Munir Soares discussed the advantages and challenges of implementing agroforestry systems and the ability to generate long-term income for communities and investors
Munir Soares, CEO of Systemica, was one of the guests at the workshop “Economic viability and financing of Agroforestry Systems”, held in Altamira (PA) and broadcast online by the Amazon Environmental Research Institute (IPAM). In his speech, Munir spoke about Systemica's objective within this scenario, and explained the importance of talking about the voluntary carbon market.
“Systemica aims to transform territories, and our participation in this event has to do with the work we have started to use a strategy of conservation resources that can help with territorial transformation. Our intention was to present a proposal for the potential to use the REDD+ resources of a settlement so that they can promote agroforestry systems. The resources that will be generated by the conservation forestry carbon credit will be used to implement agroforestry systems in settlements, strengthening family farming and accelerating the process of regeneration of territories”, he explains.
During the event, Munir presented a case study based on the settlement of Pacajá, in Pará, with 4 collective areas of interest: Bom Jardim, Rio Arataú, Rio Cururu and Terra para a Paz. The proposal considers the REDD+ AUD and APD methodologies as a possibility for generating income and promoting the development of SAF.
The challenge in the carbon market is to combine the removal of existing GHGs and the reduction of new emissions
One of the challenges of the carbon market today is the focus on purchasing carbon removal credits, when the forest grows and, as a result, greenhouse gases are absorbed by the trees. The idea, according to Munir, is to buy on two fronts: avoid emissions and remove gases that have already been released into the atmosphere. To Munir, also “It is important that we prevent emissions from occurring, in the case of conservation credits, because when we lose an area of great biodiversity, it can take years for that territory to recover. Recovery often happens, but the initial biodiversity is lost.”
One of the advantages of agroforestry systems, in addition to the preservation of local biodiversity and long-term land regeneration, is the ability of these systems to remove carbon from the atmosphere, directly contributing to the reduction of the greenhouse effect. Agroforestry systems use vegetable consortiums as a cultivation model, preserving the needs of each species, protecting the soil and offering natural protection against pests and invaders. The high amount of organic matter in the soil strengthens root growth, sequestering carbon from the atmosphere and fixing it in the soil. The agroforestry model also improves soil and water quality, reducing erosion and moderating the climate.
REDD+ projects, responsible for subsidizing the conservation of forest areas, have existed for a considerable time and have proven methodologies and a good relationship between cost and effectiveness. The cost of reducing emissions is much cheaper, around 10 to 15 dollars. A project with 100% removal, according to Munir, costs between 35 and 45 dollars, a higher cost that demands a more committed investment.
Carbon credits can help cover part of the high costs of SAF projects
“Reforestation projects have many challenges, such as measuring how much I am actually storing in this specific area. There is also the complexity of reconciling different products for different markets. All projects that we place on the removal market, in the case of SAF, have immediate liquidity. Prices are higher. We have many companies interested, the problem is that many of them are not willing to buy the initial risk and make these contributions”, he explains.
According to the simulation shown in the workshop, the values of SAF projects are high, and require a realistic understanding of what is possible within the analyzed territories. “We are talking about very high values, one billion, two billion. These are the challenges of removal projects, they are expensive projects. Our thinking is the following: if we take part of the conservation resource, which is easily generated, how much would it be possible to cover from that total potential. What we see is that, of the total potential, we are able to cover somewhere between 7 and 15% of the resource needed to cover the entire area. The carbon project will not pay the bill, but it can help generate income for committed communities, investors and landowners”, adds Munir.
Regarding long-term investment in projects in collective areas, measured over a minimum of 30 years, Systemica spends the first two years improving governance processes. This attention is essential for the longevity of investments and the possibility of self-regulation in the following phases of projects. “At the beginning, we trained the associations, coordinated with local actors, discussed the sharing of benefits, resource management, accountability and we moved forward. We spent an average of two years reinforcing governance, mapping local stakeholders and partners. We do not enter the project if we cannot create these conditions. We have important risks at stake as we put resources forward in these early years. We need to be sure that we are creating something good for the community and the ecosystem”, he concludes.
Watch the full workshop here: IPAM Amazônia – YouTube
