Cristalino Carbon Removal Project PDF

Cristalino Carbon Removal Project Document Prepared by JFC Ativos Ambientais Ltda. Project Title Cristalino Carbon Removal Project Version 2.1 Date of Issue 30-April-2024 Prepared By JFC Ativos Ambientais Ltda. Address: Rua Elvira Ferraz, 250, Cj. 601 – Vila Olímpia, São Paulo - SP, Brazil – Postal Code 04552-040 Contact Telephone: +55 11 97237 5851 Email: [email protected] Website: https://www.futurecarbon.com.br/ SOCIALCARBON – Project Description Contents 1. Project Details............................................................................... 4 1.1 Summary Description of the Project.................................................................................... 4 1.2 Sectoral Scope and Project Type........................................................................................ 5 1.3 Project Eligibility................................................................................................................... 6 1.4 Project Design.................................................................................................................... 10 1.5 Project Proponent............................................................................................................... 11 1.6 Other Entities Involved in the Project................................................................................. 12 1.7 Ownership........................................................................................................................... 14 1.8 Project Start Date............................................................................................................... 14 1.9 Project Crediting Period..................................................................................................... 17 1.10 Project Scale and Estimated GHG Emission Reductions or Removals......................... 17 1.11 Description of the Project Activity.................................................................................... 19 1.12 Project Location................................................................................................................ 22 1.13 Conditions Prior to Project Initiation................................................................................. 28 1.14 Compliance with Laws, Statutes and Other Regulatory Frameworks............................ 52 1.15 Participation under Other GHG Programs....................................................................... 54 1.16 Other Forms of Credit....................................................................................................... 55 1.17 Additional Information Relevant to the Project................................................................ 55 2. Safeguards.................................................................................. 63 2.1 Local Stakeholder Consultation......................................................................................... 63 2.2 Summary of Safeguarding Assessment............................................................................ 79 3. Application of Methodology....................................................... 88 3.1 Title and Reference of Methodology.................................................................................. 88 3.2 Applicability of Methodology............................................................................................... 88 socialcarbon. dedicated to sustainable development 2 SOCIALCARBON – Project Description 3.3 Project Boundary................................................................................................................ 91 3.4 Social, Economic and Environmental Impacts.................................................................. 95 3.5 Baseline Scenario............................................................................................................... 98 3.6 Additionality...................................................................................................................... 100 3.7 Methodology Deviations................................................................................................... 113 4. Quantification of GHG Emission Reductions and Removals 113 4.1 Baseline Emissions.......................................................................................................... 113 4.2 Project Emissions............................................................................................................. 114 4.3 Leakage............................................................................................................................ 125 4.4 Net GHG Emission Reductions and Removals............................................................... 126 5. Monitoring................................................................................. 129 5.1 Data and Parameters Available at Validation.................................................................. 129 5.2 Data and Parameters Monitored for Verification............................................................. 131 5.3 Data Monitored for Broader Sustainability Components................................................. 139 5.4 Monitoring Plan................................................................................................................. 148 6. SOCIALCARBON Indicators..................................................... 158 6.1 Indicators at Point Zero.................................................................................................... 158 6.2 Performance at Point Zero............................................................................................... 177 6.3 Performance Hexagon..................................................................................................... 178 Appendix 1: Safeguarding Assessment....................................... 179 Appendix 2: Methodological Procedures for LU/LC Cover Change Analysis.......................................................................................... 202 Appendix 3: Procedures for defining the Project as small-scale237 socialcarbon. dedicated to sustainable development 3 SOCIALCARBON – Project Description 1. Project Details 1.1 Summary Description of the Project Project name Cristalino Carbon Removal Project Project Type Scope 14 - Afforestation and reforestation SCM0003: Methodology for Carbon Removal in Private Conservation Applied Methodology Areas - Version 1.01 Host Country Brazil Latitude -9°35′35″ S Longitude -55°54′4″ W In a climate crisis scenario, countries worldwide have made efforts to establish mutual commitments to limit the advance of global temperature resulting from human GHG emissions and mitigate its effects. Maintaining, recovering, and restoring areas with native vegetation cover are crucial to achieving these objectives. In this context, although Brazil has about 66% of its territory covered by native vegetation 2, the quality of this vegetation has declined over the years, which denotes the need for conservation efforts in these areas. As a result of a study conducted by MapBiomas 3, it was identified that at least 8.2% of the Brazilian native vegetation cover was secondary in 2020, indicating that there was some type of clear-cutting, burning, or use for agriculture or pasture in the past. Additionally, the advance in deforestation has 1 Available at:. 2 MAPBIOMAS. 2022. Evolução da cobertura e uso da terra (1985-2021). Brazil. Available at:. Last visit: 28/11/2022. 3 MAPBIOMAS. Destaques do Mapeamento Anual de Cobertura e Uso da Terra no Brasil entre 1985 a 2021. Coleção 7.0. Available at:. Last visit: 12/22/2022. socialcarbon. dedicated to sustainable development 4 SOCIALCARBON – Project Description already resulted in a loss of 15 million hectares of the Brazilian forest area from 2010 to 2020 4, affecting both primary and secondary areas in the recovery process. The expansion of areas destined for agriculture and livestock, as well as predatory extractive activities and fires caused by human action, have contributed to this scenario. The main objective of the Cristalino Carbon Removal Project is to contribute to the carbon removal from the atmosphere associated with the maintenance of managed primary formations and managed secondary formations, more specifically forest formations, in a project area of 6,513.09 hectares. This area is located on a private property, named “Cristalino Reserve”, located between the municipalities of Alta Floresta and Novo Mundo, in the state of Mato Grosso, Brazil, southeast of the Amazon biome. The total property area is 7,225.88 hectares. In order to measure the carbon removals from the atmosphere, the Methodology for Carbon Removal in Private Conservation Areas V1.0 - SCM0003 was adopted, which presents a procedure to determine the annual removal of CO2 from the atmosphere by areas of native vegetation located in private properties. It is expected that, with the carbon project, it will be possible to expand the monitoring of the area, hiring new professionals to work in the surveillance, biodiversity monitoring and other conservation activities. In addition to the project’s ecological and carbon benefits, a proportion of the carbon credits generated will be dedicated to improving the quality and resilience of the forest, aiming at the propagation of environmental awareness, generation of alternative sources of income and environmental education actions. The SOCIALCARBON Standard indicators will assess and monitor the project's contribution to social and environmental activities encompassing six resources: Biodiversity; Nature; Financial; Human; Social and Carbon Resources. The contribution of this project is expected to be 111,7185 tCO2e in carbon removals over the 10-year project lifetime (29-March-2022 to 28-March-2032), with an annual average of 11,172 tCO2e. 1.2 Sectoral Scope and Project Type The sectoral scope applicable to the project is “Afforestation and reforestation” (Scope 14). The AFOLU project category is “Afforestation, Reforestation and Revegetation” (ARR). This is not a grouped project. 4FAO. 2020. Global Forest Resources Assessment 2020: Main report. Rome. Available at:. Last visit: 25/10/2022. 5 Buffer applied. socialcarbon. dedicated to sustainable development 5 SOCIALCARBON – Project Description 1.3 Project Eligibility According to the SOCIALCARBON Methodology Requirements v1.0, for Afforestation, Reforestation and Revegetation (ARR) projects, eligible ARR activities are those that increase carbon sequestration and/or reduce GHG emissions by establishing, increasing or restoring vegetative cover (forest or non-forest) through the planting, sowing or human-assisted natural regeneration of woody vegetation. Thus, the project is eligible under the scopes of the SOCIALCARBON Standard, following the SOCIALCARBON Standard v6.16 sections 3.2 and Appendix 1. Cristalino Carbon Removal Project Eligibility Conditions justification of Eligibility Projects shall meet all applicable rules and The project meets all applicable rules, requirements set out under the SOCIALCARBON requirements and principles set out under the Standard, including this document. Projects shall SOCIALCARBON Standard, as detailed in be guided by the GHG-Information Principles set sections Project Eligibility and Application of out in Section 2.3. Methodology. Projects shall apply methodologies eligible under the SOCIALCARBON Standard. Methodologies The applied methodology is SOCIALCARBON shall be applied in full, including the full SCM0003 - Methodology for Carbon Removal in application of any tools or modules referred to by Private Conservation Areas, v1.3. The Applicability a methodology. The list of methodologies and Conditions are detailed on section 3.2. The their validity periods is available on the methodology is applied in full, including the full SOCIALCARBON website. application of tools referred to by the methodology. Projects and the implementation of project The project activity involves human conservation activities shall not lead to the violation of any activities. These activities are eligible under applicable law, regardless of whether or not the Brazilian law according to conditions set out in law is enforced. sections 1.14 and 3.6. Where projects apply methodologies that permit the project proponent its own choice of model (see the SOCIALCARBON Standard document ‘Definitions’ for definition of model), such model Not applicable. This project applies the model shall meet with the requirements set out in the required by SCM0003 Methodology. SOCIALCARBON Standard document SOCIALCARBON Methodology Requirements and it shall be demonstrated at validation that the 6Available at: socialcarbon. dedicated to sustainable development 6 SOCIALCARBON – Project Description Cristalino Carbon Removal Project Eligibility Conditions justification of Eligibility model is appropriate to the project circumstances (i.e., use of the model will lead to an appropriate quantification of GHG emission reductions or removals). Where projects apply methodologies that permit the project proponent its own choice of third party default factor or standard to ascertain GHG This project applies third party default factors emission data and any supporting data for recommended by SCM0003 Methodology, which establishing baseline scenarios and meet with the requirements set out in the demonstrating additionality, such default factor or SOCIALCARBON Standard document standard shall meet with the requirements set out SOCIALCARBON Methodology Requirements. in the SOCIALCARBON Standard document SOCIALCARBON Methodology Requirements. Projects shall preferentially apply methodologies that use performance methods (see the SOCIALCARBON Standard document SOCIALCARBON Methodology Requirements for further information on performance methods) Not applicable. This project applies project method where a methodology is applicable to the project for determining both additionality and the crediting that uses a performance method for determining baseline, according to SCM0003 Methodology both additionality and the crediting baseline (i.e., requirements. a project shall not apply a methodology that uses a project method where such a performance method is applicable to the project). Where the rules and requirements under an approved GHG program conflict with the rules The project applies approved SOCIALCARBON and requirements of the SOCIALCARBON methodology and tools. The project shall take Standard, the rules and requirements of the precedence to the rules and requirements of SOCIALCARBON Standard shall take SOCIALCARBON Standard over other approved precedence. GHG Program. Where projects apply methodologies from approved GHG programs, they shall comply with any specified capacity limits (see the The project applies approved SOCIALCARBON SOCIALCARBON Standard document methodology and tools. The project shall take ‘Definitions’ for definition of capacity limit) and precedence to the rules and requirements of any other relevant requirements set out with SOCIALCARBON Standard over other approved respect to the application of the methodology GHG Program. and/or tools referenced by the methodology under those programs. socialcarbon. dedicated to sustainable development 7 SOCIALCARBON – Project Description Cristalino Carbon Removal Project Eligibility Conditions justification of Eligibility Where SOCIALCARBON issues new requirements relating to projects, registered projects do not need to adhere to the new requirements for the remainder of their project crediting periods (i.e., such projects remain Project was designed under SOCIALCARBON eligible to issue SCUs through to the end of their Standard v6.1. Any new requirements shall be project crediting period without revalidation adhered to at project crediting period renewal (i.e against the new requirements). The new ten years from Project Start Date). requirements shall be adhered to at project crediting period renewal, as set out in Section 3.8.7. There are currently four AFOLU project categories eligible under the SOCIALCARBON Standard, as defined in Appendix 1 Eligible AFOLU Project Categories below: afforestation, reforestation and revegetation (ARR), agricultural land management (ALM), reduced emissions from deforestation and degradation This is an eligible AFOLU project category under (REDD), and wetland restoration and the SOCIALCARBON Standard: Afforestation, conservation (WRC). Further specification with Reforestation and Revegetation (ARR). respect to eligible activities which may be included within methodologies approved under the SOCIALCARBON Standard can be found in the SOCIALCARBON Standard document SOCIALCARBON Methodology Requirements. Where projects are located within a jurisdiction covered by a jurisdictional REDD+ program, project proponents shall follow the requirements in this document and the requirements related to This project is not located within a jurisdiction nested projects set out in the SOCIALCARBON covered by a jurisdictional REDD+ program. Standard document Jurisdictional and Nested REDD+ Requirements. Where an implementation partner is acting in partnership with the project proponent, the implementation partner shall be identified in the project description. The implementation partner All implementation partners, in addition to their shall identify its roles and responsibilities with roles and responsibilities, are described in the respect to the project, including but not limited to, Project Description, sections 1.5 and 1.6. implementation, management and monitoring of the project, over the project crediting period. socialcarbon. dedicated to sustainable development 8 SOCIALCARBON – Project Description Cristalino Carbon Removal Project Eligibility Conditions justification of Eligibility Activities that convert native ecosystems to generate GHG credits are not eligible under the SOCIALCARBON Standard. Evidence shall be provided in the project description that any ARR, ALM and WRC project areas were not cleared of This project does not convert native ecosystems to native ecosystems to create GHG credits (e.g., generate GHG. The project area only contains evidence indicating that clearing occurred due to native vegetation for a minimum of 10 years before natural disasters such as hurricanes or floods). the Project Start Date. Such proof is not required where such clearing or conversion took place at least 10 years prior to the proposed project start date. Activities that drain native ecosystems or degrade hydrological functions to generate GHG credits are not eligible under the SOCIALCARBON Standard. Evidence shall be This project does not occur on wetlands and does provided in the project description that any not drain native ecosystems or degrade AFOLU project area was not drained or hydrological functions. converted to create GHG credits. Such proof is not required where such draining or conversion took place prior to 3 January 2022. The project proponent shall demonstrate that project activities that lead to the intended GHG benefit have been implemented during each verification period in accordance with the project The project proponent will demonstrate that project design. Where no new project activities have activities that lead to the intended GHG benefit been implemented during a verification period, have been implemented during each verification project proponents shall demonstrate that period in accordance with the Project Design. previously implemented project activities continued to be implemented during the verification period. For all REDD, ALM and WRC project types, the project proponent shall, for the duration of the project, reassess the baseline every 10 years Not applicable. This is an Afforestation, and have this validated at the same time as the Reforestation and Revegetation (ARR) project. subsequent verification. Where ARR, ALM or REDD project activities occur on wetlands, the project shall adhere to Not applicable. The project activity does not occur both the respective project category on wetlands. requirements and the WRC requirements, unless the expected emissions from the soil organic socialcarbon. dedicated to sustainable development 9 SOCIALCARBON – Project Description Cristalino Carbon Removal Project Eligibility Conditions justification of Eligibility carbon pool or change in the soil organic carbon pool in the project scenario is deemed below de minimis or can be conservatively excluded as set out in the SOCIALCARBON Standard document SOCIALCARBON Methodology Requirements, in which case the project shall not be subject to the WRC requirements. Projects shall prepare a non-permanence risk report in accordance with the SOCIALCARBON Standard document AFOLU Non-Permanence Risk Tool at both validation and verification. In the case of projects that are not validated and verified simultaneously, having their initial risk assessments validated at the time of The project has conducted a non permanence risk SOCIALCARBON project validation will assist analysis according to the SOCIALCARBON SCU buyers and sellers by providing a more Standard Document AFOLU Non-Permanence accurate early indication of the number of SCUs Risk Tool for validation and shall prepare the report projects are expected to generate. The non- during subsequent verifications. permanence risk report shall be prepared using the SOCIALCARBON Non-Permanence Risk Report Template, which may be included as an annex to the project description or monitoring report, as applicable, or provided as a stand- alone document. Eligible ARR activities are those that increase carbon sequestration and/or reduce GHG The project activity increases carbon emissions by establishing, increasing or restoring sequestration by establishing, increasing or vegetative cover (forest or non-forest) through restoring vegetative cover through human- the planting, sowing or human-assisted natural assisted natural regeneration of woody vegetation. regeneration of woody vegetation. Eligible ARR The procedure adopted and described by projects may include timber harvesting in their SCM0003 to define the project area ensures that it management plan. The project area shall not be shall not be cleared of native ecosystems within cleared of native ecosystems within the 10-year the 10-year period prior to the project start date, as period prior to the project start date, as set out in set out in the SOCIALCARBON Standard the SOCIALCARBON Standard document document SOCIALCARBON Standard. SOCIALCARBON Standard. 1.4 Project Design This project was developed as a single installation of an activity. socialcarbon. dedicated to sustainable development 10 SOCIALCARBON – Project Description Eligibility Criteria Not applicable. This is not a grouped project. 1.5 Project Proponent Organisation name JFC Ativos Ambientais Ltda. (Future Carbon Removals) Flávio Silva Ojidos Marcelo Hector Sabbagh Haddad Mariana Urrestarazu de Freitas Contact person Pedro de Sá Petit Lobão Thiago de Avila Othero Yasmin Cristina Hess Flávio Silva Ojidos – Project Coordinator Marcelo Hector Sabbagh Haddad – Technical Consultant Mariana Urrestarazu de Freitas – Technical Analyst Title Pedro de Sá Petit Lobão – Technical Coordinator Thiago de Avila Othero – Technical Consultant Yasmin Cristina Hess – Technical Analyst Rua Elvira Ferraz, no 250, Cj. 601 – Vila Olímpia, São Paulo - SP, Brazil Address – Postal Code 04552-040 Telephone +55 11 97237-5851 Email [email protected] socialcarbon. dedicated to sustainable development 11 SOCIALCARBON – Project Description 1.6 Other Entities Involved in the Project Floresta Amazônica Hotel Turismo Ltda. Organisation name Registry nº 01.046.325/0001-78 Role in the project Owner of Lote Cristalino Contact person Alexandre Da Riva Carvalho Title Partner Av. Teles Pires, 2001, Centro, Alta Floresta - MT, Brazil – Postal Code: Address 78580-000 Telephone +55 11 94348 1515 Email [email protected] Proflora Gestão Patrimonial Ltda. Organisation name Registry nº 51.476.345/0001-57 Role in the project Owner of Lote São Sebastião e Santa Maria I Contact person Alexandre Da Riva Carvalho Title Director Av. Teles Pires, 2001, Setor C, Alta Floresta - MT, Brazil – Postal Address Code: 78580-000 Telephone +55 11 94348 1515 Email [email protected] socialcarbon. dedicated to sustainable development 12 SOCIALCARBON – Project Description Sociedade de Conservação Cristalino Ltda. Organisation name Registry nº 07.351.285/0001-54 Role in the project Owner of Lote São Sebastião e Santa Maria II and Lote São Luiz Contact person Vitoria Da Riva Carvalho Title Managing Partner Avenida Perimetral Oeste nº 2001, Centro, Alta Floresta - MT, Brazil – Address Postal Code: 78580-000 Telephone +55 66 9645 9144 Email [email protected] Fundação Ecológica Cristalino Organisation name Registry nº 03.177.684/0001-90 Role in the project Implementation of socio-environmental activities Contact person Vitoria Da Riva Carvalho Title President Avenida Perimetral Oeste nº 2001, Setor C, Alta Floresta - MT, Brazil – Address Postal Code: 78580-000 Telephone +55 66 9645 9144 Email [email protected] socialcarbon. dedicated to sustainable development 13 SOCIALCARBON – Project Description 1.7 Ownership The project area is located at the municipalities of Alta Floresta and Novo Mundo, Southeastern Amazon biome, in the state of Mato Grosso, and is composed by the following four properties: 1. Lote Cristalino - Registration nº.14.017/ Livro nº 2-BR, owned by Floresta Amazônica Hotel Turismo Ltda., incorporated under the Brazilian laws, with head office at Av. Teles Pires, 2001, Centro, Alta Floresta - MT, Postal Code: 78580-000, Registry nº 01.046.325/0001-78, represented by its partner, Alexandre Da Riva Carvalho. 2. Lote São Sebastião e Santa Maria I - Registration nº 1.235/ Livro nº 2-BR, owned by Proflora Gestão Patrimonial Ltda., incorporated under the Brazilian laws, with head office at Av. Teles Pires, 2001, Setor C, Alta Floresta - MT, Postal Code: 78580-000, Registry nº 51.476.345/0001-57, represented by its director, Alexandre da Riva Carvalho. 3. Lote São Sebastião e Santa Maria II - Registration nº 481/ Livro nº 2-BR, owned by Sociedade de Conservação Cristalino Ltda., incorporated under the Brazilian laws, with head office at Avenida Perimetral Oeste nº 2001, Centro, Alta Floresta - MT, Brazil, Postal Code: 78580-000, Registry nº 07.351.285/0001-54, represented by its managing partner Vitoria Da Riva Carvalho. 4. Lote São Luiz - Registration nº 14.553/ Livro nº 2-BR, owned by Sociedade de Conservação Cristalino Ltda., incorporated under the Brazilian laws, with head office at Avenida Perimetral Oeste nº 2001 Centro, Alta Floresta - MT, Brazil, Postal Code: 78580-000, Registry nº 07.351.285/0001-54, represented by its managing partner Vitoria Da Riva Carvalho. The four properties composing the Cristalino Carbon Removal Project area are owned by three different ownerships. It is important to note that "Lote São Sebastião and Santa Maria I" correspond to a single property, as do "Lote São Sebastião and Santa Maria II". These properties have similar names but correspond to two properties owned by different owners. This information is also presented in figure 1 and table 1, subsection 1.12 Project Location. The documents proving the land title and ownership of the properties will be made available to the auditors during the validation process. 1.8 Project Start Date The Cristalino Reserve is owned by the Da Riva family for about 30 years and its goal is to contribute to the conservation of biodiversity and sustainable development of the Cristalino River region, Southeastern Amazon biome, state of Mato Grosso. Despite conservation efforts in partnership with the Cristalino socialcarbon. dedicated to sustainable development 14 SOCIALCARBON – Project Description Ecological Foundation (FEC), it has always been difficult to find funding to ensure the maintenance of conservation activities. In 2008, the Management Plan for the Private Reserve of Natural Heritage (RPPN)7 Cristalino I, II and III was prepared by FEC, but there were difficulties in planning, financing and, consequently, implementing the priority actions. The Management Plan of RPPN Lote Cristalino was approved on 04-May-2017 by the Chico Mendes Institute for Biodiversity Conservation (ICMBio). Drafted and sent for approval by the National Environment Fund (FNMA) – responsible for funding the plan –- in 2010, its review lasted about seven years until the last version was sent to ICMBio in 2016, culminating with the subsequent approval on 04-May-2017. The RPPN Lote Cristalino Management Plan was then adopted as a single management tool for the four areas that compose the Cristalino Reserve. However, due to lack of funding, which were intensified during the Covid-19 pandemic, the implementation of conservation activities within the Cristalino Reserve – such as biodiversity monitoring, surveillance, environmental education, and scientific research – which are guided by the Management Plan, could only start a few years later. One of the main specific objectives of the aforementioned Management Plan is to protect the endangered mammal species recorded in the Cristalino Reserve – citing, among them, the jaguar (Panthera onca) – by habitat maintenance and repression of hunting. In this sense, taking into account the jaguars' need for large living spaces, it is important to understand the number of jaguars that use the property area and its surroundings, as well as their ecological needs and the relationship with humans in the area to support objective and realistic decision making in the protection of fauna and local habitats in the Cristalino Reserve and the Cristalino region. In this sense, the Management Plan presents the Research and Monitoring Programme, which aims to expand the production of knowledge about the biotic and abiotic environment in the Cristalino Reserve, with a view to using it to justify and promote the conservation of the diversity of the Cristalino region. Three of its priority themes are: i) conducting faunal research with broad spatial needs; ii) conducting in-depth studies on top predators; and iii) conducting in-depth studies on the current flagship species (white-faced capuchin monkey and jaguar) or other possible new flagship species. However, no action had been implemented for jaguar protection due to lack of resources. With regard to jaguar records, the Management Plan shows that only six records (of footprints) of jaguars were obtained, three of them outside the boundary of the Cristalino Reserve. However, within the Cristalino Reserve area, a jaguar was seen by local guides in 2008, indicating that the property area was the territory of only one individual. Taking into account the management guidelines established in the Management Plan with regard to the protection of jaguars and the development of research and studies on this species, at the end of 2019 the organization obtained funding for the Looking for Jaguar Project from the NGO LATA Foundation8, aiming to identify and monitor the jaguar community (Panthera onca) 7 Private Reserve of Natural Heritage (RPPN) is a category of conservation unit created voluntarily by the landowner. When the area is categorized as RPPN, the owner is committed to nature conservation, without land expropriation. The only activities permitted are scientific research activities and visitation for tourist, recreational and educational purposes. The benefits of the private reserve are preference in the analysis of applications to acquire rural credit, tax benefits and the possibility of cooperation with private and public entities in the protection, and management of the land. 8 Lata Foundation. Cristalino Foundation – Brazil. Available at: https://latafoundation.org/projects/cristalino-foundation/ socialcarbon. dedicated to sustainable development 15 SOCIALCARBON – Project Description in the Cristalino Reserve by camera traps. The cameras trap were purchased on 04-June-2020, but due to the constraints of the Covid-19 pandemic, which had its worsening still in the first half of 2020 in Brazil, the implementation of the project in the Cristalino Reserve was postponed. The installation of 17 camera traps was carried out on 29-March-2022, which marks the first implementation activity defined by the Management Plan within the project area, thus defining the project start date. The Cristalino region is considered one of the richest biodiversity regions of the Brazilian Amazon, with a high concentration of endemic and endangered species. As foreseen in the Management Plan, the collection of biological and ecological data, as well as monitoring the populations of these species is of great importance to guide conservation activities. It is worth mentioning this activity that marked the project start date brought as initial results of biodiversity monitoring by camera traps in the Cristalino Reserve during 60 days the recording of 28 species, 21 of mammals, 6 birds and 1 reptile, besides 12 records of puma (Puma concolor) and 5 jaguars (Panthera onca), being possible to identify four male individuals of the latter species. The initial results of the Looking for Jaguar Project increased by four times the number of jaguar specimens recorded in the Cristalino Reserve, which can be seen as a significant increase in the property's conservation value for this endangered species. With the return of face-to-face activities, after the restrictions of the pandemic, the advertising of the A Day in the Forest Project on social networks was also resumed in March 2022. The project was established in 2008 to serve the schools within the municipality of Alta Floresta and wider areas. It consists of a workshop which currently takes place once a week during term time, receiving approximately 30 children and teachers at a time. The workshops include breakfast, lunch and fruit for the children, as well as activities including nature trails and dynamic activities based around the flora and fauna of the ecosystem. The objective is to develop the children’s awareness of the forest and the importance of preservation and conservation. This project is in alignment with the Management Plan, since one of its specific objectives is to continue and increase dissemination and environmental education activities aimed at conserving the biodiversity in the lower Cristalino region, having as its main target audience students and visitors. Also in March 2022, training was offered to people interested in being monitors of FEC’s Environmental Education projects, such as undergraduate students in the biological area. The training was held between 31-March-2022 and 01-April-2022 and had a workload of 20 hours. The conservation activities in the Cristalino Reserve gained prominence and in June 2022 FEC was selected to participate in the Reforça 2.0 Programme, an NGO acceleration and social transformation programme. On 29-August-2022 to 13-September-2022, FEC purchased equipment for brigades and hired five people trained in forest fire prevention as a response to the fires that started on 13-August-2022 in the Cristalino I and II State Parks, located in the surrounding region of the Cristalino Reserve. The fire lasted for a month and affected 5,080 hectares of native vegetation in the Parks and surrounding areas, rural properties and houses. It is noteworthy that the effective fire brigade of the region was composed of only socialcarbon. dedicated to sustainable development 16 SOCIALCARBON – Project Description three brigade members and there was no adequate equipment to fight the fire 9. This action is in alignment with the Management Plan, since it presents the Protection and Enforcement Programme, which aims to structure an inspection team and facilities in the Cristalino Reserve to ensure the integrity of its natural and human resources. In this regard, one of the expected outcomes is a structured firefighting scheme. Furthermore, in September 2022, the Cristalino Reserve hired employees to clean trails, totalling 5.4 km, to improve conditions for the development of monitoring and surveillance activities on the project area. In this sense, it is evaluated that the effective beginning of the Looking for Jaguar Project, marked by the installation of camera traps on 29-March-2022, is configured as the first milestone for effective conservation activities in the Cristalino Reserve, according to the specific objectives and priority actions of the Management Plan. After this event, FEC resumed other important conservation activities that are aligned with the priority actions of the Management Plan: i) the dissemination of A Day in the Forest Project, which encourages environmental education in the region; and ii) the support to the prevention and combat of fire in the surrounding conserved areas by purchasing equipment and hiring firefighters. Thus, 29-March-2022 was defined as the project start date for this project activity. 1.9 Project Crediting Period The project has a crediting period of 10 years, from 29-March-2022 until 28-March-2032. According to SocialCarbon Standard v 6.1 “(…) the project crediting period shall be 10 years, which may be renewed at most ten times with a total project crediting period not to exceed 100 years.” 1.10 Project Scale and Estimated GHG Emission Reductions or Removals Project Scale Project X 9Prizibisczki, C. Fogo já atingiu mais de 5 mil hectares dos parques Cristalino I e II, no Mato Grosso. https://oeco.org.br/noticias/fogo-ja-atingiu-mais-de-5-mil-hectares-dos-parques-cristalino-i-e-ii-no-mato-grosso/ socialcarbon. dedicated to sustainable development 17 SOCIALCARBON – Project Description Large project Year Estimated GHG removals (tCO2e)10 From 29th March to 31st December 2022 8,507 2023 11,423 2024 11,393 2025 11,342 2026 11,299 2027 11,258 2028 11,005 2029 10,965 2030 10,962 2031 10,958 From 1st January to 28th March 2032 2,605 10 Buffer Applied. socialcarbon. dedicated to sustainable development 18 SOCIALCARBON – Project Description Total estimated Removals 111,718 Total number of crediting years 10 Average annual Removals 11,172 1.11 Description of the Project Activity The main objective of the present project is the conservation of private areas within Alta Floresta and Novo Mundo municipalities, state of Mato Grosso, Amazon biome, Brazil. This will be achieved by the maintenance of “managed primary formations” and “managed secondary formations” of native vegetation, arising from anthropogenic activities of GHG removal. The project area presents 6,513.09 hectares of native vegetation, more specifically managed primary and secondary forest formations. The total property area is 7,225.88 hectares. The main mitigation action of the project is to conserve native vegetation by the implementation and expansion of monitoring and protection of the area, fire prevention activities, partnerships with researchers and the inclusion of surrounding communities in the project activities, with emphasis on expanding biodiversity conservation and promoting socio economic benefits to the surrounding communities, in addition to promoting environmental awareness and professional training. It is important to mention that the State of Mato Grosso, the federal unit where the project area is located, does not have a jurisdictional REDD+ program in operation. For clarification purposes, it is worth mentioning that Mato Grosso has legislation (state law 9.878/2013) establishing the State REDD+ System, with the "objective of promoting the progressive, consistent and sustained reduction of greenhouse gas emissions resulting from deforestation and forest degradation, as well as conservation, sustainable forest management and the maintenance and increase of forest carbon stocks". This law defined various "instruments" to make the system operational, including: "REDD+ Preparation and Support Programs, Projects and Actions", "Registration of REDD+ Projects and Actions" and "Municipal, National and International Cooperation". However, among the instruments mentioned above, the government of Mato Grosso had implemented the REM MT Program (Global Program REDD Early Movers). This program is the result of cooperation between the Mato Grosso State government and the governments of Germany and the United Kingdom and, in general, has the principle of allocating financial benefits to the government of Mato Grosso as a result of achieving targets for reducing illegal deforestation. socialcarbon. dedicated to sustainable development 19 SOCIALCARBON – Project Description The expected GHG removals that will be generated by this project activity are 111,718 tCO2e during the crediting period (29-March-2022 until 28-March-2032). The project proponent carries out significant conservation activities on the properties that make up the project area, which can be described as “anthropogenic GHG removals activities” and therefore qualify as carbon removal on managed lands (IPCC, 200611), according to SCM0003 Methodology. The project proponent expects to expand the conservation and social environmental activities from the revenue generated from the carbon credits, with a view to improving the conservation of the Cristalino Reserve and, on a larger scale, of the Cristalino region, and involve the surrounding communities in the process. The conservation and socio-environmental activities carried out within the RPPNs and their surroundings are conducted by the Ecological Cristalino Foundation (FEC), a non-governmental organization responsible for managing the RPPNs. FEC aims to conserve and protect natural areas and spearhead programs and projects within and around the Cristalino Reserve. With the carbon project, FEC will be responsible for implementing and expanding socio-environmental actions on-site. While the Future Carbon team is responsible for guiding the implementation of the actions. Four major areas of conservation and social environmental activities can be described: i) environmental education; ii) biodiversity research and monitoring; iii) participation in councils, commissions, and forums; and iv) surveillance and monitoring of the area. The environmental education activities undertaken in the project area that will be expanded include: i) A Day in the Forest Project: workshops held by the Cristalino Ecological Foundation (FEC), which aims to put children in direct contact with the Amazon Rainforest and develop the children’s awareness of the forest and the importance of preservation and conservation. The intention with the Carbon Project is to double the number of children in the workshops. ii) Stories of the Forest Project: storytelling is carried out for children from six to eight years of age from schools in the municipality of Alta Floresta, aiming at raising environmental awareness among children. The intention with the Carbon Project is to increase the number of workshops. The biodiversity research and monitoring12 activities include the following themes: meteorology, environmental analytical chemistry, entomology, botany, ecology and mycology. Course Completion Papers, Master's and Doctoral Theses and scientific articles are published nationally and internationally. The Carbon Project revenue is needed to maintain the facilities to receive the researchers, provide transport and food, and with greater investment, increase the number of researchers in the area. The following projects stand out: i) The Cristalino Fungi Project: aims to know the diversity of macroscopic fungi in the region and to draw future goals for applied studies in the areas of Biological Sciences, Agrarian and Health. Furthermore, 11 IPCC – Intergovernmental Panel On Climate Change. 2006 IPCC Guidelines for National Greenhouse Gas Inventories. National Greenhouse Gas Inventories Programme. Kanagawa: Institute for Global Environmental Strategies, 2006. Available at: https://www.ipcc-nggip.iges.or.jp/public/2006gl/. 12 Some of the research already published can be publicly accessed at: http://www.fundacaocristalino.org.br/sobre-a- fundacao/relatorios-e-documentos/ socialcarbon. dedicated to sustainable development 20 SOCIALCARBON – Project Description researchers from Brazilian and foreign universities are involved, helping in the identification and description of possible new species for science. Expeditions are carried out to collect samples and the publication of photographic guides and scientific articles. The species already collected from the first collection of the Mato Grosso Amazon Region to be included in the Mycological Collection of the Federal University of Santa Catarina (UFSC, in Portuguese) - MICOLAB/UFSC. ii) Biodiversity Monitoring of the Cristalino RPPNs: aims to study and monitor the biodiversity of the Cristalino Reserve using Birds, Mammals, Frugivorous Butterflies and Woody Plants as target species. Data collection expeditions are carried out where to catalogue and identify several endemic and/or threatened species of the region. iii) Looking for Jaguar: with LATA Foundation support, aims to identify and monitor the jaguar (Panthera onca) population in the Cristalino Reserve using camera traps. In the project area, field classes are held every six months from the following universities: Mato Grosso State University - UNEMAT, Mato Grosso Federal Institute - IFMT, Mato Grosso Federal University - UFMT, Rio de Janeiro State University - UERJ, as well as state and municipal schools and social institutions in Alta Floresta/MG. The revenue from the Carbon Project will allow to provide better conditions, such as facilities and meals, in order to welcome students and increase the number of participants. The participation in councils, committees and forums include: i) Cristalino State Park Consultative Council - PEC I and II: participation in ordinary and extraordinary meetings of the PEC I and II, acting to assist in the Park's management decision-making; ii) Mato Grosso State Environment Council - CONSEMA; iii) Mato Grosso Inter-institutional Commission for Environmental Education - CIEA; iv) Mato Grosso Climate Change Forum - FMMC; v) Conselho Municipal de Desenvolvimento e Meio Ambiente de Alta Floresta - CONDEMA; vi) Alta Floresta Environmental Forum. Noteworthy is the existence of a Management Council, which meets annually to discuss the management of the Cristalino Reserve, the goals and budget planning for the activities to be carried out. The surveillance and monitoring actions include: i) hiring brigades for actions related to preventing and fighting forest fires; and ii) daily patrols by security guards, boatmen and local guides throughout the Cristalino Reserve. The challenge of hiring brigade members to fight fire is the lack of training for residents of the region. With the revenue from the Carbon Project, the intention is to facilitate the training of people in the region who are interested in this activity. Moreover, the monitoring required by SCM0003 via Geographic Information System (GIS) will help with the monitoring and conservation of the area. Therefore, in addition to the conservation of native vegetation, this project aims to improve and quantify its social and environmental benefits by the SOCIALCARBON indicators, which measure the contribution socialcarbon. dedicated to sustainable development 21 SOCIALCARBON – Project Description of carbon projects to sustainability and aims to provide high integrity benefits in each one. The SOCIALCARBON indicators are based on six main resources: Biodiversity; Natural; Financial; Human; Social and Carbon. In this sense, it is expected to increase the number and quality of monitoring methods and biodiversity conservation activities, as well as expand social and environmental education, women inclusion in community activities and community inclusion in the project area based on the generation of jobs, such as local monitors, fire brigades and security guards. There is also an evaluation of the project's performance in relation to its correspondence with the Sustainable Development Goals. The monitoring of the conservation and social environmental activities will be based on the monitoring parameters, besides being verified in each SOCIALCARBON Monitoring Report. 1.12 Project Location The Cristalino Reserve (Figure 1) is located in the municipalities of Alta Floresta and Novo Mundo, in the state of Mato Grosso, in the Centre-West region of Brazil and in the southeastern Amazon biome. Belonging to the “North Mato-Grossense” Mesoregion, Alta Floresta and Novo Mundo’s population in 2021, according to the Brazilian Institute of Geography and Statistics (IBGE), was estimated in 61,650 inhabitants. Their territorial areas sum up around 14,755 km 2. Regarding its geographical limits, it is noteworthy: to the north, Cristalino State Park (PEC); to the south, the Teles Pires River (municipality of São Manoel); to the east, the Cristalino River; and to the west, the Cristalino State Park and the Teles Pires River (municipality of São Manoel). The headquarters of the Reserve is located in Alta Floresta, about 830 km from the capital of the state of Mato Grosso, Cuiabá, and the municipality can be accessed by land via the BR-163 and MT-208 highways, both paved. There is also a 2,500 metre-long airstrip in the town, considered the second largest in the Centre-West region, with two daily flights from Cuiabá. To access the Cristalino Reserve, it is necessary to drive about 29 km along the unpaved MT-325 highway for approximately 60 minutes to the Cristalino Farm, on the banks of the São Manoel River. From this point onwards, access to the main office is by boat, along the above-mentioned river, for about 30 minutes, up to the Cristalino River - where it is possible to access the Cristalino Eco Lodge Hotel. There is also the possibility 664of accessing the Reserve by air taxi, considering the existence of an airfield for landing at the Cristalino Reserve. In accordance with SOCIALCARBON Standard requirements, stipulated in Methodology SCM0003, version 1.0, the project area include only native vegetation, more specifically “managed primary formations” for a minimum of 20 years prior to the project start date and “managed secondary formations” for a minimum of 10 years prior to the project start date. It is important to note that the project area was not cleared of native ecosystems to create GHG credits, as all areas included as project area have not been cleared for at least 10 years prior to the project start date. Furthermore, in order to define the project area, areas within Cristalino Reserve that were defined as “managed primary formations” and “managed secondary formations”, given the applicability conditions defined by SCM0003, more specifically primary and secondary forest formation, were identified and utilized to compose the project area. socialcarbon. dedicated to sustainable development 22 SOCIALCARBON – Project Description The total property area is 7,225.88 hectares and the project area is 6,513.09 hectares. Table 1 and figure 1 below show the location of the project area. Geodetic coordinates of the project location have been submitted separately as a KML file. socialcarbon. dedicated to sustainable development 23 SOCIALCARBON – Project Description Figure 1. Project Locamotion socialcarbon. dedicated to sustainable development 24 SOCIALCARBON – Project Description Table 1. Project Location Ownership Properties Centroid location coordinates Floresta Amazônica Hotel Lote Cristalino -9°36′47″ S ; -55°56′17″ W Turismo Ltda. Proflora Gestão Lote São Sebastião and Santa -9°37′30″ S ; -55°54′32″ W Patrimonial Ltda. Maria I Sociedade de Lote São Sebastião and Santa Conservação Cristalino -9°35′17″ S ; -55°54′4″ W Maria II Ltda. Sociedade de Conservação Cristalino Lote São Luiz -9°33′22″ S ; -55°52′59″ W Ltda. The Cristalino Reserve is located in an area of historic environmental importance from the local to the global level, in view of its insertion in the Mato Grosso Amazon, more specifically in the immediate surroundings of the Cristalino State Park (PEC), a conservation unit (UC) of full protection (according to Federal Law No. 9.985/200013) included in the Southern Amazon Conservation Corridor (CEAM). The environmental relevance of the PEC is due, above all, to the protection granted to the springs and courses of the Cristalino, Rochedo and Nhandu rivers, in addition to its vast diversity in fauna and flora species – having been considered one of the richest biodiversity regions in the Amazon Biome due to its location in a transition zone between the savannah and the Amazon forest. In addition, almost the entire area of the Cristalino Reserve is classified as a Priority Area for the Conservation, Sustainable Use and Benefit Sharing of Biodiversity by the Ministry of the Environment, in the "extremely high" category. The extent of the environmental relevance of the Cristalino Reserve is noteworthy, which was translated into the recognition of 4 (four) Private Natural Heritage Reserves (RPPNs), a category of UC that is also included in the SNUC. The relevance of RPPNs lies, among other aspects, in their capacity to integrate civil society and public authorities in the quest for the conservation of Brazilian ecosystems 14. 13 BRAZIL. Federal Law Nº 9.985, of 18 July 2000. Regulamenta o art. 225, § 1o, incisos I, II, III e VII da Constituição Federal, institui o Sistema Nacional de Unidades de Conservação da Natureza e dá outras providências. Brasília, DF: Federal Official Gazette, 2000. 14 SOUZA, J.L. Perguntas e respostas sobre Reserva Particular do Patrimônio Natural. Instituto Chico Mendes de Conservação da Biodiversidade – ICMBio. Brasília, 2012. Available at: https://www.icmbio.gov.br/portal/images/stories/comunicacao/downloads/perguntaserespostasrppn.pdf. socialcarbon. dedicated to sustainable development 25 SOCIALCARBON – Project Description Figure 2. Protected Areas and Settlements surrounding the Project Area Currently, the following activities are developed in the Cristalino Reserve: i. research (Cristalino Flora Program and Project Pedopaisagens); ii. management; iii. visitation (ecotourism activity); and iv. surveillance and monitoring (control of hunting, fishing, livestock, pesticide use, deforestation and other irregular activities). The area is home to the Cristalino Ecological Foundation (FEC), a non-governmental organisation created in 1999, headquartered in the municipality of Alta Floresta, with its activities directed to the Cristalino region, especially the municipalities surrounding the Park, promoting initiatives for conservation and sustainable use of natural resources in the Amazon, environmental education, sustainable socioeconomic development, creation of economic alternatives, minimizing environmental impacts, research and monitoring in the region. The Cristalino Eco Lodge Hotel is also located in the area, an ecotourism enterprise in operation since 1992, committed to responsible tourism aligned with conservation. socialcarbon. dedicated to sustainable development 26 SOCIALCARBON – Project Description In April 2007, the Cristalino Ecological Institute and the FEC initiated, together with SEMA-MT, the creation of the RPPNs Cristalino I, II and III15, which form a complex of preserved areas together with the Cristalino State Park and the RPPN Lote Cristalino. Despite having been created almost seven years ago, most of the actions suggested in the RPPN Management Plan of the Cristalino State Park were never implemented until the project start date, with scarce funding for visitation activities, environmental education and research. Nevertheless, FEC has faced difficulties in maintaining conservation activities due to lack of funding and the degradation pressures that have intensified in the region. The occupation of the northern Mato Grosso State was initially encouraged by the Brazilian Federal Government itself in the 1970s, which resulted in significant degradation of native vegetation. Currently, most of this region is deforested with isolated fragments of remnants. In recent years, important remnants of primary and secondary vegetation have been inserted in conservation units, which form a large mosaic. Despite being legally protected, this vegetation is still threatened by deforestation and illegal burning. During the 2000s, the project region has been deforested for the expansion of farming and ranching activities, in the so-called "Arc of Deforestation". This pressure is expected to continue, given the globalisation of markets in the Amazon region and the international development policies planned for the region16. For the first time in 20 years, in August 2022, the Cristalino State Park suffered from intense fires that consumed 7,000 hectares, in addition to 3,300 hectares in the surrounding area 17 – which remains as one of the only protected areas able to stop the advance of degradation in the region. Deforestation in the “Legal Amazon”18 in 2022 was 11,568 km², the equivalent to over 1.6 million soccer fields. Mato Grosso was the third state that most destroyed the biome in the period, being responsible for 16.5% of the total deforestation detected, which corresponds to 1.906 km² 19. The Northern and Northwestern regions of Mato Grosso state, south of the Amazon biome, correspond to the portions where there was a concentration of deforestation in Mato Grosso state in 2022 – being important to highlight that the project area is located in the Northern portion of the Mato Grosso state. Among the Conservation Units of Integral Protection, the most affected one was Cristalino State Park II, with 4.7 km² of deforestation in August-2022, besides the fire episodes in the same month in the Cristalino I and II 15 These correspond to Lote São Sebastião and Santa Maria I, Lote São Luiz and Lote São Sebastião and Santa Maria II, respectively. However, RPPN Cristalino II (Lote São Luiz) is still in the approval stage, which has not affected the conservation of the area, in which the same conservation activities as in the other areas are taken. 16 Nepstad, D. C.; C. M. Stickler e O. T. Almeida. 2006. Globalization of the Amazon Soy and Beef Industries: Opportunities for Conservation. Conservation Biology 20(6):1595-1603. 17 Prizibisczki, C. Parque loteado: grilagem de terras públicas já atinge 74% do Cristalino II. ((o))eco. 13 Oct. 2022. Available at: https://oeco.org.br/reportagens/parque-loteado-grilagem-de-terras-publicas-ja-atinge-74-do-cristalino-ii/ 18Denomination commonly used for the region covered by the Amazon Economic Development Plan, comprising the states of Acre, Pará and Amazonas, Amapá, Roraima and Rondônia, and also the areas of the state of Mato Grosso north of the 16th parallel, the state of Goiás north of the 13th parallel and the state of Maranhão west of the 44th meridian, as set forth in Federal Law nº. 5,173/1966. Available at: http://www.planalto.gov.br/ccivil_03/leis/l5173.htm. Last access: 09-March-1966. 19 ICV - Instituto Centro de Vida. Características do Desmatamento na Amazônia Mato-Grossense em 2022. Available at: https://www.icv.org.br/website/wp-content/uploads/2022/12/caracteristicas-do-desmatamento-amazonia-mato-grossense- 2022-1.pdf. Last access: 22-March-2023. socialcarbon. dedicated to sustainable development 27 SOCIALCARBON – Project Description State Parks, which lasted for a month and affected 5,080 hectares of native vegetation in the Parks and surrounding areas. Therefore, it is noted that the recent increase in deforestation in the region, with emphasis on the degradation in the Cristalino State Park, bordering the Cristalino Reserve, demonstrates the relevance of the project activity implemented after the project start date as extremely necessary to promote conservation and ensure carbon removal. 1.13 Conditions Prior to Project Initiation The present project activity has not been implemented to generate carbon removals for the purpose of their subsequent reduction, removal, or destruction. On the other hand, the project aims to combine carbon removals and socio-environmental activities, which will promote the maintenance of native vegetation combined with alternative income generation from sustainable practices. It is worth highlighting that the project area is formed by forest areas for 10 years before the project start date, despite the pressure for land use change in the zone. Furthermore, despite being subject to deforestation and the common economic activities such as livestock and agricultural plantations, among others, such activities were not carried out in the project area for the last 10 years prior to the project start date. Thus, the project activity meets the SOCIALCARBON Standard criteria as described at the SCM0003 Applicability conditions: areas where there have been changes in the land use and cover (“conversion” to alternative land use) within the 10 (ten) years prior to the project start date) are considered ineligible for the project. The general characteristics of the project area are described below, having as main source the Management Plan of RPPN Lote Cristalino and the Management Plans of RPPNs Cristalino I, II and III. socialcarbon. dedicated to sustainable development 28 SOCIALCARBON – Project Description Climate According to Conti & Furlan (2003)20, the entire northern region and part of the central-western region of the Mato Grosso state have humid equatorial or sub-humid equatorial climates. Although the average temperatures are above 24°C in the entire region (except in restricted portions of the Guianas Plateau), the rainfall regime presents important differences. In the whole Western Amazon, there are annual totals higher than 2,500 mm and absence of a dry season. On the other hand, there is a sub-humid diagonal that extends from Roraima to the south of Pará and north of Mato Grosso, reaching Rondônia and part of Acre, whose pluviometric averages are less high, presenting alternation of the dry and rainy seasons and characterizing a Sub-humid Equatorial climate. According to Nimer (1989)21, the climate in the north-northwest of Mato Grosso state is Equatorial Hot Humid, although it presents a strong concentration of rainfall in the summer and a marked reduction in winter like the tropical climates, predominant in the rest of the state. The average annual precipitation in the region of the municipalities of Alta Floresta and Novo Mundo is 2,500 to 2,750 mm and the average annual temperatures are between 24ºC and 26ºC. The climate in the north of Mato Grosso state, where is located the project area, according to Köppen (1948)22 is of continental equatorial type (Am, Figure 3), with a defined dry season, with four to five dry months (May to September). Annual rainfall varies from 1,800 to 2,700 mm, with an average of around 2,400 mm. 20 Conti, J.B. & Furlan, S.A. 2003. Geoecologia: o clima, os solos e a biota. In: Ross, J.L.S. (org.). Geografia do Brasil. Edusp, São Paulo. p. 67-207. 21 Nimer, E. 1989. Clima. In: Duarte, A.C. (coord.) Geografia do Brasil, volume 1. Região Centro-Oeste. IBGE, Rio de Janeiro. p. 23-34. 22 Köppen, W.P. 1948. Climatologia. Fondo de Cultura Económica, México. 478 p. socialcarbon. dedicated to sustainable development 29 SOCIALCARBON – Project Description Figure 3 – Köppen-Geiger Climate Classification to the state of Mato Grosso Hydrography The Cristalino Reserve is located on the left bank of the Cristalino River which, like the Teles Pires River, is part of the same hydrographic basin occupying an area of approximately 146,600 km 2, including the states of Mato Grosso and Pará (Figure 4). The Cristalino River can be divided into three stretches. The first one goes from its sources in the State of Pará (Serra do Cachimbo) to the border with Mato Grosso. In this stretch called "high Cristalino", the river flows north-south and is "embedded", with a strong current and many rapids, waterfalls and stone slabs. socialcarbon. dedicated to sustainable development 30 SOCIALCARBON – Project Description Figure 4 – Hydrographic basin of the project region in level 5 of otto-basin code system The part of the “medium Cristalino” starts from the state border, with the river flowing in an east-west direction, and changes characteristics, presenting a slower current, with a large number of meanders, lakes and bays. The stone slabs are scarcer and during the dry season small sandy beaches appear on the inside of the meanders. This stretch measures 46 km in a straight line and, following the curves of the river, the distance covered is more than 100 km. Along this stretch, on both banks of the river, there is an alluvial plain of deposited sediments, which is flooded during the annual floods. The width of this plain varies from less than 100 to 500 m. In this stretch, the tributary streams of the Cristalino also present meanders and floodplains, tending to transform into swamps when dammed by the flooding of the Cristalino (MMA, 200223). In the “low Cristalino” section, the river abruptly changes its direction and characteristics, starting to flow again in the north-south direction and becoming again embedded between rocky banks, without significant alluvial plain. The current is stronger and the riverbed is full of stones. Several rapids, including Lemon Waterfall (in portuguese, Cachoeira do Limão), occur in this stretch, which is 28 km long and 23MMA – Ministério do Meio Ambiente. Biodiversidade brasileira: avaliação e identificação de áreas e ações prioritárias para conservação, utilização sustentável e repartição dos benefícios da biodiversidade nos biomas brasileiros. Brasília: Ministério do Meio Ambiente, 2002. 404p. socialcarbon. dedicated to sustainable development 31 SOCIALCARBON – Project Description extends to the mouth of the Cristalino on the Teles Pires River (MMA, 2002), the left bank of this stretch is located the Cristalino RPPNs. It is noteworthy that in the study area, all the vegetation on the banks of the river (about 6 km) is intact, which maintains the entire balance of water cycles. Figure 5 – Hydrographic basin of project area in level 5 of otto-basin code system The water catchment areas of the rivers of the Amazon basin are quite diversified, having distinct characteristics both in relation to the type of vegetation, as well as the type of soil, relief, erosion processes and amount of rainfall. These rivers can be classified, in a general way, in relation to the colour of their waters. Sioli & Klinge (1962)24 present a classification that differentiates the rivers of the Amazon into three types of water: white, black and clear. The main causes of these variations would be changes in the amount of suspended sediments and dissolved organic matter, resulting mainly from the natural characteristics of the river catchment area. The Cristalino River fits into the category of black water rivers. They originate in podzolic soils, which are more sandy or sandy-clayey. The colour of the water is due to 24 Sioli, H & Klinge, H. 1962. Solos, tipos de vegetação e águas na Amazônia. Bol. Mus. Paraense Emílio Goeldi (avulsa). socialcarbon. dedicated to sustainable development 32 SOCIALCARBON – Project Description the dissolution of humic acids, as this type of soil does not retain organic matter. In addition, dark waters also come from swampy regions, where organic matter from flooded forests is carried by rivers (Junk & Furch 1985, 1997)25. The intensity of the colour of the water varies according to the catchment areas of the rivers, the amount of dissolved organic matter and the season of the year, with the rivers being darker at the beginning of the rainy season due to the accumulation of organic substances in the dry seasons. The dense forest cover makes erosion processes smaller, with a low amount of suspended sediments (Nóbrega, 2005)26. The annual rise and fall of water is a response to the distribution of rainfall, which is quite heterogeneous in the Amazon region. The rainy season begins in the western part of the Amazon basin and progressively moves eastwards. From the quantitative point of view of the Amazon's resources, it can be said that the amount of rainfall and its distribution are closely linked to the vegetation cover, formed in most of the region by forest ecosystems. The Cristalino river basin is relatively small and heavy rains in its headwaters cause temporal variations in the water level during floods. In the months of January to March, periods of greater precipitation, the river level can rise by more than one meter in a few hours or in a few days when the headwaters cease to rain. The peak of the flood occurs in March, and the water recedes between April and May, draining igapós (flood forest), isolating the lakes again, and exposing small sandy beaches on the bends of the river (Campello et al. 2002a27). At this time when the water is going down, the caves are dry, forming a mud rich in organic matter, conducive to the life of many animals at the base of the food chain and, consequently, larger animals come to these places to feed. The annual dynamics of river discharge has been identified as a key factor that characterizes the seasonality of Amazonian environments. Fluctuating river discharge causes flooding of marginal areas and expansion of freshwater areas, with changes in water characteristics. From these periodically flooded areas comes a large part of the energy base that sustains aquatic resources (Nóbrega, 2005). In this sense, the preservation of the vegetation cover of the area, as well as the non-alteration of the natural hydrological cycles, are essential to guarantee the maintenance of the populations of aquatic organisms. 25 Junk, W. J. & Kunch, K. 1997. Physicochemical conditions in the floodplains. In: Junk, W.J. (ed.). The Central Amazon Floodplain. Springer, Nova Iorque. 26 Nóbrega, I. W. 2005. Análise espectral de sistemas aquáticos de Amazônia para identificação de componentes opticamente ativos. Dissertação de Mestrado. INPE – Instituto de Pesquisas Espaciais, São José dos Campos. 87 p. 27 Campello, S., Georgiadis, G., Richter, M., Buzzetti, D., Dalponte, J., Araújo, A.B., Peres Jr., A.K.P. Brandão, R.A. & Machado, F. 2002. Diagnóstico do Parque Estadual Cristalino. Ministério do Meio Ambiente, Secretaria de Coordenação da Amazônia. Brasília, DF. socialcarbon. dedicated to sustainable development 33 SOCIALCARBON – Project Description Geology, Topography and Soils According to Ross (2003)28, the Cristalino region is located in the great South-Amazonian Marginal Depression, which was generated by intense erosive processes on the borders of the Amazon Basin, during the Tertiary and Quartenary. Its genesis is similar to the North-Amazonian Marginal Depression. It is marked by relief with slightly convex tops, with altitudes between 100 and 400 m, increasing from north to south. A striking characteristic is the presence of residual relief represented by granitic intrusions of the Precambrian (South Amazonian Residual Plateaus), which determine relief forms on hills with convex tops with discontinuous distribution. According to Brasil & Alvarenga (1989)29, the southern Amazonian depression shows structural and lithological complexity. The rock substrate is represented by lithologies that range from the Archean to the Upper Proterozoic. The striking feature of this depression is the intense dissection of the relief, which leveled distinct structures due to successive erosive phases. The geological framework is clearly visualized through many relief forms which are adapted to faulting and folding. Examples of these events include the grabens (i.e. flat-bottomed depressions of tectonic origin) of Cachimbo and Caiabis, and the Juruena-Teles Pires structural high ground. These structures are topographically inverted and masked by intense erosion. As a result, the landforms are dissected, lowered and levelled by a drainage hierarchy following a dendritic pattern. According to the database of National Institute for Space Research - INPE (in Portuguese, Instituto Nacional de Pesquisas Espaciais) the area is covered by flat terrain (0-3%) and smooth wavy (3-8%), in the most of the area, followed by wavy and strongly wavy terrain, in hills in a disperse way. The first corresponds to the set of flattened forms that occupy a summit position within the regional relief. They are identified by their wide area of occurrence, presenting low declivities and low drainage density. Another striking characteristic of this relief is its very thick clay surface cover, with ferruginous crusts at its base. The second relief, more wavy, includes the forms that occur in the transition areas between the flattening systems, characterized by dissected areas in erosive edges, which can be found staggered in patamares in the area (Figure 6) and occurring dispersedly throughout Mato Grosso. 28 Ross, J.L.S. 2003. Os fundamentos da geografia da natureza. In: Ross, J.L.S. (org.). Geografia do Brasil. Edusp, São Paulo. p. 13-65. 29 Brasil, A.E. & S.M. Alvarenga. 1989. Relevo. In: Duarte, A.C. (coord.). Geografia do Brasil, volume 1. Região Centro-Oeste. IBGE, Rio de Janeiro. p. 53-72. socialcarbon. dedicated to sustainable development 34 SOCIALCARBON – Project Description Figure 6 – Relief Map in the project area The north of Mato Grosso is located in the Amazon Craton, of Archean age rocks that form a crystalline basement. This is exposed in the great depressions of the relief interrupted by residual plateaus. 30 The set of faults that affect the crystalline basement in the northern region of Mato Grosso are oriented northwest-southeast and northeast-southeast, constituting structural highs and lows. The latter form graben type basins, which during the Middle Proterozoic hosted several types of sedimentary rocks that serve as limits between the structural highs. These occur between the Caiabis Mountains and the Parecis Plateau, and between the Cachimbo and Caibis Mountains. Two geological formations occur in the project area, according to Secretary of the Environment of the State of Mato Grosso, Teles Pires, which covers almost all of it and Colíder that occurs only in a narrow strip close to the bank of the Teles Pires River. The Teles Pires Formation is represented in the State of 30Del'Arco, J.O. & Bezerra, P.E.L. 1989. Geologia. In: Duarte, A.C. (coord.) Geografia do Brasil, volume 1. Região Centro- Oeste. IBGE, Rio de Janeiro. Pp. 35-51. socialcarbon. dedicated to sustainable development 35 SOCIALCARBON – Project Description Mato Grosso by almost two dozen granitic bodies with circular outlines, occuring indistinctly throughout the entire exposure belt of the Iriri Group. The Colíder Formation is a volcanic belt that is linked to the Juruena plutonic volcanic arc. Among its main components are spills of acidic rhyolitic vitrophyritic and microporphyritic lavas, rhyodacites and dacites, and intermediate andesitic, porphyritic lavas, with frequent intercalations of pyroclastic and epiclastic deposits. According to Mineral Resources Research Company (in Portuguese, Companhia de Pesquisa de Recursos Minerais), the east of the project area is located in Clastic, plutonic, chemistry, volcanoclastic, volcanic rocks, which represents the largest part of the area. The midwest of the project area corresponds only to clastic rocks (Figure 7). Figure 7 – Geological Map in the project area The project area has 3 main types of soil formations, as shown in Figure 8. The most represented soil is Rld20, which is the acronym for Neossolos Litolicos Distroficos, Argisols Vermelho-Yellows Dystroficos and Outcrops of Rocks, located in the northwest portion of the area. Neosols comprise shallow soils, socialcarbon. dedicated to sustainable development 36 SOCIALCARBON – Project Description where generally the sum of the horizons on the rock does not exceed 50 cm, and are normally associated with more sloping reliefs. Limitations to use are related to the shallow depth, presence of rock and the steep slopes associated with the areas where these soils occur. These factors limit the growth of plant roots, the use of agricultural machinery and increase the risk of erosion. They are usually indicated for the preservation of flora and fauna, but in some regions, it appears that these soils are used , as in the states of São Paulo and Minas Gerais, for the production of coffee and corn; with corn, beans and soybeans in Santa Catarina and with viticulture and pasture in the State of Rio Grande do Sul. The term dystrophic is the third level classification for low fertility soil.31 The characteristics of the Dystrophic Litholic Neosol of a shallow and little fertile soil, demonstrate the importance of maintaining the forest cover and native vegetation for its conservation. The Red-Yellow Argisols present clay accumulation horizon, textural B, with red-yellowish colors due to the presence of the mixture of hematite and goethite iron oxides. They are deep and very deep soils; well structured and well drained. There is a predominance of surface horizon A of the moderate and prominent type, they mainly have a medium/clayey texture, and may present, to a lesser extent, a medium/medium and medium/very clayey texture. They also have low to very low natural fertility, with a strongly acidic reaction and low activity clays.32 The rocky outcrop is a type of terrain and not a soil class, and comprises exposures of different types of rocks, soft or hard, bare or with reduced proportions of detrital materials not classifiable as soil.33 The second most predominant soil formation in the project area, located in the southeastern portion, is represented by the acronym AR3, in which the compositions are the same as those of Rld20, but with different representation. Rocky outcrop are the most present, followed by by Dystrophic Litholic Neosols and Dystrophic Red-Yellow Argisols. And in the south of the project area there is a small portion of the PVAd24 soil formation, represented by Dystrophic Red-Yellow Argisols, Dystrophic Red-Yellow Latosols and Dystrophic Red-Yellow Latosols. Dystrophic Red-Yellow Argisols, as mentioned in the previous paragraph, present clay accumulation horizon, textural B with yellowish-red colors and low fertility. The Red-Yellow Latosols are identified in extensive dispersed areas throughout the Brazil National territory associated with reliefs, flat, smooth wavy or wavy. They occur in well-drained environments, being very deep and uniform in color, texture and structure characteristics at depth. They are widely used for agriculture and livestock, and when dystrophic, they present chemical limitations in depth to the development of the root system. Another limitation to the use of this soil class is the low amount of water available to plants.34 The red latosols show accentuated red colors, due to the higher contents and nature of the iron oxides present in the original material in well-drained environments, and uniform color, texture and structure characteristics in depth. They are identified in extensive areas in the Midwest, South and Southeast regions of the country, being responsible for a large part of the country's grain production, as 31 Santos, H. G.; Zaroni, M. J.; Almeida, E. P. C. Neossolos Litólicos. EMBRAPA. 2021. Avaiable at: https://www.embrapa.br/agencia-de-informacao-tecnologica/tematicas/solos-tropicais/sibcs/chave-do- sibcs/neossolos/neossolos-litolicos. Last visit: 01-June-2023. 32 Silva, M. S. L.; Neto, M. B. O. Argissolos Vermelho-Amarelos. EMBRAPA. 2021. Avaiable at: https://www.embrapa.br/agencia- de-informacao-tecnologica/territorios/territorio-mata-sul-pernambucana/caracteristicas-do-territorio/recursos- naturais/solos/argissolos-vermelho-amarelos. Last visit: 01-June-2023. 33 Santos et al. Sistema Brasileiro de Classificação de Solos. 5 edição. Brasília, DF. Embrapa, 2018. 34 Almeida, E. P. C.; Santos, H. G.; Zaroni, M. J. Latossolos Vermelho-Amarelos. EMBRAPA. 2021. Avaiable at: https://www.embrapa.br/agencia-de-informacao-tecnologica/tematicas/solos-tropicais/sibcs/chave-do- sibcs/latossolos/latossolos-vermelho-amarelos. Last visit: 01-June-2023. socialcarbon. dedicated to sustainable development 37 SOCIALCARBON – Project Description they occur predominantly in areas of flat and gently undulating relief, providing agricultural mechanization. To a lesser extent, they can occur in areas of wavy relief.35 Figure 8. Soil Map in the project area In order to assure methodology compliance, it was analyzed the presence of peatlands. For such assessment, it was used the mentioned IBGE and Embrapa soil databases and publications on Brazil’s soil classification36. The vector files and publications presenting soil types within Brazil by IBGE and Embrapa points out the occurrence of peatlands is not typical at mineral soil types, and also informs the soil types present in the 35 Santos, H. G.; Zaroni, M. J. Latossolos Vermelhos. EMBRAPA. 2021. Avaiable at:https://www.embrapa.br/agencia-de- informacao-tecnologica/tematicas/solos-tropicais/sibcs/chave-do-sibcs/latossolos/latossolos-vermelhos. Last visit: 01-June- 2023. 36 Available at: https://www.embrapa.br/solos/busca-de-publicacoes/-/publicacao/1094003/sistema-brasileiro-de-classificacao- de-solos. Last visit: 25-May-2023. socialcarbon. dedicated to sustainable development 38 SOCIALCARBON – Project Description project area are mineral, thus without peat. The occurrence of peats in specific types of soils is also reinforced by IBGE publication named “Pedology Technical Manual” 37. In this manual, peats are related to organic soil types, a soil type which is not presented in the project area, as shown in the soil image above. Thus, the occurrence of peatlands, which is typical of organic material soil types, is not present within the project area. Socio-economic conditions The socio-economic conditions of the two municipalities that compose the project area are described below38: Alta Floresta – MT Brazilian Census (2010): 49,164 habitants Estimated (2021): 52,105 habitants Population Residents in rural areas (2010): 42,718 Residents in urban areas (2010): 6,446 Land occupation The demographic density is 5.48 hab/km² The main land use for the municipality is forest vegetation (419,090.46 ha). It is noteworthy in Land Use second place is pasture (415,830.98 ha), with a difference of only 0.39% of total area for the main land use. The GDP per capita of the municipality is R$30,101.46. The average income is of 2.1 minimum wages, and 25.2% of the population is categorized to carry out a professional activity (formal or informal, paid or not). This puts the city Economy in the State ranking, 98/141 and 19/141, respectively. 33.3% of the population lives in families with monthly income of up to half a minimum wage per person. The main agricultural product of this municipality is soya. The municipality has 98% of its 6-14 years Education population in school. 37 Available at https://biblioteca.ibge.gov.br/visualizacao/livros/liv95017.pdf. Last visit: 25-May-2023. 38All information provided in this section comes from IBGE surveys and can be consulted at. socialcarbon. dedicated to sustainable development 39 SOCIALCARBON – Project Description The average infant mortality rate in the city is 12.3 Health deaths per thousand livebirths. Only 17% of households have adequate sanitation; 37.7% of urban households are located on public roads with trees and 3% on Infrastructure public roads with adequate urbanization (presence of manhole, sidewalk, paving and curb). The municipality HDI is 0.714. The state HDI is Human Development Index (HDI) 0.736. Novo Mundo – MT Brazilian Census (2010): 7,332 habitants Estimated (2021): 9,545 habit

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