1. BUILDING A REDD STRATEGY FOR MATO GROSSO STATE REDDexMetting Cancún - July 13, 2010 Laurent Micol

2. Mato Grosso State Quick facts Area: 903,000 km² Amazon 51%, Cerrado 43%, Pantanal 6% 2.9 million people Urbanization 76% Brazil’s largest producer of grain and livestock Soybean: 17 MT in 2008 (8% of world production), Cotton 2 MT Cattle: 26 M heads in 2008 Amazon’s 2nd largest timber producer 4.0 Mm³ of logs processed in 2009

3. Land tenure structure in Mato Grosso

4. Deforested areas in Mato Grosso Deforested areas: 37% of the state’s territory 55% deforested after 1990 Expected increase in demand for agriculture land Average opportunity cost estimated to $ 1,500 / ha, expected to increase Remaining forests Remaining savannas Main roads Deforested areas ‘

5. Deforestation rates in Mato Grosso: under control? SLAPR Curupira Operation Jurupari Operation PPCDQ-MT Decentralization of Forest Management, Soy Moratorium Stabilization of agriculture and cattle ranching production, reduction of logging and growth of forest management Average 8-10% per year agriculture and cattle ranching expansion

7. NW Mato Grosso Pilot Project feasibility analysis

8. Discussion on pilot project in the Xingu region

9. MoU with California and start of GCF process

10. Plan to Control Deforestation, with 89% reduction target

11. Creation of State Climate Change Forum

12. Reference document for Mato Grosso REDD Program (COP XV)

13. REDD working group in Climate Change Forum

14. REDD Plan and bill under preparation

15. Climate Policy bill under preparation

17. Voluntary markets

18. Regulated markets

20. Pilot projects

22. Technical framework: registry system of projects and programs Process Characteristic Criteria Aim Notification Compulsory Legality Carbon accounting Pre-register Voluntary Compliance with Principles & Criteria Planning Fund raising Register Voluntary Emissions reduction performance Fund allocation or REDD crediting

23. REDD Actions Cotriguaçu REDD+ project (Northwest Mato Grosso): State Government, ICV, TNC, ONFI Xingu indigenous project: ISA, EDF, IPAM Other 6 smaller projects Private forest reserves conservation (above 80% legal requirement) – linked to SLAPR Forest management practices improvement Cattle ranching intensification Smallholders settlements sustainability Indigenous lands protection and sustainable development Conservation Units effective protection and area increase Pilot Projects State-wide Programs

24. Main challenges and next steps Integration with federal level (parallel processes for REDD bills) Lack of technical guidance and framework=> adopt/ use FCPF approach/ templates? Insufficient government leadership and human & financial resources GCF process…=> California: small C offset market with high standards=> potential as platform for state-level REDD approach development and fund-raising? Define and implement funding strategy