PROJECT DESCRIPTION: VCS Version 3

THE RUSSAS PROJECT

A Tropical Forest Conservation Project in Acre, Brazil

Document Prepared By
CarbonCo , TerraCarbon , Carbon Securities3, and I.S.R.C. Investimentos e Acessória LTDA4
1 2

Project Title The Russas Project

Version 1.2

Date of Issue 13-March-2014

2 2 1 3
Prepared By James Eaton , Rebecca Dickson , Brian McFarland , Pedro Freitas , and Ilderlei Souza
4
Rodrigues Cordeiro

Contact 3 Bethesda Metro Center, Suite 700 – Bethesda, Maryland, 20814 – USA
Phone: (240) 247-0630 Fax: (240) 638-9110 Email: [email protected]
Website: www.CarbonCoLLC.com

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Table of Contents
1 PROJECT DETAILS ..................................................................................................................... 3
1.1 Summary Description of the Project .............................................................................................. 3
1.2 Sectoral Scope and Project Type ................................................................................................. 5
1.3 Project Proponents ........................................................................................................................ 6
1.4 Other Entities Involved in the Project ............................................................................................ 6
1.5 Project Start Date .......................................................................................................................... 8
1.6 Project Crediting Period ................................................................................................................ 8
1.7 Project Scale and Estimated GHG Emission Reductions or Removals ........................................ 9
1.8 Description of the Project Activity .................................................................................................. 9
1.9 Project Location ...........................................................................................................................14
1.10 Conditions Prior to Project Initiation ............................................................................................19
1.11 Compliance with Laws, Statutes and Other Regulatory Frameworks .........................................27
1.12 Ownership and Other Programs ............................................................................................36
1.13 Additional Information Relevant to the Project ...........................................................................37
2 APPLICATION OF METHODOLOGY ........................................................................................40
2.1 Title and Reference of Methodology ..........................................................................................40
2.2 Applicability of Methodology ........................................................................................................41
2.3 Project Boundary .........................................................................................................................43
2.4 Baseline Scenario .......................................................................................................................44
2.5 Additionality .................................................................................................................................46
2.6 Methodology Deviations ..............................................................................................................48
3 QUANTIFICATION OF GHG EMISSION REDUCTIONS AND REMOVALS ............................50
3.1 Baseline Emissions .....................................................................................................................50
3.2 Project Emissions ........................................................................................................................73
3.3 Leakage .......................................................................................................................................77
3.4 Summary of GHG Emission Reductions and Removals .............................................................84
4 MONITORING .............................................................................................................................86
4.1 Data and Parameters Available at Validation..............................................................................86
4.2 Data and Parameters Monitored ................................................................................................87
4.3 Description of the Monitoring Plan ............................................................................................108
5 ENVIRONMENTAL IMPACT ....................................................................................................119
6 STAKEHOLDER COMMENTS .................................................................................................120

APPENDICES .....................................................................................................................................125
APPENDIX A. VCS NON-PERMANENCE RISK REPORT ...............................................................125
APPENDIX B. FOREST CARBON INVENTORY STANDARD OPERATING PROCEDURES ........133

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1 PROJECT DETAILS
1.1 Summary Description of the Project
The Russas Project seeks to help protect and conserve tropical forest by providing payments for
ecosystem services. This type of project is known as a Reducing Emissions from Deforestation and forest
Degradation project (REDD project). Project activities intended to reduce deforestation are implemented
in and around a privately-owned property in the State of Acre, Brazil and are funded by payments related
to emission reduction credits generated by the project.

This project is being developed and registered under the Verified Carbon Standard (VCS) and the
Climate, Community and Biodiversity Standard (CCBS). Project development involved meeting with the
local communities surrounding the project area, engaging Acre state officials working on similar strategies
at a regional/state level, developing a plan which will result in lowering the pressure on land and forest
resources in consultation with the local community, and putting into operation the REDD project
implementation plan with the help of local partners and Russas Project staff. Activities implemented as
part of the project to reduce deforestation include:

 Community outreach and education;

 Employment of local community members as forest guards or other project staff (to replace other
sources of income associated with deforestation and land use);

 Providing agricultural extension training which will help baseline agents to increase productivity
on current lands (thus reducing the pressure to expand their farms in the adjacent forest);

 Supporting local farmers association;

 Assist communities in obtaining land tenure; and

 Sharing a portion of carbon related revenue for communities living on the Russas property
(replacing other sources of income associated with deforestation and land use).

The above activities will directly address deforestation pressures in the region which are becoming more
prevalent.
While the State of Acre historically has a low deforestation rate and a high level of forest governance, the
paving of two primary roads BR-364 and BR-317 has greatly increased destruction of primary forests and
conversion to cattle pastures. Deforestation pressures in the project region have increased significantly in
the past several years as the paving of BR-364 is nearing completion. Upon being fully paved, BR-364
will allow for year-round transportation and will increase property values and market access and facilitate
immigration. The Juruá River, a major tributary of the Amazon River, borders the project property and
connects areas upstream and downstream of BR-364 to consumer markets. Further, secondary roads,
such as “Ramal 3”, are fast approaching the project area (Figure 1.1) providing access to previously hard
to reach areas for the agents of deforestation, small scale/subsistence farmers.

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Figure 1.1. Deforestation in and around the project area (outlined in black) in the historical reference
period.

Highway 364

Juruá River

Ramal 3

Valparaiso River

There are 20 communities living on the project property, all of which live in close proximity to the
Valparaiso River. These small scale and subsistence farming communities are the agents of deforestation
and clear a portion of forest for land to engage in small scale farming and ranching for their livelihoods.
Forest is generally cleared over a period of months. The process most often starts in May or June at the
beginning of the dry season with the cutting of small trees and vines by machete. Next, the farmer or
someone with a chainsaw cuts the larger trees down. The farmer then waits for the dead vegetation to dry
for a period of time ranging from two weeks to several months. A portion of the farmers, then use fire to
clear the land. Finally crops are planted or the land is converted to pasture.

The project baseline has been developed after meeting with local communities to understand their use of
the land, and in light of the above mentioned increased accessibility of the project area in the near future.
Further, the Russas Project is working closely with the State of Acre and is using a simple historic
approach to setting the baseline to conform to Acre State’s approach, which is still in development.
Finally, data and information provided by the UCEGEO, the Climate Change Institute’s GIS department of
the state of Acre, was used in the development of the baseline.

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There are three project proponents undertaking the Russas Project including CarbonCo, LLC
(“CarbonCo”), Freitas International Group, LLC (“Carbon Securities”), and I.S.R.C. Investimentos e
Acessória LTDA (“I.S.R.C.”). CarbonCo, the wholly-owned subsidiary of Carbonfund.org, is responsible
for project finance and managing project development. Carbon Securities acts as a liaison between
CarbonCo and I.S.R.C. and provides logistical support during site visits. Ilderlei Souza Rodrigues
Cordeiro is the land owner and sole proprietor of I.S.R.C., an Acre based organization which is primarily
responsible for implementation of project activities and day-to-day management of the Russas Project.

A schedule of the important aspects of the project is listed in chronological order in Table 1.1, below.

Table 1.1. Schedule of Key Project Activities.

Project activity Date Source/Notes
Project start date March 17, 2011 The local project manager, Marmude Dene de
Carvalho, was hired on this date and forest monitoring
began. Further, Ilderlei Souza Rodrigues Cordeiro
spoke with the community on this date at length about
REDD+, forest conservation, community benefits and
the community signed an "ata" which is basically a
public meeting MOU.

Start date and end date of the March 17, 2011 to

initial REDD project crediting March 16, 2041
period.
Validation/ Registration of the Anticipated 2014
project
Date at which the project March 17, 2021 Start of second baseline period
baseline will be revisited. The
baseline must be renewed
every 10 years from the project
start date.

1.2 Sectoral Scope and Project Type

Project Scope 14: Agriculture, Forest and other Land Use (AFOLU)
Project Category: Reduction Emission from Deforestation and Degradation (REDD)

Type of Activity: Avoided Unplanned Deforestation (AUDD)

This project is being registered under the Verified Carbon Standard (VCS) as a Reducing Emissions from
Deforestation and Degradation (REDD) project and has been developed in compliance with the Verified
1 2
Carbon Standard , Version 3.3 and VCS AFOLU Requirements . The project will reduce emissions from
unplanned frontier deforestation.

1
VCS. 2012 VCS Standard. Version 3.3, 04 October 2012. Verified Carbon Standard, Washington, D.C.
2
VCS. 2012 Agriculture, Forestry and Other Land Use (AFOLU) Requirements. Version 3.3, 04 October 2012.
Verified Carbon Standard, Washington, D.C.

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1.3 Project Proponents
The three main project proponents are CarbonCo, LLC (“CarbonCo”), Freitas International Group, LLC
(“Carbon Securities”), and I.S.R.C. Investimentos e Acessória LTDA (“I.S.R.C.”) which is a sole
proprietorship managed by the Russas property land owner. CarbonCo, the wholly-owned subsidiary of
Carbonfund.org, is responsible for getting the project certified and for project finance. Carbon Securities
acts as a liaison between CarbonCo and I.S.R.C., acts as a translator, and assists with logistics for site
visits. I.S.R.C. is an Acre, Brazil-based organization created by the Landowner and is primarily
responsible for day-to-day management of the Project and the implementation of activities to stop
deforestation. Table 1.2, below, details the role and responsibilities of each project proponent.

Table 1.2. List of Project Proponents.

Contact Role Responsibility
CarbonCo, LLC Project developer • Finance project development costs
3 Bethesda Metro Center, Suite • Manage technical contractors helping with
700 project development, the forest carbon inventory,
Bethesda, Maryland 20814 and baseline modeling
USA • Assist with drafting the VCS and CCBS Project
001-240-247-0630 Documents
• Manage validation and verification process
including contracting auditors and addressing
Corrective Action Requests

I.S.R.C. Investimentos e Project manager • Engage with local community to inform and
Acessória LTDA explain the proposed project and gather
Bairro: Zona Rural, Cidade: feedback, and resolve any local issues
Cruzeiro do Sul - Acre - Brasil, • Develop and implement a plan to reduce
Cep: 69.980-000 deforestation

Freitas International Group, Project facilitator • Serve as a liaison and translator for the
LLC (Carbon Securities) landowners and CarbonCo, including
201 S. Biscayne Boulevard, establishing meetings with landowners and
28th Floor relevant stakeholders, arranging site visits,
Miami, Florida 33131 providing information and documentation such as
USA previous studies, photographs, and satellite
55-61-3717-1008 images related to the project

1.4 Other Entities Involved in the Project

Figure 1.2 provides an overview of the relationship of the various project proponents and entities involved
in the project. Table 1.3 lists the role of the other entities.

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Figure 1.2: Organizational Chart for the Russas Project

Table 1.3. List of Other Entities Involved in the Project.

Contact Role Responsibility
TerraCarbon LLC Independent Consultant Co-lead project kickoff. Design and manage
5901 N. Sheridan Rd. forest carbon inventory. Lead baseline
Peoria, Illinois 61614, USA development task. Develop project document
001-434-326-1144 and advise CarbonCo on all aspects of project
development.
TECMAN Independent Consultant Lead and supervise collection of field data during
Rua Copacabana, nº 148, Sala the course of the forest carbon inventory.
204, Conjunto Village Maciel,
CEP 69.914-380 Rio Branco,
Acre, Brasil
55-68-3227-5273
Antonio Willian Flores de Melo Independent Consultant Assist with review of the project baseline.
Universidade Federal do Acre
Centro de Ciências Biológicas
e da Natureza, Distrito
Industrial, CEP 69.915-900
Rio Branco, Acre, Brasil
55-68-3901-2611

S.O.S. Amazônia Provide technical assistance with regard to

Rio Branco - AC agricultural extension training for local
Rua Pará, 61 communities
Cadeia velha
CEP 69.900-440
Phone: 55 68 3223 1036

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CEFLORA, Centro de Provide technical assistance with regard to
Formação e Tecnologia da agricultural extension training for local
Floresta or the Center for communities
Training and Forest
Technology
Rua Paraná , 865
Cruzeiro do Sul - Acre
Secretaries of Small Business Provide technical assistance with regard to
and Environmental Affairs agricultural extension training for local
communities
Environmental Affairs
Rua Rui Barbosa n. 514 –
Cruzeiro do Sul – Acre – CEP:
69.980-000
CNPJ n. 04-012-548/0001-02 –
Phone: (0**68) 3322-4295
Email:
[email protected]
[email protected]

Small Business
Secretaria de Estado de
Pequenos Negócios
Avenida Ceará, nº 1624 -
Centro (em frente ao Colégio
Aplicação)
Phone: (68) 3224-2548 or
3224-7674 or 3224-3364
Email:
[email protected]

1.5 Project Start Date

The Russas Project has a project start date of March 17, 2011. The local project manager, Marmude
Dene de Carvalho, was hired on this date and forest monitoring began. This is also the date Ilderlei
Souza Rodrigues Cordeiro spoke with the community at length about REDD+, forest conservation,
community benefits and the community signed an "ata" which is a public meeting MOU.

1.6 Project Crediting Period

The Russas Project has an initial project crediting period of 30 years, starting on March 17, 2011. The
initial baseline period started on March 17, 2011 and is set to continue through March 16, 2021. The initial
project crediting period is set to end on March 16, 2041.

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1.7 Project Scale and Estimated GHG Emission Reductions
or Removals
The Russas Project is not considered to be a “Large Project”, as the estimated annual emission
reductions for the first baseline period is 120,147 tCO2e per year, less than the 300,000 tons of CO2 per
year which indicates a “Large Project”.

Project X
Large Project N/A

Years Estimated GHG emission

reductions (tCO2e)
2012 18,030
2013 101,726
2014 131,428
2015 127,693
2016 136,500
2017 121,211
2018 137,890
2019 141,665
2020 133,424
2021 151,906
Total estimated ERs 1,201,474
Total number of crediting years 10
Average annual ERs 120,147

1.8 Description of the Project Activity

The Russas Project will mitigate deforestation pressures using a combination of environmental
programs and social programs which are intended to improve the livelihoods of community
members living in the vicinity of the project area. Social projects and programs for the local
communities, will not only generate sustainable economic opportunities, but will also result in a
reduction in deforestation and the preservation of biodiversity.
Over the Project Lifetime, I.S.R.C. will implement the following project activities:

 Raise Project Awareness

 Hire Project Manager

 Patrol and Monitor Deforestation

 Provide Agricultural Extension Services

 Support Local Farmers Association

 Help Communities Obtain Land Tenure

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 Profit-Sharing of Carbon Credits

 Establish a Project Headquarters

Raise Project Awareness

The local communities are an essential component of the Russas Project and have been frequently
involved in discussions. Community meeting discussions have revolved around the following topics:

 The Project Proponents roles and responsibilities;

 What exactly is the Russas Project and how long the Project will last;
 The negative impacts of deforestation and alternatives to slash-and-burn agricultural practices;

 Financial benefits to practicing more sustainable agriculture;

 What type of social projects and programs (e.g., preventative medicine and health care services)
are most relevant and useful;

 What agricultural trainings could be offered;

 Grievance procedure for addressing any and all unresolved issues; and

 The process for securing land tenure.

Through meeting with the communities, the Project Proponents have been able to gain the communities’
insights about project design and to better incorporate the communities into the Project. The community
objective of generating sustainable economic opportunities and implementing social projects and
programs will be best achieved with active, on-going participation and input from the local communities.

Ilderlei has been working with the communities of the Russas and Valparaiso Project prior to discussions
about developing REDD+ Projects. Ilderlei began working with the Russas Project property in 2003. In the
beginning, the community discussions focused on alternative economic activities such as the collection of
vines and sustainable wood management. Upon running for Vice-Mayor of Cruzeiro do Sul and later as a
Federal Congressman for the State of Acre, Ilderlei regularly visited the Russas and Valparaiso
communities to better understand their needs. In 2009, Ilderlei spoke to Normando Sales (now the owner
of the Purus Project) about the general concepts of REDD+. Starting in late 2009 and throughout 2010,
Ilderlei held some initial, informal meetings with the communities about REDD+.

Throughout 2011, 2012 and 2013, the Russas Project was discussed in greater detail with the
communities to ensure the communities were fully aware of the Russas Project, were able to contribute to
the Project design, able to openly express desired outcomes and concerns, understood the third-party
grievance procedure, and were able to voluntarily give free, prior and informed consent.
Community members who wanted to join the Russas Project signed an “ata” on March 17, 2011. This
“ata” asked local community for a commitment to: stop deforestation and logging, help prevent access of
non-residents to the project area, and create and join anti-fire squads. In return, community members
requested: the ability to explore the large amount of açaí existing in the area, help to increase and
improve production of cassava flour in nonforested areas, and to learn new management techniques for
artisanal fisheries. Further, I.S.R.C. agreed to keep communities informed on the development and
implementation of the Russas Project and to assist communities in realizing the activities and benefits
requested.

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Figure 1.3. Community meeting for the Russas Project (Photo b y Ilderlei Cordeiro) .

Hire Project Manager

Marmude Dene de Carvalho (“Marmude”) was hired by I.S.R.C. in March 2011 as the Russas Project’s
local project manager. As the local project manager, Marmude works as a partner in the Project,
facilitating communication in community decisions. Marmude lives onsite and is able to frequently visit
neighboring communities. Marmude is responsible for helping implementation of social projects, assisting
with the community, biodiversity, and deforestation monitoring, and regularly communicating with I.S.R.C.
Patrol and Monitor Deforestation

Marmude Dene de Carvalho began monitoring of deforestation via boat in March 2011. Monitoring takes
place on a monthly basis along the Valparaiso and Jurua Rivers. Marmude spends on average
approximately 15 days per month visiting communities, monitoring for deforestation, and going to
Cruzeiro do Sul to meet Ilderlei.
When deforestation is identified by I.S.R.C., it is documented and then CarbonCo is notified. Collectively,
CarbonCo and I.S.R.C. will discuss the appropriate actions to counteract reported deforestation.

Forest monitors will write down observations, document community meetings, input this data into the
monitoring template, and share this information among the Project Proponents. A monitoring template
will be completed, including the following information:
 Name of Monitor

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 Date of Monitor

 Communities Visited

 Meeting Notes with Community

 Grievances and Concerns of Community

 Location and Date of Deforestation

 Responsible Actor for Deforestation

 Observations Pertaining to Deforestation

 Biodiversity Observed

 Other Notes Related to the Project

In the future, I.S.R.C. will hire another person to monitor deforestation and will purchase a motorcycle or a
four-wheeler to monitor areas of high deforestation risk including along property boundaries and existing
paths in the forest, and nearby roads approaching the property.

Patrolling / monitoring for deforestation has already begun and such activities will last throughout the
Project Lifetime. Patrolling / monitoring will provide an early detection of deforestation, while also enabling
the Project Proponents to identify the specific drivers and agents of deforestation and to implement the
appropriate actions to mitigate such deforestation.

Provide Agricultural Extension Services

The communities in and around the Russas Project were surveyed to better understand which agricultural
extension training courses would be of the most interest.

I.S.R.C. will provide requested agricultural extension services. I.S.R.C. has engaged the State of Acre’s
CEFLORA (Centro de Formação e Tecnologia da Floresta or the Center for Training and Forest
Technology), the Secretary of Small Business, the Secretary of Environmental Affairs for the Municipality
of Cruzeiro do Sul, and S.O.S. Amazônia to assist with onsite trainings to the communities in and near
the Russas Project.

Agricultural extension trainings will assist the Project Proponents achieve both the climate and community
objectives of the Russas Project. These activities will reduce the communities’ dependence on forest
resources through intensifying agriculture and livestock, while also providing the communities with
alternative incomes that are not dependent on additional deforestation.
Support Local Farmers Association

I.S.R.C. will establish and financially support a community run local farmers association. Financial support
will help to:
 modernize community manioc houses;
 build a local processing plant to industrialize açaí production;

 support purchase of new equipment;

 assist with improving production by mechanization of the land; and

 facilitate better market access.

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Help Communities Obtain Land Tenure

Community members that have been living on the land and who made the land productive (e.g., by
growing crops or raising livestock) for ten years have the right to title this land. I.S.R.C. will assist families
living on the Russas property obtain title and further will recognize whatever area is currently deforested
and under productive use by each family up to the recommended size that a family in the State of Acre
needs for a sustainable livelihood according to State and Federal laws. All communities, whether they join
the Russas Project or not, will be titled the land they have put under productive use. This formal
recognition of the community’s land tenure and the ability of communities to access credit (i.e., due to
their property collateral) will reduce GHG emissions as communities will have greater responsibility and
ownership over their land.

Profit-Sharing of Carbon Credits

Carbon revenue will be primarily used by I.S.R.C. to develop social projects and programs. However,
within the first five years, communities will start to receive a small share of the payments from I.S.R.C.
This revenue will be shared with the communities each time I.S.R.C. receives payment for its share of the
verified emission reductions. Regarding the criteria for allocating carbon revenue among communities,
only communities that voluntarily join the Russas Project, successfully avoid deforestation, and reside
within the Russas property will be eligible for carbon revenue. These communities will be granted a
percentage of I.S.R.C.’s gross carbon revenues.

Establish a Project Headquarters

The project has an initial headquarters in the project manager’s house, and in the future I.S.R.C. will build
a dedicated project headquarters near Marmude’s house at the beginning of the Valparaiso River. This
headquarters will provide a local project office with phone, a space for community meetings and teaching
courses, a small auditorium for presentations, a place for visitors to sleep and eat, and project storage.
Building an office contributes to the community objective because the office will serve as a centralized
headquarters and will facilitate I.S.R.C.’s social projects and programs.

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Figure 1.4. Initial Russas Project headquarters.

1.9 Project Location

The Russas Project area is located in Acre, Brazil along the southern bank of the Valparaiso River. The
Valparaiso River is a tributary to the Juruá River and joins about 40 km south of the town Cruzeiro do Sul.
The total project area (i.e., forested area of the property as of the project start date, and 10 years prior) is
41,976 hectares.

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Figure 1.5. Map of the Russas Property.

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Figure 1.6. 2001 Forest Cover Map (Green = Forest; Red = Nonforest).

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Figure 1.7a. 2011 Forest Cover Map (Green = Forest; Red = Nonforest).

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Figure 1.7b. 2011 Nonforest (in red) with forest strata for the project area and leakage belt.

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1.10 Conditions Prior to Project Initiation

Background information on the project area including environmental variables in and around the project
region is provided in this section. Further, the project has not been implemented to generate GHG
emissions for the purpose of their subsequent reduction, removal or destruction. This is substantiated by
the landowner’s commitment to the conservation of the project area. Further, I.S.R.C. was established
specifically to promote environmental causes including conservation of tropical rain forest, including the
project area, and implement projects which result in the preservation of forest in Acre state.
Climate

The climate in the State of Acre is fairly consistent throughout the state. The average annual temperature
3
is 24.5 C , while the average annual rainfall is 1,950-2,250 mm/yr. The rainfall in the project area is
around 2,200 mm/yr (see Figure 1.8). In general, the rainy season extends from November to April and
the dry season from June to September.

Vegetation
The vegetation in the region of the Russas Project area is predominantly classified as Floresta Ombrófila
4
Aberta (as open rainforest, RADAMBRASIL ). While open rainforest occurs throughout most of Acre
State, vegetation differences are driven by geomorphological features and soil type. These differences
are manifested in part in the relative proportion of certain species of palms, bamboo, and vines.
5
A vegetation map produced by the State of Acre was used to stratify the project area (Figure 1.9). There
are five strata present in the Russas Project area include: open forest with bamboo and palm (FAB +
FAP), open palm forest (FAP), open alluvial forest with palm (FAP - Alluvial), open forest with bamboo
and palm and dense forest (FAP + FAB + FD and FAP + FD + FAB), and dense forest and open palm
forest (FAP + FD and FD + FAP).

One additional stratum is present in the leakage belt, namely open alluvial forest with bamboo (FAB -
Alluvial). This forest type is hard to distinguishable from FAP-A, with the primary difference being the
prevalence of bamboo.
Soils

The Russas Project area is dominated by Acrisols and Gleysols. Also present to a much lesser extent are
Plinthosols and Fluvisols, soils typically found near rivers (see Figure 1.10). Acrisols (or Argissolos in
Portuguese) are clay rich soils associated with humid tropical climates. These soils have low fertility and
high levels of aluminum. Gleysols (or Gleissolos in Portuguese) are hydric soils that are saturated with
groundwater for long periods of time. This soil saturation leads to the development of a characteristic

3
ACRE. Governo do Estado do Acre. Secretaria de Estado de Planejamento e Desenvolvimento Econômico-
Sustentável, Secretaria de Estado de Meio Ambiente e Recursos Naturais. Programa Estadual de Zoneamento
Ecológico-Econômico do Acre. Zoneamento Ecológico-Econômico do Acre Fase II. Documento Síntese, 2006.
4
BEZZERA, P.E.L. Compartimentação morfotectônica do interflúvio Solomões-Negro. 2003. 335 f. Tese (Doutorado
em Geologia) Universidade Federal do Pará, Belém, 2003.
Brasil. Departamento Nacional da Produção Mineral - Projeto RADAMBRASIL. Geologia, Geomorfologia, Pedologia,
Vegetação e Uso Potencial da Terra. Folha V.12 FlS SC 19. Rio Branco; Rio de Janeiro, 1976.
5
ACRE. Governo do Estado do Acre. Secretaria de Estado de Planejamento e Desenvolvimento Econômico-
Sustentável, Secretaria de Estado de Meio Ambiente e Recursos Naturais. Programa Estadual de Zoneamento
Ecológico-Econômico do Acre. Zoneamento Ecológico-Econômico do Acre Fase II. Documento Síntese, 2006.

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gleyic color pattern with reddish, brownish or yellowish colors in surface horizons and grayish or blueish
colors for deeper horizons. Fluvisol (or Neossolos in Portuguese) are young soils formed on alluvial plains
in the region where periodic flooding is common. While this deposition leads clear stratification, soil
horizons are generally weakly developed, although a distinct topsoil horizon may be present. Plinthosols
(or Plintossolos in Portuguese) form near rivers in this area. These soils are weathered iron/aluminum rich
clay soils which are considered acidic and nutrient-poor. Iron often accumulates in the form of plinthite
below a strongly leached eluvial horizon. Description of the soil orders were based on the Brazilian
System of Soil Classification.

There are no organic soils (i.e., histosols) in or around the project area or leakage belt.

Rivers
6
The Juruá River is one of the longest tributaries to the Amazon River . It is an important river linking the
Ucayali region of Peru with the states of Acre and Amazonas in Brazil (See Figure 1.11). Throughout
Acre, the Juruá River runs from south to north toward the state of Amazonas. The course of the Juruá
River is not set and meanders within the stream bed in the dry season. Erosion of the banks of the Juruá
7
River is typical after the wet season as the river level drops . A secondary river, the Valparaiso, runs
along the northern border of the property and provides year round access to the project area.

History

Historically, the property was used for rubber tapping and an extractive area for natural forest products.
More recently and prior to the acquisition of the property by the current landowner in 2004, there was little
oversight of local activities on the property, some of which lead to deforestation on the Russas property.

6
Instituto Brasileiro de Geografia e Estatística, “AC-Politico,”
ftp://geoftp.ibge.gov.br/mapas/tematicos/politico/AC_Politico.pdf
7
ACRE. Governo do Estado do Acre. Secretaria de Estado de Planejamento e Desenvolvimento Econômico-
Sustentável, Secretaria de Estado de Meio Ambiente e Recursos Naturais. Programa Estadual de Zoneamento
Ecológico-Econômico do Acre. Zoneamento Ecológico-Econômico do Acre Fase II. Documento Síntese, 2006.

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Figure 1.8. Precipitation isolines (30 year average 1961-1991) in the vicinity of the project area and leakage belt.

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Figure 1.9 Vegetation strata in the vicinity of the project area.

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Figure 1.10. Soil type in the vicinity of the reference region for location.

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Figure 1.11. Rivers in the vicinity of the project area and leakage belt.

Juruá River

Valparaiso River

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Local communities

There are 20 communities living on the project property along the banks of the Valparaiso and Jurua
Rivers. These communities engage in small scale/subsistence farming and ranching (Figure 1.12). In
addition, these communities hunt and gather in the forest surrounding their farms. Fuelwood collection is
sustainable and no resources extracted from the forest are for commercial markets, but rather are used
for a largely subsistence livelihood. The main crop in the region of the project is manioc (i.e., yuca or
cassava). Additional typical crops and fruit trees include: bananas, beans, corn, papaya, rice, sugarcane,
and watermelons.

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Figure 1.12. Baseline land-use practices among communities include cattle-ranching and small scale
agriculture.

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1.11 Compliance with Laws, Statutes and Other Regulatory

Frameworks
All project proponents have maintained compliance with relevant local, state, and national laws, statues
and regulatory frameworks.
National Laws and Regulatory Frameworks

The Russas Project abides by Brazilian national laws including the Brazilian Constitution. Chapter 6 of the
8
Brazilian Constitution specifically discusses environmental issues in Article 225 , and the project activity
aligns with the national mandate as expressed in Article 225 paragraph 4, below.
Paragraph 4 - The Brazilian Amazonian Forest, the Atlantic Forest, the Serra do Mar, the
Pantanal Mato-Grossense and the coastal zone are part of the national patrimony, and they shall
be used, as provided by law, under conditions which ensure the preservation of the environment.

Further all provisions of the Brazilian Forest Code are adhered to by the Russas Project.

These include:


9
The original Brazil Forest Code entitled, Law No. 4771, September 15, 1965.

10
Revision of Brazil Forest Code under Law No. 7803, July 18, 1989.


11
Provisional Measure under No, 2166-67, August 24, 2001.


12
Revision of Brazil Forest Code under Law No. 12.651 of May 25, 2012.

Title of Law
Law Number 4771 of September 15, 1965, entitled “Establishing the new Forest Code.”

Summary of Law
Law Number 4771 of September 15, 1965 was the original Brazil Forest Code. A few major provisions of
the Forest Code were the establishment of permanent preservation areas (APP), establishment of legal
reserves of 50% on properties in the Legal Amazon, and designation of Acre State (among others) as
13
within the Legal Amazon territory. Many of these provisions have been revised since 1965.

8
Georgetown University, “1988 Constitution, with 1996 reforms in English,”
http://pdba.georgetown.edu/Constitutions/Brazil/english96.html#mozTocId920049
9
Presidency of the Republic, “Law No. 4771, September 15, 1965,” Available:
http://www.planalto.gov.br/ccivil_03/Leis/L4771.htm
10
Presidency of the Republic, “Law No. 7803, July 18, 1989,” Available:
http://www.planalto.gov.br/ccivil_03/leis/L7803.htm
11
Presidency of the Republic, “Provisional Measure 2166-67, August 24, 2001,” Available:
https://www.planalto.gov.br/ccivil_03/MPV/2166-67.htm
12
Presidency of the Republic, Civil House Cabinet Subcommittee for Legal Affairs, “Law No. 12,651, of 25 May
2012,” Available: http://www.planalto.gov.br/ccivil_03/_Ato2011-2014/2012/Lei/L12651.htm
13
Presidency of the Republic, “Law No. 4771, September 15, 1965,” Available:
http://www.planalto.gov.br/ccivil_03/Leis/L4771.htm

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Compliance with Law

The Russas Project, as can be documented via satellite imagery or firsthand observations, has respected
the Project’s permanent preservation areas and legal reserves.

Title of Law

Law Number 6.938 of August 31, 1981 entitled, “Provides for the National Environmental Policy, its aims
and mechanisms for the formulation and implementation, and other measures.”

Summary of Law
Law Number 4771 of August 21, 1981 is based off Brazil’s constitution and established Brazil’s National
Environmental Policy. Essentially, the “National Policy on the Environment is aimed at the preservation,
improvement and restoration of environmental quality conducive to life, to ensure, in the country,
conditions for the socio-economic development, the interests of national security and protecting the
14
dignity of life human.” Agencies were also established to carry out the National Environmental Policy.

Compliance with Law

The Russas Project have identified, consulted and shall continue to work with the relevant agencies
responsible for environmental protection, particularly with respect to REDD projects. Furthermore, the
Russas Project will seek to conserve soil and water resources, protect rare and threatened ecosystems,
and promote the recovery of degraded areas and encourage environmental education.

Title of Law

Law Number 7803 of July 18, 1989 entitled, “Change the wording of Law No. 4771 of September 15,
1965, and repealing Laws Nos. 6535 of June 15, 1978, and 7511 of 7 July 1986.”
Summary of Law

Law Number 7803 was the first significant amendment to the original 1965 Forest Code. For example, the
permanent preserve areas were reclassified. The Law also stipulated that “the exploitation of forests and
succeeding formations, both public domain and private domain, will depend on approval from the
Brazilian Institute of Environment and Renewable Natural Resources - IBAMA, and the adoption of
techniques of driving, exploitation, reforestation and management compatible with the varied ecosystems
15
that form the tree cover.

Compliance with Law

The Russas Project will abide by the new guidance on permanent preserve areas such as to not clear
forests on steep slopes or within one hundred meters proximity to rivers. Any such clearing that has taken
place in the past, will be reforested.

14
Presidency of the Republic, “Law No. 6.938, August 31, 1981,” Available:
http://www.planalto.gov.br/ccivil_03/leis/L6938.htm
15
Presidency of the Republic, “Law No. 7803, July 18, 1989,” Available:
http://www.planalto.gov.br/ccivil_03/leis/L7803.htm

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Title of Law
1, 4,
The Provisional Measure Number 2166-67 of August 24, 2001 entitled, “Changes the arts. 14, 16 and
No.
44, and adds provisions to Law 4771 of September 15, 1965, establishing the Forest Code and
No.
amending art. 10 of Law 9393 of December 19, 1996, which provides for the Property Tax Territorial
Rural - ITR, and other measures.”

Summary of Law
The Provisional Measure Number 2166-67 of August 24, 2001 was one of the latest revisions to the
original 1965 Forest Code and to the amendments of Law Number 7803. The most relevant change to the
Russas Project was the revision of the legal reserve requirement in the Legal Amazon (i.e., including the
16
State of Acre) from 50% to 80% which shall be conserved.

Compliance with Law

As mentioned previously, the Russas Project - as can be documented via remote sensing or firsthand
observations - has respected both the Project’s permanent preservation areas and the recently revised
legal reserve requirement.

Title of Law
17
Law Number 12.651 of May 25, 2012, which is the latest Brazilian Forest Code.
Summary of Law

The latest Brazilian Forest Code, “Provides for the protection of native vegetation; amends Laws Nos.
6938 of August 31, 1981, 9,393, of December 19, 1996, and 11,428 of December 22, 2006, repealing the
Laws No. 4771, 15 September 1965 and 7754, of April 14, 1989, and Provisional Measure No. 2.166-67,
of August 24, 2001, and other provisions.”

Other key provisions of the Brazilian Forest Code include:

“CHAPTER I: GENERAL PROVISIONS
The
Article 1-A. This Act lays down general rules on the protection of vegetation, Permanent Preservation
Areas and Legal Reserves, forest exploitation, the supply of forest raw materials, control the origin of
forest products and the prevention and control of forest fires, and provide economic and financial
instruments for the achievement of its objectives

II - reaffirming the importance of the strategic role of farming and the role of forests and other forms of
native vegetation in sustainability, economic growth, improving the quality of life of the population and the
country's presence in the domestic and international food and bioenergy; (Included by Law No. 12,727,
2012).
VI - the creation and mobilization of economic incentives to encourage the preservation and restoration of
native vegetation and to promote the development of sustainable productive activities.

16
Presidency of the Republic, “Provisional Measure 2166-67, August 24, 2001,” Available:
https://www.planalto.gov.br/ccivil_03/MPV/2166-67.htm
17
Presidency of the Republic, Civil House Cabinet Subcommittee for Legal Affairs, “Law No. 12,651, OF 25 MAY
2012,” Available: http://www.planalto.gov.br/ccivil_03/_Ato2011-2014/2012/Lei/L12651.htm

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Article 3 For the purposes of this Act, the following definitions apply:

I - Amazon: the states of Acre, Pará, Amazonas, Roraima, Rondônia, Mato Grosso and Amapá and the
regions north of latitude 13 ° S, the states of Goiás and Tocantins, and west of 44 ° W , State of
Maranhão;

II - Permanent Preservation Area - APP: protected area, or not covered by native vegetation, with the
environmental function of preserving water resources, landscape, geological stability, biodiversity,
facilitate gene flow of fauna and flora, soil protection and ensure the well-being of human populations;
III - Legal Reserve area located within a rural property or ownership, demarcated according to art. 12,
with the function of ensuring a sustainable economic use of natural resources of rural property, assist the
conservation and rehabilitation of ecological processes and to promote the conservation of biodiversity,
as well as shelter and protection of wildlife and native flora;

VI - alternative land use: replacement of native vegetation and succeeding formations other ground
covers such as agricultural activities, industrial, power generation and transmission of energy, mining and
transport, urban settlements or other forms of human occupation;

CHAPTER II: AREAS OF PERMANENT PRESERVATION

Section I: Delimitation of Areas of Permanent Preservation

III - the licensing is done by the competent environmental authority;

IV - the property is registered in the Rural Environmental Registry - CAR.

CHAPTER IV: AREA LEGAL RESERVE

Section I: Delimitation of the Legal Reserve Area

Article 12. All property must maintain rural area with native vegetation cover, as a legal reserve, without
prejudice to the application of the rules on the Permanent Preservation Areas, subject to the following
minimum percentages in relation to the area of the property, except as specified in art. 68 of this Act:
(Amended by Law No. 12,727, 2012).
I - located in the Amazon:

a) 80% (eighty percent), in the property situated in forest area;

b) 35% (thirty five percent), in the property situated in cerrado;

c) 20% (twenty percent), in the property situated in the area of general fields;

II - located in other regions of the country: 20% (twenty percent).

CHAPTER V: THE SUPPRESSION OF VEGETATION FOR ALTERNATIVE USE OF SOIL

Article 26. The removal of native vegetation to alternative land use, both public domain and private
domain, depend on the registration of the property in CAR, mentioned in art. 29, and the prior
authorization of the competent state agency Sisnama.”

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Compliance with Law

The Russas Project is in compliance with the latest Brazil Forest Code. Acre is still considered an
Amazonian State and thus, the Project must maintain 80% of forest cover as a legal reserve. This can be
demonstrated via firsthand observations and review of satellite imagery.

Community Land Tenure Laws

With respect to the Project Zone, there are communities settled onto what were originally privately-owned
lands and these communities have cleared the land primarily for subsistence agriculture, some cattle-
ranching and housing. According to Brazilian law, there are three applicable laws which relate to this
customary and legal property rights situation:


18 th
Brazilian Federal Constitution, passed on October 5 , 1988


19 th
Brazilian Civil Code, which is the Federal Law 10406, passed on January 10 , 2002


20 th
Brazilian Civil Procedure Code, which is the Federal Law 5869, passed on January 11 , 1973

In Brazil, the law requires that the acquisition of land is made by a title (i.e., a contract) and by
registration. Thus if you want to buy an area of land, you need to have a title (i.e., a contract with the
landowner) and then you need to register your title at the public service of land registration (i.e., called the
“Cartório de Imóveis”). As stated in Article 1245 of the Civil Code, if you only have the title (i.e., the
contract) and do not register it, then by the law you are not the owner of the land. However, if you have
the unregistered contract and you are in possession of the land, the law refers to you as “good-faith
possessor.”

It is important to note that Brazilian regulation treats small lands differently than larger ones as there is
the “special usucaption” and the “regular usucaption.” The law requires a smaller period of time for
usucaption of rural lands on fifty hectares or less, than it requires for usucaption of rural lands above fifty
hectares. The Federal Constitution establishes the “special usucaption” stating in Article 191 that, “the
one that, not being owner of agricultural or urban property, possesses as itself, per five years
uninterrupted, without opposition, land area in rural area, not more than fifty hectares, making it
productive by his work or by his family’s work, and living in there, will acquire its ownership.” The Civil
Code, in Article 1239, repeats what the Constitution states about usucaption of rural lands not above fifty
hectares.

For the usucaption of lands above fifty hectares, or even for those who possess less than fifty hectares
but do not fulfill the other requirements of the “special usucaption,” the applicable usucaption is the
“regular usucaption,” which is applicable to every kind of land (i.e., rural or urban lands and no matter
their size).

18
Presidency of the Republic, “CONSTITUIÇÃO DA REPÚBLICA FEDERATIVA DO BRASIL DE 1988,” Available:
http://www.planalto.gov.br/ccivil_03/Constituicao/Constituicao.htm
19 o
Presidency of the Republic, “LEI N 10.406, DE 10 DE JANEIRO DE 2002.,” Available:
http://www.planalto.gov.br/ccivil_03/Leis/2002/L10406.htm
20 o
Presidency of the Republic, “LEI N 5.869, DE 11 DE JANEIRO DE 1973.,” Available:
http://www.planalto.gov.br/ccivil_03/Leis/L5869.htm

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The “regular usucaption” is established by the Civil Code, Article 1238. Essentially, it requires different
periods of time, depending on what the possessor does on the land. The beginning of Article 1238 states:
“The one that, per fifteen years without interruption or opposition, possesses as itself a land will acquire
its ownership, independently of title and good-faith; and may require to a judge to declare it by sentence,
which will serve as title to register the ownership at the public service of land registration.” However,
Article 1238 also states that “the period of time required in this Article will be reduced to ten years if the
possessor has established his habitual house or have made the land productive.” Furthermore, Article
1242 states that “acquires the Landownership the one that, without contestation, with title and good-faith,
possesses the land per ten years.”

With respect to the communities living on the Russas Project, nobody in the community has title or good-
faith possession, because none of them bought the land from the landowner Ilderlei Souza Rodrigues
Cordeiro. Thus, Article 1242 is not applicable.
The one who possesses land of not more than fifty hectares, lives there for five years, makes the land
productive (e.g., by growing agriculture or raising animals) and who do not own any other land (rural or
urban) has the right to be titled. The one who possesses a land, not more than fifty hectares but does not
fill the requirements for the “special usucaption,” along with the one who possesses land above fifty
hectares, they also have the right to be titled if the possession is at least fifteen years. In this same case,
if the possessor is living on the land or makes the land productive (e.g., by growing agriculture or raising
animals), the required period of possession is reduced to ten years. The right to be titled is stated in the
law, but it is only possible after a judge declares this right in a sentence after a procedure. As previously
mentioned, to acquire a property in Brazil you have to have both title and registration. Thus even if you
have possession for twenty years, you do not have ownership of the land yet. In this case, you will still
have to ask a judge to declare your right in court, so you will have the title (i.e., sentence = title, in this
case). After that, you will have to take the sentence of the judge and register in the public service of land
registration. Then you are the official owner of the land by usucaption.
Community members that have been living on the land and who made the land productive (e.g., by
growing agriculture or raising animals) for ten years, have the right to be titled. To resolve this ongoing
conflict or dispute, I.S.R.C. will voluntarily recognize whatever area is currently deforested and under
productive use by each family. All communities - whether they voluntarily join the Russas Project or not -
will be titled the land they have put under productive use. If necessary, this process will be facilitated by
an independent group.

State Laws and Regulatory Frameworks

The project proponents of the Russas Project abide by Acre’s state laws and regulatory frameworks.
Specifically these include:

 The Acre Forestry Law (Bill Number 1.426 of December 27, 2001); and

 The State System of Incentive for Environmental Services (Bill Number 2.308 of October 22,
2010).

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Title of Law

Law Number 1.426, December 27, 2001, entitled, “The Acre Forestry Law.”

Summary of Law
The Acre Forestry Law Number 1,426 of December 27, 2001 essentially, “provides for the preservation
and conservation of State forests, establishing the State System of Natural Areas, creates the State
Forest Fund and other measures.” The Law also established the institutional responsibility for the
management of State Forests, defines forests, and outlines the administrative penalties for non-
compliance.

Compliance with Law

The Russas Project is on private property and thus, this law is not relevant. Nevertheless, the Project
21
Proponents shall contribute to the sustainable use of forest resources and preserve biodiversity.

Title of Law

Law Number 2.308 of October 22, 2010 entitled, “The State System of Incentive for Environmental
Services.”
Summary of Law

The State System of Incentive for Environmental Services (SISA) was “created, with the aim of promoting
the maintenance and expansion of supply of the following ecosystem products and services:

I - sequestration, conservation and maintenance of carbon stock, increase in carbon stock and
decrease in carbon flow;
II - conservation of natural scenic beauty;

III - socio-biodiversity conservation;

IV - conservation of waters and water services;

V - climate regulation;

VI - increase in the value placed on culture and on traditional ecosystem knowledge;

22
VII - soil conservation and improvement.”
Compliance with Law

As a tropical forest ecosystem services project, otherwise known as REDD, the Russas Project shall seek
to conserve the forests’ carbon stock, while also conserving the natural scenic beauty, biodiversity, water
and soil resources, along with working alongside the local communities.

21
The Governor of the State of Acre, “Acre Forestry Law, December, 27, 2001,” Available:
http://webserver.mp.ac.gov.br/?dl_id=800
22
State of Acre, “Unofficial Translation, State of Acre, Bill No. 2.308 of October 22, 2010,” Available:
http://www.gcftaskforce.org/documents/Unofficial%20English%20Translation%20of%20Acre%20State%20Law%20o
n%20Environmental%20Services.pdf

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Labor Laws

The Russas Project shall meet, or exceed, all applicable labor laws and regulations and the Project
Proponents will inform all workers about their rights.

The following is a list of Brazil’s relevant labor laws and regulations:

 The Brazilian Constitution, Chapter II-Social Rights, Articles 7- 11 which addressed:

o Minimum wage

o Normal working hours

o Guidance on vacation and weekly leave

o Guidance on maternity and paternity leave

o Recognition of collective bargaining

23
o Prohibition of discrimination

In addition to the Constitution, there are two additional decrees related to Brazilian labor laws.

 Consolidação das Leis do Trabalho (CLT): DECRETO-LEI N.º 5.452, DE 1º DE MAIO DE 1943
24
(Consolidate of Working Laws). This decree gives more clarification on:
o Hourly, daily, weekly and monthly work hours

o Employment of minors and women

o Establishes a minimum wage

o Worker safety and safe working environments

o Defines penalties for non-compliance by employers

o Establishes a judicial work-related process for addressing all worker related issues
 Estatui normas reguladoras do trabalho rural: LEI Nº 5.889, DE 8 DE JUNHO DE 1973
25
(Establishes Regular Norms for Rural Workers). This is a complimentary law to the
aforementioned 1943 decree because prior to 1973, rural workers did not have the same rights
as urban workers. In 1973, this law was established to specify the equality between urban and
rural workers, along with compensation for overtime.

With respect to the taxation regulations relevant to the Russas Project, Brazil has the following taxation
regulations:

 COFINS (Contribution to Social Security Financing), Lei Complementar Federal 70/1991: This
regulation relates to the social contribution to finance social security.
 CSLL (Social Contribution on Net Corporate Profit), Lei Federal 7689/1988: This regulation is the
social contribution calculated on net profit.

23
Massachusetts Institute of Technology, “Brazilian Constitution,” Available:
http://web.mit.edu/12.000/www/m2006/teams/willr3/const.htm
24
Presidency of the Republic, “DECRETO-LEI N.º 5.452, DE 1º DE MAIO DE 1943, Available:
http://www.planalto.gov.br/ccivil_03/decreto-lei/Del5452.htm
25
Presidency of the Republic. “LEI Nº 5.889, DE 8 DE JUNHO DE 1973,” Available:
http://www.planalto.gov.br/ccivil_03/leis/L5889.htm

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 FGTS (Length of Service Guarantee Fund), Lei Federal 8036/1990: This regulation is a
contribution paid to a fund for each employee hired. When the employee is laid-off, they can take
the money as compensation.
 ICMS (Tax on the Circulation of Merchandise and Interstate and Inter-municipal Transportation
Services and Communications), Lei Complementar Federal 87/1996 and Lei Complementar
Estadual 55/1997: These regulations are a state tax paid when you sell merchandise and thus, is
not relevant to the Russas Project.
 IRPJ (Corporate Income Tax), Lei Federal 9430/2996: This regulation is for tax paid on corporate
income.
 ISS (Tax on Services of Any Nature), Lei Complementar Federal 116/2003: Each city has a
similar law to fulfill the federal law and this regulation is a municipal tax paid on services.
 INSS (Social Security): Lei Federal 8212/1991: This regulation is for contribution paid for the
Federal Retirement Fund.
 PIS (Social Integration Tax), Lei Complementar Federal 07/1970: This regulation is for
contribution paid to the Social Integration Fund.
 ITR (Rural Land Tax), Lei Federal 9393/1996: This regulation is for tax paid on rural
landownership.
 IPTU (Urban Building and Land Tax), Lei Federal 10257/2001: Each city has its complementary
and similar law. This regulation is for a municipal tax paid on urban landownership and thus, not
relevant to the Russas Project.
 IPVA (Tax on Automotive Vehicles), Lei Federal 8441/1992: Each city has its complementary and
26 27
similar law. This regulation is for a municipal tax paid on the ownership of vehicles. ,

Compliance with Law

Agreements between the Project Proponents as well as Agreements between CarbonCo and its
contractors stipulate firms to abide by labor laws (for example, wages above Brazil’s federal minimum
wage) and to assure all employment taxes and insurance are paid.
In addition, CarbonCo has an employee handbook to ensure proper guidelines are followed by its
employees and contractors. I.S.R.C. also has an explanatory letter on labor rights that will be presented
to all of their employees to ensure workers are informed about their rights.

CarbonCo undertakes an annual financial audit by an independent accountant to ensure all taxes,
including employment, social and corporate, are paid. Furthermore, I.S.R.C. has provided “Certificado de
Regularidade do FGTS – CRF” and the “CERTIDÃO NEGATIVA DE DÉBITOS RELATIVOS ÀS
CONTRIBUIÇÕES PREVIDENCIÁRIAS E ÀS DE TERCEIROS” which certify that all taxes (including
employee and business) and insurance (including social) are paid.

26
Personal Correspondence with Mr. Leonardo Silva Cesário Rosa, Federal Prosecutor
27
Secretariat of the Federal Revenue of Brazil, “Taxes,” Available:
http://www.receita.fazenda.gov.br/principal/ingles/SistemaTributarioBR/Taxes.htm

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1.12 Ownership and Other Programs
1.12.1 Right of Use

The Project Proponents have clear, uncontested title to both property rights and the carbon rights.

A copy of the property rights documentation is provided in the project database including the:

 Certidao de Inteiro Teor (or certification of full rights), and

 Georeferenced property delineation.

This documentation satisfies the VCS Standard as rights of use “arising by virtue of a statutory, property
or contractual right.”
Carbon Securities and CarbonCo conducted an initial search for any pending cases, lawsuits, or other
problems associated with the Landowner, their CPF numbers (i.e., Cadastro de Pessoas Físicas which is
equivalent to a social security number in the US), their property, or their company’s CNPJ (Cadastro
Nacional da Pessoa Jurídica, which is equivalent to the EIN or Employer Identification Number in the US).
Federal tax issues and liens associated with the Landowner and the project property, were assessed
using the CPF, CNPJ and Imóvel Rural (NIRF) using the Secretariat of the Federal Reserve of Brazil
28
website.
Finally, Carbon Securities and CarbonCo visited the IBAMA, or Instituto Brasileiro do Meio Ambiente e
29
dos Recursos Naturais Renováveis, website to ensure IBAMA has not blocked landownership titles due
to noncompliance with environmental laws and regulation associated with a particular property. State and
30
municipality level documentation further demonstrated authentic land ownership. These local authorities
in Acre are able to provide up to a 100-year history of landownership for the properties.
With respect to private ownership of carbon rights in Brazil, a Presidential Decree on July 7, 1999 by the
Brazilian Government established the Inter-ministerial Commission on Global Climate Change as the
Designated National Authority for approval of projects under the UNFCCC Kyoto Protocol’s Clean
31
Development Mechanism (CDM).

José D.G. Miguez, Executive Secretary of the Brazilian Interministerial Commission on Global Climate
Change, presented on March 18, 2003 at the Organisation for Economic Co-operation and Development
(OECD) Global Forum on Sustainable Development: Emissions Trading Concerted Action on Tradeable
Emissions Permits (CATEP) Country Forum. Within in presentation, Mr. Miguez specifically indicated the
32
private sectors ability “to design, develop and implement CDM project activities” in Brazil. This said,
there are currently numerous private sectors CDM and voluntary carbon market projects in Brazil
including projects within the Agricultural, Forestry and Other Land-use (AFOLU) sector.

28
http://www.receita.fazenda.gov.br/grupo2/certidoes.htm
29
IBAMA, “Certidão Negativa de Débito,” Available: http://www.ibama.gov.br/sicafiext/sistema.php
30
Ministry of Justice of Brazil, “Cadastro de Cartório do Brasil,” Available:
http://portal.mj.gov.br/CartorioInterConsulta/consulta.do?action=prepararConsulta&uf=AC
31
Ministry of Science, Technology and Innovation, “Designated National Authority (Interministerial Commission on
Global Climate Change),” Available: http://www.mct.gov.br/index.php/content/view/14666.html
32
José D.G. Miguez, “CDM in Brazil,” Available: www.oecd.org/dataoecd/9/6/2790262.pdf

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The Tri-Party Agreement documents the transfer of some portion of these carbon rights from Ilderlei
Souza Rodrigues Cordeiro to CarbonCo and Carbon Securities.

1.12.2 Emissions Trading Programs and Other Binding Limits

No emission reductions generated by the project are part of an emissions trading program. Further, Brazil
does not currently have a national, legally binding limit on greenhouse gas (GHG) emissions nor is there
currently a compliance emissions trading program which accepts REDD credits.
1.12.3 Participation under Other GHG Programs
The Russas Project has not been registered, nor is seeking registration, under any other GHG programs.
The Russas Project is seeking registration under the Climate, Community and Biodiversity Alliance
33
Standard.

1.12.4 Other Forms of Environmental Credit

The project has not nor intends to create non-VCS GHG emission reductions or any another form of
environmental credit. This includes, but is not limited to, biodiversity credits, species banking, water
34
certificates, and nutrient certificates.

1.12.5 Projects Rejected by Other GHG Programs

The project has neither submitted to nor been rejected from any other greenhouse gas program.

1.13 Additional Information Relevant to the Project

Eligibility Criteria

The Russas Project is not a grouped project and therefore this section of the project document (PD) is not
applicable.
Leakage Management

Project level leakage mitigation activities are largely directed toward helping small scale farmers in the
surrounding communities reduce the need to clear lands in the leakage belt. Leakage management
activities are largely the same as the project activities, as the target audience, local communities are the
same. Leakage management activities include:
 The Russas Project is working in unison with the Valparaiso Project, which is the largest adjacent
landowner to the Russas Project;

 Community outreach and education;

 Potential employment as project forest guard or other project staff (replacing other sources of
income associated with deforestation and land use);
 Agricultural extension training will help baseline agents to increase productivity on current lands,
(thus reducing the pressure to expand their farms in the adjacent forest); and

33
The CCB project document is available at http://climate-standards.org/projects/
34
Forest Trends, “Our Initiatives,” http://www.forest-trends.org/#

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 Monitoring illegal deforestation and degradation and reporting incidences to the proper
authorities.

Leakage management activities (and project activities) directed at local agents of deforestation are more
fully described in Section 1.8.

Leakage management activities directed at immigrant actors occur as part of state-wide initiatives to
reduce deforestation and environmental degradation in Acre. The Russas Project proponents have met
and interacted with State officials multiple times who are responsible for implementing these programs, as
noted in Section 6.0, and intend to maintain close coordination with the State of Acre throughout project
implementation.
Specifically, regarding state-wide actions, recent legislation passed by the State of Acre in October 2010
(Bill No 2.308, October 22 2010, established the State System of Incentive for Environmental Services or
SISA. The SISA legislation helps further develop an Acre state run payment for environmental services
(PES) scheme. Acre began its PES program in 1999 with subsidies to rubber tappers. The program in its
current, more sweeping form was developed through an extensive public consultation process, receiving
local and international input that concluded in April 2010. The law establishing the current PES program
(SISA) was passed in October 2010.

The SISA program is composed of multiple programs covering a range of environmental services. Among
these is the carbon program (Program ISA-Carbono) with multiple sub-programs for implementation (e.g.,
agriculture intensification) directed toward different populations/land ownerships in the state. It should be
noted that the Program ISA-Carbono is not just REDD-focused, but rather includes all forest carbon (e.g.,
including reforestation).

The SISA program will be managed in part by the newly-created Regulation, Control and Registration
Institute (RCRI), and will eventually be housed at “The Technology Foundation of Acre” (FUNTAC).
35
According to Article 1 of the bill , it was created “with the aim of promoting the maintenance and
expansion of supply of the following ecosystem products and services:
I - sequestration, conservation and maintenance of carbon stock, increase in carbon stock and
decrease in carbon flow;

II - conservation of natural scenic beauty;

III - socio-biodiversity conservation;

IV - conservation of waters and water services;

V - climate regulation;

VI - increase in the value placed on culture and on traditional ecosystem knowledge;

VII - soil conservation and improvement.

The Program ISA-Carbono was established to help create and implement economic and financial
instruments to achieve emission reduction targets, improve infrastructure and instruments for

35
State of Acre, Brazil. 2010. Bill No. 2.308: To create the State System of Incentives for Environmental Services
(SISA). Unofficial translation.

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measurement, quantification and verification, and to assist with registration and transparency. The PES
36
scheme anticipates the provision of the following services to help achieve the above goals:

 Technical Assistance and Rural Extension (ATER) for all segments of rural population;

 Mobilization, communication and strengthening of community organizations; and

 Strengthening of Municipal Plans for Prevention and Control of Deforestation and Fires.

Commercially Sensitive Information

There is no commercially sensitive information in this project description document, itself. Supporting
documents which include commercially sensitive information that will not be made publicly available
include: the Tri-Party Agreements (along with the Addendum); Contracts with Buyers and Service
Providers; and documents related to project financials used in the risk assessment, including bank
statements and the pro-forma.

Further Information

None.

36
Acre Government. 2009. Payments for Environmental Services- Carbon Policy. Rio Branco, Acre, Brazil.

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2 APPLICATION OF METHODOLOGY

2.1 Title and Reference of Methodology

The Russas Project is utilizing the Avoided Deforestation Partners’ VCS REDD Methodology, entitled,
“VM0007: REDD Methodology Modules (REDD-MF).” The only eligible activity as part of this project is
avoiding unplanned deforestation, hence only modules related to unplanned deforestation are required.
This project is eligible as an avoiding unplanned deforestation project because the forest land is expected
to be converted to non-forest land in the baseline case and the land is not legally authorized and
documented to be converted to non-forest or a managed tree plantation. The specific modules applied to
the Russas Project are listed below.
REDD-MF, REDD Methodology Framework Version 1.4

Carbon Pool Modules:

CP-AB, “VMD0001 Estimation of carbon stocks in the above- and belowground biomass in live tree and
non-tree pools,” Version 1.0
CP-D, “VMD0002 Estimation of carbon stocks in the dead-wood pool,” Version 1.0

Baseline Modules:

BL-UP, “VMD0007 Estimation of baseline carbon stock changes and greenhouse gas emissions from
unplanned deforestation,” Version 3.2

Leakage Modules:

LK-ASU, “VMD0010 Estimation of emissions from activity shifting for avoided unplanned deforestation,”
Version 1.0

Monitoring Module:

M-MON, “VMD0015 Methods for monitoring of greenhouse gas emissions and removals,” Version 2.1,

Miscellaneous Modules:
X –STR, “VMD0016 Methods for stratification of the project area,” Version 1.0

X-UNC, “VMD0017 Estimation of uncertainty for REDD project activities,” Version 2.0

Tools:

T-SIG, CDM tool “Tool for testing significance of GHG emissions in A/R CDM project activities,” Version
1.0
T-ADD, “VT0001 Tool for the Demonstration and Assessment of Additionality in VCS Agriculture, Forestry
and Other Land Use (AFOLU) Project Activities,” Version 3.0
T-BAR, “Tool for AFOLU non-permanence risk analysis and buffer determination,” Version 3.2

Use of modules, REDD-MF, M-MON, T-ADD, T-BAR, X-UNC, and X–STR, is always mandatory when
using the VM0007 methodology. Further use of modules, BL-UP and LK-ASU, is mandatory in the case of

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projects focusing on unplanned deforestation. Use of the module T-SIG determines whether GHG
emissions by sources and/or decreases in carbon pools are insignificant. Finally, CP-AB is mandatory in
all cases and while CP-D is optional, as the dead wood pool is greater in the project scenario than the
baseline scenario, it has been included.

2.2 Applicability of Methodology

The above modules are applicable because they meet the applicability conditions of the modules as set
out below.

REDD-MF, REDD Methodology Framework

Table 2.1. Applicability Conditions and Justifications for the REDD Methodology Framework Module.
Applicability Condition Justification
Land in the project area has qualified as forest at The project area complies with this condition as
least 10 years before the project start date. mentioned in Section 1.9, with complete forest
cover demonstrated for the years 2001 and 2011.

The project area can include forested wetlands As demonstrated in Figure 1.10, no organic soils (or
(such as bottomland forests, floodplain forests, peatlands) exist within the project area. Further, soil
mangrove forests) as long as they do not grow on carbon has been conservatively excluded as stated
peat. Peat shall be defined as organic soils with at in section 2.3; hence the project is not subject to
least 65% organic matter and a minimum thickness VCS WRC requirements.
3
of 50 cm . If the project area includes a forested
wetlands growing on peat (e.g. peat swamp
forests), this methodology is not applicable.

Project proponents must be able to show control As demonstrated in Section 1.12, the project
over the project area and ownership of carbon proponents have the control of the project area and
rights for the project area at the time of verification. the ownership of the carbon credits.
Baseline deforestation and baseline forest Baseline deforestation in the project area falls
degradation in the project area fall within one or within the unplanned deforestation category, as the
more of the following categories: agents of deforestation are small scale farmers who
Unplanned deforestation (VCS category AUDD); do not have permission to convert forest in the
Planned deforestation (VCS category APD); project area to pasture and cropland.
Degradation through extraction of wood for fuel
(fuelwood and charcoal production) (VCS category
AUDD).
Baselines shall be renewed every 10 years from the The baseline will be renewed in March 2021.
project start date.
All land areas registered under the CDM or under The Russas Project is not registered in any carbon
any other carbon trading scheme (both voluntary trading scheme or program.
and compliance-orientated) must be transparently
reported and excluded from the project area. The
exclusion of land in the project area from any other
carbon trading scheme shall be monitored over time
and reported in the monitoring reports.

If land is not being converted to an alternative use Forest clearing in the baseline is followed by
but will be allowed to naturally regrow (i.e. establishment of cropland or pasture, both of which
temporarily unstocked), this framework shall not be prevent forest regrowth.
used.

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Leakage avoidance activities shall not include: Leakage avoidance activities do not include
Agricultural lands that are flooded to increase flooding agricultural land or creating feed-lots or
production (e.g. paddy rice); manure lagoons.
Intensifying livestock production through use of
“feed-lots” and/or manure lagoons.

BL-UP, “VMD0007 Estimation of Baseline Carbon Stock Changes and Greenhouse Gas Emissions
from Unplanned Deforestation”
Table 2.2. Applicability Conditions and Justifications for the VMD0007 Module.
Applicability Condition Justification
Baseline agents of deforestation shall: (i) clear the The baseline agents of deforestation clear the land
land for settlements, crop production (agriculturalist) for settlements, ranching and cropland. These small
or ranching, where such clearing for crop scale farmers have no legal right to use or deforest
production or ranching does not amount to large the land. These agents of deforestation are from
scale industrial agriculture activities; (ii) have no nearby communities and in some cases immigrant
documented and uncontested legal right to deforest actors looking for land to convert for agricultural
the land for these purposes; and (iii) are either uses.
resident in the reference region or immigrants.
Under any other condition this framework shall not
be used.
Where, pre-project, unsustainable fuelwood While there is limited fuelwood collection from
collection is occurring within the project boundaries within the project area, fuelwood collection that
modules BL-DFW and LK-DFW shall be used to does occur is sustainable. Forested areas where
determine potential leakage. fuelwood collection does occurs remains as forest
as the amount of fuel wood collected
(approximately 1.7 tonnes d.m. ha-1 yr-1) is less
than the growth in aboveground biomass in the
same area (3.1 tonnes d.m. ha-1 yr-1; see Table
4.9 in IPCC 2006). Further, Igor Agapejev de
Andrade, a local forester familiar with the property
states “The community uses fuelwood originating
from dead wood, usually in areas cleared for
agriculture (roçados). Rarely are live trees cut down
for fuelwood” (pers comm). Details of this analysis
can be found in the project database.

While a formal management plan does not exist for

forested areas in the project area, current and
expected future harvest levels of fuelwood do not
result in conversion of forest to a non-forest
condition and can be characterized as sustainable
in “that carbon stocks [are not expected to]
systematically decrease over time on these lands.”

Further, Mr. Agapejev de Andrade states: "There

are no national or regional forestry or nature
conservation regulations in relation to fuel wood
collection for domestic use."

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M-MON, “VMD0015 Methods for Monitoring of Greenhouse Gas Emissions and Removals”

Table 2.3. Applicability Conditions and Justifications for the VMD0015 Module.
Applicability Condition Justification
Emissions from logging may be omitted if it can be Logging emissions have been omitted as no
demonstrated the emissions are de minimis using commercial timber harvest occurs in the baseline or
T-SIG. with project case.
If emissions from logging are not omitted as de Not applicable
minimis, logging may only take place within forest
management areas that possess and maintain a
Forest Stewardship Council (FSC) certificate for the
years when the selective logging occurs.
Logging operations may only conduct selective Not applicable
logging that maintains a land cover that meets the
definition of forest within the project boundary.
All trees cut for timber extraction during logging Not applicable
operations must have a DBH greater than 30 cm.
During logging operations, only the bole/log of the Not applicable
felled tree may be removed. The top/crown of the
tree must remain within the forested area.
The logging practices cannot include the piling Not applicable
and/or burning of logging slash
Volume of timber harvested must be measured and Not applicable
monitored.

2.3 Project Boundary

2.3.1 Sources of GHG Emissions Associated with the Baseline, Project and Leakage
GHG emission sources included in the project boundary are listed in Table 2.4. Justifications are provided
when excluded from the project boundaries.
Table 2.4. GHG Emission Sources Included in the Project Boundary.

Source Gas Included Justification/ Explanation

CO2 emissions are already

CO2 No considered in carbon stock
changes.
Biomass
burning CH4 Yes While CH4 and N2O emissions are
conservatively excluded in the
baseline, they are included in the
N2O Yes
with project case where fires occur

Emissions from fossil fuel

combustion in the baseline and
project case are minimal. As per
Fossil Fuel
CO2 No methodology module E-FCC
Combustion
“Fossil fuel combustion in all
situations is an optional emission
source.”

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CH4 No Emissions are small and
N2O No negligible.

CO2 No Excluded. No increase in fertilizer

use is contemplated in the project
CH4 No case as part of leakage mitigation
or any other activity.
Use of
fertilizers Excluded. No increase in fertilizer
use is contemplated in the project
N2O No
case as part of leakage mitigation
or any other activity.

2.3.2 Carbon Stock Associated with the Baseline, Project and Leakage

This project will include the following carbon pools (see Table 2.5).

Table 2.5. Carbon Pools Included in the Project Boundary.

Included /
Carbon pools Justification / Explanation of Choice
Excluded
Mandatory to include. Tree biomass only is included, which is the
most significant pool. Non-tree woody biomass (e.g. shrubs) is
Aboveground Included
less in the baseline (pasture and cropland) than the project case
(forest) and is conservatively excluded.
Included and treated together with aboveground biomass for
Belowground Included completeness to include whole tree (aboveground and
belowground) biomass.
This pool was included as it can represent a significant
Dead Wood Included
component of forest biomass.
37
Excluded as no commercial harvesting for wood products takes
Harvested Wood
Excluded place in the baseline (as part of the forest conversion process) or
Products
with project scenarios.
Litter Excluded Conservatively omitted, as allowed by methodology.
Soil Organic
Excluded Conservatively omitted, as allowed by methodology.
Carbon
1. As noted in the table above, this project will consider three pools of carbon and the applicable modules
include: CP-AB “VMD0001 Estimation of carbon stocks in the above- and belowground biomass in live tree
and non-tree pools” and CP-D, “VMD0002 Estimation of carbon stocks in the dead-wood pool”.

2.4 Baseline Scenario

The VCS “Tool for the Demonstration and Assessment of Additionality in VCS Agriculture, Forestry and
Other Land Use (AFOLU) Project Activities” is applied to identify the baseline scenario of the project.
As the outcome of sub-step 1a of the tool, the following alternative land use scenarios were identified.

1. Continuation of pre-project land use with unabated threat of illegal deforestation.

37
The results of the community surveys indicated 0 of 16 communities responded yes to the question, “Do you sell
timber?”

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2. Project activity on the land within the project boundary performed without being registered as a
VCS AFOLU project.

As the outcome of Sub-step 1b, all land use scenarios identified above are in compliance with applicable
legal and regulatory requirements, except #1, which represents illegal deforestation not undertaken by the
landowners or project proponents. These scenarios are discussed and justified below.

2.4.1 Continuation of the Pre-Project Land Use with Unabated Threat of Illegal Deforestation
While the pre-project land use for the project area was moist tropical forest, this land use is unlikely to
continue in the future given land use change patterns and deforestation pressures in the area.
Considering the deforestation on other parts of the Russas property (i.e., those areas outside the project
area) and in the region in general, portions of the project area are increasingly likely to be deforested and
converted to pasture and cropland by small scale farmers.

There are 20 small scale and subsistence farming communities living on the project property. These
farming communities are the agents of deforestation. These communities clear a portion of forest for land
to engage in small scale farming and ranching for their livelihoods. Forest is generally cleared over a
period of months. The process most often starts in May/June at the beginning of the dry season with the
cutting of small trees and vines by machete. Next, the farmer uses their own chainsaw or hires someone
with a chainsaw to cut the larger trees down. The farmer then waits for the dead vegetation to dry for a
period of time ranging from two weeks to several months. A portion of the farmers, then use fire to clear
the land. Finally crops are planted or the land is converted to pasture. In cases where fire is not used, the
land is planted or grazed without full clearing. In addition to clearing land, the agents of deforestation also
rely on the forest surrounding their homesteads for fuelwood to make charcoal, for hunting and gathering,
and on occasion for timber.

As the agent of deforestation is small scale farmers, rather than the landowners themselves, this
deforestation is unplanned. This deforestation is technically illegal as these agents of deforestation do not
have the permission to convert forest land to pasture or cropland; however, this deforestation is rarely
prosecuted by authorities. The most likely baseline scenario is continued conversion of moist tropical
forest to pasture and cropland by small scale farmers.
Noncompliance with private properties laws is widespread and laws are systematically not enforced in
Acre State. Numerous inquiries have been made to relevant state and local authorities to obtain data on
levels of enforcement (or e.g., percentage of illegal land invasions resolved) of private property laws. To
our knowledge no institutions currently track these cases in a systematic fashion. The State of Acre in
general has insufficient levels of government enforcement of property rights sufficient to prevent or
38
remove illegal land invasions and stop deforestation in accessible areas. This is supported by a letter
dated 11 October 2012 from, the President of the Acre Lawyers Association, Dr. Florindo Poersch where
he states:

In my professional opinion, illegal deforestation in the State of Acre…[is] rarely controlled and/or
prevented by institutions of environmental control, due to lack of technical personnel and staff of
the State Acre to perform this control…

38
A copy of this letter is contained in the project database.

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Furthermore, the right to property in rural areas, in the case of invasion is difficult to apply in the
State of Acre, due to lack of the judiciary’s structure to escalate these demands quickly, and
promptly remove invaders.

The likelihood of this scenario is further substantiated on the basis of analysis of historic deforestation
and drivers, elaborated below.

2.4.2 Project Activity on the Land within the Project Boundary Performed without being Registered
as the VCS AFOLU Project
The landowner maintains the property as primary tropical rainforest.

Effective forest conservation in the project area would be unlikely under any non carbon market-related
scenario. The landowner does not have sufficient finances to protect the area and incentivize
communities to participate in forest conservation, which is reflected by the 220 ha of deforestation that
has occurred on the property prior to the project start since the landowner had acquired the property, and
the increasing pressures as described above. Further there is no legal requirements to undertake
activities similar to the project activity. Likewise, there are no observed similar activities in the
geographical region on private lands.

2.5 Additionality
The VCS “Tool for the Demonstration and Assessment of Additionality in VCS Agriculture, Forestry and
Other Land Use (AFOLU) Project Activities” is applied to demonstrate additionality for the Russas Project.

2.5.1 Simple Cost Analysis

As the project activity generates no financial or economic benefits to the project proponents other than
VCS related income through the project activity, a simple cost analysis is justified.
The project activity produces no revenue, as the project area will be managed for conservation purposes,
rather than for commercial timber production, livestock, or crop production. Costs associated with
implementing project activities, project development, and VCS project validation are significant.
Additionally, while the project will incur ongoing costs (related to management and implementation of
project activities including forest patrols, social programs, and payments for environmental services), it
will not generate future financial benefits other than VCU related income. The project proponents thus
generate no financial benefits, and therefore the outcome of a simple cost comparison shows significant
project expenditure with no financial return in the absence of VCS-related income, thus making this
REDD project impractical in the absence of carbon finance.

2.5.2 Common Practice

Conservation of privately owned forest land in Acre state is generally limited to designated areas of
permanent protection (APP). One requirement of the Brazilian Forest Code is for landowners to maintain
80% of privately owned property as an APP. Regardless of this designation or the property owner’s
intentions to comply with the law, the APP areas continue to be subject to pressure from illegal
deforestation.

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It is possible to implement certain social and environmental programs without carbon financing, such as
government assistance with agricultural extension. However, these measures on their own are not
sufficient to incentivize small scale farmers in the area or new settlers to stop deforestation in and around
the project area. It is only through the implementation of significant social and environmental programs,
as well as implementation of forest protection measures, such as those documented in Section 1.8, that
illegal deforestation can be reduced or prevented in the project area.

Publicly-funded forest conservation efforts on government lands exist. Other forest conservation efforts
within Acre state include a series of national, state, and local conservation areas, and indigenous
reserves (see Figure 2.1, below). However, to our knowledge, there are no privately funded projects on
private lands with the aim of stopping unplanned deforestation in Acre state without the aid of carbon
finance.

While the conservation areas and indigenous reserves have had some successes at maintaining forest
cover, the essential distinction between these lands and the project area is that the project area is
privately owned and does not have access to government resources to deter unplanned deforestation
pressures on its land.

Figure 2.1. Forest Conservation Areas in the Vicinity of the Project Area.

2.5.3 Results of the Additionality Analysis

As demonstrated above, the project activity, without revenue from carbon credits, is unlikely to occur and
is not a common practice in the region. The project is therefore additional.

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2.6 Methodology Deviations
The following deviations to the methodology are applied.

Trees in the Cecropia genus will not be included as part of the forest inventory. This has been proposed
as a deviation as it stands in conflict with the CP-AB requirement that "all the trees above some minimum
DBH in the sample plots" be measured.
While sampling lying dead wood using the line intersect method:

 Two 92-meter transect lines were used rather than two 50-meter transect lines;

 The sampling lines did not bisect each sample plot, but rather ran from one plot center to the
next; and
 The sampling lines were oriented to the north and east, and no randomization in the bearing of
the first line was employed.

Rather than using a root to shoot ratio to estimate belowground biomass as per the CP-AB module,
39
belowground biomass was estimated using an allometric equation developed by Cairns et al.

The forest inventory has deviated from the criteria for selection (i.e., the equation is based on a datasets
comprising at least 30 trees, with an r2 that is ≥ 0.8) and validation of the allometric equation related to
palm biomass, however the equation used is likely to result in a conservative estimate of palm biomass
for the following reasons:
-Volume is calculated as the volume a parabaloid rather than the volume of a cylinder;

-Only stem biomass is estimated, thus conservatively excluding other aboveground biomass; and

- A conservative measure of basal diameter (i.e., dbh) was used.

Dead wood collected for density determination was opportunistically sampled from within the project area.
The forest inventory collected a total of 13, 17, 13 samples for the sound, intermediate, and rotten
classes, respectively. While the minimum number of samples, twenty, as stated in the CP-D module of
the methodology was not collected for each class, the sample was still sufficient for a robust estimate of
the mean as indicated by the low coefficient of variations for each of the classes (i.e., less than 20% for
each class).

The similarities of the project boundaries were assessed using population density rather than settlement
density. This methodological deviation is warranted due to obvious inconsistencies in the available data
on the location of settlements within the state. Use of population density data still meets the intent of the
methodology as both population and settlement density reflect the relative density of resident populations
(and level of pressures associated with those population).
The parameter TOTFOR has not been "limited to forest areas within 5km of roads and rivers suitable for
conversion to agriculture / livestock" as mentioned in the methodology. As the resulting TOTFOR value is
greater, the AVFOR value is also greater. The PROPLB parameter is therefore smaller thus resulting in
more leakage outside the leakage belt and hence a conservative estimate. This deviation results in
conservative accounting of leakage outside the leakage belt.

39
Cairns, M. A., S. Brown, E. H. Helmer, and G. A. Baumgardner. 1997. Root biomass allocation in the world’s
upland forests. Oecologia 111, 1-11.

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The parameter COLB has not been “limited to areas demonstrated to be suitable for agriculture or
livestock ranching” as mentioned in the methodology. COLB has conservatively been set to the largest
forest aboveground tree carbon stock rather than the area-weighted average aboveground tree carbon
stock. This deviation results in conservative accounting of leakage outside the leakage belt.

The AVFOR parameter used in leakage estimation will be stratified using information and data derived
from official (government) publications, peer-reviewed published sources, or other verifiable sources.
Stratification is not limited to the delineation of different strata where contiguous areas of at least 100 ha
differ in stocks by ≥20%.

Parameter UP,SS,i,pool# will be monitored at least once every 10 years, on re-measurement of forest carbon
stocks. While module X-UNC requires that monitoring of this parameter occur every < 5 years, this
requirement is inconsistent with the VM0007 pools modules, which specify that stock estimates (from
which uncertainty is calculated) are assumed valid for 10 years. Therefore, a deviation to module X-UNC
is applied to permit parameter UP,SS,i,pool# to be monitored every < 10 years, putting it into alignment with
modules CP-AB and CP-D.

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3 QUANTIFICATION OF GHG EMISSION REDUCTIONS AND

REMOVALS
3.1 BASELINE EMISSIONS
Development of the project baseline emissions from unplanned deforestation, both rate and location, was
conducted in conformance with the VCS modular REDD methodology VM0007, specifically the BL-UP
module using the simple historic approach. The project meets the applicability conditions of this module
as set out in Section 2.2.

3.1.1 Definition of Boundaries

Project boundaries for the development of the baseline include spatial and temporal boundaries from
which information on the historical rate of deforestation is extracted and projected into the future. The rate
of deforestation is derived from the reference region for rate, while the reference region for location is
used in the spatial modeling component of the baseline. Finally, the leakage belt is the area surrounding
the project area, where activity shifting leakage (i.e., deforestation which was displaced from the project
area due to implementation of the project activities) is most likely to occur.
3.1.1.1 Spatial Boundaries

Reference Region for Projecting Deforestation Rate

40
The reference region for rate of deforestation (RRD) has a total area of 5,296,930 hectares and is
delineated as shown in Figure 3.1. It excludes the project area and leakage belt, and all nonforested
areas at the start of the historical reference period in the year 1999. Further, the reference region has
been defined with knowledge of the drivers of unplanned deforestation in the region.

The main agents of deforestation in the RRD are small scale farmers who intend on establishing or
expanding pasture and croplands through conversion of forest. The proportion of agriculturalist to
ranchers is the same in the RRD (and state as a whole) as is expected in the project area in the baseline
41
case (i.e., 81% of the deforested areas in the state are pasture and 6% are cropland, State of Acre ) as
landscape factors (i.e., soil type, vegetation type, and slope) do not drive agricultural decisions for small
scale farmers (see Table 3.4). Where elevation is important, it drives the decision to deforest rather than
whether the land will be converted to cropland or pasture.

Community surveys have been implemented in and around the project area and leakage belt to
demonstrate the main agents of deforestation lack the legal rights to use the land, and to estimate the
proportion of residents versus immigrants.

Maps of the landscape factors, including forest type, soil type, slope, and elevation, that were used to
help define the reference region can be found in the project database, ensuring similarity to the project
area. Incorporation of these landscape factors had little effect on delineating the RRD as almost all land in
the state is suitable for conversion to pasture and agriculture. Further, as the agents of deforestation are

40
The area of the RRD is larger than the minimum required (MREF). The MREF was calculated to be 182,794 ha.
41
ACRE. Governo do Estado do Acre. Secretaria de Estado de Planejamento e Desenvolvimento Econômico-
Sustentável, Secretaria de Estado de Meio Ambiente e Recursos Naturais. Programa Estadual de Zoneamento
Ecológico-Econômico do Acre. Zoneamento Ecológico-Econômico do Acre Fase II. Documento Síntese, 2006.

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limited in their mobility, only areas within 65 kilometers of primary roads, which is similar to the project
area, were included in the RRD.

Land tenure was also used to help delineate the RRD. Specifically, municipal, state, and federal forest
conservation areas and indigenous reserves were excluded from the RRD as these differ from the
privately-owned project area. Comparison of the area covered by landscape factors, transportation
networks and human infrastructure are detailed in the Table 3.1 below.

Table 3.1. Criteria for defining the boundary of the RRD and leakage belt.
Factors Assessed Category RRD Project Area Leakage Belt
Vegetation (%)
Open Forest 81.2% 99.6% 97.7%
Dense Forest 7.2% 0.0% 0.0%
Other 11.5% 0.4% 2.3%
Elevation (%)
0-500m 100.0% 100.0% 100.0%
Slope (%)
Gentle (<15%) 99.7% 100.0% 100.0%
Steep (>15%) 0.3% 0.0% 0.0%
Soil (%)
ARGISSOLO 35.3% 23.7% 69.5%
CAMBISSOLO 29.8% 0.0% 0.0%
ESPELHO D'Agua 0.2% 1.7% 0.1%
GLEISSOLO 6.1% 52.7% 29.8%
LATOSSOLO 5.1% 0.0% 0.0%
LUVISSOLO 14.2% 0.0% 0.0%
NEOSSOLO 2.0% 10.7% 0.6%
PLINTOSSOLO 5.0% 11.2% 0.0%
VERTISSOLO 2.3% 0.0% 0.0%
2
Rivers (m/km )
118 139 152
2
Roads (m/km )
35.9 35.7 31.7
Settlements/Populatio
n (Number of
2
persons/km )
5.90 5.45 5.44

A local forester, Igor Agapejev de Andrade, familiar with the forestry and land use in the region states
“There is no planned deforestation or local/state government incentivized deforestation initiatives in the
State of Acre. Land conversion incentives have been dead since the mid 1990’s. Rather, current Acre
State Policy is to encourage and aid in decreasing current deforestation. Large government projects
which result in deforestation are against Acre State’s environmental plans” (pers comm).

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Reference Region for Projecting Location of Deforestation

The reference region for projecting location of deforestation (RRL) is delineated as shown in Figure 3.1.
The entire RRL is located within Acre state and has an area of 4,552,510 hectares. In agreement with the
methodology, it is a single parcel, contiguous with and including the project area and the leakage belt.
Further, it is 8.1% non-forest and 91.9% forest and thus in compliance with the methodological
requirements of a minimum of 5% non-forest and a minimum of 50% forest. The forest area of the RRL
totals 4,184,021 ha which is within the ±25% of the size of the RRD. As the primary driver of deforestation
is subsistence and small scale farming, access to and availability of land are the most important factors
when determining if land is suitable for settling and conversion. Neither soil suitability, precipitation,
elevation, or access to markets play a significant role in the deforestation agent’s decision on where to
settle and convert land. No protected forests have been removed from the RRL, as the protected status of
42
conservation areas is not enforced .
Figure 3.1. Reference Region for Rate (RRD) and Reference Region for Location (RRL).

42
The lack of protected status of conservation areas is evident by the amount of deforestation observed
within the boundaries of the conservation areas.

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Project Area

The project area (see Figure 3.2, below) consists of one parcel along the southern bank of the Valparaiso
River (see Section 1.9) which is under threat of deforestation. The project proponents are undertaking
project activities, outlined in Section 1.8, in and around the project area to mitigate deforestation
pressures and stop deforestation. The total project area is 41,976 hectares and was 100% forested at the
start of the project. The Russas property boundaries were delineated and georeferenced using a GPS as
part of the registration and titling of the property.

Leakage Belt
The leakage belt (see Figure 3.2, below) is the area surrounding or in the immediate vicinity of the project
area where leakage caused by activity displacement is expected to occur. It meets the following
requirements as outlined in the methodology:

 It is the forest area closest to the project area and meets the minimum area requirement (i.e.,
≥90% of project area). The leakage belt covers 37,896 hectares which is 90.3% of the project
area.

 All parts of the leakage belt are accessible and reachable by agents of deforestation.
 The leakage belt is not spatially biased in terms of distance of edge of belt from edge of project
area; however the belt is only to the south of the project area as the area to the north is another
VCS REDD project, the Valparaiso Project, and the leakage belt of that project.

 The leakage belt is 100% forest at the start of the project.

Further, municipal, state, and federal forest conservation areas and indigenous reserves were excluded
from the leakage belt as administrative polices and regulation in these areas differ from privately-owned
areas. Parts of the Russas leakage belt boundaries were delineated and georeferenced using a GPS as
part of the registration and titling of the property, as the leakage belt shares a border with the project
area.

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Figure 3.2. Russas Project Area and Leakage Belt Demonstrating Exclusion of Historically Deforested
Areas.

3.1.1.2 Temporal Boundaries

The temporal boundaries of the Russas Project are listed below.

 January 1, 1999 to December 31, 2010 - Start date and end date of the historical reference
period.
 March 17, 2011 to March 16, 2021 - Start date and end date of the first project baseline period.

 March 17, 2021 - Date at which the project baseline will be revisited. The baseline must be
renewed every 10 years from the project start date.

3.1.2. Estimation of Annual Areas of Unplanned Deforestation

The rate of deforestation was derived from an analysis of deforestation occurring within the RRD during
the historical reference period, 1999-2010.
3.1.2.1 Analysis of Historical Deforestation

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UCEGEO, the Central Unit of GIS and Remote Sensing within the Climate Change Institute (IMC) in Acre,
produces an annual dataset on the extent and spatial location of all deforestation within the state using
Landsat images. This dataset extends back to 1988 with 2012 as the most recent year for which data has
been released. While the pixel resolution of 30m x 30m is maintained in the Landsat based dataset, the
smallest mapping unit for deforestation is 1 hectare which is in agreement with the Brazilian definition of a
43
forest as set by the Clean Development Mechanism Designated National Authority.

A deforestation map layer at the level of the state is produced annually by UCEGEO. Deforestation maps
are cumulative with new annual deforestation data added each year. Therefore the 2011 forest/nonforest
map was produced by performing a union of the outline of the state and all mapped deforestation area up
to and including deforestation occurring in the year 2011. New deforestation included in the annual
statewide deforestation map produced by UCEGEO include new deforestation detected within the
calendar year (i.e., Landsat scenes are mosaicked from various months within a calendar year to produce
a single image with minimal cloud cover).

An accuracy assessment of the 2011 forest/nonforest map was performed using 100 randomly distributed
ground truth points per class for a total of 200 ground truthing points derived from high-resolution imagery
in Google Earth (e.g. Quickbird). The Quickbird satellite collects multispectral imagery at 2.4 and 2.8
meter resolutions, thus meets the requirements of the methodology of < 5m resolution for ground truthing
imagery. All ground truthing sample points used to assess classification accuracy have been documented
in a kml file and archived. Samples used to assess classification accuracy are distributed throughout the
classification area (as far as is possible considering availability of high resolution imagery and/or logistics
of acquiring ground truth data). All verification samples gathered from high-resolution imagery were from
within 12 months of the classification year. Points were then compared to the forest/non-forest
classification for 2011. The accuracy of the 2011 forest/non-forest map was 99% for both the forest and
44
non-forest class . This meets the minimum map accuracy of 90% for each class as set forth in the
methodology.

3.1.2.2 Estimation of the Annual Areas of Unplanned Baseline Deforestation in the RRD

Annual estimates of deforestation within the RRD were derived by calculating the amount of all
deforestation within the boundary of the RRD from the GIS layer of deforestation from 1999-2010 (which
already has all the deforestation prior to 1999 removed, see Figure 3.1). The result was the amount of
deforestation within the RRD in the historical reference period. This was then summarized by year
yielding the results found in Table 3.2.

Table 3.2. Annual Amount of Deforestation in the RRD.

Year Area of deforestation
in RRD (ha)
1999 74,650

43
The Clean Development Mechanism Designated National Authority in Brazil has set the forest definition as:
1. Minimum tree crown cover of 30 per cent;
2. Minimum land area of 1 hectare; and
3. Potential to reach a minimum tree height of 5 meters at maturity
See http://cdm.unfccc.int/DNA/ARDNA.html?CID=30, accessed March 5, 2012.
44
More detailed results of the accuracy assessment can be found in the project database.

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2000 43,512
2001 52,487
2002 80,036
2003 70,682
2004 67,091
2005 70,408
2006 42,963
2007 46,416
2008 27,419
2009 31,988
2010 60,091
Average 55,645

2
As neither linear or nonlinear regressions resulted in a model with an r > 0.75, the mean area deforested
across the historical reference period (ABSL,RRD,unplanned,t), located above in Table 3.2, is used for
each year in the baseline period.

ABSL,RRD,unplanned,t = 55,645 ha

3.1.2.3 Estimation of Annual Areas of Unplanned Baseline Deforestation in the Project Area

The projected amount of unplanned baseline deforestation in the RRL is estimated using Equation 3.1.
Equation 3.1. Equation to calculate projected area of deforestation in the RRL.

Table 3.3 Projected Area of Unplanned Baseline Deforestation in the RRL.

Parameter Description Value Justification

ABSL,RR,unplanned,t Projected area of 46,483

unplanned baseline
deforestation in the
reference region for
location (RRL) in year t;
ha
ABSL,RRD,unplanned,t Projected area of 55,645 Derived in Section
unplanned baseline 3.1.2.2
deforestation in RRD in
year t; ha
PRRL Ratio of forest area in 0.835 RRL forested area =
the RRL at the start of 4,424,719 ha
the baseline period to RRD area = 5,296,930
the total area of the ha
RRD; dimensionless

ABSL,RR,unplanned,t = 46,483 ha per year

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3.1.3. Location and Quantification of Threat of Unplanned Deforestation

Spatial analysis was conducted with the IDRISI SELVA software (Eastman 2011), and the Land Change
Modeler (LCM) which is an integrated software environment. LCM is a spatially-explicit modeling tool that
was used to model the location of deforestation projected in the baseline for both the project area and
leakage belt. LCM was developed by Clark Labs in conjunction with the Andes Center of Biodiversity
Conservation of Conservation International, and has been tested extensively in the South America (Clark
Labs 2007). LCM provides a wide range of tools organized in a series of steps for analyzing land cover
change; modeling potential for change; predicting change and validating results. For this analysis, LCM
was used to produce a vulnerability map of the project area and leakage belt. Translation of the
vulnerability map into a scenario map of deforestation through the project term was conducted with a rank
and assign operation. This model meets the criteria of (1) being peer-reviewed, (2) transparent, (3)
incorporating spatial datasets used to explain patterns of deforestation, and (4) is capable of projecting
45
the location of future deforestation (Kim 2010, Sangermano et al., 2010, Eastman et al., 2005).

All spatial modeling analysis is performed on the reference region for projecting location of deforestation
(RRL). The RRL is defined in section 3.1.1 and encompasses the area surrounding the project area and
leakage belt (see Figure 3.1). Information from the reference region is analyzed under a spatially explicit
modeling framework to construct future scenarios of how deforestation can be allocated in the reference
region. In conformance with the VCS modular REDD methodology VM0007, location analysis was
conducted since the initial configuration of the RRL landscape was a frontier configuration.

3.1.3.1 Preparation of Datasets for Spatial Analysis

Land Cover Maps used for Model Calibration

Land cover maps from 2000, 2005 and 2010 (Figure 3.3) along with GIS coverages of spatial driver
variables were analyzed with LCM to produce >50 different candidate vulnerability maps using different
combinations of drivers.

45
Kim, O S. 2010. An Assessment of Deforestation Models for Reducing Emissions from Deforestation and Forest
Degradation (REDD). Transactions in GIS. 14(5): 631-654.
Eastman J R, Van Fossen M E, and Solorzano L A 2005 Transition potential modeling for land cover change. In
Maguire D J, Batty, and Goodchild M F (eds), GIS, Spatial Analysis and Modeling. Redlands CA, ESRI Press: 357–
86.
Sangermano,F. Eastman, J R, and Zhu, V. 2010. Similarity Weighted Instance-based Learning for the Generation of
TransitionPotentials in Land Use Change Modeling. Transactions in GIS. 14(5): 569–580.f

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Figure 3.3. Land cover maps for 2000 and 2010 used in spatial analysis (2005 not shown).

Land cover change modeling requires two phases; calibration and validation. The first time step, 2000-
2005 was used to calibrate the model and the second time step 2005-2010 was used to validate the
model’s predictive capacity. For calibration, the classified maps from the first two time points (2000 and
2005) were analyzed. Locations that experienced a transition from forest to non-forest (“transition”) and
locations that do not transition but remained as forest (“persistence”) were used to develop and test for
relationships with potential driver variables. A large number of training sample locations was randomly
chosen from both of these categories. This number may be user-defined, and in this model was set to
5,000 samples. An equal number of randomly selected locations were used to test the predictive capacity
of the model within the calibration phase, and inform the adjustment of the weights of the input variables.
Developing a predictive model is an iterative process that requires exploration of the spatial variables that
may drive deforestation patterns. Variables that have demonstrated strong correlation with deforestation
in the field of land change science are categorized in the methodology into four categories: landscape
factors, accessibility factors, anthropogenic factors, actual land tenure and management. All variables
must be spatially explicit, and for use in the model must be in raster format. Spatial variable used in the
model are called factor maps
Potential drivers of deforestation were assessed with input from regional experts, literature review and
input from other land change modeling efforts. Assessment of factors that should be included in the
model is an iterative process that is done by assessing multiple model runs while removing and adding
variables selectively. Performance assessment of the combination of factor maps and their predictive
capacity is done at multiple stages of the analysis. This results in a general assessment of the models
accuracy, and can be used to evaluate if factors have increased or decreased the models performance.
Commonly used transformations for variables were also explored. Although transformations are only
required for logistic regression modeling, where variables must be linearly related to the potential for
transition, transformations can improve the performance of other models, especially where there may be
strong non-linearities, thus yielding higher accuracy. Distance based variables were tested to see if
transformations improved model accuracy. These transformations included the natural log transformation

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(ln) which is commonly effective in linearizing distance decay variables, a square root transformation,
which can assist in enhancing the importance of small changes in distance, and categorization of
distances into classes, which can help to tease out the critical zones of distance-related functions. Factor
maps explored in the modeling and included in the final model are listed in Table 3.4.

Table 3.4. Factor Maps that were incorporated in the Final Spatial Model.
Factors Considered Description Relative Contribution Included in Final
to Model Performance Model
Accessibility Factors Distance to Roads High Yes
Distance to River High Yes
Anthropogenic Factors Distance to Deforestation Highest Yes
Distance to Towns Low No
Distance to Forest Edge Low No
Landscape Factors Elevation High Yes
Slope Low No
Soil Low No
Vegetation Low No
Actual Land Tenure & Distance to Protected Areas High Yes
Management
Distance to Indigenous Areas Low No

3.1.3.2 Preparation of Risk Maps for Deforestation

Validation of the model is done by comparing the predicted change to actual change for the period from
2006 to 2010. The output of the model is a transition potential map or a “risk map” that expresses the
likelihood or potential for a location to transition from forest to deforested on a scale from 0 (minimum
potential) to 1 (maximum potential). These values can be ranked in descending order, and this map is
used to assign pixels to deforestation.

Quantity of deforestation was estimated in a separate analysis detailed above using average historic rate
of deforestation in the RRD. Areas of deforestation were allocated until the quantity of deforestation
modeled was exhausted. The procedure was carried out for each year in the baseline, 2012-2021.
3.1.3.3 Selection of the Most Accurate Deforestation Risk Map

An artificial neural network was used to develop the risk maps, and the following procedures were
followed to meet the requirements of model calibration and confirmation form the methodology:

For the calibration period, a minimum of 5,000 samples (pixels) of the “transition” category (forest to non-
forest) and 5,000 samples (pixels) of the “persistence” category (locations that do not transition but
remain as forest) were randomly selected and used for training and testing. A minimum of 10,000
iterations of the model were run before selecting the best fit model.

Using the above process, multiple risk maps and the corresponding prediction maps were created for the
year 2010. Each prediction map is compared to the actual map from 2010 to assess the model’s
performance. The measure of performance used as mandated by the methodology is the “Figure of Merit”

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(FOM) that confirms the model prediction in statistical manner (Pontius et al. 2008 ; Pontius et al.
47
2007 ). The FOM is a ratio of the intersection of the observed change (change between the reference
maps in time 1 and time 2) and the predicted change (change between the reference map in time 1 and
simulated map in time 2) to the union of the observed change and the predicted change. The FOM
ranges from 0%, where there is no overlap between observed and predicted change, to 100% where
there is a perfect overlap between observed and predicted change. The highest percent FOM and least
number of factor maps used for creating the deforestation risk map must be used as the criteria for
selecting the most accurate deforestation risk map to be used for predicting future deforestation.

Equation 3.2. Equation to Determine the “Figure of Merit”.

Where,

CORRECT Area correct due to observed change predicted as change; ha

ErrA Area of error due to observed change predicted as persistence; ha

ErrB Area of error due to observed persistence predicted as change; ha

The final model was selected from multiple runs, according to the methodology as having the highest
FOM value with the fewest number of factor maps with a minimum of one factor map in each of the 4
categories defined.

FOM = 23,114 ha/(23,114 ha + 23,988 ha + 209,788) = 0.089976

%FOM = 9.0%

The minimum threshold for the best fit as measured by the Figure of Merit (FOM) is defined by the net
observed change in the reference region for the calibration period of the model (2000-2005). Net
observed change is calculated as the total area of change being modeled in reference region during the
calibration period as percentage of the total area of the reference region. Net change from 2000-2005
was 46,788 hectares out of a total of 4,552,510, which is 1.03% of total area. The FOM value therefore
exceeds the minimum threshold.

3.1.3.4 Mapping of the Locations of Future Deforestation

From the model, a future deforestation risk map was created to assign a likelihood of deforestation to
each pixel. Using a rank operation, all forested pixels of the RRL were ranked in descending order, so
that the pixel with the highest likelihood of deforestation was assigned a value of 1. Future deforestation

46
R G Pontius Jr, W Boersma, J-C Castella, K Clarke, T de Nijs, C Dietzel, Z Duan, E Fotsing, N Goldstein, K Kok, E
Koomen, C D Lippitt, W McConnell, A Mohd Sood, B Pijanowski, S Pithadia, S Sweeney, T N Trung, A T Veldkamp,
and P H Verburg. 2008. Comparing input, output, and validation maps for several models of land change. Annals of
Regional Science, 42(1): 11-47.
47
R G Pontius Jr, R Walker, R Yao-Kumah, E Arima, S Aldrich, M Caldas and D Vergara. 2007. Accuracy
assessment for a simulation model of Amazonian deforestation. Annals of Association of American Geographers,
97(4): 677-695.)

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was assumed to happen first at the pixel locations with the highest deforestation risk value, so each pixel
was allocated to deforestation in rank order for each year according to the annual projections from 2012-
2021 (ABSL,RR,unplanned,t). This operation resulted in a single map showing the predicted deforestation over
the baseline period (Figure 3.4) in the project area and surrounding reference region. Further, the area of
baseline deforestation for the project area and leakage belt was summed by strata for each year in the
baseline period (Table 3.5 and Table 3.6).

Figure 3.4. Map of the Predicted Deforestation in the Baseline Period, 2012-2021.

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Table 3.5. Amount of Baseline Deforestation (ha) in the Project Area.

AAunplanned,i,t AAunplanned
Aunplanned,i, AAunplanned,i,t
AAunplanned,i,t , FAP + FAB + ,i,t, FAP + FD Total
Year t, FAB + FAP , FAP-alluvial
, FAP (ha) FD or FAP + or FD + FAP (ha)
(ha) (ha)
FD + FAB (ha) (ha)

2012 2 16 4 0 94 117
2013 47 154 89 0 342 632
2014 48 245 159 1 330 784
2015 38 242 159 6 281 728
2016 35 248 161 4 309 758
2017 31 211 137 3 253 635
2018 28 242 127 3 314 713
2019 32 230 138 4 309 713
2020 36 213 97 3 281 630
2021 36 256 118 2 306 718
Total 333 2,058 1,190 27 2,821 6,428

Table 3.6. Amount of Baseline Deforestation (ha) in the Leakage Belt.

AAunplanned,i,t
Aunplanne AAunplanned,i,t AAunplanned,i,t
AAunplanned,i,t , FAP + FAB + Total
Year d,i,t, FAB + , FAP-alluvial , FAP + FD or
, FAP (ha) FD or FAP + (ha)
FAP (ha) (ha) FD + FAP (ha)
FD + FAB (ha)

2012 41 2 33 38 1 115
2013 379 10 278 96 13 777
2014 487 48 535 112 64 1,246
2015 304 59 555 72 121 1,112
2016 221 83 522 61 178 1,065
2017 154 83 476 38 224 976
2018 123 96 508 35 277 1,039
2019 122 123 490 33 243 1,011
2020 80 109 400 14 283 887
2021 115 168 409 15 320 1,027
Total 2,026 782 4,207 515 1,725 9,254

3.1.4. Estimation of Carbon Stock Changes and GHG Emissions

3.1.4.1 Stratification of the Total Area Subject to Deforestation

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The project area was stratified, according to module X-STR, using a vegetation map obtained from the
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State of Acre. The forest types present in the Russas Project area include: open forest with bamboo and
palm (FAB + FAP), open palm forest (FAP), open alluvial forest with palm (FAP - Alluvial), open forest
with bamboo and palm and dense forest (FAP + FAB + FD and FAP + FD + FAB), and dense forest and
open palm forest (FAP + FD and FD + FAP). One further stratum not present in the project area, open
alluvial forest with bamboo (FAB - Alluvial), represented a very small area of the leakage belt. A map of
the vegetation strata in the project area and leakage belt can be found in Figure 1.9.

Table 3.7. Areas of Strata within the Project Area.

Stratum Stratum Description Area (hectares)
FAB + FAP Open forest with bamboo and 9,800
palm
FAP Open palm forest 11,874
FAP - Alluvial Open alluvial forest with palm 3,015
FAP + FAB + FD and FAP + Open forest with bamboo and 56
FD + FAB palm and dense forest
FAP + FD and FD + FAP Dense forest and open palm 17,232
forest

Table 3.8. Areas of Strata within the Leakage Belt.

Stratum Stratum Description Area (hectares)
FAB + FAP Open forest with bamboo and 6,561
palm
FAP Open palm forest 11,890
FAP - Alluvial Open alluvial forest with palm 11,713
FAB - Alluvial Open alluvial forest with bamboo 563
FAP + FD and FD + FAP Dense forest and open palm 7,170
forest

3.1.4.2 Estimation of Carbon Stocks and Carbon Stock Changes per Stratum

Forest carbon stocks were directly measured in a forest inventory of the Russas Project area in 2013.
Results are detailed in the “Forest biomass carbon inventory for the Russas and Valparaiso Properties,
Acre State, Brazil” 2013 which can be found in the project database. The stock estimate for the FAB-
1
Alluvial strata referenced data from Salimon et al. Results are summarized by forest strata in the tables
below.
Equation 3.3. Equation to Calculate Carbon Stocks in all Carbon Pools in Each Forest Stratum.

48
ACRE. Governo do Estado do Acre. Secretaria de Estado de Planejamento e Desenvolvimento Econômico-
Sustentável, Secretaria de Estado de Meio Ambiente e Recursos Naturais. Programa Estadual de Zoneamento
Ecológico-Econômico do Acre. Zoneamento Ecológico-Econômico do Acre Fase II. Documento Síntese, 2006.

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Table 3.9a. Estimation of Carbon Stocks for Stratum FAB + FAP.

Parameter Description Value Justification
CBSL,i Carbon stock in all carbon pools 441.9 t CO2e See forest inventory for
in forest stratum i; t CO2e ha-1 ha-1 calculations.
CAB_tree,i Carbon stock in aboveground See forest
tree biomass in stratum i; t CO2e inventory report
ha-1 for calculations.

CBB_tree,i Carbon stock in belowground See forest

tree biomass in stratum i; t CO2e inventory report
ha-1 for calculations

CDW,i Carbon stock in dead wood in See forest

stratum i; t CO2e ha-1 inventory report
for calculations

Table 3.9b. Estimation of Carbon Stocks for Stratum FAP.

Parameter Description Value Justification
CBSL,i Carbon stock in all carbon pools 458.1 t CO2e See forest inventory for
in forest stratum i; t CO2e ha-1 ha-1 calculations.
CAB_tree,i Carbon stock in aboveground See forest
tree biomass in stratum i; t CO2e inventory report
ha-1 for calculations.

CBB_tree,i Carbon stock in belowground See forest

tree biomass in stratum i; t CO2e inventory report
ha-1 for calculations

CDW,i Carbon stock in dead wood in See forest

stratum i; t CO2e ha-1 inventory report
for calculations

Table 3.9c. Estimation of Carbon Stocks for Stratum FAP – Alluvial.

Parameter Description Value Justification
CBSL,i Carbon stock in all carbon pools 370.5 t CO2e See forest inventory for
in forest stratum i; t CO2e ha-1 ha-1 calculations.
CAB_tree,i Carbon stock in aboveground See forest
tree biomass in stratum i; t CO2e inventory report
ha-1 for calculations.

CBB_tree,i Carbon stock in belowground See forest

tree biomass in stratum i; t CO2e inventory report
ha-1 for calculations

CDW,i Carbon stock in dead wood in See forest

stratum i; t CO2e ha-1 inventory report
for calculations

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Table 3.9d. Estimation of Carbon Stocks for Stratum FAP + FAB + FD and FAP + FD + FAB.
Parameter Description Value Justification
CBSL,i Carbon stock in all carbon pools 482.1 t CO2e See forest inventory for
in forest stratum i; t CO2e ha-1 ha-1 calculations.
CAB_tree,i Carbon stock in aboveground See forest
tree biomass in stratum i; t CO2e inventory report
ha-1 for calculations.

CBB_tree,i Carbon stock in belowground See forest

tree biomass in stratum i; t CO2e inventory report
ha-1 for calculations

CDW,i Carbon stock in dead wood in See forest

stratum i; t CO2e ha-1 inventory report
for calculations

Table 3.9e. Estimation of Carbon Stocks for Stratum FAP + FD and FD + FAP.
Parameter Description Value Justification
CBSL,i Carbon stock in all carbon pools 389.5 t CO2e See forest inventory for
in forest stratum i; t CO2e ha-1 ha-1 calculations.
CAB_tree,i Carbon stock in aboveground See forest
tree biomass in stratum i; t CO2e inventory report
ha-1 for calculations.

CBB_tree,i Carbon stock in belowground See forest

tree biomass in stratum i; t CO2e inventory report
ha-1 for calculations

CDW,i Carbon stock in dead wood in See forest

stratum i; t CO2e ha-1 inventory report
for calculations

Table 3.9f. Estimation of Carbon Stocks for Stratum FAB – Alluvial.

Parameter Description Value Justification
CBSL,i Carbon stock in all carbon pools in CBSL,I = 424.4 t
forest stratum i; t CO2e ha-1 CO2e ha-1
CAB_tree,i Carbon stock in aboveground tree CAB_tree,I = Used 2011 estimate (192.8 t /ha)
1
biomass in stratum i; t CO2e ha-1 332.3 t CO2e from Salimon et al. for this
ha-1 specific strata.
CBB_tree,i Carbon stock in belowground tree CBB_tree,I = Estimate (44.0 t /ha) derived from
biomass in stratum i; t CO2e ha-1 75.9 t CO2e ha- aboveground biomass using the
2
1 Cairns et al. equation, as carried
out in the forest inventory.
CDW,i Carbon stock in dead wood in CDW,I = 16.3 t Used estimate derived for the
stratum i; t CO2e ha-1 CO2e ha-1 FAP-Alluvial strata in the forest
inventory.
1
Salimon et al. 2011. Estimating state-wide biomass carbon stocks for a REDD plan in Acre, Brazil. Forest

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Ecology and Management 262: 555-560.
2
Cairns, M. A., S. Brown, E. H. Helmer, and G. A. Baumgardner. 1997. Root biomass allocation in the world’s
upland forests. Oecologia 111, 1-11.

Stocks of belowground biomass and dead wood are emitted from the year of conversion/deforestation at
a linear rate equal to 1/10 of the initial stock annually, for 10 years. Net emissions (CBSL -C post) from
steady decomposition of these pools are elaborated in Tables 3.10 and 3.11, below.

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Table 3.10a. Emissions from steady decomposition of belowground biomass post deforestation in the project area (CBSLBB -C postBB, t CO2-e).
Year BGB Emissions 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
from Deforestation
(t CO2)

2012 7,482 748 748 748 748 748 748 748 748 748 748
2013 41,450 4,145 4,145 4,145 4,145 4,145 4,145 4,145 4,145 4,145
2014 51,868 5,187 5,187 5,187 5,187 5,187 5,187 5,187 5,187
2015 48,355 4,835 4,835 4,835 4,835 4,835 4,835 4,835
2016 50,242 5,024 5,024 5,024 5,024 5,024 5,024
2017 42,143 4,214 4,214 4,214 4,214 4,214
2018 47,382 4,738 4,738 4,738 4,738
2019 47,249 4,725 4,725 4,725
2020 42,031 4,203 4,203
2021 47,990 4,799
Total 748 4,893 10,080 14,916 19,940 24,154 28,892 33,617 37,820 42,619

Table 3.10b. Emissions from steady decomposition of belowground biomass post deforestation in the leakage belt (CBSLBB -C postBB, t CO2-e).
Year BGB Emissions 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
from Deforestation
(t CO2)

2012 7,661 766 766 766 766 766 766 766 766 766 766
2013 51,419 5,142 5,142 5,142 5,142 5,142 5,142 5,142 5,142 5,142
2014 81,346 8,135 8,135 8,135 8,135 8,135 8,135 8,135 8,135
2015 71,298 7,130 7,130 7,130 7,130 7,130 7,130 7,130
2016 68,012 6,801 6,801 6,801 6,801 6,801 6,801
2017 61,903 6,190 6,190 6,190 6,190 6,190
2018 65,550 6,555 6,555 6,555 6,555
2019 64,207 6,421 6,421 6,421
2020 56,104 5,610 5,610
2021 65,867 6,587
Total 766 5,908 14,043 21,172 27,974 34,164 40,719 47,140 52,750 59,337

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Table 3.11a. Emissions from steady decomposition of dead wood post deforestation in the project area, (CBSLDW -C postDW, t CO2-e).
Year BGB Emissions 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
from Deforestation
(t CO2)

2012 1,826 183 183 183 183 183 183 183 183 183 183
2013 9,297 930 930 930 930 930 930 930 930 930
2014 10,983 1,098 1,098 1,098 1,098 1,098 1,098 1,098 1,098
2015 10,036 1,004 1,004 1,004 1,004 1,004 1,004 1,004
2016 10,494 1,049 1,049 1,049 1,049 1,049 1,049
2017 8,770 877 877 877 877 877
2018 9,876 988 988 988 988
2019 9,933 993 993 993
2020 8,799 880 880
2021 9,910 991
Total 183 1,112 2,211 3,214 4,264 5,141 6,128 7,122 8,002 8,993

Table 3.11b. Emissions from steady decomposition of dead wood post deforestation in the leakage belt (CBSLDW -C postDW, t CO2-e).
Year BGB Emissions 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
from Deforestation
(t CO2)

2012 1,874 187 187 187 187 187 187 187 187 187 187
2013 12,784 1,278 1,278 1,278 1,278 1,278 1,278 1,278 1,278 1,278
2014 19,820 1,982 1,982 1,982 1,982 1,982 1,982 1,982 1,982
2015 17,121 1,712 1,712 1,712 1,712 1,712 1,712 1,712
2016 16,108 1,611 1,611 1,611 1,611 1,611 1,611
2017 14,635 1,463 1,463 1,463 1,463 1,463
2018 15,436 1,544 1,544 1,544 1,544
2019 14,829 1,483 1,483 1,483
2020 13,034 1,303 1,303
2021 15,006 1,501
Total 187 1,466 3,448 5,160 6,771 8,234 9,778 11,261 12,564 14,065

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3.1.4.3 Estimation of the Sum of Baseline Carbon Stock Changes

The sum of baseline carbon stock changes (ΔCTOT) was estimated using Equation 3.4. Parameters for
use of Equation 3.4 can be found in Table 3.12. One of the parameters, the total forest carbon stock in
areas deforested (CBSL), was calculated as per Equation 3.5. ΔCTOT and CBSL are calculated in Table
3.14 for the project area and 3.15 for the leakage belt.
Equation 3.4. Equation to Calculate the Sum of the Baseline Carbon Stock Change in all Pools up to
Time t

Table 3.12. Estimation of Sum of Baseline Carbon Stock Changes in the Project Area and Leakage Belt.
Parameter Description Value Justification
ΔCTOT Sum of the baseline See calculations below.
carbon stock change in
all pools up to time t*; t
CO2e
CBSL Total forest carbon See calculations below. See calculations below.
stock in areas
deforested; t CO2e
C post Total post-deforestation See calculations below. Option 1, the simple
carbon stock in areas approach, was used in
deforested; t CO2e the estimation of post-
deforestation carbon
stocks.

A land use classification

produced by the State
49
of Acre indicated that
forest in Acre State are
converted into three
non-forest classes
including agriculture,
pasture, and urban
lands. As the
deforestation in the
project area is occurring
in rural areas, the post-
deforestation land uses
do not include urban
lands, but are limited to
pasture and cropland.

After a thorough review

of literature, the best
source of information on
biomass stocks was a

49
ACRE. Governo do Estado do Acre. Secretaria de Estado de Planejamento e Desenvolvimento Econômico-
Sustentável, Secretaria de Estado de Meio Ambiente e Recursos Naturais. Programa Estadual de Zoneamento
Ecológico-Econômico do Acre. Zoneamento Ecológico-Econômico do Acre Fase II. Documento Síntese, 2006.

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local study by Salimon
50
et al. entitled
“Estimating state-wide
biomass carbon stocks
for a REDD plan in
Acre, Brazil”. This peer
reviewed study lists
biomass values from
both pasture (16.0 tons
d.m./ha) and cropland
(11.6 tons d.m./ha) and
was in part supported
by the Acre
Environment Office and
Fundação de
Tecnologia do Estado
do Acre; two
organizations which are
helping to develop the
Acre state baseline.
These values were
converted to the total
aboveground and
belowground biomass
stock using allometric
root equation developed
51
by Cairns and
converted to stocks of
carbon using a carbon
fraction of 0.47, as per
the VM007 module. The
resulting estimate for
post-deforestation
carbon stocks are 9.6
and 7.0 t C/ha for both
pasture and cropland,
respectively.

As pasture has the

highest carbon stock of
the post-deforestation
land uses, the value of
9.6 t C/ha has been
used as the post
deforestation carbon
stock.
After converting to t
CO2/ha, a conservative
estimate of post-
deforestation carbon
stocks of 35.2 t CO2/ha

50
Salimon et al. 2011. Estimating state-wide biomass carbon stocks for a REDD plan in Acre, Brazil. Forest Ecology
and Management 262: 555-560.
51
Cairns, M. A., S. Brown, E. H. Helmer, and G. A. Baumgardner. 1997. Root biomass allocation in the world’s
upland forests. Oecologia 111, 1-11.

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was calculated. See the
project database for
details of the analysis.
C wp Total carbon stock in 0 No commercial
harvested wood harvesting of wood
products; t CO2e products takes place in
either the baseline or
with project scenarios.

Equation 3.5. Equation to Calculate the Sum of the Baseline Carbon Stock Change in all Pools up to
Time t

Table 3.13. Parameters used to calculate the total forest carbon stock in areas deforested.
Parameter Description
CBSL Total forest carbon stock in areas
deforested; t CO2-e
CBSL,i Carbon stock in all carbon pools in the
forest stratum i; t CO2-e ha-1
Aunplanned,i,t Area of unplanned deforestation in
forest stratum i at time t; ha

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Table 3.14. Calculation of the Total Forest Carbon Stock in Areas Deforested (CBSL) and the Sum of the Baseline Carbon Stock Change in all
Pools up to Time t (ΔCTOT) in the Project Area.
Year Aunplanned,i,t, AAunplanned,i,t, AAunplanned,i,t, AAunplanned,i,t, AAunplanned,i,t, CBSLAB (t C CBSLBB - CBSLDW C wp ΔCTOT (t
FAB + FAP FAP (ha) FAP-alluvial FAP + FAB + FAP + FD or FD CO2-e) postAB C postBB -C (t CO2-e)
(ha) (ha) FD or FAP + FD + FAP (ha) (t CO2- (t CO2-e) postDW (t CO2-
+ FAB (ha) e) CO2-e) e)
2012 2.2 16.3 4.0 0.0 94.3 36,497 3,223 748 183 0 34,205
2013 46.9 153.9 88.6 0.5 342.4 202,113 17,434 4,893 1,112 0 190,685
2014 48.1 245.0 158.8 1.4 330.3 252,858 21,605 10,080 2,211 0 243,544
2015 38.2 242.4 159.1 6.4 281.3 235,705 20,062 14,916 3,214 0 233,773
2016 35.3 248.5 161.5 3.7 309.0 244,916 20,899 19,940 4,264 0 248,221
2017 30.8 211.3 137.2 2.8 253.0 205,433 17,513 24,154 5,141 0 217,214
2018 27.7 241.9 127.0 2.7 313.7 230,935 19,660 28,892 6,128 0 246,296
2019 31.7 230.1 138.4 3.6 309.2 230,320 19,662 33,617 7,122 0 251,397
2020 35.9 212.7 97.3 3.4 281.0 204,836 17,379 37,820 8,002 0 233,279
2021 35.8 255.8 118.3 2.1 306.4 233,860 19,809 42,619 8,993 0 265,663
Total 332.8 2058.1 1190.2 26.5 2820.6 2,077,473 177,246 217,680 46,368 0 2,164,275

Table 3.15. Calculation of the Total Forest Carbon Stock in Areas Deforested (CBSL) and the Sum of the Baseline Carbon Stock Change in all
Pools up to Time t (ΔCTOT) in the Leakage Belt.
Year Aunplanned,i,t, AAunplanned,i,t, AAunplanned,i,t, AAunplanned,i,t, AAunplanned,i,t, CBSLAB (t C CBSLBB - CBSLDW C wp ΔCTOT (t
FAB + FAP FAP (ha) FAP-alluvial FAB - Aluvial FAP + FD or FD CO2-e) postAB C postBB -C (t CO2-e)
(ha) (ha) (ha) + FAP (ha) (t CO2- (t CO2-e) postDW (t CO2-
e) CO2-e) e)
2012 41.1 2.0 33.2 37.9 0.8 37,369 3,171 766 187 0 35,152
2013 379.3 9.9 277.9 96.4 13.2 251,050 21,415 5,908 1,466 0 237,009
2014 487.2 48.1 534.8 111.8 64.1 397,293 34,357 14,043 3,448 0 380,426
2015 304.0 59.2 555.1 72.5 121.5 348,360 30,669 21,172 5,160 0 344,023
2016 221.1 83.4 521.8 61.1 178.0 332,274 29,374 27,974 6,771 0 337,645
2017 154.4 83.2 476.3 38.4 224.0 302,453 26,922 34,164 8,234 0 317,929
2018 122.9 96.0 507.5 34.8 277.4 320,281 28,638 40,719 9,778 0 342,140
2019 121.8 123.1 490.2 33.2 242.5 313,652 27,869 47,140 11,261 0 344,183
2020 79.7 109.4 400.5 14.1 282.9 274,061 24,447 52,750 12,564 0 314,928
2021 115.0 167.7 409.3 14.7 320.3 321,598 28,315 59,337 14,065 0 366,684
Total 2026.4 782.0 4206.5 514.8 1724.8 2,898,391 255,177 303,972 72,933 0 3,020,119

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3.1.4.4 Calculation of Net CO2 Equivalent Emissions

Net CO2 emissions in the baseline for the project area and leakage belt are calculated using Equation 3.6
below.
Equation 3.6. Equation to Calculate Net Greenhouse Gas Emissions in the Baseline from Unplanned
Deforestation.

As GHG emissions in the baseline are excluded from the project boundary, the net CO2 emissions in the
baseline is equal to the sum of the baseline carbon stock change in all pools (ΔCBSL,unplanned =
ΔCTOT).

ΔCBSL,PA,unplanned = 2,164,275 t CO2e

ΔCBSL,LK,unplanned = 3,020,119 t CO2e

3.2 Project Emissions

Expected project emissions are estimated ex-ante and apply Equation 3.7 of module M-MON (VMD0015)
of Methodology VM0007. Values for individual parameters are justified in Table 3.16 or derived in Tables
3.17, Table 3.19, and Table 3.21. Ex-ante projections of deforestation unavoided in the project case
assume project effectiveness of 80% (i.e., 20% of baseline deforestation occurs in the project case).

Equation 3.7. Equation for Calculating the Net GHG emissions within the Project Area under the Project
Scenario.

Table 3.16. Parameters and Values used to Calculate Annual Ex-Ante Project Emissions.
Parameter Description Value Justification
ΔCP Net greenhouse gas emissions See table
within the project area under the below for
project scenario; t CO2e calculations.
ΔCP,DefPA,i,t Net carbon stock change as a See table
result of deforestation in the below for
project area in the project case calculations.
in stratum i at time t; t CO2e

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ΔCP,Deg,i,t Net carbon stock change as a ΔCP,Deg,i,t = 0 As the agent of deforestation
result of degradation in the (and degradation), have
project area in the project case committed to no longer
in stratum i at time t; t CO2e harvesting fuelwood and timber
in forests surrounding their
farms, and forest patrols with
further deter degradation
activities ex-ante degradation is
estimated as zero.

Emissions resulting from

degradation due to selective
logging of FSC certified areas
(parameter ΔCP,SelLog,i,t)
equates to zero as no selective
FSC logging occurs in either the
baseline or with-project case.
ΔCP,DistPA,i,t Net carbon stock change as a ΔCP,DistPA,i,t = 0 Forests in Acre state have a low
result of natural disturbance in incidence of natural disturbance
the project area in the project outside of flooding, which does
case in stratum i at time t; t not generally result in tree death
CO2e and C emissions.
GHGP-E,i,t Greenhouse gas emissions as a See table
result of deforestation and below for
degradation activities within the calculations.
project area in the project case
in stratum i in year t; t CO2e

ΔCP,Enh,i,t Net carbon stock change as a ΔCP,Enh,i,t = 0 Conservative to exclude.

result of forest growth and
sequestration during the project
in areas projected to be
deforested in the baseline in
stratum i at time t; t CO2e

Table 3.17. Data used to Calculate ΔCP.

Year ΔCP,DefPA,i,t (t ΔCP,Deg,i,t (t ΔCP,DistPA,i,t GHGP-E,i,t (t ΔCP,Enh,i,t (t ΔCP (t CO2-e)
CO2-e) CO2-e) (t CO2-e) CO2-e) CO2-e)
2012 8,995 0 0 431 0 9,426
2013 48,653 0 0 2,331 0 50,984
2014 60,295 0 0 2,888 0 63,183
2015 55,988 0 0 2,682 0 58,670
2016 58,324 0 0 2,794 0 61,118
2017 48,875 0 0 2,341 0 51,216
2018 54,865 0 0 2,628 0 57,493
2019 54,872 0 0 2,629 0 57,501
2020 48,502 0 0 2,323 0 50,825
2021 55,283 0 0 2,648 0 57,931

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Deforestation in the with Project Case

Equation 3.8, Equation for Calculating the Net Carbon Stock Change as a Result of Deforestation in the
Project Case.

Table 3.18. Parameters and Values used to Calculate Annual Ex-Ante Deforestation Emissions.
Parameter Description Value Justification
ΔCP,DefPA,i,t Net carbon stock change as a See table below See table below for calculations.
result of deforestation in the for calculations.
project case in the project area
in stratum i at time t; t CO2e
ADefPA,u,i,t Area of recorded deforestation in See table below See table below for calculations.
the project area stratum i for calculations.
converted to land use u at time t;
ha
ΔCpools,Def,u,i,t Net carbon stock changes in all ΔCpools,Def,u,i,t This value is the strata area
pools in the project case in land = 384.8 weighted mean. See the forest
use u in stratum i at time t; t inventory report for more
CO2e ha-1 information on the derivation of
this value.

Table 3.19. Data Used to Calculate ΔCP,DefPA,i,t.

Year ADefPA,u,i,t (ha) ΔCpools,Def,u,i,t (t ΔCP,DefPA,i,t (t CO2-
CO2-e/ha) e)
2012 23.4 384.8 8,995
2013 126.5 384.8 48,653
2014 156.7 384.8 60,295
2015 145.5 384.8 55,988
2016 151.6 384.8 58,324
2017 127.0 384.8 48,875
2018 142.6 384.8 54,865
2019 142.6 384.8 54,872
2020 126.1 384.8 48,502
2021 143.7 384.8 55,283
ADefPA,u,i,t is derived assuming a project effectiveness of 80% (i.e., 20% of
baseline deforestation occurs in the project case).

GHG Emissions

Greenhouse gas emissions as a result of deforestation activities within the project area (GHGP,E,i,t) and
leakage belt are calculated in Table 3.21 using Equation 3.9. Parameters are found in Table 3.20 and
Table 4.3.

Equation 3.9. Equation for Calculating GHG Emissions as a Result of Deforestation Activities within the
Project Area in the Project Case.
GHG-E,i,t = EBiomassBurn,i,t = Aburn,i,t * Bi,t * COMF I * Gg,I * 10^-3 * GWPg

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Table 3.20. Parameters and Values Used to Calculate Annual Ex-Ante GHG Emissions.
Parameter Description Value Justification
GHGP,E,i,t Greenhouse gas emissions See table below
as a result of deforestation for calculations.
activities within the project
area in the project case in
stratum i in year t; t CO2e
EBiomassBurn,i,t Non-CO2 emissions due to See table below Biomass burning is expected
biomass burning in stratum i for calculations. to occur in the with project
in year t; t CO2e case.

Table 3.21a. Calculation of EBiomassBurn,i,t.. for the project area

Year ADefPA,u,i,t COMF E-N2O E-CH4 E-Biomass GHGP-E,i,t (t
(ha) Biomass Biomass Burning CO2-e)
Burning Burning (tCO2e)
(tCO2e) (tCO2e)
2012 23.4 0.45 130.4 300.4 430.9 430.9
2013 126.5 0.45 705.6 1,625.1 2,330.7 2,330.7
2014 156.7 0.45 874.4 2,014.0 2,888.4 2,888.4
2015 145.5 0.45 812.0 1,870.1 2,682.1 2,682.1
2016 151.6 0.45 845.8 1,948.2 2,794.0 2,794.0
2017 127.0 0.45 708.8 1,632.5 2,341.4 2,341.4
2018 142.6 0.45 795.7 1,832.6 2,628.3 2,628.3
2019 142.6 0.45 795.8 1,832.9 2,628.7 2,628.7
2020 126.1 0.45 703.4 1,620.1 2,323.5 2,323.5
2021 143.7 0.45 801.7 1,846.6 2,648.3 2,648.3
Total 1,285.6 7,173.7 16,522.7 23,696.4 23,696.4

Table 3.21b. Calculation of EBiomassBurn,i,t.. for the leakage belt.

Year ADefLB,u,i,t (ha) COMF E-N2O Biomass E-CH4 Biomass E-Biomass
Burning (tCO2e) Burning (tCO2e) Burning LB
(tCO2e)
2012 14.0 0.45 77.3 178.0 255.2
2013 75.9 0.45 417.9 962.6 1,380.5
2014 94.0 0.45 517.9 1,192.9 1,710.9
2015 87.3 0.45 480.9 1,107.7 1,588.7
2016 91.0 0.45 501.0 1,153.9 1,654.9
2017 76.2 0.45 419.8 967.0 1,386.8
2018 85.6 0.45 471.3 1,085.5 1,556.8
2019 85.6 0.45 471.4 1,085.6 1,557.0
2020 75.6 0.45 416.6 959.6 1,376.2
2021 86.2 0.45 474.9 1,093.8 1,568.6
Total 771.4 4,249.1 9,786.6 14,035.7

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3.3 Leakage
Leakage emissions from displacement of unplanned deforestation are estimated in conformance with the
VCS modular REDD methodology VM0007, specifically the LK-ASU module. This module provides for
accounting for activity shifting leakage resulting from both local and immigrant deforestation agents.

Estimation of Baseline Carbon Stock Changes and Greenhouse Gas Emissions in the Leakage
Belt
Activity shifting leakage due to displacement of unplanned deforestation was assessed using a baseline
specific to the leakage belt developed following procedures detailed in the Module BL-UP. While details of
the baseline are provided in Table 3.15, Table 3.22 below states the expected baseline estimates for the
leakage belt.

Table 3.22. Estimation of Baseline Carbon Stock Changes and Greenhouse Gas Emissions in the
Leakage Belt.
Year ΔCTOT (t CO2-e)
2012 35,152
2013 237,009
2014 380,426
2015 344,023
2016 337,645
2017 317,929
2018 342,140
2019 344,183
2020 314,928
2021 366,684
Total 3,020,119

Estimation of the Proportions of Area Deforested by Immigrant and Local Deforestation Agents in
the Baseline

From March to May 2012, 19 communities near the boundaries of the leakage belt and project area were
surveyed. While the total number of communities in the area is not known, it is thought the maximum
number is approximately 35 hence about 55% of communities in the area were sampled. Results of the
community surveys indicated than only 1 of the 19 communities have migrated to the area within the last
five years.

PROPRES = the proportion of area deforested by the population that has been resident in and around the
leakage belt and project area for ≥ 5 years = 0.947; and
PROPIMM = the proportion of area deforested by population that has migrated into the area in the last 5
years = 0.053.

Estimation of Unplanned Deforestation Displaced from the Project Area to the Leakage Belt

Ex-ante baseline emissions occurring in the leakage belt are estimated by first estimating the amount of
deforestation that is thought to be displaced from the project area to the leakage belt. As people living
within the project area are well settled, there appears to be little risk of them displacing much of their

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activities to outside the project area given project implementation measures to improve agricultural
productivity and secure land tenure, and therefore the leakage factor is estimated to be 0.15, or 15% of
baseline emissions in the project area. Leakage is then calculated as the difference between project and
baseline carbon stock changes and greenhouse gas emissions in the leakage belt, as outlined in
Equation 3.10. Ex-ante estimates of the net CO2 emissions due to unplanned deforestation displaced
from the project area to the leakage belt are calculated for each year in the baseline period in Table 3.24.

Equation 3.10. Equation for Calculating Net CO2 Emissions due to Unplanned Deforestation Displaced
from the Project Area to the Leakage Belt.

Table 3.23. Parameters and Values used to Calculate Annual Ex-Ante GHG Emissions in the Leakage
Belt.
Parameter Description Value Justification
ΔCLK-ASU-LB Net CO2 emissions due to See Table Calculated.
unplanned deforestation 3.24.
displaced from the project
area to the leakage belt; t
CO2e
ΔCBSL,LK,unplanned Net CO2 emissions in the See Table Derived in Section 3.1.
baseline from unplanned 3.22.
deforestation in the
leakage belt; t CO2e
ΔCP,LB Net greenhouse gas See Table Ex-ante estimate is calculated by
emissions within the 3.24. multiplying the estimated baseline
leakage belt in the project carbon stock changes and
case t CO2e greenhouse gas emissions for the
project area by a factor < 1.0
representing the % of deforestation
expected to be displaced into the
leakage belt. This result is then
added to the estimated baseline
for the leakage belt.

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Table 3.24. Estimates of the Net CO2 Emissions due to Unplanned Deforestation Displaced from the Project Area to the Leakage Belt.
1
Year ΔCBSL,PA,unplanned ΔCP,DefPA,i,t Deforestation E-Biomass ΔCP,LB (t ΔCBSL,LK,unplanned ΔCLK-ASU-
(t CO2-e) (t CO2-e) expected to be Burning LB CO2-e) (t CO2-e) LB (t CO2-
displaced from (tCO2e) e)
the project area
2012 34,205 8,995 3,782 255 39,189 35,152 4,037
2013 190,685 48,653 21,305 1,381 259,694 237,009 22,685
2014 243,544 60,295 27,487 1,711 409,625 380,426 29,198
2015 233,773 55,988 26,668 1,589 372,279 344,023 28,256
2016 248,221 58,324 28,485 1,655 367,784 337,645 30,139
2017 217,214 48,875 25,251 1,387 344,567 317,929 26,638
2018 246,296 54,865 28,715 1,557 372,411 342,140 30,271
2019 251,397 54,872 29,479 1,557 375,219 344,183 31,036
2020 233,279 48,502 27,717 1,376 344,021 314,928 29,093
2021 265,663 55,283 31,557 1,569 399,810 366,684 33,126
Total 2,164,275 494,651 250,444 14,036 3,284,598 3,020,119 264,479
1
Calculated as the emissions from deforestation displaced from the project area plus ΔCBSL,LK,unplanned

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Estimation of Unplanned Deforestation Displaced from the Project Area to Outside the Leakage
Belt

Deforestation at the hands of immigrant agents outside the leakage belt is calculated in this section. The
first step involves calculating the total available national forest area for unplanned deforestation, using
Equation 3.11 and the values found in Table 3.25. AVFOR, was calculated to be 519,522,377 ha.
Equation 3.11. Equation for Calculating the Total Available National Forest Area for Unplanned
Deforestation.

AVFOR = TOTFOR - PROTFOR - MANFOR

Table 3.25. Parameters and Values used to Calculate the Total Available National Forest Area for
Unplanned Deforestation.
Parameter Description Value Justification/Source

AVFOR Total available national forest area 519,522,377

for unplanned deforestation; ha
TOTFOR Total available national forest area; 519,522,377 page 17, 2010 Brazil FRA
ha
PROTFOR Total area of fully protected forests 0 Conservatively set to zero
nationally; ha
MANFOR Total area of forests under active 0 Conservatively set to zero
management nationally; ha
FAO. 2009. Global Forest Resources Assessment 2010, Brazil Country Report. Forestry Department,
Food and Agriculture Organization of the United Nations, Rome.

Next, the ratio (PROPLB) of the forested area of the leakage belt (LBFOR) to the total available national
forest area (AVFOR) was calculated. PROPLB = 37,896 ha / 519,522,377 ha = 0.0000729.
The live aboveground tree carbon stock (COLB) was conservatively determined to be the highest stock
52
for Brazilian forests using data from Global Forest Resources Assessment 2010, Brazil Country Report
as found in Table 3.26. COLB = 458 t CO2-e ha-1

Table 3.26. Live Aboveground Biomass Carbon Stocks in Brazilian Forests.

1
Natural Forest Area (ha) in 2010 Aboveground Biomass AGB t C /ha AGB t
Biome Carbon Stock2 M t C CO2/ha

Amazon 354,389,794 44,298.70 125 458

Cerrado 70,007,832 2,396.70 34 126
Caatinga 46,774,120 1,380.80 30 108
Atlantic Forest 28,818,263 3,432.10 119 437
Pantanal 8,554,246 292.27 34 125
Pampa 3,560,541 424.00 119 437
Forest Plantations 7,417,580 520.80 70 257

52
FAO. 2009. Global Forest Resources Assessment 2010, Brazil Country Report. Forestry Department, Food and
Agriculture Organization of the United Nations, Rome.

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Total Area of Forest 519,522,377 Highest AGB 458
Stock
(Conservative
Estimate)
The FAO publication Global Forest Resources Assessment 2010, Brazil Country Report was the source
of information for the area of AVFOR, the forest strata, and the stocks of aboveground biomass carbon
present in each strata.
The area weighted average aboveground tree carbon stock for forests available for unplanned
deforestation inside the leakage belt (CLB) was calculated using data found in Section 3.1.4.

CLB = 414.7 t CO2e ha-1.

The proportional difference in carbon stocks between areas of forest available for unplanned
deforestation both inside and outside the leakage belt (PROPCS) was calculated as PROPCS = 458 t
CO2-e ha-1 / 414.7 t CO2e ha-1 = 1.105.

The proportional leakage for areas with immigrating populations was calculated using Equation 3.12. The
values for the parameters used in this equation can be found in Table 3.27.
Equation 3.12. Equation for Calculating the Proportional Leakage for Areas with Immigrating Populations.

Table 3.27. Parameters and Values used to Calculate the Proportional Leakage for Areas with
Immigrating Populations.
Parameter Description Value Justification/Source
LKPROP Proportional leakage for 0.058
areas with immigrating
populations; proportion
PROPIMM Estimated proportion of 0.053 Estimated above
baseline deforestation
caused by immigrating
population; proportion
PROPLB Area of forest available 0.0000729 Calculated above
for unplanned
deforestation as a
proportion of the total
national forest area
available for unplanned
deforestation;
proportion
PROPCS The proportional 1.105 Calculated above
difference in stocks
between areas of forest
available for unplanned
deforestation both
inside and outside the
Leakage Belt;
proportion

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The net leakage outside the leakage belt (ΔCLK-ASU,OLB) is calculated ex-ante using Equation 3.13.
The values for the parameters used in this equation can be found in Table 3.28. Annual values for ΔCLK-
ASU,OLB were calculated in Table 3.29.
53
Equation 3.13. Equation for Calculating the Net CO2 Emissions due to Unplanned Deforestation
Displaced Outside the Leakage Belt.
ΔCLK-ASU,OLB = ΔCP,LB - ΔCBSL,LK,unplanned * LKPROP
Table 3.28. Parameters and Values used to Calculate the Net CO 2 Emissions due to Unplanned
Deforestation Displaced Outside the Leakage Belt.
Parameter Description Value Justification/Source

ΔCLK-ASU,OLB Net CO2 emissions due to Calculated in Table

unplanned deforestation 3.29, below.
displaced outside the
leakage belt; t CO2e
ΔCBSL,LK,unplanned Net CO2 equivalent See Table 3.22. Calculated above
emissions in the baseline
from unplanned
deforestation in the
leakage belt; t CO2e
ΔCP,LB Net CO2 equivalent See Table 3.24. Calculated above
emissions within the
leakage belt in the project
case; t CO2e
LKPROP Proportional leakage for 0.058 Calculated above
areas with immigrating
populations; proportion

Table 3.29. Calculation of Net CO2 Emissions due to Unplanned Deforestation Displaced Outside the
Leakage Belt.
Year ΔCP,LB (t ΔCBSL,LK,unplanned LKPROP ΔCLK-
CO2-e) (t CO2-e) ASU,OLB
(t CO2-e)

2012 39,189 35,152 0.058 235

2013 259,694 237,009 0.058 1,319
2014 409,625 380,426 0.058 1,698
2015 372,279 344,023 0.058 1,643
2016 367,784 337,645 0.058 1,753
2017 344,567 317,929 0.058 1,549
2018 372,411 342,140 0.058 1,761
2019 375,219 344,183 0.058 1,805

53
This equation is incorrect in the methodology. Leakage should be calculated as with project emissions minus
baseline emissions.

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2020 344,021 314,928 0.058 1,692
2021 399,810 366,684 0.058 1,927

Emissions from Leakage Prevention Activities

Leakage prevention measures do not include the use of fertilizers or the burning of biomass. As such,
greenhouse gas emissions as a result of leakage of avoided deforestation activities (GHGLK,E) are
assumed to be zero.
Estimation of Total Leakage due to the Displacement of Unplanned Deforestation

The total leakage due to the displacement of unplanned deforestation is estimated in Table 3.31 using
Equation 3.14. GHG emissions are not included in the project boundary.

Equation 3.14. Equation for Estimation of Total Leakage due to the Displacement of Unplanned
Deforestation.

Table 3.30. Parameters and Values used to Estimate Total Leakage due to the Displacement of
Unplanned Deforestation.
Parameter Description Value Justification
ΔCLK-AS,unplanned Net greenhouse gas See Table 3.31 Calculated
emissions due to
activity shifting leakage
for projects preventing
unplanned
deforestation Net CO2
emissions; t CO2e
ΔCLK-ASU-OLB Net CO2 emissions due See Table 3.29. Calculated
to unplanned
deforestation displaced
outside the leakage
belt; t CO2e
ΔCLK-ASU-LB Net CO2 emissions due See Table 3.24. Calculated.
to unplanned
deforestation displaced
from the project area to
the leakage belt; t CO2e

Table 3.31. Calculation of the Total Leakage due to the Displacement of Unplanned Deforestation.
Year ΔCLK-ASU-OLB ΔCLK-ASU-LB (t GHGLK,E (t ΔCLK-
(t CO2-e) CO2-e) CO2-e) AS,unplanned (t
CO2-e)

2012 235 4,037 0 4,272

2013 1,319 22,685 0 24,005
2014 1,698 29,198 0 30,896
2015 1,643 28,256 0 29,900
2016 1,753 30,139 0 31,892

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2017 1,549 26,638 0 28,187
2018 1,761 30,271 0 32,032
2019 1,805 31,036 0 32,841
2020 1,692 29,093 0 30,785
2021 1,927 33,126 0 35,052
Total 15,382 264,479 0 279,861

3.4 Summary of GHG Emission Reductions and Removals

Uncertainty will be assessed applying module X-UNC.

Uncertainty in the baseline rate, parameter UncertaintyBSL,RATE, is equal to zero. Per the X-UNC module,
“It is here assumed that there is zero uncertainty in baseline rate of deforestation or degradation where
numbers are equal to a long-term average (BL-UP)” as they are for this project.

Total uncertainty in carbon stocks in forest (parameter UncertaintyBSL,SS) is equal to combined uncertainty
of forest carbon pool stock estimates, calculated using propagation of errors (equation 4 of VM0007
module X-UNC). Parameter UncertaintyBSL,SS is thus calculated to be 9.7% at the 95% confidence level
(calculations detailed in Forest Biomass Carbon Inventory Report) for the initial forest inventory. Results
of overall uncertainty calculations are presented below in Table 3.32.

Table 3.32. Summary of uncertainty calculations.

X-UNC
Equation 5 3 6 10 11
Number
Adjustment
factor
Parameter UncertaintyBSL,SS UncertaintyBSL,RATE, UncertaintyBSL,t* CREDD_ERROR,t*
applied to
CREDD, t *
Value 9.7% 0.0% 9.7% 9.7% 100%

Estimates of GHG credits eligible for issuance as VCUs were calculated in Table 3.33, below; where
Estimated GHG emission reduction credits =
Baseline emissions, fixed for 10 years at validation minus
Project emissions minus
Leakage minus

Non-permanence Risk Buffer withholding (calculated as a percent of net change in carbon stocks
prior to deduction of leakage, see Appendix A).

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Table 3.33. Ex-Ante Estimated of Net Emission Reduction Credits.

Years Estimated Estimated Estimated Risk buffer Deductions GHG credits

baseline project leakage (%) for AFOLU eligible for
emissions or emissions or emissions pooled issuance as
removals removals (tCO2e) buffer VCUs
(tCO2e) (tCO2e) account (tCO2e)
(tCO2e)
2012 34,205 9,426 4,272 10% 2,478 18,030

2013 190,685 50,984 24,005 10% 13,970 101,726

2014 243,544 63,183 30,896 10% 18,036 131,428
2015 233,773 58,670 29,900 10% 17,510 127,693
2016 248,221 61,118 31,892 10% 18,710 136,500
2017 217,214 51,216 28,187 10% 16,600 121,211
2018 246,296 57,493 32,032 10% 18,880 137,890
2019 251,397 57,501 32,841 10% 19,390 141,665
2020 233,279 50,825 30,785 10% 18,245 133,424
2021 265,663 57,931 35,052 10% 20,773 151,906

Over the first 10 year baseline period, the project area is expected to results in 1,645,928 tons t CO2e
reductions with a buffer pool contribution of 164,593 t CO2e and a total expected emission reduction of
1,201,474 t CO2e after account for leakage (279,861 t CO2e).

Table 3.34. Emissions Reductions (t CO2-e) Expected to be Generated by the Russas Project over the
10 Year Crediting Period.
Aspect of Emission Reductions t CO2e
Estimate

Net forest carbon sequestration (t CO2) 1,645,928

(Baseline-With project scenario)
Buffer pool contribution 164,593
Leakage 279,861
Total Emission Reductions 1,201,474

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4 Monitoring

4.1 Data and Parameters Available at Validation

Data and parameters calculated during the course of project development include those listed in this
section.

Data Unit / Parameter: ΔCBSL,PA,unplanned

Data unit: t CO2-e

Description: Net CO2 emissions in the baseline from
unplanned deforestation in the project area
Source of data: Derived in Section 3.1 of PD
Value applied: Set at start of baseline period
Justification of choice of data or description Derived and justified in Section 3 of PD in which
of measurement methods and procedures baseline is set
applied:
Any comment:

Data Unit / Parameter: CBSL,LK,unplanned

Data unit: t CO2-e

Description: Net CO2 emissions in the baseline from
unplanned deforestation in the leakage belt
Source of data: Derived in Section 3.1 and 3.2 of PD
Value applied: Set at start of baseline period
Justification of choice of data or description Derived and justified in Section 3 of PD in which
of measurement methods and procedures baseline is set
applied:
Any comment:

Data Unit / Parameter: CF

-1
Data unit: t C t d.m.
Description: Carbon fraction of biomass
Source of data: IPCC 2006GL
Value applied: 0.47
Justification of choice of data or description Global default
of measurement methods and procedures
applied:
Any comment:

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Data Unit / Parameter: COLB

Data unit: -1
t CO2-e ha
Description: Highest aboveground tree carbon stock for
forests available for unplanned deforestation
outside the Leakage Belt
Source of data: Derived from source data found in FAO. 2009.
Global Forest Resources Assessment 2010,
Brazil Country Report. Forestry Department,
Food and Agriculture Organization of the United
Nations, Rome.
-1
Value applied: 458 t CO2-e ha
Justification of choice of data or description Derived above in Section 3.3 of the PD
of measurement methods and procedures
applied:
Any comment:

4.2 Data and Parameters Monitored

Data and parameters which will need to be monitored include those listed in this section. Details on data
and parameters monitored are provided below.

Data Unit / Parameter: ΔCP,Def,i,t

Data unit: t CO2-e
Description: Net carbon stock change as a result of
deforestation in the project case in the project
area in stratum i at time t
Source of data: Calculated
Description of measurement methods and As this parameter was calculated rather than
procedures to be applied: measured, no measurements methods are noted.
Monitoring responsibilities are listed in section
4.3, below.
Frequency of monitoring/recording: Every < 5 years
Value applied: Year ΔCP,DefPA,i,t (t
CO2-e)
2012 8,995
2013 48,653
2014 60,295
2015 55,988
2016 58,324
2017 48,875

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2018 54,865
2019 54,872
2020 48,502
2021 55,283
Monitoring equipment: None.
QA/QC procedures to be applied: Neither QA/QC procedures nor calibration are
relevant for this calculated parameter.
Calculation method: Equation 3, VMD0015
Any comment: None

Data Unit / Parameter: ΔCP,DefLB,i,t

Data unit: t CO2-e
Description: Net carbon stock change as a result of
deforestation in the project case in the leakage
belt in stratum i at time t
Source of data: Calculated
Description of measurement methods and As this parameter was calculated rather than
procedures to be applied: measured, no measurements methods are noted.
Monitoring responsibilities are listed in section
4.3, below.
Frequency of monitoring/recording: Every < 5 years
Value applied: Year ΔCP,DefLB,i,t
(t CO2-e)
2012 39,189
2013 259,694
2014 409,625
2015 372,279
2016 367,784
2017 344,567
2018 372,411
2019 375,219
2020 344,021
2021 399,810
Monitoring equipment: None.
QA/QC procedures to be applied: Neither QA/QC procedures nor calibration are
relevant for this calculated parameter.
Calculation method: Equation 4, VMD0015
Any comment: None

Data Unit / Parameter: ΔCP,DistPA,i,t

Data unit: t CO2-e
Description: Net carbon stock change as a result of natural

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disturbance in the project case in the project area
in stratum i at time t
Source of data: Calculated
Description of measurement methods and As this parameter was calculated rather than
procedures to be applied: measured, no measurements methods are noted.
Monitoring responsibilities are listed in section
4.3, below.
Frequency of monitoring/recording: Every < 5 years
Value applied: Year ΔCP,DistPA,i,t
(t CO2-e)

2012 0
2013 0
2014 0
2015 0
2016 0
2017 0
2018 0
2019 0
2020 0
2021 0
Monitoring equipment: None.
QA/QC procedures to be applied: Neither QA/QC procedures nor calibration are
relevant for this calculated parameter.
Calculation method: Equation 20, VMD0015
Any comment: None

Data Unit / Parameter: ADefPA,u,i,t

Data unit: Ha
Description: Area of recorded deforestation in the project area
stratum i converted to land use u at time t
Source of data: Monitored at each monitoring/verification event
through the use of classified satellite imagery
Description of measurement methods and Detailed procedures are provided below under
procedures to be applied: monitoring plan description.
Monitoring responsibilities are listed in section
4.3, below.
Frequency of monitoring/recording: Every < 5 years
Value applied: See Table 3.14
Monitoring equipment: ArcGIS
QA/QC procedures to be applied: Detailed procedures provided below under

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monitoring plan description

Calculation method: Not relevant

Any comment: None

Data Unit / Parameter: ADefLB,u,i,t

Data unit: Ha
Description: Area of recorded deforestation in the leakage belt
stratum i converted to land use u at time t
Source of data: Monitored at each monitoring/verification event
through the use of classified satellite imagery
Description of measurement methods and Detailed procedures provided below under
procedures to be applied: monitoring plan description.
Monitoring responsibilities are listed in section
4.3, below.
Frequency of monitoring/recording: Every < 5 years
Value applied: See Table 3.15
Monitoring equipment: ArcGIS
QA/QC procedures to be applied: Detailed procedures provided below under
monitoring plan description
Calculation method: Not relevant
Any comment: None

Data Unit / Parameter: ADistPA,q,i,t

Data unit: ha
Description: Area impacted by natural disturbance in post-
natural disturbance stratum q in stratum i, at time
t
Source of data: Monitored at each monitoring/verification event
through the use of classified satellite imagery
Description of measurement methods and Detailed procedures provided below under
procedures to be applied: monitoring plan description.
Monitoring responsibilities are listed in section
4.3, below.
Frequency of monitoring/recording: Every < 5 years
Value applied: Year ADistPA,q,i,t
2012 0
2013 0
2014 0

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2015 0
2016 0
2017 0
2018 0
2019 0
2020 0
2021 0
Monitoring equipment: ArcGIS
QA/QC procedures to be applied: Detailed procedures provided below under
monitoring plan description
Calculation method: Not relevant
Any comment: None

Data Unit / Parameter: CBSL,i

-1
Data unit: t CO2-e ha
Description: Carbon stock in all pools in the baseline case in
stratum i
Source of data: Estimated from forest carbon inventory.

Description of measurement methods and Detailed procedures provided below under

procedures to be applied: monitoring plan description
Monitoring responsibilities are listed in section
4.3, below.
Frequency of monitoring/recording: Every < 10 years.
Value applied: CBSL,i (t CO2-e ha-
Strata
1)
FAB + FAP 441.9
FAP 458.1
FAP - Aluvial 370.5
FAP + FAB + FD or
482.1
FAP + FD + FAB
FAP + FD or FD +
389.5
FAP
FAB - Aluvial 424.4
Monitoring equipment: dbh tape, measuring tape, GPS, clinometer
QA/QC procedures to be applied: Detailed procedures provided below under
monitoring plan description
Calculation method: Use equations as stated in the forest inventory,
including allometric equations as found in Brown
(1997), a volumetric based palm equation, Cairns
et al. (1997), Van Wagner (1968)
Any comment: None

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Data Unit / Parameter: ΔCpools,Def,u,i,t

-1
Data unit: t CO2-e ha
Description: Carbon stock in all pools in post-deforestation
land use u in stratum i
Source of data: Calculated.
Description of measurement methods and As this parameter was calculated rather than
procedures to be applied: measured, no measurements methods are noted.
Monitoring responsibilities are listed in section
4.3, below.
Frequency of monitoring/recording: Every < 10 years.
Value applied: 35.2
Monitoring equipment: None.
QA/QC procedures to be applied: Detailed procedures provided below under
monitoring plan description
Calculation method: Equation 5, VMD0015
Any comment: None

Data Unit / Parameter: ADegW,i,t

Data unit: ha
Description: Area potentially impacted by degradation
processes in stratum i
Source of data: Delineated based on survey results indicating
general area of project potentially accessed and
typical depth of penetration of illegal harvest
activities from points of access
Description of measurement methods and Detailed procedures provided below under
procedures to be applied: monitoring plan description.
Monitoring responsibilities are listed in section
4.3, below.
Frequency of monitoring/recording: Repeated each time the PRA indicates a
potential for degradation. PRA conducted every <
2 years
Value applied: 0,
Monitoring equipment: None.
QA/QC procedures to be applied: Detailed procedures provided below under
monitoring plan description.
Calculation method: Not relevant
Any comment: PRAs indicated no degradation

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Data Unit / Parameter: CDegW,i,t

Data unit: t CO2-e
Description: Biomass carbon of trees cut and removed
through degradation process from plots
measured in stratum i at time t
Source of data: Estimated from diameter measurements of cut
stumps in sample plots
Description of measurement methods and Detailed procedures provided below under
procedures to be applied: monitoring plan description.
Monitoring responsibilities are listed in section
4.3, below.
Frequency of monitoring/recording: Every < 5 years where surveys and limited
sampling continue to indicate possibility of illegal
logging in the project area
Value applied: 0
Monitoring equipment: None.
QA/QC procedures to be applied: Detailed procedures provided below under
monitoring plan description.
Calculation method: Equation 8, VMD0015
Any comment: PRAs indicated no degradation

Data Unit / Parameter: APi

Data unit: ha
Description: Total area of degradation sample plots in stratum
i
Source of data: Calculated as 3% of ADegW,i,t
Description of measurement methods and Detailed procedures provided below under
procedures to be applied: monitoring plan description.
Monitoring responsibilities are listed in section
4.3, below.
Frequency of monitoring/recording: Every < 5 years where surveys and limited
sampling continue to indicate possibility of illegal
logging in the project area
Value applied: To be determined
Monitoring equipment: ArcGIS
QA/QC procedures to be applied: Detailed procedures provided below under
monitoring plan description.
Calculation method: Not relevant

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Any comment: None

Data Unit / Parameter: ΔCP,DegW,i,t

Data unit: t CO2-e
Description: Net carbon stock changes as a result of
degradation in stratum i in the project area at time
t
Source of data: Calculated
Description of measurement methods and As this parameter was calculated rather than
procedures to be applied: measured, no measurements methods are noted.
Monitoring responsibilities are listed in section
4.3, below.
Frequency of monitoring/recording: Every < 5 years where surveys and limited
sampling continue to indicate possibility of illegal
logging in the project area
Value applied: 0
Monitoring equipment: None
QA/QC procedures to be applied: Neither QA/QC procedures nor calibration are
relevant for this calculated parameter.
Calculation method: Equation 8, VMD0015
Any comment: PRAs indicated no degradation

Data Unit / Parameter: PROPIMM

Data unit: Proportion

Description: Estimated proportion of baseline deforestation
caused by immigrating population
Source of data: Calculated based on results of survey of
communities in the area around the project.
Description of measurement methods and Detailed procedures provided below under
procedures to be applied: monitoring plan description.
Monitoring responsibilities are listed in section
4.3, below.
Frequency of monitoring/recording: Every < 5 years
Value applied: 0.053
Monitoring equipment: None
QA/QC procedures to be applied: Detailed procedures provided below under
monitoring plan description
Calculation method: Not relevant

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Any comment: None

Data Unit / Parameter: PROPRES

Data unit: Proportion

Description: Estimated proportion of baseline deforestation
caused by population that has been resident for
≥5 years
Source of data: Calculated based on results of survey of
communities in the area around the project.
Description of measurement methods and Detailed procedures provided below under
procedures to be applied: monitoring plan description.
Monitoring responsibilities are listed in section
4.3, below.
Frequency of monitoring/recording: Every < 5 years
Value applied: 0.947
Monitoring equipment: None
QA/QC procedures to be applied: Detailed procedures provided below under
monitoring plan description
Calculation method: Not relevant
Any comment: None

Data Unit / Parameter: TOTFOR

Data unit: ha
Description: Total available national forest area
Source of data: Official data, peer reviewed publications,
remotely sensed imagery (coarse scale imagery
is appropriate) or cadastral maps and other
verifiable sources

Description of measurement methods and Procedures provided below under monitoring

procedures to be applied: plan description.
Monitoring responsibilities are listed in section
4.3, below.
Frequency of monitoring/recording: Prior to each verification event and at least every
5 years.
Value applied: 519,522,377
Monitoring equipment: None
QA/QC procedures to be applied: Detailed procedures provided below under

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monitoring plan description
Calculation method: Not relevant
Any comment: None

Data Unit / Parameter: PROTFOR

Data unit: ha
Description: Total area of fully protected forests nationally
Source of data: Official data, peer reviewed publications and
other verifiable sources
Description of measurement methods and Procedures provided below under monitoring
procedures to be applied: plan description.
Monitoring responsibilities are listed in section
4.3, below.
Frequency of monitoring/recording: Prior to each verification event and at least every
5 years.
Value applied: 0
Monitoring equipment: None
QA/QC procedures to be applied: Detailed procedures provided below under
monitoring plan description
Calculation method: Not relevant
Any comment: None

Data Unit / Parameter: MANFOR

Data unit: ha
Description: Total area of forests under active management
nationally
Source of data: Official data, peer reviewed publications and
other verifiable sources
Description of measurement methods and Procedures provided below under monitoring
procedures to be applied: plan description.
Monitoring responsibilities are listed in section
4.3, below.
Frequency of monitoring/recording: Prior to each verification event and at least every
5 years.
Value applied: 0
Monitoring equipment: None
QA/QC procedures to be applied: Detailed procedures provided below under

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monitoring plan description
Calculation method: Not relevant
Any comment: None

Data Unit / Parameter: ARRL,forest,t

Data unit: ha
Description: Remaining area of forest in RRL at time t
Source of data: Calculated
Description of measurement methods and As this parameter was calculated rather than
procedures to be applied: measured, no measurements methods are noted.
Monitoring responsibilities are listed in section
4.3, below.
Frequency of monitoring/recording: Prior to each verification event and at least every
5 years.
Value applied: ARRL,Forest1999 4,424,719
ARRL,Forest2011 4,184,021
Monitoring equipment: ArcGIS
QA/QC procedures to be applied: Neither QA/QC procedures nor calibration are
relevant for this calculated parameter.
Calculation method: Calculated as the total area of the RRL minus all
nonforested areas.
Any comment: None

Data Unit / Parameter: Aburn,q,i,t.

Data unit: ha
Description: Area burnt in post-natural disturbance stratum q
in stratum i, at time t;
Source of data: See parameter ADistPA,q,i,t and ADefPA,u,i,t
Description of measurement methods and Monitored as part of ADistPA,q,i,t
procedures to be applied: Monitoring responsibilities are listed in section
4.3, below.
Frequency of monitoring/recording: Every < 5 years
Value applied: Year Aburn,q,i,t. (ha)

2012 23.4
2013 126.5
2014 156.7
2015 145.5
2016 151.6

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2017 127.0
2018 142.6
2019 142.6
2020 126.1
2021 143.7
Monitoring equipment: None.
QA/QC procedures to be applied: Detailed procedures provided below under
monitoring plan description
Calculation method: Aburn,q,i,t.= = ADistPA,q,i,t (area burnt in natural
disturbance) + ADefPA,u,i,t (area burnt via
deforestation in project ex post)
Any comment: None

Data Unit / Parameter: dbh

Data unit: cm
Description: diameter at breast height
Source of data: Monitored during the course of each forest
inventory
Description of measurement methods and Detailed procedures provided below in Appendix
procedures to be applied: B
Monitoring responsibilities are listed in section
4.3, below.
Frequency of monitoring/recording: Every < 10 years
Value applied: See forest inventory excel sheet.
Monitoring equipment: dbh tape, measuring tape,
QA/QC procedures to be applied: Detailed procedures are provided below under
monitoring plan description.
Calculation method: Not relevant
Any comment: None

Data Unit / Parameter: dbasal

Data unit: cm
Description: Basal diameter
Source of data: Monitored during the course of each forest
inventory
Description of measurement methods and Detailed procedures provided below in Appendix
procedures to be applied: B
Monitoring responsibilities are listed in section
4.3, below.

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Frequency of monitoring/recording: Every < 10 years
Value applied: See forest inventory excel sheet.
Monitoring equipment: dbh tape, measuring tape,
QA/QC procedures to be applied: Detailed procedures are provided below under
monitoring plan description.
Calculation method: Not relevant
Any comment: Dbh may be used as a conservative estimate of
dbasal

Data Unit / Parameter: H

Data unit: m
Description: Height of tree
Source of data: Monitored during the course of each forest
inventory
Description of measurement methods and Detailed procedures provided below in Appendix
procedures to be applied: B
Monitoring responsibilities are listed in section
4.3, below.
Frequency of monitoring/recording: Every < 10 years
Value applied: See forest inventory excel sheet.
Monitoring equipment: measuring tape, clinometer
QA/QC procedures to be applied: Detailed procedures are provided below under
monitoring plan description.
Calculation method: Not relevant
Any comment: None

Data Unit / Parameter: Dn

Data unit: cm
Description: Diameter of piece n of dead wood along the
transect
Source of data: Monitored during the course of each forest
inventory
Description of measurement methods and Detailed procedures provided below in Appendix
procedures to be applied: B
Monitoring responsibilities are listed in section
4.3, below.
Frequency of monitoring/recording: Every < 10 years
Value applied: See forest inventory excel sheet.
Monitoring equipment: dbh tape, measuring tape

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QA/QC procedures to be applied: Detailed procedures are provided below under
monitoring plan description.
Calculation method: Not relevant
Any comment: None

Data Unit / Parameter: N

Data unit: dimensionless
Description: Total number of wood pieces intersecting the
transect
Source of data: Monitored during the course of each forest
inventory
Description of measurement methods and Detailed procedures provided below in Appendix
procedures to be applied: B
Monitoring responsibilities are listed in section
4.3, below.
Frequency of monitoring/recording: Every < 10 years
Value applied: See forest inventory excel sheet.
Monitoring equipment: None
QA/QC procedures to be applied: Detailed procedures are provided below under
monitoring plan description.
Calculation method: Not relevant
Any comment: None

Data Unit / Parameter: L

Data unit: m
Description: Length of the transect
Source of data: Monitored during the course of each forest
inventory

Description of measurement methods and Detailed procedures provided below in Appendix

procedures to be applied: B
Monitoring responsibilities are listed in section
4.3, below.
Frequency of monitoring/recording: Every < 10 years
Value applied: 184 m
Monitoring equipment: measuring tape,
QA/QC procedures to be applied: Detailed procedures are provided below under
monitoring plan description.
Calculation method: Not relevant
Any comment: None

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Data Unit / Parameter: UP,SS,i,pool#

Data unit: %

Description: Percentage uncertainty (expressed as 95%

confidence interval as a percentage of the mean
where appropriate) for carbon stocks and
greenhouse gas sources in the with-project case
(1,2…n represent different carbon pools and/or
GHG sources)

Source of data: Calculations arising from field measurement data

Description of measurement methods and Uncertainty in pools derived from field

procedures to be applied: measurement with 95% confidence interval
calculated as the standard error of the averaged
plot measurements in each stratum multiplied by
the t value for the 95% confidence level.

Monitoring responsibilities are listed in section

4.3, below.

Frequency of monitoring/recording: Monitored at least once every 10 years (on re-

measurement of forest carbon stocks)

Value applied: Same as UBSL,SS,i,pool# values below.

Monitoring equipment: None

QA/QC procedures to be applied: Neither QA/QC procedures nor calibration are

relevant for this calculated parameter.

Calculation method: Not relevant

Any comment: Same as UBSL,SS,i,pool# values below as forest

carbon stock growth was not tracked.

Data Unit / Parameter: EBSL SS,i, pool#

Data unit: t CO2-e
Description: Carbon stock or GHG sources (e.g. trees, dead wood, soil
organic carbon, emission from fertilizer addition, emission from
biomass burning etc.) in the baseline case
Source of data: Calculated

Description of measurement As this parameter was calculated rather than measured, no

methods and procedures to measurements methods are noted.

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be applied: Monitoring responsibilities are listed in section 4.3, below.
Frequency of Every < 10 years.
monitoring/recording:
Value applied: Strata Live Belowground Standing Lying dead
aboveground biomass dead wood wood
tree biomass

FAP 5,926,339 1,343,754 81,394 75,108

FAB + FAP 4,063,545 922,537 19,465 199,338
FAP + FD 5,812,094 1,335,873 152,414 167,009
or FD +
FAP
FAP - 1,954,348 449,895 32,948 60,536
Aluvial
FAP + FAB 6,921,606 1,563,641 45,383 210,652
+ FD or
FAP + FD +
FAB
Monitoring equipment: None
QA/QC procedures to be Neither QA/QC procedures nor calibration are relevant for this
applied: calculated parameter.

Calculation method: Not relevant

Any comment: Baseline stocks and sources are estimated ex-ante for each
baseline period

Data Unit / Parameter: UBSL,SS,i,pool#

Data unit: %
Description: Percentage uncertainty (expressed as 95% confidence interval
as a percentage of the mean where appropriate) for carbon
stocks and greenhouse gas sources in the baseline case
(1,2…n represent different carbon pools and/or GHG sources)
Source of data: Calculated

Description of measurement As this parameter was calculated rather than measured, no

methods and procedures to measurements methods are noted.
be applied: Monitoring responsibilities are listed in section 4.3, below.
Frequency of Every < 10 years.
monitoring/recording:
Value applied: Strata Live Belowground Standing Lying dead
aboveground biomass dead wood wood
tree biomass

FAP 18.6% 17.2% 179.7% 54.6%

FAB + FAP 42.5% 39.7% 60.9% 76.5%
FAP + FD 14.2% 13.2% 138.4% 37.1%
or FD +
FAP
FAP - 79.4% 74.0% 283.2% 221.8%
Aluvial

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FAP + FAB 17.7% 16.4% 62.9% 45.9%
+ FD or
FAP + FD +
FAB
Monitoring equipment: None
QA/QC procedures to be Neither QA/QC procedures nor calibration are relevant for this
applied: calculated parameter.

Calculation method: See equation 4 in the X-UNC module.

Any comment: Baseline stocks and sources are estimated ex-ante for each
baseline period

Data Unit / Parameter: EBSL SS,i

Data unit: t CO2-e
Description: Sum of combined carbon stocks and GHG
sources in stratum i multiplied by the area of
stratum i (Ai) in the baseline case
Source of data: Calculated

Description of measurement methods and As this parameter was calculated rather than
procedures to be applied: measured, no measurements methods are noted.
Monitoring responsibilities are listed in section
4.3, below.
Frequency of monitoring/recording: Every < 10 years.
Value applied: Strata EBSL,SS,t,I
(tCO2e)
FAP 7,426,595
FAB + FAP 5,204,885
FAP + FD or FD + FAP 7,467,390
FAP - Alluvial 2,497,727
FAP + FAB + FD or FAP + 8,741,282
FD + FAB
Monitoring equipment: None
QA/QC procedures to be applied: Neither QA/QC procedures nor calibration are
relevant for this calculated parameter.
Calculation method: Not relevant
Any comment: Baseline stocks and sources are estimated ex-
ante for each baseline period

Data Unit / Parameter: UBSL,SS,i

Data unit: %

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Description: Percentage uncertainty in the combined carbon
stocks and greenhouse gas sources in stratum i
in the baseline case
Source of data: Calculated

Description of measurement methods and As this parameter was calculated rather than
procedures to be applied: measured, no measurements methods are noted.
Monitoring responsibilities are listed in section
4.3, below.
Frequency of monitoring/recording: Every < 10 years.
Value applied: Strata UncertaintyBSL,SS,I
(%)
FAP 15.3%
FAB + FAP 34.1%
FAP + FD or FD + 11.7%
FAP
FAP - Alluvial 63.9%
FAP + FAB + FD or 14.4%
FAP + FD + FAB
Monitoring equipment: None
QA/QC procedures to be applied: Neither QA/QC procedures nor calibration are
relevant for this calculated parameter.
Calculation method: See equation 5 in the X-UNC module.
Any comment: Baseline stocks and sources are estimated ex-
ante for each baseline period

Data Unit / Parameter: Bi,t

Data unit: tonnes d. m. ha-1
Description: Average aboveground biomass stock before burning
stratum i,time t
Source of data: Calculated using forest inventory data
Description of measurement methods Detailed forest inventory procedures are provided in
and procedures to be applied: Appendix B of the project document.
Monitoring responsibilities are listed in section 4.3,
below.
Frequency of monitoring/recording: Every < 10 years
Value applied: Bi,t (tonnes d.m./ha) Ex- 200.0
ante Project Area
Bi,t (tonnes d.m./ha) Ex- 197.4
ante Leakage Belt
Monitoring equipment: None

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QA/QC procedures to be applied: Detailed procedures are provided below under
monitoring plan description.
Calculation method: Use equations as stated in the forest inventory,
including allometric equations as found in Brown
(1997) and a volumetric based palm equation, Van
Wagner (1968)
Any comment: Ex-ante Bi,t is the weighted average across all strata

Data Unit / Parameter: AGB

Data unit: tonnes d. m. ha-1
Description: Aboveground biomass density
Source of data: Calculated using forest inventory data
Description of measurement methods and Detailed forest inventory procedures are provided
procedures to be applied: in Appendix B of the project document.
Monitoring responsibilities are listed in section
4.3, below.
Frequency of monitoring/recording: Every < 10 years
Value applied: Plot level values can be found in the Forest
Inventory Report
Monitoring equipment: None
QA/QC procedures to be applied: Detailed procedures are provided below under
monitoring plan description.
Calculation method: Use equations as stated in the forest inventory,
including allometric equations as found in Brown
(1997) and a volumetric based palm equation,
Van Wagner (1968)
Any comment: None

Data Unit / Parameter: Asp

Data unit: ha
Description: Area of sample plots in ha

Source of data: Recording and archiving of number and size of

sample plots
Description of measurement methods and Detailed forest inventory procedures are provided
procedures to be applied: in Appendix B of the project document.
Monitoring responsibilities are listed in section
4.3, below.
Frequency of monitoring/recording: Every < 10 years
Value applied: 0.16619 ha or a 23m radius circle

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Monitoring equipment: m
QA/QC procedures to be applied: Detailed procedures provided below under
monitoring plan description
Calculation method: Not relevant
Any comment: None

Data Unit / Parameter: Hsdw

Data unit: m
Description: Height of standing dead tree in m
Source of data: Monitored during the course of each forest
inventory
Description of measurement methods and Detailed procedures provided below in Appendix
procedures to be applied: B.
Monitoring responsibilities are listed in section
4.3, below.
Frequency of monitoring/recording: Every < 10 years
Value applied: See forest inventory excel workbook.
Monitoring equipment: measuring tape, clinometer
QA/QC procedures to be applied: Detailed procedures are provided below under
monitoring plan description.
Calculation method: Not relevant
Any comment: None

Data Unit / Parameter: DDWdc

Data unit: t d.m. m-3

Description: Mean wood density of dead wood in the density

class (dc) – sound (1),intermediate (2), and rotten
(3); t d.m. m-3
Source of data: Monitored during the course of each forest inventory
Description of measurement methods Detailed procedures provided below in Appendix B.
and procedures to be applied: Monitoring responsibilities are listed in section 4.3,
below.
Frequency of monitoring/recording: Every < 10 years
Value applied: Density Class Density (t d.m. m-3)
Rotten (P) 0.118
Intermediary (I) 0.216
Solid (S) 0.313
Monitoring equipment: dbh tape, measuring tape, drying oven

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QA/QC procedures to be applied: Detailed procedures provided below under
monitoring plan description
Calculation method: Not relevant
Any comment: None

Data Unit / Parameter: CP,Dist,q,i

Data unit: t CO2-e ha-1
Description: Carbon stock in all pools in post-natural
disturbance q in baseline stratum i
Source of data: Monitored
Description of measurement methods and Detailed procedures provided below in Appendix
procedures to be applied: B. Monitoring responsibilities are listed in section
4.3, below.
Frequency of monitoring/recording: Prior to each verification event and at least every
5 years.
Value applied: Year CP,Dist,q,i
(t CO2-e)

2012 0
2013 0
2014 0
2015 0
2016 0
2017 0
2018 0
2019 0
2020 0
2021 0
Monitoring equipment: dbh tape, measuring tape, GPS, clinometer
QA/QC procedures to be applied: Detailed procedures provided below under
monitoring plan description
Calculation method: Use equations as stated in the forest inventory,
including allometric equations as found in Brown
(1997) and a volumetric based palm equation,
Cairns et al. (1997), Van Wagner (1968). Carbon
stocks must be measured and estimated using
the methods given in module CP-AB and CP-D.

Any comment: Alternatively, it can be conservatively assumed

that a post-natural disturbance live and dead
vegetation pool is equal to zero

Data Unit / Parameter: fj(X,Y)

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Data unit: t d.m. tree-1
Description: Allometric equation for species j linking measured
tree variable(s) to aboveground biomass of living
trees.
Source of data: Data resulting from the forest inventory.
Description of measurement methods and Not applicable. Monitoring responsibilities are
procedures to be applied: listed in section 4.3, below.
Frequency of monitoring/recording: Every < 10 years
Value applied: See forest inventory excel workbook.
Monitoring equipment: Not applicable
QA/QC procedures to be applied: Detailed procedures are provided below under
monitoring plan description.
Calculation method: Brown, S., 1997. Estimating biomass and
biomass change of tropical forests: A primer.
FAO Forestry Paper: vii, 55 p.
Any comment: The Brown 1997 equation was validated as per
methodological guidance. See “Forest biomass
carbon inventory for the Russas and Valparaiso
Properties, Acre State, Brazil,” 2013 for details.

4.3 Description of the Monitoring Plan

This monitoring plan has been developed in close conjunction with module VMD0015 of the REDD
Methodological Module, “Methods for monitoring of greenhouse gas emissions and removals (M-MON).”
This section focuses on establishing procedures for monitoring deforestation, illegal degradation, natural
disturbance, and project emissions ex-post in the project area and leakage belt. Further, procedures for
updating the forest carbon stocks and revising the baseline are also provided below.
For accounting purposes, the project conservatively assumes stable stocks and no biomass monitoring is
conducted in areas undergoing carbon stock enhancement, as permitted in the methodology monitoring
module VMD0015, hence ∆CP,Enh,i,t is set to 0.
Further as no commercial harvest of timber (including FSC selective logging) occurs in the baseline or
with project case, the degradation due to harvest of timber will not be monitored, thus parameter
ΔCP,SelLog,i,t is set to 0.
A separate section on quality assurance/quality control and data archiving procedures covers all
monitoring tasks.
Organizations responsible for monitoring are listed below in Table 4.6. These organizations are
responsible for implementing all aspects of a particular monitoring task, as described in the monitoring
sub-sections below.

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Estimation of ex-post net carbon stock changes and greenhouse gas emissions

Ex-post net carbon stock changes and greenhouse gas emissions can only be calculated after
monitoring:
 The net carbon stock change as a result of deforestation in the project area;

 The net carbon stock change as a result of degradation in the project area;

 The net carbon stock change as a result of natural disturbance in the project area; and
 The greenhouse gas emissions as a result of deforestation and degradation activities within the
project area.

Monitoring Deforestation and Natural Disturbance

Forest cover change due to deforestation and natural disturbance is monitored through periodic
assessment of classified satellite imagery, see below, covering the project area. Emissions (ΔCP,Def,i,t and
ΔCP,DistPA,i,t for deforestation and natural disturbance, respectively) are estimated by the multiplying areas
ADefPA,u,i,t and ADistPA,q,i,t,, for deforestation and natural disturbance, respectively, by average forest carbon
stock per unit area. Note that ADistPA,q,i,t,, is limited to the area where credits have been issued and is
identified as the overlap between the delineated area of the disturbance and the summed area of
unplanned deforestation in the project area to the year in which the disturbance occurred. Stock
estimates from the initial field inventory completed in 2013, are valid for 10 years (per VM0007). Table 4.1
shows the data and parameters monitored.

Table 4.1 Data and Parameters for Monitoring Deforestation and Natural Disturbance.
Source/
Justification of
Choice of Data or
Parameter Description Units
Description of
Measurement
Methods
ΔCP,Def,i,t Net carbon stock change as a result t CO2e Calculated
of deforestation in the project case in
the project area in stratum i at time t
ΔCP,DistPA,i,t Net carbon stock change as a result t CO2e Calculated
of natural disturbance in the project
case in the project area in stratum i
at time t
ADefPA,u,i,t Area of recorded deforestation in the Ha Monitored for each
project area stratum i converted to verification event
land use u at time t
ADistPA,q,i,t Area impacted by natural Ha Monitored for each
disturbance in post-natural verification event
disturbance stratum q in stratum i, at
time t
-1
CBSL,i Carbon stock in all pools in the t CO2e ha Estimated from the
baseline case in stratum i forest carbon
inventory
ARRL,forest,t Remaining area of forest in RRL at Ha Updated prior to
time t each verification
event

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Changes in forest cover (ADefPA,u,i,t and ADistPA,q,i,t) will be monitored using data provided by the State of
Acre. UCEGEO, the GIS department within the Climate Change Institute, Acre State government,
produces an annual dataset on the extent and spatial location of all deforestation within the state using
Landsat images. This dataset is based on classification of a series of Landsat imagery. Each image
selected for classification contains less than 10% cloud cover. This is followed by processing of the
images by applying the filter HAZE. This algorithm was developed by Carlotto and aims to improve
visibility by reducing the effect of atmospheric haze and smoke. This algorithm was applied using the
software ENVI, version 4.6. This step was followed by geometric correction using base the NASA
GeoCover 2000 product as the base data. ENVI + IDL, version 4.6 were used to group multispectral
bands, while ERDAS IMAGINE 9.1 software was used for georeferencing. The RMS error of the
georeferenced product was < 1 pixel, meeting good practice standards in remote sensing. Additional
details on pre-processing can be found in the UCEGEO methodology. Deforestation and natural
disturbance will be distinguished using ancillary data which may include but is not limited to high
resolution imagery, digital elevation models (to identify steep areas prone to landslides), information from
local land managers, etc.

In the case, where this dataset ceases to be available, ex-post deforestation will be determined by
classification of remotely sensed imagery and land use change detection procedures.

The project area (and leakage belt boundary), as set in the PD, will serve as the initial “forest cover
benchmark map” against which changes in forest cover will be assessed over the interval of the first
monitoring period; the entire project area has been demonstrated to meet the forest definition at the
beginning of the crediting period. For subsequent monitoring periods, change in forest cover will be
assessed against the preceding classified forest cover map marking the beginning of the monitoring
interval. Thus, the forest benchmark map is updated at each monitoring event.
The area of remaining forest in the RRL (ARRL,forest,t) is derived by subtracting by the nonforested area
within the RRL, as found in the forest benchmark map (updated at each monitoring event), from the total
area of the RRL.
Monitoring Illegal Degradation

Emissions due to illegal logging will be tracked by conducting surveys in the surrounding areas every two
years. Locations surveyed will include:
 Families residing on the Russas property adjacent to the project area; and

 Nearby ranches and rural properties, along the Jurua and Valparaiso Rivers and secondary roads
approaching the project area.

Surveys will produce information on wood consumers (fuel wood and wood for construction and charcoal
production) in the surroundings areas, as well as general indications on the areas where wood is sourced
from and maximum depth of penetration of harvest activities from access points.
In the event that any potential of illegal logging occurring in the project area is detected from the surveys
(i.e. ≥ 10% of those interviewed/surveyed believe that degradation may be occurring within the project
boundary), temporary sample plots will be allocated and measured in the area of the project indicated by
the surveys as a potential source area for illegally-harvested wood. The potential degradation area within
the project area (ADegW,i) will be delineated based on survey results, incorporating general area

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information and maximum depth of penetration. Rectangular plots 10 meters by 1 kilometer (1 ha area)
will be randomly or systematically allocated in the area, sufficient to produce a 1% sample of the area,
and any recently-cut stumps or other indications of illegal harvest will be noted and recorded. Diameter at
breast height, or diameter at height of cut, whichever is lower, of cut stumps will be measured.

In the event that the sample plot assessment indicated that illegal logging is occurring in the area,
supplemental plots will be allocated to achieve a 3% sample of the area. Biomass will be estimated from
measured diameters (conservatively assuming that diameters of stumps cut below breast height are
equivalent to diameter at breast height) applying the allometric equations of Brown (1997) and otherwise
maintain consistency with analytical procedures applied in the original forest inventory report. Emissions
due to illegal logging (ΔCP,DegW,i,t) are estimated by multiplying area (ADegW,i) by average biomass carbon
of trees cut and removed per unit area (CDegW,i,t / APi).

The more intensive 3% sample will be carried out once every 5 years where surveys and limited sampling
continue to indicate possibility of illegal logging in the project area to produce an estimate of emissions
resulting from illegal logging (ΔCP,DegW,i). Estimates of emissions will be annualized (to produce estimates
in t CO2e per year) by dividing the emission for the monitoring interval by the number of years in the
interval.
Table 4.2 Data and Parameters for Monitoring Illegal Degradation.
Source/
Justification of
Choice of Data or
Parameter Description Units
Description of
Measurement
Methods
ADegW,i,t Area potentially impacted by Ha Delineated based on
degradation processes in stratum i survey results
indicating general
area of project
potentially accessed
and typical depth of
penetration of illegal
harvest activities
from points of
access
CDegW,i,t Biomass carbon of trees cut and t CO2e Estimated from
removed through degradation diameter
process from plots measured in measurements of cut
stratum i at time t stumps in sample
plots
APi Total area of degradation sample Ha Calculated as 3% of
plots in stratum i ADegW,i,t
ΔCP,DegW,i,t Net carbon stock changes as a t CO2e Calculated
result of degradation in stratum i in
the project area at time t

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Monitoring Project Emissions

With project emissions are calculated as the sum of emission from fossil fuel combustion (EFC,i,t) + non-
CO2 emissions due to biomass burning (EBiomassBurn,i,t) + direct N2O emissions as a result of nitrogen
application (N2Odirect-N,i,t.). As stipulated in the methodology, fossil fuel combustion in all situations is
an optional emission source. Further, no nitrogen is applied on alternative land uses in the with project
case and hence project emissions therefore equal EBiomassBurn and are calculated using the VMD0013,
“Estimation of greenhouse gas emissions from biomass burning (E-BB)” of the AD Partners modular
REDD Methodology.

Non-CO2 emissions from biomass burning in the project case include emissions from burning associated
with deforestation and burning associate with natural disturbance, i.e. forest fire. It will be conservatively
assumed that the total area burnt during the deforestation process is equal to the area deforested,
ADefPA,u,i,t. Thus, the area used when calculating E-BB is equal to Aburn,i,t. (area burnt) = Aburn,q,i,t.
(area burnt in natural disturbance) + ADefPA,u,i,t (area burnt via deforestation in project ex post).

Also, it is conservatively assumed that burning is a part of the forest conversion process in all incidents of
deforestation taking place in the leakage belt. Thus, for deforested strata in the leakage belt, parameter
Aburn,i,t (Area burnt for stratum i at time t; ha) will be set equal to monitored parameter ADefLB,i,t (Area of
recorded deforestation in the leakage belt at time t; ha). The T-SIG tool can then be applied, and if
parameter E BiomassBurn,t (Greenhouse emissions due to biomass burning as part of deforestation activities
in stratum i in year t) is determined to be insignificant, E BiomassBurn,t, can be assumed equal to zero.

Table 4.3 Data and Parameters for Monitoring Emissions from Biomass Burning.
Parameter Description Units Source/ Justification of
Choice of Data or
Description of
Measurement Methods
E BiomassBurn,t Greenhouse emissions tCO2e of each GHG Calculated
due to biomass (CH4, N2O)
burning as part of
deforestation activities
in stratum i in year t
Aburn,i,t Area burnt for stratum i Ha Monitored for each
at time t verification event
Bi,t Average aboveground tonnes d. m. ha-1 Conservatively assumed to
biomass stock before be the carbon stock in all
burning stratum i, time pools in the baseline case
t (CBSL,i).
COMF i Combustion factor for dimensionless 0.45 for primary open
stratum i; tropical forest. Derived
dimensionless from Table 2.6 of IPCC,
2006.
Gg,i Emission factor for kg t-1 dry matter burnt GCH4 = 6.8 g kg-1 and
stratum i for gas g GN2O = 0.2 g kg-1.
Derived from Table 2.5 of
IPCC, 2006.
GWPg Global warming t CO2/t gas g Default values from IPCC
potential for gas g SAR: CH4 = 21; N2O =
310).

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Monitoring of leakage carbon stock changes and greenhouse gas emissions

Leakage by local agents of deforestation is quantified in the leakage belt. The area deforested in the
leakage belt (ADefLB,i,t) is estimated in the same manner as the area deforested in the with project case
(ADefPA,u,i,t) using the procedures outlined above in the monitoring deforestation section. Activity shifting
leakage within the leakage belt (ΔCLK-ASU-LB) is then calculated as the with project emissions in the
leakage belt (ΔCP,LB) minus the baseline emissions in the leakage belt (ΔCBSL,LK,unplanned).

Table 4.4 Data and Parameters for Monitoring Activity Shifting Leakage.
Source/
Justification of
Choice of Data or
Parameter Description Units
Description of
Measurement
Methods
ΔCP,LB Net greenhouse gas emissions t CO2e Calculated
within the leakage belt in the project
case
Area of recorded deforestation in ha Monitored for each
ADefLB,i,t the leakage belt at time t verification event

ΔCP,Def,i,t Net carbon stock change as a result t CO2e Calculated

of deforestation in the project case
in the project area in stratum i at
time t

Immigrant leakage is calculated using a series of equations found in the LK-ASU module. Most of the
data for calculating immigrant leakage has been derived for the ex-ante estimates (including
ΔCBSL,LK,unplanned; AVFOR; TOTFOR; PROTFOR; MANFOR; PROPLB; LBFOR; COLB; CLB;
PROPCS; and ABSL,PA,unplanned,t) or gathered in the course of monitoring activity shifting leakage
within the leakage belt and deforestation in the project area (including ADefPA; ADefLB,i,t; and ΔCP,LB).

The monitoring parameters MANFOR, PROTFOR, TOTFOR will be sourced from official data, peer
reviewed publications or other verifiable sources, such as the Brazil Global Forest Resources
Assessment Report published by the FAO and these monitoring parameters will be updated on review of
current literature at least every 5 years. Demonstration that managed and protected forests will be
protected against deforestation will further be demonstrated, as stipulated in the LK-ASU module.
Monitoring immigrant leakage will therefore consist of implementing surveys in communities living within 2
kilometers of the boundaries of the leakage belt and project area to determine what proportion of the
agents of deforestation have been resident in and around the leakage belt and project area for ≥ 5 years
(PROPRES) and the proportion of area deforested by population that has migrated into the area in the
last 5 years (PROPIMM). As it is extremely sensitive to ask explicit questions regarding responsibility for
deforestation, “the proportion of area deforested by population that has migrated into the area in the last 5
years” is assumed to be equal to the percentage of recent immigrants among local population with
potential access to the project area (i.e. without directly asking if they are deforestation agents). Similarly,
the “proportion of baseline deforestation caused by population that has been resident for ≥5 years” is

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assumed to be equal to the percentage of the local population residing in the area longer than 5 years
with potential access to the project area.

Table 4.5 Data and Parameters for Monitoring Immigrant Leakage.

Parameter Description Units Source/ Justification of
Choice of Data or
Description of
Measurement Methods
PROPIMM Proportion of area proportion Monitored prior to each
deforested by verification event and at
immigrant agents in the least every 5 years
leakage belt and
project area
PROPRES Proportion of baseline proportion Monitored prior to each
deforestation caused verification event and at
by population that has least every 5 years
been resident for ≥5
years
TOTFOR Total available national ha Monitored prior to each
forest area verification event and at
least every 5 years

PROTFOR Total area of fully ha Monitored prior to each

protected forests verification event and at
nationally least every 5 years

MANFOR Total area of forests ha Monitored prior to each

under active verification event and at
management nationally least every 5 years

Monitoring of actual carbon stock changes and greenhouse gas emissions

Forest carbon stock estimates will be derived from field measurements less than or equal to 10 years old.
Aboveground and belowground live tree and dead wood stocks will be re-assessed on or before 2023.
For each stratum, where the re-measured estimate is within the 90% confidence interval of the t=0
estimate, the t=0 stock estimate takes precedence and is re-employed, and where the re-measured
estimate is outside (i.e. greater than or less than) the 90% confidence interval of the t=0 estimate, the
new stock estimate takes precedence and is used for the subsequent period.

Sample plots will be randomly located in areas within the Russas Project and measured following
standard operating procedures located in Appendix B. Biomass will be estimated applying the following
allometric equations and otherwise maintain consistency with analytical procedures applied in the original
inventory (“Forest biomass carbon inventory for the Russas and Valparaiso Properties, Acre State,
Brazil,” 2013).

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For live trees, biomass is calculated as a function of diameter at breast height (DBH; in cm) using the
54
predictive model developed by Brown for tropical moist forest stands. Application of the “moist” equation
reflects the annual precipitation for the inventoried area, 2200mm.

aboveground biomass (kg) = ((42.69-12.8*(DBH)+1.242*(DBH)^2)) Equation 4.1

For palms, height and dbh (a conservative estimate of basal diameter) measurements are used to
estimate the aboveground volume of a paraboloid and then mean (species level) Amazonian palm
specific gravity of 0.31 g/cm3 estimated by Baker et al (2004) will be applied. The estimate of biomass for
palms is therefore to be limited to the main trunk (bole) of the palm. Thus, for palms
2
aboveground biomass (Mg) = 0.5*Π*(basal diameter(cm)/200) *height(m)*0.31 Equation 4.2

Root biomass density is estimated at the cluster sample level applying the equation developed by Cairns
55
et al. , where

Root Biomass Density (t/ha) = EXP (-1.085 + 0.925 LN(aboveground biomass density)) Equation 4.3

56
The volume of lying dead wood per unit area is estimated using the equation (Warren and Olsen ) as
57
modified by Van Wagner separately for each dead wood density class:

 N

 2 *   Dn 2 
V LDW   n 1 
Equation 4.4
8* L
where:
3 -1
VLDW Volume of lying dead wood per unit area; m ha

Dn Diameter of piece n of dead wood along the transect; cm

N Total number of wood pieces intersecting the transect; dimensionless

L Length of the transect; m

Length of each transect was corrected for slope. The volumes per unit area of each dead wood density
class are then multiplied by their respective densities to convert to a mass per unit area.

54
Brown, S., 1997. Estimating biomass and biomass change of tropical forests: A primer. FAO Forestry Paper: vii, 55
p.
55
Cairns, M. A., S. Brown, E. H. Helmer, and G. A. Baumgardner. 1997. Root biomass allocation in the world’s
upland forests. Oecologia 111, 1-11.
56
Warren, W.G. and Olsen, P.F. (1964) A line intersect technique for assessing logging waste. Forest Science 10:
267-276.
57
Van Wagner, C.E. (1968). The line intersect method in forest fuel sampling. Forest Science 14: 20-26.

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Biomass of standing dead wood is estimated using the allometric equation for live trees in the
decomposition class 1. In decomposition class 2, the estimate of biomass was limited to the main trunk
(bole) of the tree, in which case the biomass was calculated converting volume to biomass using dead
wood density classes. Volume was estimated as the volume of a cone, as specified in the VM0007
module, “Estimation of carbon stocks in the dead wood pool”.

Density of dead wood is determined through sampling and laboratory analysis. Discs are collected in the
field and decomposition class and green volume determined as per standard protocols (see Appendix B
for more details). The resulting dry weight is recorded and used to calculate dead wood density as oven-
3
dry weight (g) / green volume (cm ) for each sample.

Dry mass is converted to carbon using the default carbon fraction of 0.47 t C/t d.m. (as recommended by
58
IPCC Guidelines for National Greenhouse Gas Inventories).

Revision of the Baseline

The baseline will be revised every 10 years from the project start date.
Data collection procedures in regards to revision of the baseline will include participatory rural appraisals,
interviews and collaboration with the Acre State government, UCEGEO, the GIS department within the
Climate Change Institute, and municipal officials. In the case, where the Acre State government no longer
produces the annual dataset on the extent and spatial location of all deforestation within the state,
deforestation maps will be prepared by classifying remotely sensed imagery. Other datasets used to
substantiate aspects of the baseline with be from official government sources, peer reviewed publications,
or other reputable sources.

Quality Assurance/Quality Control and Data Archiving Procedures

Monitoring Deforestation, Natural Disturbance, and Leakage

To ensure consistency and quality results, spatial analysts carrying out the imagery processing,
interpretation, and change detection procedures will strictly adhere to best practices and good practice
guidelines, when using the alternative method for quantifying deforestation. All data sources and
analytical procedures will be documented and archived (detailed under data archiving below).

Accuracy of the classification, for both the baseline and monitoring, will be assessed by comparing the
classification with ground-truth points or samples of high resolution imagery. Any data collected from
ground-truth points will be recorded (including GPS coordinates, identified land-use class, and supporting
photographic evidence) and archived. Any sample points of high resolution imagery used to assess
classification accuracy will also be archived. Samples used to assess classification accuracy should be
well-distributed throughout the project area (as far as is possible considering availability of high resolution
imagery and/or logistics of acquiring ground-truth data), with a minimum sampling intensity of 50 points
each for the forest and non-forest classes.

58
IPCC 2006 Guidelines for National Greenhouse Gas Inventories. Chapter 4 AFOLU (Agriculture, Forestry and
Other Land-use).

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The classification will only be used in the forest cover change detection step if the overall classification
accuracy, calculated as the total number of correct samples / the total number of samples, is equal to or
exceeds 90%.

All data sources and processing, classification and change detection procedures will be documented and
stored in a dedicated long-term electronic archive.

Information related to monitoring deforestation maintained in the archive will include:

 Forest / non-forest maps;

 Documentation of software type and procedures applied (including all pre-processing steps and
corrections, spectral bands used in final classifications, and classification methodologies and
algorithms applied), if applicable; and

 Data used in accuracy assessment - ground-truth points (including GPS coordinates, identified
land-use class, and supporting photographic evidence) and/or sample points of high resolution
imagery.
Forest Carbon Stocks and Degradation

The following steps will be taken to control for errors in field sampling and data analysis:

1. Trained field crews will carry out all field data collection and adhere to standard operating
procedures. Pilot sample plots shall be measured before the initiation of formal measurements to
appraise field crews and identify and correct any errors in field measurements. Field crew leaders
will be responsible for ensuring that field protocols are followed to ensure accurate and consistent
measurements. To ensure accurate measurements, the height of diameter at breast height (1.3
m) will be periodically re-assessed by personnel during the course of the inventory.
2. Field measurement data will be recorded on standard field data sheets and entered into an excel
database for data management and quality control. Potential errors in data entry (anomalous
values) will be verified or corrected consulting the original data sheets or personnel involved in
measurement. Original data sheets will be permanently archived in a dedicated long-term
electronic archive. The electronic database will also archive GIS coverages detailing forest and
strata boundaries and plot locations.

Quality control procedures for sampling degradation will include steps 1 and step 3, above.

Quality control procedures related to monitoring leakage include conducting a review of the current
literature at least every 5 years to source information on the area of the monitoring parameters MANFOR,
PROTFOR, and TOTFOR. Further, participatory rural appraisals used to assess the length of time people
have been living in the project area and leakage belt will be implemented by personnel with experience
conducting community surveys in rural Brazil.
Personnel involved in the revising of the baseline will have detailed knowledge in regards to spatial
modeling and land use change and deep familiarity with REDD methodologies. Remote sensing data
used will include officially published dataset, or classified imagery, which meets accuracy assessment
requirements as laid out in the methodology.

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All measurement and monitoring equipment requiring calibration will be calibrated according to the
equipment's specifications and/or relevant national or international standards.

Data Archiving

Data archived will be maintained through at least two years beyond the end of the project crediting period.
All project records are secure and retrievable. This includes project documents saved on the desktop of
CarbonCo’s Project Director and stored in the Director’s file cabinets (based in Silver Spring, Maryland).
An identical version of the project documents are remotely saved on an external hard drive and in the
cloud via DropBox. Furthermore, many project documents (e.g., VCS Project Description, Monitoring
Reports, CCBS Project Design Document, Project Implementation Reports, Validation and Verification
Reports, etc.) are publicly available and stored on both the Standards’ website and on the Markit
Environmental Registry. Given the extended time frame and the pace of production of updated versions
of software and new hardware for storing data, electronic files will be updated periodically or converted to
a format accessible to future software applications, as needed.

Organization, Responsibilities, and Monitoring Frequency

For all aspects of project monitoring, Russas Project staff will ensure that data collection, processing,
analysis, management and archiving are conducted in accordance with the monitoring plan.
Table 4.6. Type of Monitoring and Party Responsible for Monitoring.
Variables to be monitored Responsible Frequency
Monitoring deforestation I.S.R.C. Prior to each verification
and natural disturbance
Monitoring illegal I.S.R.C. Every two years
degradation
Monitoring project CarbonCo Prior to each verification
emissions
Activity shifting immigrant I.S.R.C. Prior to each verification
leakage assessment event and at least every 5
years.
Updating forest carbon CarbonCo At least every 10 years.
stocks estimates
Revision of the baseline CarbonCo At least every 10 years.

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5 ENVIRONMENTAL IMPACT
Deforestation and its associated GHG emissions, is a global environmental issue but its effects locally
and regionally are particularly concerning in developing countries where economies and livelihoods are
more closely linked to farming and utilization of natural resources. This REDD project will result in positive
environmental benefits by conserving forest land leading to less environmental degradation than would
have occurred when lands are converted to pasture or cropland. The conservation of the Amazon
Rainforests is vitally important to humankind and the global environment, as well as the local
environment, as these forests provide a wide range of critical ecosystem services including their ability to:
 Improve local air and water quality by filtering pollutants;

 Help regulate water and nutrient cycles (e.g., phosphorous and nitrogen);

 Control flooding by minimizing runoff and soil loss;

 Provide habitat for biodiversity and nutrition for wildlife;

 Provide aesthetical, spiritual and cultural benefits to local communities;

 Produce oxygen - without which life would not be possible; and

 Absorb carbon dioxide, a greenhouse gas, to mitigate climate change.

As a conservation project, the Russas Project will ultimately have a net positive environmental impact.
More specifically, the project will benefit the local communities and region overall by improved water
quality and securing land for natural flood storage (i.e., lessening the effect of floods). Further, with
conservation as a focal point, the Russas Project will maintain critical habitat for wildlife, including
threatened and endangered species.

The International Union for Conservation of Nature (IUCN) has identified 26 species in Acre as Near
59
Threatened, Vulnerable, Endangered, Critically Endangered and Extinct. The Southwestern Amazon is
also home to many endemic species. According to the World Wildlife Fund, there are approximately 42
60
endemic species in the Southwestern Amazon.
For more details, please see the CCBS project document.

59
IUCN 2011. IUCN Red List of Threatened Species. Version 2011.2. <www.iucnredlist.org>. Downloaded on
01 February 2012.
60
World Wildlife Fund, “Southwest Amazon moist forests: Export Species,” Available:
http://www.worldwildlife.org/science/wildfinder/

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6 STAKEHOLDER COMMENTS
The following stakeholders were involved in project design to optimize climate, community and
biodiversity benefits while ensuring the Russas Project was best aligned with the State of Acre’s climate
mitigation, community, and biodiversity goals.
 I.S.R.C. Investimentos e Acessória LTDA, specifically Ilderlei Souza Rodrigues Cordeiro
 Communities living within the Russas Project
 Carbonfund.org Foundation, Inc. and CarbonCo, LLC
 Freitas Group International LLC and Carbon Securities
 TerraCarbon
 TECMAN LTDA
 Professor Antonio Willian Flores de Melo of UFAC
 Landowners and Communities living around the Russas Project, particularly the Valparaiso
Project
 State of Acre, particularly the:
o Climate Change Institute of Acre (IMC)
o State of Acre’s CEFLORA (Centro de Formação e Tecnologia da Floresta or the Center
for Training and Forest Technology)
o The Secretary of Small Business
o The Secretary of Environmental Affairs for the Municipality of Cruzeiro do Sul

 S.O.S. Amazônia

A summary of project meetings and stakeholder comments have been provided below. Further
information on meetings can be found in the document “Russas Project Meeting Notes” as found in the
project database.

March 9-18, 2011 - CarbonCo, Carbon Securities and TerraCarbon travelled to Acre, Brazil to conduct a
preliminary assessment of REDD projects in Acre. A few key milestones included:
 CarbonCo, Carbon Securities and TerraCarbon held initial meetings with PESACRE (Grupo de
Pesquisa e Extensão em Sistemas Agroflorestais do Acre), IPAM (Instituto de Pesquisa
Ambiental da Amazônia), FUNTAC (Fundacao de Tecnologia do Estado do Acre), and SISA
(System of Incentives for Environmental Services) to gain an understanding of the agents and
drivers of deforestation in Acre state, how forest biomass stocks vary across the state, and local
REDD and forest conservation initiatives;
 CarbonCo, Carbon Securities and TerraCarbon met with the Chico Mendes Institute on Thursday,
th
March 17 to discuss forest conservation and payment for ecosystem services schemes, such as
REDD; and
 Carbon Securities and TerraCarbon met with Acre State Officials, including Monica Julissa De
th
Los Rios de Leal and Eufran Amaral, on Friday, March 18 .
March 17, 2011 – Ilderlei Souza Rodrigues Cordeiro met with the Russas Project’s local communities to
discuss the Project and an “ata” was signed, which supports the Project State Date.

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August 9-18, 2011 - CarbonCo, Carbon Securities, and TerraCarbon visited Rio Branco. A few key
milestones included:

 CarbonCo, Carbon Securities, TerraCarbon, and TECMAN met with Acre State officials, including
rd
Monica Julissa De Los Rios de Leal and Lucio Flavio, on Wednesday, August 3 to discuss how
to best design forest carbon inventories to align with the State of Acre’s goals and future forest
inventory plans;

 TerraCarbon led a classroom forest carbon inventory training for TECMAN field crew for the
Purus Project. TECMAN would later be hired for the Russas Project.
 TerraCarbon trained TECMAN field crew members in forest inventory practices and standard
operating procedures, which would later be used during the Russas Project’s forest carbon
inventory.

 CarbonCo, Carbon Securities, TerraCarbon, and Willian Flores met with Acre State officials,
including Monica Julissa De Los Rios de Leal, Eufran Amaral and Lucio Flavio on Tuesday,
th
August 9 to discuss how to best develop the project-level baseline; how private projects will nest
with a forthcoming state level baseline; and the type of GIS data available from the State of Acre.

October 31, 2011 - Tri-Party Agreement was executed by CarbonCo, Carbon Securities, and Ilderlei
Souza Rodrigues Cordeiro.
November 21, 2011 – CarbonCo spoke with Shaina Brown, Project Director at the Green Technology
Leadership Group and Tony Brunello, the REDD Offset Working (ROW) group’s facilitator to better
understand the developments in the State of California and how they relate to the State of Acre.

November and December 2011 - Ilderlei Souza Rodrigues Cordeiro informally met with the local
community to discuss the Russas Project and informally met local officials (including the mayor) in
Cruzeiro do Sul.

December 2011 - CarbonCo and Carbon Securities met Ilderlei Souza Rodrigues Cordeiro in person for
the first time during a presentation to landowners in Acre, Brazil about REDD+ projects. Ilderlei Souza
Rodrigues Cordeiro began talking with Normando Sales who was working with CarbonCo and Carbon
Securities on the Purus Project.
February 10, 2012 – CarbonCo spoke with Natalie Unterstell, the focal point for REDD+ at Brazil’s
Federal Ministry of Environment. Discussions were based around:

 The role of Brazil’s Federal Government in the REDD context; Progress of the Amazon Fund;
How States, particularly Acre, might nest into National Government; How Brazil’s domestic cap-
and-trade market is shaping up; Market mechanisms and REDD as potentially eligible offset;
Where to go for REDD information on Federal government updates and how to inform
Government of our Project
March 2012 - Ilderlei Souza Rodrigues Cordeiro met again with the local community to discuss the
Project. The local community expressed the desire to work with açaí, which was later incorporated into
the agriculture surveys. The area’s biodiversity was also discussed and this is when the idea to
reintroduce the Amazonian manatee was raised. The community explained the Amazonian manatee used
to exist in the Valparaiso River, but now there are none remaining.

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March 26, 2012 – CarbonCo and TerraCarbon held a follow up call with Monica Julissa De Los Rios de
Leal to discuss a variety of topics, including, how to register VCS REDD+ projects with the State of Acre.

March-April 2012 – Ilderlei Souza Rodrigues Cordeiro informally contacted José Augusto Rocha, the
Secretary of Environment for the city of Guajará, about the idea of reintroducing the Amazonian manatee
to the Valparaiso River.

May 2012 – Ilderlei Souza Rodrigues Cordeiro spoke to Professor Paulo Bernarde from the Federal
University of Acre in Cruzeiro do Sul. Professor Bernarde is the coordinator of environmental courses at
the University. The discussion focused on biodiversity of the Project and the Professor expressed interest
in cataloguing species on the Project.
June 2012 – CarbonCo met with André Luis Botelho de Moura, a former graduate student of Dr.
Armando Muniz Calouro, to begin refining a full biodiversity plan for the Purus Project. Such discussions
included: the proper locations of cameras; a short, Standard Operating Procedures (SOPs) guidance
document to be developed that will be used as a training manual for the communities; the communities
need to be trained on the proper placement and preventative maintenance of such cameras, and the
cameras need to be setup in the field; periodic movement of cameras to different strata; assistance for
one year to periodically identify species. This full biodiversity monitoring plan will be adapted for the
Russas Project.

June 20-22, 2012 – CarbonCo, Carbon Securities and TerraCarbon traveled to the Russas and
Valparaiso Projects to conduct a preliminary assessment of the projects, to observe the local drivers and
agents of deforestation, and to informally meet with several local communities.

Figure 6.1. Photograph of community meeting.

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November 2012 – Ilderlei Souza Rodrigues Cordeiro spoke to Fernando Lima, the President of Instituto
de Meio Ambiente do Acre (IMAC, “Environmental Institute of Acre” in English) to discuss the Project and
requested a letter of approval. The discussion focused on how IMAC can help control deforestation in the
Project.

January 2013 – Ilderlei Souza Rodrigues Cordeiro met with some community members in Cruzeiro do
Sul. The community was stopping deforestation and wanted to know how they would benefit from the
project. Ultimately, the community needs to eat and cannot see their incomes or food production
decrease. Ilderlei explained the Project is underway, but there is a lot of work to be done, and assured the
community they would receive benefits.

February 2013 – Ilderlei Souza Rodrigues Cordeiro received feedback from José Augusto Rocha about
the Amazonian manatee reintroduction. José contacted Associação Amigos do Peixe-Boi (Friends of the
Manatee Association) in the State of Amazonas. José introduced Ilderlei to Diogo Alexandre de Souza, a
biologist at the Association. Ilderlei registered with the Association, provided his area for reintroduction of
the Amazonian manatee, and was sent pictures.
February 2013 – Ilderlei contacted Miguel Scarcello from S.O.S Amazônia. S.O.S Amazônia wanted to
reintroduce turtles (“quelonios” in Portuguese). S.O.S Amazônia also has courses they want to teach to
the local communities at the Russas Project about forest preservation.

February 2013 – Throughout February 2013, Ilderlei Souza Rodrigues Cordeiro held several short calls
with organizations such as Instituto Nacional de Colonização e Reforma Agrária (INCRA), Instituto de
Terra do Acre (ITERACRE), Secretary of Tourism for the State of Acre, Secretary of Agriculture, and
Secretary of Commerce to explain the Project and ask for a letter of support.

February 2013 – Ilderlei Souza Rodrigues Cordeiro met with the State of Acre Congressional Assembly,
presented the project, and received a letter of support. Ilderlei also met Eufran Amaral, Mónica Julissa De
Los Rios de Leal and Pavel Jezek from the Climate Change Institute (IMC) of Acre in Rio Branco. Ilderlei
discussed the Project, received a letter of support, and also received the necessary paperwork to register
the Project with IMC. In addition, IMC would like the completed Project Design Document and any
supporting documentation to be filed with the IMC.
March 2013 – The Russas Project filed the registration paperwork with the IMC. Ilderlei contacted Sarney
Filho, the Federal Minister of Environment Affairs, along with the President of the Commission of
Environmental Affairs of the Federal Congress and President Jerônimo Goergen of the Amazon
Commission of the House of Representatives, to inform them of the Project.

March 27, 2013 – Carbon Securities, with CarbonCo, Ilderlei Souza Rodrigues Cordeiro, Manoel Batista
Lopes (landowner of the Valparaiso Project), Roberto Catão (Advisor to the Valparaiso Project) and
Normando Sales (landowner of the Purus Project) in attendance, presented the Russas and Valparaiso
Projects to the President of the Cruzeiro do Sul Municipal Legislature, the Secretary of Environmental
Affairs for the Cruzeiro do Sul municipality, along with staff members of the Secretary of Agriculture for
the Cruzeiro do Sul. The presentation gave an overview of the Project Proponents, the objectives of the
Projects, the reason for Carbon Securities and CarbonCo’s visit to Cruzeiro do Sul, the basic timeline of
the Projects, how the Projects are implemented and the main activities to be implemented, the legal basis

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for the Projects, and concluded with a question and answer session. The Project Proponents learned that
the municipality has a fund for agricultural courses devoted to local families.

March 30 - April 1, 2013 – CarbonCo, Carbon Securities, Ilderlei Souza Rodrigues Cordeiro, and
Sebastião Tome de Melo Junior (son-in-law of Manoel Batista Lopes) visited the Russas-Valparaiso
communities, further discussed the Projects, and administered the Household Survey and Participatory
Rural Assessment (PRA), Basic Necessity Survey (BNS), and the Agricultural Surveys.

April 2, 2013 - CarbonCo, Carbon Securities, and Ilderlei Souza Rodrigues Cordeiro met again with
Maria Francisca R. Nascimento, the Secretary of Environmental Affairs for the Municipality of Cruzeiro do
Sul to further discuss the Valparaiso and Jurua River Basins’ biodiversity as part of the Projects’ rapid
assessment of biodiversity
April 4, 2013 - CarbonCo, Carbon Securities, and Ilderlei Souza Rodrigues Cordeiro met Edgar de Deus,
the State Secretary of Environmental Affairs to introduce the Project Proponents and explained the Purus,
Valparaiso and Russas Projects.

April 5, 2013 - CarbonCo, Carbon Securities, and Ilderlei Souza Rodrigues Cordeiro met Miguel
Scarcello, the Secretary General from S.O.S. Amazônia to: introduce the Project Proponents, explain the
Projects and particularly the biodiversity aspects, explained the role of the Verified Carbon Standard and
the Climate, Community and Biodiversity Standards.

April 5, 2013 - CarbonCo, Carbon Securities, and Ilderlei Souza Rodrigues Cordeiro met again with
Eufran Amaral from the Climate Change Institute to give an update on all the Projects and an update on
the work of the Climate Change Institute.
April 30, 2013 – CarbonCo held another call with Natalie Unterstell of Brazil’s Ministry of Environment to
update her that the Purus Project became the first dual VCS-CCB validated REDD+ Project in Acre and
that Russas and Valparaiso Projects were undergoing VCS-CCB validation later in 2013.
May 11-15, 2013 - Ilderlei Souza Rodrigues Cordeiro visited the Russas-Valparaiso Projects to
administer additional Household Survey and Participatory Rural Assessment (PRA), Basic Necessity
Survey (BNS), and the Agricultural Surveys.

May 21, 2013 - Ilderlei Souza Rodrigues Cordeiro met the Vice President of Brazil, Michel Temer, to
discuss the Russas-Valparaiso Project and asking for the support of the Federal Government.

Mechanisms for Ongoing Communication

CarbonCo, Carbon Securities, and Ilderlei Souza Rodrigues Cordeiro are committed to meet in person at
least once per year at the Russas Project with the local community to discuss project activities, project
management, and to meet with the local community to get their feedback, ideas, and provide a platform
for discussion.

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APPENDICES

APPENDIX A. VCS NON-PERMANENCE RISK REPORT

A1.0 INTRODUCTION

The risk analysis has been conducted in accordance with the VCS AFOLU Non-Permanence Risk Tool,
dated 04 October 2012, version 3.2. This tool assesses a project’s internal risk, external risk, natural risk
and mitigation measures which help to reduce risk. The risk ratings and supporting evidence are detailed
in Section A1.1, A1.2, and A1.3, below. Letters in the risk factor column correspond to the risk factor
explained in the VCS AFOLU Non-Permanence Risk Tool.

A1.1 INTERNAL RISKS

Project Management

Risk Risk Factor and/or Mitigation Description Risk

Factor Rating
a) Not applicable. Tree planting is not a project activity for which GHG credits will be 0
issued.
b) Ongoing enforcement is required to prevent encroachment by outside actors. The 2
Russas Project employs forest patrols to prevent encroachment by outside actors
into the project area.
c) Management team does not include individuals with significant experience in all 2
skills necessary to successfully undertake all project activities.
d) Local management partners are based in Cruzeiro do Sul less than a day’s travel 0
from the project activity. There is a project manager living on the property and a
project headquarters is being established on the property.
e) Project proponents have developed other forest carbon projects and have been -2
working in the forest carbon arena for over 5 years. Brian McFarland of CarbonCo
has developed the “Tensas River National Wildlife Refuge Afforestation Project”
under the VCS and the CCBS including managing the project design,
implementation, and financing. The project proponents work alongside and have
access to experts in carbon accounting and reporting (i.e., TerraCarbon) who have
significant experience in all aspects of AFOLU project design and implementation,
carbon accounting and reporting under the VCS Program. TerraCarbon has
successfully validated and verified numerous projects under the VCS, including
validation and verification of the VCS ARR project "Reforestation Across the Lower
Mississippi Valley"
f) There is no adaptive management plan in place. 0
Total Project Management (PM) [as applicable, (a + b + c + d + e + f)] 2
Total may be less than zero.

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Financial Viability

Risk Risk Factor and/or Mitigation Description Risk

Factor Rating
a-d) Project cash flow breakeven point is 4 years or less from the current risk 0
assessment. Details are provided in a cash flow analysis which can be found in the
project database.
e-h) Project has secured 100% of funding needed to cover the total cash out before the 0
project reaches breakeven. Details are provided in a cash flow analysis which can
be found in the project database.

i) Project has available at least 50% of the total cash out before project reaches -2
breakeven. Project proponents are utilizing internal, non-restricted funds as
evidenced in the project database.
Total Financial Viability (FV) [as applicable, ((a, b, c or d) + (e, f, g or h) + i)] 0
Total may not be less than zero.

Opportunity Cost

Risk Risk Factor and/or Mitigation Description Risk

Factor Rating
a As the majority of baseline activities over the length of the project crediting 8
period are subsistence-driven, an NPV analysis is not required. This risk
category will be revised downward, once net positive community impacts can
be clearly demonstrated, such as through certification against the Climate,
Community & Biodiversity Standards or results of a participatory assessment of
the project activities on the local communities which demonstrates net positive
community benefits.
b-d) Not applicable. 0
e-f) Not applicable. 0
g) None of the project proponents are a non-profit organization. 0
h-i) There is a legal contractual agreement to maintain the project area as forest for -2
at least a 60 year period (i.e. greater than the length of the crediting period)
from the project start date.
Total Opportunity Cost (OC) [as applicable, (a, b, c, d, e or f) + (g or h)] 6
Total may not be less than 0.

Project Longevity
a) Not applicable. 0

b) There is a legal contractual agreement to maintain the project activities and 0

maintain the project area as forest for at least a 60 year period from the
project start date.

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61
The landowners of the property are under contractual obligations which
limit their development/use of the property, as stated below.

“The landowner acknowledges and agrees to not execute any activity that
otherwise might interfere with the [project] implementation…including but
not limited to,
i. Clearing forest for livestock / cattle ranches;
ii. Clearing forest for agriculture;
iii. Expanding old roads or constructing new roads;
iv. Expanding into new forests for infrastructure (i.e., bridges, housing,
electricity, etc.);
v. Expanding logging operations; [and]
vi. Deforestation for new mining or mineral extraction.”
Total Project Longevity (PL) 0
May not be less than zero
Total Internal Risks
Total Internal Risks (PM + FV + OC + PL)
8
Total may not be less than zero.

A1.2. EXTERNAL RISKS

Land Tenure and Resource Access/Impacts

Risk Risk Factor and/or Mitigation Description Risk

Factor Rating
a) The land owner, Ilderlei Souza Rodrigues Cordeiro, who is also a project 0
proponent (I.S.R.C.), owns the project area outright (see Section 1.12) and has
full resource access/use rights, who are not shared with anyone. The property
was geo-referenced and officially registered in the cadaster (Cadastro
Ambiental Rural), a process which involved on the ground assessment of all
property boundaries and consultations with neighboring landowners and
resolution of any existing boundary disputes.
b-d) Not applicable. 0
e) Not applicable. 0
f) There is a legal contractual agreement to maintain the project area as forest for -2
at least a 60 year period (i.e. greater than the length of the crediting period)
from the project start date.
g) Not applicable. 0
Total Land Tenure (LT) [as applicable, ((a or b) + c + d + e+ f)] 0
Total may not be less than zero.

61
See addendum to the Tri-Party Agreement located in the project database.

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Community Engagement

Risk Risk Factor and/or Mitigation Description Risk

Factor Rating
a) All households living on the Russas property directly adjacent to the project 0
area have been consulted.
b) To their knowledge, the project proponents have contacted all families reliant 0
on the project area.
c) Not applicable. 0
Total Community Engagement (CE) [where applicable, (a+b+c)] 0
Total may be less than zero.

Political Risk

Risk Risk Factor and/or Mitigation Description Risk

Factor Rating
a-e) The average governance score for 2007 through 2011 is 0.06, or between the 2
governance score of -0.32 to less than 0.19. Details of the calculation are
provided below.
f) Acre, Brazil is participating in the Governors’ Climate and Forest Taskforce. -2
Further, Brazil has an established Designated National Authority under the
62
CDM and has at least one registered CDM Afforestation/Reforestation project.

Total Political (PC) [as applicable ((a, b, c, d or e) + f)] 0

Total may not be less than zero.

Table A1. Calculation of Brazil’s average governance score.

Governance Indicator 2007 2008 2009 2010 2011
Control of Corruption -0.12 -0.02 -0.11 0.05 0.17
Government Effectiveness -0.13 -0.02 0.02 0.07 -0.01
Political Stability -0.32 -0.24 0.23 0.08 -0.04
Regulatory Quality -0.05 0.04 0.14 0.17 0.17
Rule of Law -0.44 -0.37 -0.20 0.00 0.01
Voice and Accountability 0.51 0.54 0.49 0.53 0.50
Overall Mean 0.06

Total External Risks

Total External Risks (LT + CE + PC)
0
Total may not be less than zero.

62
Project 2569: Reforestation as Renewable Source of Wood Supplies for Industrial Use in Brazil
(http://cdm.unfccc.int/Projects/DB/TUEV-SUED1242052712.92/view).
Project 3887: AES Tietê Afforestation/Reforestation Project in the State of São Paulo, Brazil
(http://cdm.unfccc.int/Projects/DB/SGS-UKL1280399804.71/view).

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A1.3. NATURAL RISKS

Fire
Discussion/ Most of the project area is un-fragmented forest, with few areas of bordering
Evidence pasture/non-forest. Most forest fires that occur in the region are anthropogenic,
63
and thus sources of fire outbreaks in the project area are limited. In a study of
fires in the Amazon, Cochrane and Laurance documented a relationship between
fire incidence and distance from forest edge, with decreasing fire return intervals
with increasing distance from edge.
They also found that effects of forest fires depend on the extent and condition of
fuel sources. In general, drought conditions need to be present prior to the
initiation of rainforest fires. While initial fires can have a significant effect on the
smaller diameter (<40 cm dbh) trees, it is only with subsequent burns, that
significant losses (mortality of up to 40% of trees) of forest biomass can be
64
expected . Despite fire induced tree mortality, tree mortality itself is unlikely to
result in the loss of substantial biomass due to incomplete combustion of live
aboveground biomass. Biomass is merely transferred from the live biomass to
dead biomass pool, which is also accounted for in this project.
Further as fire is unlikely to affect the whole project area, the significance of any
single fire event is likely to be minor and result in less than 25% loss in carbon
stocks in the project area.
65
The Cochrane and Laurance study mentioned above, calculated a fire return
intervals in another part of the Amazon as 10 to 15 years. While the agents of
deforestation (and fire) are similar between region of the study (Para) and the
project region (Acre), deforestation rates and likely incidences of fire are greater
in Para. This fire return interval therefore is likely to represent a conservative
estimate of the fire return interval in the project region with the actual interval
likely being longer than 15 years.
Significance Minor (5% to less than 25% loss of carbon stocks)
Likelihood Every 10 to 25 years
Score (LS) 2
Mitigation None

63
Cochrane M.A.& Laurance W.F., 2002. Fire as a large-scale edge effect in Amazonian forests, Journal Of Tropical
Ecology, 18:311-325.
64
Cochrane M.A., Alencar A., Schulze M.D., Souza C.M., Nepstad D.C., Lefebvre P. & Davidson E.A., 1999. Positive
feedbacks in the fire dynamic of closed canopy tropical forests, Science, 284(5421):1832-1835.
Cochrane M.A.& Schulze M.D., 1999. Fire as a recurrent event in tropical forests of the eastern Amazon: Effects on
forest structure, biomass, and species composition, Biotropica, 31(1):2-16.
65
Cochrane M.A.& Laurance W.F., 2002. Fire as a large-scale edge effect in Amazonian forests, Journal of Tropical
Ecology, 18:311-325.

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Pest and Disease

Discussion/ The forests of the project area have a high diversity of tree species, with over 150
66
evidence tree species >10 cm dbh , and like other diverse tropical forests, are not known
to be subject to catastrophic disturbance by insect pests or forest diseases.
Forest pests and diseases as a source of risk are more relevant in temperate
forests or plantations, with low species diversity and consequently susceptible to
extensive damage due to pest and disease outbreaks, which tend to be
concentrated on single host species.
Further, there is no history of catastrophic forest disturbance due to forest pests
or diseases in the region.
Significance Insignificant
Likelihood Once every 100 years or more. Risk is not applicable to the project area
Score (LS) 0
Mitigation None

Extreme Weather
Discussion/ While extreme weather events in the region include drought, flooding, and
Evidence disturbance by wind, this analysis is limited to disturbance by wind as this is the
only disturbance which has a direct effect on carbon stocks. As flooding within the
project region is common, high water levels in the forest do not lead to a reduction
in the forest carbon stocks. Drought does not have a direct effect on existing
forest carbon stocks, but instead can increase the severity of forest fires and
hence is covered above in the section on fire risk.
In relation to disturbance by wind, the recurrence intervals for large blow down
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disturbances in the western Amazon have been estimated at 27,000 years.
Significance Insignificant <5% loss of carbon stocks
Likelihood Once every 100 years or more.
Score (LS) 0
Mitigation None

Geologic Risk
Discussion/ Neither volcanoes nor active tectonic fault lines are present within the project
Evidence area. Landslides are not likely to occur within the project area because the project
area is relatively level (less than 5% slope) terrain.
Significance Minor

66
For more information see the results of the “Forest biomass carbon inventory for the Russas and Valparaiso
Properties, Acre State, Brazil” in the project database.
67
Espírito-Santo, F.D.B.; Keller, M.; Braswell, B.; Nelson, B.W.; Frolking, S.; Vicente, G. 2010. Storm intensity and
old-growth forest disturbances in the Amazon region. Geophysical Research Letters. 37, L11403,
doi:10.1029/2010GL043146.

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Likelihood Once every 100 years or more
Score (LS) 0
Mitigation None

Natural risk is quantified by assessing both the significance (i.e. the damage that the project would be
sustained if the event occurred, expressed as an estimated percentage of average carbon stocks in the
project area that would be lost in a single event) and likelihood (i.e., the historical average number of
times the event has occurred in the project area over the last 100 years) of the four primary types of
natural risk, including the risk of fire, pest and disease, extreme weather, and geologic hazards. The
significance of the risk of all natural disturbances has been assessed as “Minor” or “Insignificant” as none
of the risks should they occur would lead to a loss of greater than 25% of the carbon stocks in the project
area in the case of fire or greater than 5% in the case of pest and disease, extreme weather and geologic
risk. The occurrence of any natural risk is unlikely to affect 50% of the project area. Where a natural risk
does occur, it is unlikely to remove >50% or the carbon stocks in the project area. While it is possible for
trees to be killed due to natural risks such as fire or flooding, the majority of biomass within the live
biomass carbon pool would simply be transferred to the dead biomass carbon pool, also accounted for in
this project and therefore not a loss of carbon.
It is at times difficult to quantify the likelihood of natural risks when these risks occur infrequently. By
definition likelihood is the historical average number of times an event has occurred over the last 100
years. Another term often used when referring to the likelihood of natural risk is the return interval. The
return interval is common in literature pertaining to fire and flooding (e.g., the 100 year flood). While the
likelihood or return interval would also be useful for assessing pest and disease as well as geologic risk, a
key feature when calculating the likelihood or return interval is that an event has occurred enough times in
enough places such that there is sufficient data to calculate the return interval. A review of the literature
revealed little data to support a return interval for the project area for either pest and disease or geologic
risk. For this reason, we have assigned each risk a return interval of “once every 100 years or more.”

Score for Each Natural Risk Applicable to the Project

(Determined by (LS × M)
Fire (F) 2
Pest and Disease Outbreaks (PD) 0
Extreme Weather (W) 0
Geological Risk (G) 0
Other natural risk (ON)
Total Natural Risk (as applicable, F + PD + W + G + ON) 2

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A2.0. OVERALL NON-PERMANENCE RISK RATING AND
BUFFER DETERMINATION
A2.1. Overall Risk Rating
The overall risk rating calculated using the VCS AFOLU Non-Permanence Risk Tool is calculated below.

Risk Category Rating

a) Internal Risk 8

b) External Risk 0

c) Natural Risk 2

Overall Risk Rating (a + b + c) 10

The Russas Project will employ a non-permanence risk deduction of 10%.

A2.2. Calculation of Total VCUs
Ex-ante estimates, including deductions to be deposited in the AFOLU pooled buffer account, are detailed
in Section 3.4 of the project document.

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APPENDIX B. FOREST CARBON INVENTORY STANDARD

OPERATING PROCEDURES
B1.0 Forest Inventory Design
B1.1 Objective and monitoring approach

The inventory objective is to produce an estimate of forest biomass carbon stocks per unit area with
precision of +/-15% of the mean with 95% confidence for the project area.

B1.2 Carbon pools

The inventory will sample and/or estimate forest carbon stocks in the following pools:

 Aboveground live tree biomass (including palms and bamboo)

 Belowground live tree biomass

 Standing dead wood

 Lying dead wood

B1.3 Sampling design

The inventory employs stratified random sampling with clusters of five 23m radius circular plots ≈ 0.83 ha
(configuration of the cluster is detailed below).

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B1.4 Cluster configuration

The project employs cluster sampling, using the configuration below:

North

92m

92m

Center point
of cluster

Map coordinates of sample points correspond with center point of the cluster above.

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B2.0 Standard operating procedures

B2.1 Marking cluster center
Once a cluster center location is reached, the center point will be marked with a stake securely planted in
the ground, to which an aluminum tag is attached. The tag is labeled with the cluster number. UTM
coordinates of the cluster center will be recorded, if altered from the prescribed location.

B2.2 Measuring and recording slope

The slope (in %) of each plot will be measured with a clinometer. The slope will be recorded so the plot
dimensions can later be adjusted to calculate the equivalent horizontal area.
B2.3 Measurement of live trees

Within each plot all stems > 10 cm dbh will be measured and species recorded. Diameter of all trees will
be measured at breast height (1.3 m above ground level, see Figure B2.1). Diameter of trees with
buttresses will be measured directly above the point of termination of the buttress (Figure B2.2). Species
(or genera or common name) will also be recorded.

In each plot, height to the base of the crown of the three tallest trees will be measured with a clinometer.
Where palms are encountered that meet the minimum dbh threshold, two measurements will be taken:
basal diameter and height to the top of the stem.

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Figure B2.1. Point of measurement of diameter at breast height (from Pancel , 1993).

68
Pancel, L., ed. 1993. Tropical forestry handbook. Berlin, Germany, Springer-Verlag. Volume 1, 738 pp.

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Figure B2.2. Point of measurement for diameter at breast height of a buttress tree.

Point for measurement for DBH

B2.4 Boundary Issues

In the event that a plot overlaps the project property boundary or strata boundary, the plot will be
69
corrected using the mirage method (Figure B2.3). The solid-lined circle is the actual plot border. The
portion of the circle above the horizontal line is outside of the forest strata being sampled. After sampling
all the trees within the plot within the forest strata (e.g. below the line), the trees within the grey shaded
area will then be registered twice on the data sheet to account for the same area which is above the
horizontal line and outside the plot.

69
Avery, T.E. and H.E. Burkhart. 1994. Forest Measurements. Fourth Edition. McGraw Hill, Boston, Massachusetts,
USA. 408 pp.

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Figure B2.3. Diagram of mirage method (Avery and Burkhart, 1994).

outside

inside

Where the 92 meter lines of transit from the cluster center cross the project or strata boundary prior to
terminating, lines will be deflected from the boundary back into the project area using a “ricochet” method
to complete the 92 m, where the line of transit will ricochet back into the project area to the right of the
original bearing at a 45 degree angle.

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Figure B2.4. Diagram of boundary reflection method.

Strata boundary

Primary point of cluster

Xm

92 m – X m

45º

B2.5 Dead wood

Dead wood measurements will be restricted to pieces of dead wood with a diameter > 10 cm.

B2.5.1 Measurement of standing dead wood

Standing dead trees will be measured using the same plots used for live trees.
The decomposition class (not to be confused with dead wood density class) of the dead tree shall be
recorded and the standing dead wood is categorized under two decomposition classes:

1) Tree with branches and twigs that resembles a live tree (except for leaves);

2) Tree with signs of decomposition (other than loss of leaves) including loss of twigs, branches,
or crown.
For decomposition class 1, diameter at breast height is measured and recorded as per protocols for live
trees. For decomposition class 2, the following measurements/assignations are taken:

 dead wood density class (sound, intermediate or rotten)

 basal diameter

 height to the base of the crown

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B2.5.2 Measurement of lying dead wood

Lying dead wood will be sampled using the line intersect method using the two 92-meter lines forming two
axes of the cluster. Where exceeding 15%, the slope (in %) of each line will be recorded with a
clinometer. Along the lines, the diameters of all lying dead wood ≥ 10 cm diameter intersecting the lines
are measured at the point of intersection.

A piece of lying dead wood should only be measured if (a) more than 50% of the log is aboveground and
(b) the sampling line crosses through at least 50% of the diameter of the piece (where it intersects the
end of a piece).
Each piece of dead wood measured is also assigned to one of three dead wood density classes (sound,
intermediate or rotten) using the ‘machete test.’

B2.6 Determining the density of dead wood

During the field inventory, a representative sample of dead wood should be collected to determine the
average density for each density class. Thirty samples of dead wood should be collected for each density
class, giving you a total of 90 samples. Cut a full disc of the selected piece of dead wood using a chain
3
saw or a hand saw. Green volume (cm ) is determined in the laboratory using a water displacement
70
method standardized by ABNT or the Brazilian Association of technical rules. Volume is determined by
first saturating the sample in water for up to three days until a constant weight is reached. Next a beaker
is placed on a balance and partially filled with distilled water. The sample is submerged in the beaker by
pressing down with a needle/wire, the level of water therefore rises, and the reading on the balance is as
if one has added the amount of water equivalent to the volume of the sample. Therefore the reading on
3
the balance is equal to the volume of the sample (with the equivalence 1 g= 1 cm ). This technique thus
fills all the voids in the sample and gives the true volume of the sample. The disc is then dried in an oven
(80-110° C) in the laboratory to constant weight (g). Density is calculated as dry mass (g) divided by
3
volume (cm ).

B3.0 Quality control

Implementation of the monitoring plan will apply QA/QC procedures as outlined here to minimize errors in
measurement and data recording. This section covers procedures for: (1) collecting reliable field
measurements and (2) documenting data entry.

B3.1 Field measurements

Field crews will be fully trained in all aspects of the field data collection and adhere to field measurement
protocols. Field crew leaders will be responsible for ensuring that field protocols are followed to ensure
accurate and consistent measurement. Pilot sample plots shall be measured before the initiation of formal
measurements to appraise field crews and identify and correct any errors in field measurements. To
ensure accurate measurements, the height of diameter at breast height (1.3 m) will be periodically re-
assessed by personnel during the course of the inventory.

70
The norm number is ABNT NBR ISO 11941.

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B3.2 Data entry

Data will be recorded on field sheets and then transcribed to electronic media. To minimize errors in data
entry, where they are not the same, personnel involved in data entry and analysis will consult with
personnel involved in measurement to clarify any anomalous values or ambiguities in transcription. A
subset of the field sheets will be checked to ensure that data transcribed to electronic media is consistent
with data on the field sheets. Database searches will be made following data entry to identify any
anomalous values that require clarification or correction.

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