Brasil discloses final forest regulation allowing tradable credits

The Brazilian government on Tuesday published a final set of rules relative to its Código Florestal (Forest Code) that regulates the use of the country’s forests, according to Reuters. The revised Forest Code passed into law in 2012 after harsh debate between environmental and indigenous groups and the agribusiness sectors. 

Under the new regulations, owners of almost 6 million rural properties in Brazil will have to give details of land use by one year through an online information database called CAR, and the government will use the database to enforce legislation on how much native forest should be preserved.

 Landowners who cleared forests in excess of legal limits can either purchase Forest Reserve Credits (Cotas de Reserva Ambiental / “CRAs”) from landowners who are below their limits or to donate land that is inside recognized Conservation Units to a government environmental agency. 

According to a study published by Science in April, Brazilian landowners will have to restore 21 million hectares of illegally cleared forests.