bids in the forest area.

www.mma.gov.br/[email protected]

www.planejamento.gov.br

www.banconordeste.gov.brwww.bancobrasil.com.brwww.bndes.gov.br/atuar

www.integracao.gov.br/fundos/fundos.html

www.mma.gov.br

www.planejamento.gov.br/conheca_o_mp/mp/estrutura.htm

www.iadb.orgwww.mre.gov.br

Entidades de Representaçãode Classes

Fundações Filantrópicaswww.mma.gov.br/florestas

22

5050

5045

2

-

10

100

359

- Federal Budget andParliamentaryAmendments

- Sectoral Fund- FNE/ Green- FNO,FCO, FNE, FINAM

and FINOR- Forest PRONAF

- Projects up to US$100thousand

- Resources to be negotiated

- Approved projects

- Direct distribution orresources from donationsto NGOs and socialmovements

PPA(FLORESTAR)(SUSTENTAR)(FLORESCER)

CREDIT LINES

FNMA

FOREST FUND

INT. COOPERATIONGRANTS

PRIVATERESOURCES

TOTAL

DEMONSTRATIVE TABLE OF POTENTIAL SOURCES OF FINANCIAL RESOURCES

RESOURCE

SOURCE

RESOURCE

ORIGIN

POTENTIALRESOURCES – 2001

(US$ million)

COMPLEMENTARY

INFORMATION

Strategy

The actions of the PNF will be developed and followed by a central office, based on a structure geared

for identifying the program with the other projects and activities of the Ministry of Environment, IBAMA,

federal, state and local governments related to forest issues. In addition the activities of the private sector,

NGOs, teaching and research institutions and international organisms will also be registered. This will

allow monitoring of the actions of all parties involved in the forest sector. Based on this mapping, the PNF

will be catalyzed and promote the necessary interactions.

47


Next stages

The implementation and improvement of the PNF will include publishing of administrative and regu-

latory acts, making financial resources available and implementation of consensus proposals and projects,

outlining of strategic actions, as well as coordinating with the governments’ intersectoral policies, seeking

partnerships and continuing the consultation process.

As to the administrative acts, the challenge is to develop a legal structure that makes it easier for the

user to obtain public services that enable good performances of silviculture and forest management activi-

ties, increased legality of the actions in the sector, as well as meeting the criteria of sustainability of the use

of forest resources.

Another central component of the process of implementing the PNF will be the continuing coordina-

tion of intersectoral policies. The MMA will develop joint actions with the other Ministries, with a view to

enhancing the instruments of public policies related to the general objectives of the program. For the

success of this mission, the PNF will continue to rely on the contributions of the Interministerial Working

Group – GTI, created by Decree No. 3420/2000.

The continuous and active attention to debates and negotiations in the various international fora that

deal directly or indirectly with the regulation of environmental and forest issues, is considered to be

essential.

Consultations will be continued to enable course corrections, goal adjustments, inclusion of pubic new

demands, establishing priorities, maximization of the catalyst effect of existing budget resources, keeping

the PNF under a process of constant assessment and feedback.

48


49


Annex

DECREE No. 3420, dated April 20, 2000

Deals with the creation of the National Forest Program - PNF, among other provisions.

The PRESIDENT OF THE REPUBLIC, making use of the prerogatives conferred to him by Article 84,

paragraph VI of the Constitution,

DECREES:

Article 1. The National Forest Program - PNF is hereby created, to be comprised of projects that will be

conceived and executed in a participatory and integrated manner by federal, state, district and municipal

governments and organized civil society.

Article 2. The PNF has the following objectives:

I - encourage the sustainable use of native and planted forests;

II - foster reforestation activities, notably those in small rural properties;

III - recover permanent preservation and legal reserve forests and those with altered areas;

IV - support economic and social activities of the populations who live in forests;

V - repress illegal deforestation and the predatory extraction of forest products and byproducts, contain

accidental burnings and prevent forest fires;

VI - promote the sustainable use of production forests, be they national, state district or municipal;

VII - support the development of forest based industries;

VIII - expand internal and external markets of forest products and byproducts;

IX - enhance the environmental, social and economic aspects of the services and benefits afforded by

public and private forests;

X - encourage the protection of biodiversity and of forest ecosystems.

Article 3. The Ministry of Environment will be responsible for promoting institutional coordination to draft

and implement the projects that will make up the PNF and also for coordinating the Program.

§ 1. The Ministry of Environment may receive suggestions from the Brazilian population to define the

scope, goals, priorities and the institutional and community means and mechanisms of the PNF.

§ 2. The result of the consultation process referred to in the above paragraph, which will be made known

by the Ministry of Environment on September 21, 2000, will guide the implementation of the Program.

Article 4. The Working Group is hereby established, made up of representatives from each of the following

Ministries:

I - of Environment, which will coordinate it;

II - of Agriculture and Food Supply;

III - of Development, Industry and Foreign Trade;

IV - of Agrarian Development;

V - of Science and Technology;

50


VI - of National Integration;

VII - of Planning, Budget and Management.

Sole Paragraph. The members of the Working Group shall be designated by the Ministry of Environment

on indication of the Ministers of the respective Ministries.

Article 5. The Working Group referred to in the above paragraph shall be responsible for:

I - supporting the actions of the programs FLORESTAR - Expansion of the Planted and Managed Forest

Base; and Prevention and Combat to Deforestation, Burnings and Forest Fires, part of the Government’s

Multi-year Plan of Investments for the period 2000-2003, so that they may be promptly implemented and

gradually expanded;

II - outlining, with the participation of entities that represent the involved sectors, a project for the devel-

opment and modernization of the forest base, indicating:

a) the instruments required to improve methods of using raw materials and of labor specialization;

b) the necessary equipment and means of capturing new markets;

c) a proposal to adapt the means required to enable the project and its respective operational strategy;

III - developing a project to encourage and support reforestation and sustainable development of native

forests with a view to expanding the supply of wood raw materials and other non-timber forest products,

such as those for the production of oil, nuts and hearts of palm, also with the intent of strengthening

agricultural income, particularly of small and medium sized rural producers, also indicating the means

required to enable these undertakings.

IV - drafting a project to recompose and restore permanent preservation and legal reserve forests, and

those with altered areas, which involves a mechanism capable of promoting an effective integration of

institutions and communities, of implementing the programmed undertakings and of generating a demon-

strative effect that can be disseminated and to consolidate methods for joint action in search of common

benefits;

V - outlining actions for the sustainable management of national forests and other protected areas of direct

use, whether to provide forest raw materials or for other purposes that permit the appropriate use of these

areas to their own benefit, and the creation of new areas;

VI - assessing the governmental structures for implementing forest policies, such as those for preventing

forest fires and containing accidental burnings, and propose the measures deemed necessary to lend

greater effectiveness to Government actions.

Article 6. The Working Group, which may be composed of subgroups with members from other bodies

and entities, at the invitation of the Ministry of Environment, will have a period of one hundred and twenty

days from the date of publication of this Decree, to conclude its work and present conclusive and circum-

stantiated reports, being able to suggest other initiatives with the same aims.

Article 7. This Decree enters into force on the day of its publication.

Article 8. Decree No. 2473, dated January 26, 1998 is hereby revoked.

Brasilia, April 20, 2000; 179th Year of the Independence and 112th Year of the Republic.

FERNANDO HENRIQUE CARDOSO

President of the Republic

Published in the Official Gazette on April 22, 2000.

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