Decree 10.828 was published on October 4, 2021, regulating item II, §2, of article 1 of the CPR Law (Law No. 8.929/1994), established by the Agro Law (Law 13.986/20), regarding the issuance of Rural Product Certificate (CPR) for the purposes of activities related to the conservation and recovery of native forests and their biomes, which is conventionally called Green CPR.
This modality provides that rural products subject to CPR issuance are also those products obtained in activities “related to the conservation of native forests and their respective biomes and the management of native forests within the scope of the public forest concession program, or obtained in other forestry activities that are defined by the Executive Branch as environmentally sustainable”.
Decree 10,828/2021, when regulating this type of CPR, brought the possibility of issuing the title for rural products obtained through activities related to the conservation and recovery of native forests and their biomes that result in:
⦁ reduction of greenhouse gas emissions;
⦁ maintenance or increase of forest carbon stocks;
⦁ reduction of deforestation and degradation of native vegetation;
⦁ conservation of biodiversity;
⦁ conservation of water resources;
⦁ soil conservation; or
⦁ other ecosystem benefits.
The main advantage of this modality is that it covers the cost of maintaining the native forest on the rural property. This modality can be the main instrument for stimulating payment for environmental services (PES), such as environmental offsets for voluntary carbon compensation, issuance of carbon credits and biodiversity credits.
In order for this modality to be implemented, there are criteria that must be followed by the issuer, including external auditing and certification of declared preservation, to specify the rural products that support it.
Considering the territorial dimensions of Brazil, which still has more than 60% of its territory covered by natural vegetation, combined with the legal security that this title provides to investors, this modality is one of the most interesting to investors, in addition to representing another form of asset focused on the concept of ESG (environmental, social and governance), encouraging environmental preservation in agribusiness and sustainable practices.
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Luchesi Lawyers
With a history spanning over 30 years, we are a reference in providing specialized legal services to clients in the agro-industrial production chain and other sectors of the industry. Our activity has been recognized nationally and internationally and stands out for the innovative way in which we handle consultancy issues, contractual negotiations, as well as litigation and strategic operations in agribusiness.