Overview about Amazonas - economic and environmental facts - 2009

State of Amazonas

Basic Facts

Economic Aspects

Environment

Basic Facts

• 10th largest economy in the world (2007)

• Language: Portuguese • Capital: Brasília • Population: 187 + million (2008 est.) • Area: 8,547,403.3 km² (5th in size) • Number of States: 26 + Federal District • Literacy rate: 89.5% • GDP: US$ 1.29 trillion (2007) • Unemployment rate: 8.1% (July 2008)

Brazil

The Brazilian Amazon covers 59% of the country

The Brazilian Amazon is larger than Western Europe!!!

THE BRAZILIAN AMAZON: •  5.03 million km2

•  21.04 million inhabitants •  20,000 km of waterways •  1/5 of the primary green forests in the world •  Tropical climate: 26ºC to 36ºC

The Brazilian Amazon

Western Europe

Brazilian Amazon

98% OF THE STATE OF AMAZONAS IS PRESERVED FOREST

(24 billion tons of carbon stored!!!) ‏

500+ companies with production plants in Manaus

Population: 3.7 million State capital: Manaus Average Temperature: 31.4 ºC Area: 1.5 million Km² (largest BR State / 39% of BR Amazon Forest) Intl. Borders: Bolivia / Peru / Colombia / Venezuela World’s largest: Biodiversity, Potable water reservoir, River (Amazon River) Income per Capita: US$ 6,533 (18% above Brazilian Average) GDP: US$ 18,532,826

The State of Amazonas

São Paulo Rio de Janeiro Porto Alegre Manaus Salvador Belo Horizonte Recife Curitiba Fortaleza Brasília

74.241 25.491 11.022 6.490 4.550 3.479 3.408 3.382 3.102 2.808

International Flights in 2009 (top 10):

CITY TRAFFIC FLIGHTS 61 39 08 04 06 05 03 02 03 03

Air Transportation

Manaus is connected to 50 countries with only one stopover

Manaus

Atlanta

MANAUS  

CARACAS  

ATLANTA  

MIAMI  

PANAMÁ  

São  Paulo  

$ 1,134.57 Atlanta - Manaus - Miami

Visit Manaus!

$ 1,021,14 Miami - Manaus - Miami

BOGOTÁ  

04/03/09

The Amazon Hydrographic Basin

•  The Amazon hydrographic basin is the world largest fluvial basin. It has a total area of 7 million km², including the territory of neighboring countries (Peru, Colombia, Ecuador, Venezuela, Guiana, Bolivia). From this total, approximately 3,8 million Km² are in Brazil

•  The Amazon Basin is composed of the Amazon River and its effluents. There is a great demand for fluvial transportation and air services (hydroplanes)

City of Manaus, view from the Negro River

Economic Aspects Economic Aspects

Environment

Basic Facts

1558

1232

775 788

610

479

-­‐200

100

400

700

1000

1300

1600

2003 2004 2005 2006 2007 2008

GDP and Deforestation Rates for the State of Amazonas

SOURCE: INPE/PRODES e DEPI

AREA GDP DEFORESTATION RATES

GD

P (R$ B

illions)25.0 ‏ 30.3

33.3 39.1

42.4 45.6

Source: SUFRAMA

Industrial Production January to August, 2009

Manaus Industrial Pole

•  Over 500 industries manufacturing locally •  Federal and state tax incentives as well as import

tariff reductions

* AVG Point Percentage reduction (CRT TV)‏

• TOTAL TAX ADVANTAGE: Approx. 20 to 30% over Cost of Goods Sold

Duty Tax Calc Base Manaus São Paulo Import Duty CIF 2.16% 20% Suframa Fee FOB Import 1.96% N/A FTI FOB Import 2.00% N/A

IPI Gross Sales Price Exempted 20%

VAT Benefit Net Selling Price 2.5%* 0% AFRMM Freight Cost N/A 1.00%

Regional Production Fish Farming

•  Large potential due to good climate conditions, abundant clean water, good soils and fish diversity.

•  Current production of over 10 tons per hectare per year.

Managed Forestry

•  Over 600 small and medium sized projects approved. •  Annual increase in areas covered of approximately 50,000

hectares.

Non-Timber Forest Products

•  Guaraná •  Açaí •  Heart of Palm •  Manioc •  Palm Oil (biodiesel) •  Brazil Nuts, etc.

Coari-Manaus Natural Gas Pipeline (670 km)

à Great potential for petrochemical industrial development (gas is rich in nitrogen, ethane and methanol)

Investment Opportunities and the World Cup 2014

Vivaldo Lima Stadium à Carbon neutral construction

• Manaus, in the heart of the Amazon Forest!

Tourism

Basic Facts

Economic Aspects

Environment Environment

Our challenge:

– Reconcile environmental protection with the need to improve our people’s standard of living

Deforestation

Amazonas

Acre

Mato Grosso

Pará

Tocantins

Maranhão

Amapá Roraima

Rondônia

Counter deforestation by increasing the

value of environmental products and

services

State Law on Climate Change, Conservation and Sustainable Development Law # 3135, June 5th 2007

State Law on Protected Areas Complementary Law # 53, june 5th 2007

State Center for Protected Areas (CEUC)‏ Law # 3244, April 4th 2008

State Center for Climate Change (CECLIMA) Law # 3244, April 4th 2008

Strategic Group to Against Environmental Crimes (GECAM) ‏Law # 3.262, May 30 2008

State of Amazonas Environmental Police Decree # 22.637, May 30 2008

Amazonas Sustainable Foundation- FAS

Legal Framework to add value to Forests and Traditional Populations

- Subsidies to sustainable production of non-timber forest products:

•  Nuts •  Rubber •  Fibers •  Oils •  Non-sting bee honey

State Protected Areas (2009)

•  Receiving contributions from society;

•  Sectorial meetings: government, NGOs and productive sector;

•  Discussion within the State Forum on Climate Change;

•  Presentation at State Environmental Council;

•  Essential to benefit from the Amazon Fund;

•  First Strategic Action (second semester of 2009).

State Plan against Deforestation

Memorandum of Understanding with US States GCF Task Force

•  Participation of Brazilian States and Indonesian Provinces

•  REDD, Restoration and Reforestation of degraded areas

•  Financing Biodiversity and Forestry

•  Adaptation and mitigation

•  Exchange of information

•  Technology transfer

•  Exchange of scholars and experts

•  Capacity building programs

•  Studies and projects

FAS  was  created  with  an  ini0al  dona0on  of  R$  40  M  to    cons0tute  an  endowment  fund    

R$  20M   R$  20M  

R$  20M  

+  R$  50M  

(R$10M/yr) ‏  

U$  2M  

+  contribu0on  from    

hotel  guests  

2009  

2007  

2007  

2008  

The  Forest  Allowance  consists  of  4  complementary    programs  

FAMILY: Each family receives a monthly payment of R$ 50,00

SOCIAL: provides a small grant to local social activities

ASSOCIATION: local communities are represented by associations eligible for grants

INCOME: Grant to the association to support local activities

Forest  Allowance:  concept  

Financial  mechanism  

Biodiversity  

Reducing  emissions  from  deforesta0on    

Benefits   Environmental  services  

Poverty  reduc0on  

Environmental  services    maintenance  

Climate  

Carbon  

1558

1232

775 788

610

479

-­‐200

100

400

700

1000

1300

1600

2003 2004 2005 2006 2007 2008

Deforestation Rates for the State of Amazonas

SOURCE: INPE/PRODES e DEPI

AREA DEFORESTATION RATES

GD

P (R$ B

illions)‏

Vaporized Rivers

04/03/09 National Center for

Atmospheric Research

[email protected]

THANK YOU.