The Envira Amazonia Project - Verra

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The Envira Amazonia ProjectA Tropical Forest Conservation Project in Acre, BrazilPrepared by Brian McFarland from:853 Main StreetEast Aurora, New York - 14052(240) 247-0630With significant contributions from:James Eaton, TerraCarbonJR Agropecuária e Empreendimentos EIRELIPedro Freitas, Carbon SecuritiesAyri Rando, Independent Community Specialist

A Climate, Community and Biodiversity StandardProject Implementation ReportTABLE OF CONTENTSCOVER PAGE . Page 4INTRODUCTION . . Page 5GENERAL SECTIONG1. Project Goals, Design and Long-Term Viability . . Page 6A. Project Overview1. Project Proponents2. Project’s Climate, Community and Biodiversity Objectives3. Project Location and ParametersB. Project Design and Boundaries4. Project Area and Project Zone5. Stakeholder Identification and Analysis6. Communities, Community Groups and Other Stakeholders7. Map Identifying Locations of Communities and Project8. Project Activities, Outputs, Outcomes and Impacts9. Project Start Date, Lifetime and GHG Accounting PeriodC. Risk Management and Long-Term Viability10. Natural and Human-Induced Risks11. Enhance Benefits Beyond Project Lifetime12. Financial Mechanisms AdoptedG2. Without-Project Land Use Scenario and Additionality . . Page 521. Most Likely Land-Use Scenario2. Additionality of Project BenefitsG3. Stakeholder Engagement . Page 57A. Access to Information1. Accessibility of Full Project Documentation2. Information on Costs, Risks and Benefits3. Community Explanation of Validation and Verification ProcessB. Consultation4. Community Influence on Project Design5. Consultations Directly with CommunitiesC. Participation in Decision-Making and Implementation6. Measures to Enable Effective ParticipationD. Anti-Discrimination7. Measures to Ensure No DiscriminationE. Feedback and Grievance Redress Procedure8. Demonstrate Formalized, Clear Grievance Redress ProcedureF. Worker Relations9. Orientation and Training for Project’s Workers10. Equal OpportunityPage 1

11. Laws and Regulations Covering Worker’s Rights12. Risks to Worker SafetyG4. Management Capacity . Page 741. Project’s Governance Structure, Roles and Responsibilities2. Key Technical Skills3. Financial Health of Implementing OrganizationG5. Legal Status and Property Rights . . Page 84A. Respect for Land Rights, Territories and Resources; Free, Prior and Informed Consent1. Statutory and Customary Rights to Lands2. Free, Prior and Informed Consent3. No Involuntary Removal or Relocation4. Illegal Activities That Could Affect Project’s Benefits5. Ongoing or Unresolved Conflicts Over Land RightsB. Legal Status6. List of International, National and Local Laws7. Approval from Appropriate Authorities8. Ability to Claim Project’s Generation of Benefits9. Tradable Benefits and Avoidance of Double CountingCLIMATE SECTIONThe Climate Section has been waived because the Project is simultaneously being designed,registered and implemented according to the Verified Carbon Standard.GL1. Climate Change Adaptation Benefits . Page 98COMMUNITY SECTIONCM1. Without-Project Scenario for Communities . . Page 1061. Describe Communities2. Project Zone’s High Conservation Values for Communities3. Community Changes Under Without-Project Land Use ScenarioCM2. Net Positive Community Impacts . Page 1081. Methodology and Assessment of Impacts on Community Groups2. Measures Needed to Mitigate Negative Impacts on Community Groups3. Demonstrate Net Well-Being Impacts on Community Groups4. Demonstrate No High Conservation Values Negatively AffectedCM3. Other Stakeholder Impacts . . Page 1091. Identify Potential Positive and Negative Impacts on Other Stakeholders2. Measures to Mitigate Negative Well-Being on Other Stakeholders3. Demonstrate No Net Negative Impacts on Other StakeholdersCM4. Community Impact Monitoring . . Page 1121. Develop and Implement a Community Impact Monitoring Plan2. Develop and Implement High Conservation Values Monitoring Plan3. Disseminate Monitoring PlanPage 2

GL2. Exceptional Community Benefits . . Page 1181. Demonstrate Project Zone’s Communities Below National Poverty Line2. Demonstrate Short- and Long-Term Net Positive Community Benefits3. Identify Risks for Community Members Participation4. Identify Marginalized and/or Vulnerable Community Groups5. Demonstrate Project Generates Net Positive Impacts for Women6. Describe Design and Implementation of Benefit Sharing Mechanism7. Explain Communication of Benefits, Costs and Risks8. Describe Project’s Governance and Implementation Structures9. Demonstrate Project is Developing Local CapacityBIODIVERSITY SECTIONB1. Biodiversity Without–Project Scenario . . Page 1211. Biodiversity Within Project Zone2. Evaluate Project Zone’s High Conservation Values3. Describe Without-Project Land-Use Scenario Effect on BiodiversityB2. Net Positive Biodiversity Impacts . Page 1311. Methodology and Assessment of Impacts on Biodiversity2. Demonstrate Project’s Net Impact on Biodiversity3. Measures Needed to Mitigate Negative Impacts on Biodiversity4. Demonstrate No High Conservation Values Negatively Affected5. Identify All Species Used by Project and No Invasive Species Used6. Describe Possible Adverse Effects of Non-Native Species on Project7. Guarantee No GMOs Used to Generate GHG Emission Reductions8. Describe Possible Adverse Effects of Chemicals Used for Project9. Describe Process for Waste Products Resulting from Project ActivitiesB3. Offsite Biodiversity Impacts . Page 1341. Identify Potential Negative Offsite Biodiversity Impacts2. Describe Measures Needed to Mitigate Negative Offsite Biodiversity Impacts3. Evaluate Unmitigated Negative Offsite Biodiversity ImpactsB4. Biodiversity Impact Monitoring . Page 1351. Develop and Implement a Biodiversity Impact Monitoring Plan2. Develop and Implement High Conservation Values Monitoring Plan3. Disseminate Monitoring PlanGL3. Exceptional Biodiversity Benefits . . Page 1391. Demonstrate Project Zone’s High Biodiversity Conservation Priority2. Describe Recent Population Trends of Each Trigger Species3. Describe Measures to Maintain or Enhance Population of Trigger Species4. Indications of Trigger Species’ Population TrendAppendix A: Bibliography . Page 145Appendix B: Acronyms . . Page 152Appendix C: Stakeholder Identification . . Page 155Page 3

COVER PAGEI. Project Name: The Envira Amazonia Project - A Tropical Forest Conservation Project inAcre, Brazil (i.e., The Envira Amazonia Project)II. Project Location: Near city of Feijó, State of Acre, BrazilIII. Project Proponent: CarbonCo, LLC is the lead Project Proponent, along with CarbonSecurities and JR Agropecuária e Empreendimentos EIRELI. CarbonCo’s contact and address is:Brian McFarland, Director, CarbonCo, LLC853 Main Street, East Aurora, New York, 14052, United States of AmericaPhone: 1-(240) 247-0630Email: BMcFarland@CarbonCoLLC.comIV. Auditor: Instituto Manejo Certificacao Florestal e Agrícola (IMAFLORA) is the auditor,with assistance from Rainforest Alliance. IMAFLORA’s contact and address is:Bruno Brazil de Souza, IMAFLORAChico Mendes Road, 185 - Piracicaba, São Paulo, Brazil - 13426-420Phone: 55 19 3429 0848 or 55 19 98324 5522Email: Bruno@imaflora.orgKlaus Geiger, Rainforest AlliancePhone: 1 (802) 923-3766 Email: KGeiger@ra.orgV. Project State Date, GHG Accounting Period, and Project Lifetime: The Project Start Dateis August 2, 2012 with a 10 year GHG Accounting Period and the Project Lifetime is 30 years.VI. Project Implementation Period: The initial CCBS Project Implementation Report (PIR)covered the first monitoring, reporting and verification (MRV) time period from August 2, 2012to December 31, 2014. This second CCBS PIR covers the MRV time period from January 1,2015 to December 31, 2015.VII. History of CCB Status: The CCBS Project Design Document was officially validated onApril 15, 2015. The Project’s initial CCBS PIR was verified on February 16, 2016. The Projectis now undergoing its second CCBS verification.VIII. Edition of CCB Standard Being Used: Third EditionIX. Summary of Climate, Community and Biodiversity Benefits Generated: From August 2,2012 to December 31, 2014, the Envira Amazonia Project reduced deforestation and mitigatedthe associated greenhouse gas emissions, engaged local communities, hired a local projectmanager, began designing various projects and programs such as commercializing the collectionof medicinal plants and granting land tenure, numerous vulnerable trees species and endemicbird species have been discovered, and the Project conserved the Project Area’s rich tropicalbiodiversity.Page 4

From January 1, 2015 to December 31, 2015, the Envira Amazonia Project reduced deforestationand mitigated the associated greenhouse gas emissions, preserved biologically diverse habitats,initiated and completed an onsite bird study which identified several endemic and threatenedspecies, continued engaging local communities and stakeholders, and distributed dental kits.X. Gold Level Criteria Being Used and Summary of Gold Level Benefits Generated: TheEnvira Amazonia Project was validated to the Gold Level for climate adaptation, along withGold Level for exceptional community and biodiversity benefits. The Project is incorporatingclimate adaptation measures, promoting a pro-poor initiative, and conserving several vulnerabletree species along with numerous endemic bird species.XI. Date of Completion of this Version and Version Number: This version, Version 1.0, wascompleted on December 08, 2016.INTRODUCTIONThe Envira Amazonia Project (“Project”) is a payment for ecosystem services forestconservation project, otherwise known as a Reducing Emissions from Deforestation and forestDegradation (REDD ) project, on 39,300.6 hectares or approximately 97,072.5 acres ofprivately-owned land in Acre, Brazil.1 The total property is 200,000 hectares or approximately494,000 acres and the Project shall seek to conserve the entire property, but the Project activitieswill specifically focus on the subset Project Area of 39,300.6 hectares.The three main Project Proponents are CarbonCo, LLC (“CarbonCo”), Freitas InternationalGroup, LLC (“Freitas International Group or Carbon Securities”), and JR Agropecuária eEmpreendimentos EIRELI. CarbonCo, the wholly-owned subsidiary of Carbonfund.org, isresponsible for getting the Project certified and for early-stage Project finance. CarbonSecurities acts as a liaison between CarbonCo and JR Agropecuária e Empreendimentos EIRELI,along with acting as a translator and assisting with logistics for site visits. JR Agropecuária eEmpreendimentos EIRELI, which translates into JR Agriculture-Livestock and Ventures, is anAcre, Brazil-based company and is primarily responsible for day-to-day management of theProject and the implementation of activities to mitigate deforestation.The ultimate project activities are to undertake a forest carbon inventory, model regionaldeforestation and land-use patterns, and mitigate deforestation pressures by utilizing paymentsfor the Project’s ecosystem services, along with ongoing monitoring of the climate, communityand biodiversity impacts of the Project. In addition to voluntarily foregoing plans to convert theforests to a large-scale cattle ranch, JR Agropecuária e Empreendimentos EIRELI will alsoimplement numerous activities to assist local communities and mitigate deforestation pressuressuch as: offering agricultural extension training courses; beginning patrols of potentialdeforestation sites in the early stages of the Project; granting land tenure to local communities;1The Term REDD and REDD will be used interchangeably. REDD includes REDD along with forestconservation, sustainable forest management and the enhancement of carbon stocks. Thus, the Envira AmazoniaProject includes elements of forest conservation, sustainable forest management and reforestation.Page 5

and establishing alternative economic activities including commercializing the collection ofmedicinal plants and açaí.The Project was officially validated by Environmental Services, Inc. (ESI) to the Climate,Community and Biodiversity Standard (CCBS, Third Edition) in April 2015 and to the VerifiedCarbon Standard (VCS, Version 3.4) in April 2015. The Project was then verified by ESI to theCCBS and the VCS in February 2016 and May 2016. Furthermore, the Project is aligned withthe REDD Social and Environmental Standards and the State of Acre’s Payment for EcosystemServices (Law # 2.308/2010). The Project is now being reviewed for its second verification tothe VCS and CCBS.Please contact Brian McFarland of CarbonCo, LLC with any questions, comments or concernsregarding the Envira Amazonia Project 1-240-595-6883 or via email atBMcFarland@CarbonCoLLC.com.GENERAL SECTIONG1. Project Goals, Design and Long-Term ViabilityThe Envira Amazonia Project has clearly-defined objectives to generate net positive climate,community and biodiversity benefits throughout the Project Zone and over the Project Lifetime.Potential project risks, including natural, anthropogenic and project-level risks, have beenidentified and are being monitored and managed to ensure ongoing net positive benefits.Project OverviewProject ProponentsThe three main Project Proponents are CarbonCo, LLC (“CarbonCo”), Freitas InternationalGroup, LLC (“Freitas International Group or Carbon Securities”), and JR Agropecuária eEmpreendimentos EIRELI. CarbonCo, the wholly-owned subsidiary of Carbonfund.org, isresponsible for getting the Project certified and

Page 4 COVER PAGE I. Project Name: The Envira Amazonia Project - A Tropical Forest Conservation Project in Acre, Brazil (i.e., The Envira Amazonia Project) II. Project Location: Near city of Feijó, State of Acre, Brazil III. Project Proponent: CarbonCo, LLC is the lead Project Proponent, along with Carbon Securities and JR Agropecuária e Empreendimentos EIRELI.

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