Report of activities 2007/2008

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Foreword

Conservation of the Amazon can no longer be seen through a lens of conservation versus production. This model of development does not contribute to economic growth and further stimulates the conditions which lead to deforestation in the region.

On a global scale, a profound change is underway in our economy. With the increasing urgency to mitigate the effects of climate change, the world is increasing the diversity of goods and services available in markets and is beginning to attribute economic value to forest conservation.

Global warming and climate change are the largest environmental threats facing humanity today. Scientific evidence leaves us no doubt that man is the main cause of these processes. Globally, greenhouse gas emissions (GGE) from human activity increased 70% in the last decades. Extreme climatic events such as hurricanes, cyclones, torrential rains and severe droughts are already affecting the livelihoods of millions of people worldwide.

Foreword

Mariano Colini Cenamo Idesam executive director

4Tropical deforestation is responsible for nearly 20% of global GGE. In Brazil, deforestation represents close to 75% of the countrys total emissions. The destruction of the Amazon emits more carbon than our entire fleet of automobiles, power plants and industrial processes, not to mention the impacts on biodiversity, changes in hydrological processes and rainfall patterns.

Our Government has always faced obstacles to containing deforestation in the Amazon. Some recently adopted measures parting from the principle of command and control - have shown positive results, but deforestation continues to advance. Development strategies in this region, which houses the worlds largest stock of biodiversity and green carbon, must be reconsidered. The logic behind deforestation is both rational and economic: a downed forest for agricultural production generates income, while the maintenance of a standing forest generates costs. Until this perverse logic of deforestation is inverted we are destined for an uphill battle with little chance of victory.

It is within this paradigm that Idesam sees the biggest challenge and opportunity for the conservation of the Amazon: to reconcile the interests of development at local and national scales with the necessary and urgent opportunities available through forest conservation and mitigation of global climate change.

The global carbon market in 2008 generated nearly $120 billion. Paradoxically, forest-based carbon credits occupied filled a minimal amount of this total volume, generating $225.5 million, or 0.18% of the total and restricted mainly to reforestation projects. Carbon credits from reduced emissions from deforestation REDD (or avoided deforestation) have always been excluded from the market. Thankfully, this scenario is changing. The consolidation of carbon-based mechanisms to conserve standing forest is imminent, and Idesam played an important role in this process.

Through its work elaborating the Project Design Document and coordinating and validating the methodology for quantifying carbon for the Juma Sustainable Development Reserve (SDR), Idesam established a new precedent for global REDD projects. The Juma SDR RED project was the first in Brazil- and second worldwide- to be validated using the Climate, Community and Biodiversity (CCB ) standards of the REDD framework. Certified through a long and rigorous process of scientific and methodological scrutiny, the Juma project has established a replicable model for the creation of future REDD projects and is today considered a worldwide reference.

Idesam believes this the way forward toward the sustainable development of the Amazon. Through our programs, activities and projects, our objective is to identify and create models that lead to a harmonious future between man and nature, and the sustainable development of the Amazon.

Mariano Colini Cenamo Idesam executive director

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CoNTeNTS

Idesam 6Mission 7

Idesams institutional framework 8

1. Climate Change Program 101.1 Southern Amazonas Project 12

1.2 Pilot-project for the Apu Region 131.3 The Amazonas Initiative 15

Programs region of activity 161.4 The Juma SDR RED Project 19

1.5 Railroad vs. BR-319 Project 202. Protected Areas Program 22

2.1 Regulation and management of protected areas project 232.2 Co-management of the Uatum Reserve 25

Activities supported by Idesam 32Natural Resources Management of protected areas program 33

Forest Allowance Program 34

3. Natural Resources Management 363.1 Idesam and Tropical Forest Trust Partnership 37

3.2 The timber trade action plan 383.3 Program for support certification FSC 38

Idesams Financial Statement 2007 40Idesams Financial Statement 2008 41

6IdeSAM

The Institute for Conservation and Sustainable Development of Amazonas (Idesam) is a non-for-profit, non-governmental organization founded in 2004 and headquartered in Manaus, capital of the State of Amazonas.

Idesam is overseen by an autonomous and voluntary board of directors, comprised of representatives from distinguished civil society institutions working in the Amazon region.

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... to promote the conservation of natural resources, maintenance of climate equilibrium and the sustainable development of the Amazon.

MISSIoN

Idesams mission is to promote the conservation of natural resources, the maintenance of climate equilibrium and the sustainable development of the Amazon.

Idesams professional staff works to coordinate and promote projects, scientific studies and research dedicated to the conservation and sustainable development of the Amazon region.

To stimulate discussion in the search for creative, original and appropriate solutions for the social and environmental issues facing the Amazon, Idesam makes its scientific work available through courses and workshops and from technical publications, presentations and participation in international and national conferences. In support of its activities, Idesam promotes, trains and builds human resource capacity in its fields of expertise.

Idesams financial resources come from private donations, grants and research contracts and are invested in programs dedicated to the prevention and reduction of deforestation, mitigation of climate change, alleviation of poverty and the promotion of forest conservation and natural resources management. All of our activities, programs and funds are monitored by our boards and independent audits.

BrAZIL

Amazonas

exeCuTIve BoArd

exeCuTIve dIreCTor MArIANo CeNAMo

progrAM

CoordINATor CArLoS g. Koury

Idesams institutional framework

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President

Marcos Coutinho (Brazilian Agricultural Research

Corporation Embrapa Pantanal)

Vice-President

Carlos Bueno (National Research Institute of the Amazon Inpa)

Board of trustees

Elisa Wandelli (Embrapa)

Marcos Coutinho (Embrapa Pantanal)

Carlos Bueno (Inpa)

adVisory Board

Domingos Macedo (CEUC/SDS)

Marcelo Marquesini (Greenpeace)

Paulo Moutinho (Institute for Environmental Research of the

Amazon Ipam)

Paulo Nogueira Neto (University of So Paulo USP)

Philip Fearnside (Inpa)

Roberto Borges (Forest Trends)

Thomas Lovejoy (Heinz Center)

Tim van Eldik (Precious Woods Amazon PWA)

Werner Grau Neto (Pinheiro Neto Law Office)

executiVe Board

Executive Director

Mariano Colini Cenamo

Program Coordinator

Carlos Gabriel Koury

Along with our boards, Idesam executes its

work through specific programs led by techni-

cal and administrative staff.

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CLIMATe ChANge ANd

eNvIroNMeNTAL ServICeS progrAM

proTeCTed AreAS progrAM

NATurAL reSourCeS

MANAgeMeNT progrAM

AdMINISTrATIve BrANCh/oFFICe

SouTherN AMAZoNAS progrAM

puBLIC poLICy For The AMAZoN projeCT

TrAININg ANd CApACITy BuILdINg projeCT

pILoT projeCT For The Apu regIoN

reguLATIoN ANd MANAgeMeNT oF proTeCTed AreAS projeCT

Co-MANAgeMeNT oF The uATuM Sdr projeCT

TeChNICAL STAFF

Protected areas Program Coordinator Carlos Gabriel Koury [email protected]

Andr Luiz Menezes de Vianna [email protected]

Camila Carla de Freitas [email protected]

Danielly da Mata [email protected]

Eduardo Rizzo [email protected]

climate change Program Coordinator Mariano Cenamo [email protected]

Gabriel Cardoso Carrero [email protected]

Mariana Nogueira Pavan [email protected]

Pedro Soares [email protected]

natural resources management Program Flavio Murilo Guiera [email protected]

Cristian Rau Stoltemberg [email protected]

administration Tatiane Printes (administrative manager) [email protected]

Lorena Castro (administrative assistant) [email protected]

IdeSAM ANd TropICAL ForeST TruST projeCT

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climatechange

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1 CLIMATe ChANge ANd eNvIroNMeNTAL ServICeS progrAM (CCp)

The Climate Change Program strives to create mechanisms and instruments for the payment of environmental services as a strategy to reduce deforestation and promote forest conservation. The program targets the development of reforestation projects and those that Reduce Emissions from Deforestation and Forest Degradation (REDD) in the guise of Clean Development Mechanism (CDM) destined for voluntary carbon markets and/or instruments associated with the UN Convention on Climate Change (UNFCCC).

Idesam is an active participant in the UNFCCCs Conference of the Parties (COP), with a primary focus on forest and climate negotiations. Through its increasing participation in these discussions, Idesam, since 2007, has been registered as an official observer in the UNFCCCs framing convention on Climate Change, having organized and participated in side-events, panels and debates.

Idesam provides technical and scientific support in the conception and implementation of the Government of Amazonas State Policy for Climate Change and Payment for Ecosystem Services, in effect since 2005. As the primary partner in the development of the Amazonas Initiative, Idesam played a key part in the passage of the countrys first state law explicitly addressing climate change and sustainable development.

PARtneRs

ObjectIves

1) Promote dialogue between government and local actors about initiatives that conserve forests and reforestation activities associated with payments for ecosystem services (PES) in the context of the UNFCCC and voluntary carbon markets; 2) Support technical studies for the formulation of projects and initiatives that reduce emissions from deforestation (RED) and support reforestation activities in the region. 3) Reinforce the institutional capacity of Idesam and other institutions in the region to expand on existing work to implement climate change policies and programs in the state of Amazonas.

MAIn ActIvItIes

1) Undertake socio-environmental, economic and land tenure diagnostics in order to define strategies that reduce deforestation and restore degraded areas in the Amazon; 2) Establish open dialogue on technical and policy concerns relevant to forest conservation, deforestation and the role of ecosystem services in the mitigation of climate change; 3) Develop feasibility studies and promote institutional dialogue to establish REDD projects and initiatives in the southern state of Amazonas.

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Reforestation with teak and shaded growth coffee in Apu, AM.

1.1) SouTherN AMAZoNAS projeCT

Since 2006, Idesam has looked to establish the legal and institutional framework necessary for the implementation of REDD projects in the Amazon. The objective is to support studies to identify viable opportunities for REDD projects and initiatives in the region. Due to the disorderly state of land titling in the State, where legal claims to land, resources and environmental services are poorly defined, an important aspect of our work is orient projects.

In partnership with the Bluemoon Fund, the REDD project Study of opportunities for the Southern Amazonas is developing diagnostic tools and mechanisms for the region that will facilitate the development of REDD initiatives in order to reduce deforestation through incentives for forest conservation.

The project is initially focused around the municipalities of Apu, Boca do Acre, Lbrea, Manicor and Novo Aripuan.

programs

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1.2) pILoT projeCT For The Apu regIoN

Since 2006 Idesam has been developing a proposal to create a Project for Payment for Ecosystem Services to reduce deforestation in Apu. This proposal consists of the design and implementation of actions to contain the advance of deforestation in the region and promote the restoration of degraded areas. The project focuses activities along the margins of the Trans-Amazon highway, one of the most critical frontiers of deforestation in the Amazon, in the municipality of Apu in the south of Amazonas state.

The Apu pilot project, initiated through a partnership with the State Secretariat of Environment and Sustainable Development of Amazonas (SDS), counts on support of the Gordon and Betty Moore Foundation. The partnerships goals are to identify viable areas for the creation of a Mosaic of Protected Areas of Apu, as well as to identify existing rural areas in the municipality.

To date, detailed socio-economic and environmental diagnostics have been implemented to better understand the dynamic of deforestation in the municipality and surrounding areas. In addition, estimates of production costs and profitability of economic activities in the region were conducted,

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targeting specifically the activities that are driving the advance of the frontier of deforestation.

These data showed the profitability of forest products relative to extensive extractive activities and formed the baseline for a proposal to adopt measures that reconcile local economic development with environmental protection.

Idesams Southern Amazonas work was recognized and awarded a first place development project recognition for environmental initiatives in the Professor Samuel Benchimol Amazon Awards of 2006.

In early 2008 new funding from the Avina Foundation allowed Idesam to help structure a framework for social and agricultural planning of rural lands in the municipality of Apu. The initiative envisions the creation of a pact to reduce deforestation and promote the sustainable development of the region. Still in initial phases, the project has already generated results, primarily related to dialogue and orientation of local actors around the projects objectives.

Apu region

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In the second half of 2008 a new phase of the Southern Amazonas project was initiated through a partnership with the Bluemoon Foundation, with the goal of extending the work around Apu to other municipalities in the region.

1.3) The AMAZoNAS INITIATIve

Through a cooperation agreement with the State Secretariat for Environment and Sustainable Development of Amazonas (SDS), Idesam coordinated the Structuring Plan of the Amazonas Initiative1. This work, involving diverse institutions, established the legal, technical and institutional framework for the implementation of mechanisms for the payment for environmental services, conforming to REDD standards, and envisioning compensation for reduced carbon emissions from deforestation.

The Initiative carried out a range of studies and analyses, including modeling, legal issues, economic analysis, opportunity costs of land use, carbon counting and the implementation costs of Protected Areas, by an advisory committee comprised of specialists from diverse fields and institutions. These studies established the theoretical and technical base necessary to frame the larger program.

1 The Amazonas Initiative had as partners: Federal

University of Minas Gerais (UFMG), National Institute

for Amazon Research (Inpa); Federal University of Rio de

Janeiro (UFRJ); International Center for Tropical Agriculture

(CIAT); Conservation Strategy Fund (CSF); World Bank;

Center for International Forestry Research (CIFOR) and

Pinheiro Neto Law Firm.

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AMAZONAS

ACRE

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Apu

Lbrea

Manicor

Boca do Acre

Novo Aripuan

BR-364

BR

-174

BR

-317

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BR-230

BR-23

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IdeSAMS worK

Idesam was responsible for the technical coordination of the Project Design Docu-ment- demonstrating how the project would be implemented and providing estimates of the emissions reductions and additional ben-efits of the project for biodiversity and partici-pating communities.

Together with Carbon Decisions and FAS, Idesam developed a methodology for the col-lection of baseline data and quantification and monitoring of carbon emissions reductions required for authentication.

The Institute believes that placing value in standing forest is fundamental to mitigate climate change and maintain balance in global hydrological systems. This work is essential for the inclusion of forests in REDD climate convention negotiations and voluntary carbon markets.

The Juma Sustainable Development Reserve (SDR) RED Project in the Novo Aripuan dis-trict, was the first project in Brazil certified by the Climate, Community and Biodiversity Alliance (CCBA).

Certified by the German company Tv-Sud, the project is the first in the world to receive the CCBs Gold Rating and is ex-pected to be registered in Voluntary Carbon Standards (VCS).

The project continues to be advised by a scientific committee comprised of special-ists from renowned institutions such as the National Research Institute for the Amazon (INPA), the Federal University of Minas Gerais (UFMG), the Environmental Research Insti-tute of the Amazon (IPAM), the law offices of Pinheiro Neto and the consulting firm Carbon Decisions.

Idesams WorkAs a result of this process, legislation was passed which established the legal precedent necessary for the implementation of mechanisms envisioned by the Amazonas Initiative, including the State Law for Climate Change, Environmental Conservation and Sustainable Development (3135/07) and the State of Amazonas Law for Protected Areas (Complementary Law 53/07).

The final instrument of the Amazonas Initiative was the creation of the Amazonas Sustainable Foundation (FAS)2, a public foundation governed by boards comprised of diverse sectors of society, of which Idesam is an advisory board member. FAS has a legal mandate to manage the environmental services generated from all the Protected Areas of the State of Amazonas, including negotiations for the reduction of emissions from deforestation envisioned under REDD, conservation of carbon stocks, and the preservation of biodiversity and associated rainfall patterns and hydrological processes.

2 For more information, please visit FAS website:

http://www.fas-amazonas.org

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AM

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Manicor

Borba

Borba

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1.4) The juMA Sdr red projeCT

Idesam is responsible for providing the technical support to the Juma Sustainable Development Reserve (SDR) RED project, in the Novo Aripuan municipality of southern Amazonas State.

The fruit of a partnership between the Amazonas Sustainable Foundation (FAS), the State Government, and Marriott International hotel chain, the project envisions sequestering 3.6 million tons of CO2, which would have been released to the atmosphere as a result of illegal land grabs, wood extraction and deforestation for cattle and soy.

The reductions in carbon emissions generated by the project become carbon credits, available to clients of the Marriott chain of hotels to offset their emissions. It is envisioned that nearly 189.7 million tons of CO2 credits will be generated by 2050.

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BR-319

AMAZONAS

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Manaus

Transam

aznica

Porto Velho

1.5) rAILroAd vS. Br-319 projeCT

In early 2007, a plan was announced to rebuild the BR-319 highway, connecting the cities of Manaus, in Amazonas State, and Porto Velho, capital of Rondnia State. It is expected that the re-opening of this road will have irrever-sible impacts on the forests of the Amazon. Paving of the BR-319 highway could lead to the deforestation of between 5.1 to 44 million ha within the Legal Amazon (Fearnside et al, 2008; Soares-Filho et al 2006).

Parallel to the deforestation, infrastructure pro-jects along BR-319 would generate other social and environmental impacts, particularly in Amazonas State. Land grabbing of public lands is the most common of these impacts. As a result of the illegal appropriation and commer-cialization of lands through falsified documents or sometimes without any documentation disputes over land titles are intensified, often resulting in the forced removal of families and even assassinations.

Experts predict that with the paving of BR-319 to Manaus, migration pressure will cause a large increase in the citys population, leading to an overload of public health and education systems, increased urban violence and traffic, among others.

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Due to the increased environmen-tal impact and the potential for large-scale emissions of greenhou-se gasses, it was argued that the environmental licensing process should engage in in-depth studies of alternative modes of transporta-tion. A range of organizations have urged federal authorities to prioritize the use of railways as a strategy for the sustainable development of the Amazon, in an effort to minimize to the greatest extent possible, the impacts of infrastructure projects on forests.

The process of utilizing railways as an alternati-ve to BR-319 is in initial stages and we believe is far from a final decision. Idesam continues to be actively engaged in discussions, in se-arch for a model that represents the best way forward for the sustainable development and conservation of forests of the Amazon.

3 Federal Government (MMA, MRE and MT), Government

of the Amazonas State (SDS and SECT); SUFRAMA, INPA,

UFAM, COIAB, GTA, IPAM, FAS, DNIT, ANTT, ANTF,

Preserve Amaznia, among others. Centro de Direitos

Humanos (CDH) da Arquidiocese de Manaus, a Comisso

Pastoral da Terra (CPT), Conselho Nacional dos Seringueiros

(CNS), Confederao das Organizaes Indgenas e Povos

do Amazonas (COIAM), Fundao Estadual dos Povos

Indgenas (FEPI) and the Unio dos Povos Indgenas de

Manaus (UPIM).

Idesam believes in opening the public dialo-gue surrounding the reconstruction of BR-319, including primarily an exploration of alter-native modes of transportation that are both less costly and generate fewer environmental impacts. Under this premise Idesam organized the event, Railways and BR-319: an Urgent and Necessary debate for Amazonas in March of 2008. The event brought representatives from diverse governmental and civil society organizations to discuss the issue openly with the public. The presentations and debates were attended by over 200 participants.

A major result of the meetings was a formal re-quest for a more open public dialogue over the BR-319 process. An alliance of diverse social and environmental3 organizations was formed as a result of the discussions, to bring this dialogue to State and Federal Environmental Conferences. In addition, three new proposals were approved with the aim of stopping cons-truction projects envisioned under the Growth Acceleration Program (PAC).

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protectedareas

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programs 2.1) reguLATIoN ANd MANAgeMeNT oF proTeCTed AreAS projeCT

From the debate surrounding the use of mechanisms to Reduce Emissions from Deforestation and Forest Degradation (REDD), a result of the inclusion of forest-rich countries as partners in the fight against global warming and the valuing of standing forests and the services they afford humanity, several fundamental questions arise: What is the real cost of maintaining standing forests for the State of Amazonas? What price should be set on the environmental services provided by the forests within Protected Areas to compensate for the costs incurred by the agencies involved in their creation and management? What is the maintenance cost associated with preserving the environmental and climatic functions of Protected Areas? What is the cost of improving the quality of life for communities and residents of Protected Areas through practical actions that generate income from extractive activities?

In this light, Idesam and the NGO Conservation Strategy Fund (CSF) are engaged in a project to determine the cost of implementing Protected Areas in the State, with the aim to determine the financial burden of governmental efforts to consolidate its Protected Areas Program.

The results of this project should be available in the first trimester of 2009 and will facilitate the structuring and expansion of administrative and political actions to funnel resources towards the management of the States Protected Areas. Within the reality of budgets always operating without the full resources needed, a strategic plan based on concrete cost analyses will allow for funds to be allocated where the most benefit can be achieved, within the 41 Protected Areas of Amazonas State.

2 proTeCTed AreAS progrAM

One of the primary strategies for environmental conservation of the Amazon is the creation of Protected Areas (PAs). They support the regulation of land management, helping to contain illegal land grabbing and guarantee land use rights for traditional residents of the Amazon. In addition they promote the conservation of natural resources through their sensible and controlled use, guaranteeing the safety of the genetic heritage of the largest tropical forest on the planet, preserving its hydrological function, including normalized rain cycles, humidity creation and local and global climate.

Idesams Protected Areas Program develops studies and projects that support the creation and consolidation of Protected Areas. The Institute guarantees that the rules of the reserves function and that their benefits reach both residents and the natural environment. To this effect Idesam works to define strategies that establish these protected areas, through studies and analysis of their operational costs, appropriate policy options and legal frameworks. The highlight of Idesams work at the forefront of consolidation of Protected Areas in the State of Amazonas is its direct engagement, since 2006, in the Uatum Sustainable Development Reserve (SDR), in the central Amazon.

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2.2) Co-MANAgeMeNT oF The uATuM reServe

The State of Amazonas has adopted a favorable policy platform for the creation and implementation of Protected Areas, having created nearly 10 million ha of new protected areas in the last five years. The creation of 34 Protected Areas up to 2008 represents a clear governmental response to the demands of the States local communities and civil society organizations. These areas also create a space for civil society to engage directly in decision making and management of these areas.

Idesams focus, since 2006, has been on the Uatum Sustainable Development Reserve (SDR), where we developed the PAs Management Plan, a technical and administrative document, grounded in the objectives of the Protected Area, which establishes zoning, and regulations for the management of natural resources and land use, including the requisite infrastructure for the management of the Protected Area (SEUC, 2007). The project has counted on the financial support of WWF-Brasil (World Wildlife Fund).

Within this context a partnership was formed in March, 2008, between SDS/CEUC and Idesam for the Co-Management of the Uatum Reserve. This technical cooperation agreement, signed jointly with government agencies, offers Idesam an opportunity to put in practice its innovative vision for the reserve, based on the strengthening of community organizations and improvement of quality of life, as well as income generation from the sustainable management of natural resources by the residents of the reserve, all in the name of expanding the communities political capacity to manage the Uatum SDR.

The Uatum Reserve, located 184 kilometers (straight line) from Manaus and covering 424,430 ha, was created on June 17th, 2004. The territory includes the municipalities of Itapiranga and So Sebastio of Uatum. To date the reserve is inhabited by close to 256 families, spread among 20 communities along the Uatum and Jatap rivers and their tributaries.

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The traditional communities residing in the region live in a state of harmony and dependence with their surroundings. They sustain themselves from agricultural and extractive production processes, most notably the confection of manioc flour, subsistence fishing, and fruit harvesting: fruits such as cupuau, bacaba, aa, tucum, babau, Brazil nut, a variety of natural rubbers, oils (andiroba, copaiba), vines and fibers.

The Reserves fauna has a unique character, exemplified by the presence of the martins tamarin (Saguinus martinsi ochraceus), a little known species, which in this region occurs only on the left margin of the Jatap River. The Uatum SDR is also habitat for mammals at risk of extinction, including the ocelot (Leopardus pardalis), the jaguar (Panthera onca), giant anteater (Myrmecophaga tridactyla), the neotropical otter (Lontra longicaudis) and giant otter (Pteronura brasiliensis). The dark waters of the Reserves rivers and tributaries are home to a large variety of aquatic animals and fish, notably the Tucunar (Cichla sp.) the major tourist attraction in the region driven by sport fishing.

Idesams first activities in the Reserve were to discuss and identify the priority actions for the Reserve and its residents, which greatly improved the understanding of the relevance of the Protected Area by residents, government authorities (municipal, state and federal) and the external audiences. This diagnostic process opened the necessary channels of

uatum ReseRve

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communication between Idesam, residents and the State Government for the formulation of resolutions and actions to address the most urgent needs of the Reserve.

The Uatum SDR Management Plan began its public comment and validation round in the second half of 2008 and was approved by the SDRs Governing Council in a meeting on December 12th. The document was based on the Guide for the Drafting of State Protected Area Management Plans (SDS & GTZ 2005). Biological, socio-economic and biophysical diagnostics were carried out to define the primary characteristics of the Reserve and its surrounding areas.

The entire process involved the active participation of local residents, who supported the mapping of the area, biological diagnostics and in the gathering of socio-economic data. This information was essential in establishing the zoning of the reserve, which determined areas for direct use, management and preservation.

PARtneRs

proTeCTed AreAS phASe 2

Future activities envisioned by the Uatum SDRs Management Programs that will count on the participation of Idesam:

Social Empowerment:

Social organization;

Training in Community Organizing and Cooperation

Management training;

Together with local residents, determine the guidelines for community organizing, public participation and general rules of engagement at the local level in the decision-making processes for the management of the Protected/Area;

Improve access to healthcare and education;

Promote sporting and recreational activities for the residents of the SDR;

Income generation from the sustainable use of natural resources;

Create a Community Forest Management Plan for each community in the reserve interested in the use of wood products and develop community capacity-building programs for activities based on a vision for a multiple-use extractive management plan.

Expand and standardize extractive production and identify new markets for fair trade and solidarity economies in order to secure benefits for the community based on their needs and relevant to their reality;

Management and monitoring of fishing activities including fish farming, hatcheries and ornamental fish production;

Implement biodiversity research and monitoring programs;

Establishment of Permanent Parcels and of the Biodiversity Monitoring and Natural Resource Use Program in Amazonas State Protected Areas (ProBuc), developing strategies for community monitoring and participation in all the productive chains existing in the SDR: timber and non-timber forest products, subsistence fishing and hunting, sport fishing and use of all other local fauna.

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Promotion of Eco-tourism:

Develop social and environmental tourism based on cultural exchange and activities that immerse tourists in daily community activities, agricultural and extractive production and forest management activities;

Strengthen and structure the capacity of communities and residents to receive and guide tourists in all public use activities;

Establish infrastructure for visitation: trails on land and water, tree-climbing, visitor centers, lodging, communication and safety,

Regulation and monitoring of sport fishing;

Establish guidelines for the use of taxes and financial resources derived from visitation and tourist activities in order to subsidize the financial sustainability of the Uatum Reserve.

Tourism is a key component of the sustainable activities envisioned in Uatum, with a variety of natural, logistical, fishing and socio-cultural attractions. The Uatum SDRs Conservation and Tourism Project, approved by Bovespas Social and Environmental Fund (BVS&A), is supporting the regulation of tourism and community organizing, allowing for the creation of the Plan for Public Use of the Uatum SDR- a guiding document for the development and management of tourism in the Protected Area.

The various environments of the reserve will be explored for their potential to receive the different forms of tourism and visitation available, respecting the natural characteristics of the areas. Sport fishing, hiking, adventure sports (rafting, tubing, tree-climbing, rappel), historical tourism (archaeology, settlement history) and scientific tourism are among the possibilities.

Community involvement is essential in the development of tourist activities in Uatum. All actions and planning for tourism will be complemented by capacity building and preparation of the communities for visitation and public use, including the strengthening of community organizations and dialogue among residents, associations and government organizations in order to achieve a sustainable, ecologically sound and socially just tourism in the Uatum Reserve.

Area of explotation of fruits and seeds

Area of explotation of vines

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Area of explotation of latex, oils and resin

Area of explotation of essencial oils

Area of explotation of straw

Area of explotation of palms

Area of explotation of vines

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land use zoning

!!

!

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5810'0"W

5810'0"W

5820'0"W

5820'0"W

5830'0"W

5830'0"W

5840'0"W

5840'0"W

5850'0"W

5850'0"W

590'0"W

590'0"W

5910'0"W

5910'0"W

20'

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210

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Limited use (Caiman Road)

Conflictive use

Extensive use

Hydrography

Intensive use

Protection area

! Communities

0 5 10 15 202.5Km

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Activities supported by idesAmACTIvITIeS SupporTed By IdeSAM

01.02.03.

04.05.06.

The creation of the Agro-extractive Community Association of the Uatum Sustainable Development Reserve: local representation for the articulation and affirmation of rights, as well as a channel for communication between local communities and Idesam for the planning of proposed projects.

Forest Allowance Program (Bolsa Floresta): Inclusion of resident families of the Protected Area in the Program.

Regulation of sport fishing: Apply standards which determine an entrance fee for sport fishing in the Uatum SDR and commit resources generated from tourism to be used directly in the Reserve, with funds allocated based on proposals submitted by the Community Association of the Reserve and approved by the Governing Council of the Protected Area.

Pr-Chuva: Installation of rainwater collection systems and potable water tanks at residences of the Uatum SDR.

Agrarian Reform Program: First families receiving food and welfare stipends partnership with INCRA.

Middle school education: A project to create a school within the Protected Area is being negotiated between the Foundation for a Sustainable Amazon (FAS), the State Secretariat for Environment and Sustainable Development of Amazonas (SDS), the State Secretariat of Education (SEDUC) and local mayors.

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NATurAL reSourCe MANAgeMeNT oF proTeCTed AreAS progrAM

In recognition of the fact that residents of the area now included in the Reserve have always used their forest and natural resources, and in such a manner that guaranteed the preservation of the forest- to the point of the area being recognized in 2004 as viable for a Protected Area- Idesam works under the premise of recognizing the existing forms of community extractive activities, contributing only the technical and legal information necessary to regulate and license those activities.

In this scope, Idesam, along with the State Government, has worked toward the analysis and structuring of legislation and licensing of natural resource management within Protected Areas in order to guarantee that extractive activities remain an income-generating activity for communities without facing restrictions from existing regulations and licensing protocol.

The Uatum SDR Natural Resource Management Program will promote the multiple use of timber and non-timber forest products, structuring production processes, and licensing all extractive activities thereby increasing the species available for commercial use while maintaining the necessary stock of resources for the sustainable management and conservation of these activities within a Protected Area.

To this end Idesam has initated a round of negotiations and planning with the Reserves managing agencies and state licensing departments to resolve the roadblocks that complicate forest-related production in Protected Areas, such as authority over management plans, land titling, monitoring practices and improving dialogue among managers, residents, licensing bodies and consumer markets. Along these lines Idesams proposals for the management and use of natural resources are being included in the State Governments agenda for regulating and normalizing management practices for Protected Areas.

The use of timber forest products has begun in areas managed by local communities, which total 10,000 ha of managed area with a total wood-products capacity of ten thousand cubic meters.

In turn, the multiple-use production of non-timber forest products is intended for all extractive zones of the Protected Area (UC), defined in the zoning plan as Extensive Use. The establishment of best management practices, production and commercialization procedures as well as a system for monitoring extractive activities will permit the large scale use of the diverse products with commercial potential in the Uatum SDR.

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ForeST ALLowANCe progrAM

Along with the activities developed in the Uatum SDR, Idesam has participated in various negotiations on public policy related to Protected Areas of the Amazon. Idesam, along with other sectors of society, was directly involved in the development of the Forest Allowance Program. This pioneering program brought state resources directly to the hands of residents on the condition that they consent to a new way of life by agreeing to have the area in which they live transformed into a Protected Area, regardless of what this change would mean for their way of life in the future.

As a result of the discussions and partnerships surrounding the Forest Allowance Program, resources to residents of Protected Areas were awarded based on different categories: the first- at a smaller scale- directed payment to families; another for support to social organizations; a third- at the community level- for education, light, sanitation, communication and the strengthening of chains of production for extractive activities, including local training and capacity building for residents of Protected Areas.

After defining the Program, Idesam went to the field, in partnership with the State Secretariat of Environment and Sustainable Development (SDS) to register the first 2,000 families residing in six of the States Protected Areas: Uatum SDR, Uacari SDR, Cujubim SDR, Mamirau SDR, Piagau-Purus SDR and the Catu-Ipixuna Extractive Reserve (Res-Ex).

The Uatum Reserve was the pilot area for the activities of the Forest Allowance Program (PBF), where the methodologies and strategies used to explain to residents that they would receive compensation for their way of life, being that they produce a positive balance of carbon emissions to the atmosphere, were fine-tuned. The adjustments made in this pilot phase were important in order clarify to residents how carbon emissions are generated into the atmosphere, the effect of these emissions and how residents of Protected Areas of the Amazon fit into this global agenda. After a clear explanation of the context, residents decided whether or not to take part in the Forest Allowance Program. Through this process, Idesam and the Uatum SDR played a decisive role in the larger program. After advising on Phase I of the Forest Allowance Program, Idesam provided guidance in the process of transferring oversight of the government-led PBF to the Amazonas Sustainable Foundation (FAS).

Since October of 2008, Idesam has focused its participation in the Forest Allowance Program on the implementation of several programs within the Uatum SDR: Forest Allowance Association Program directed towards community organizing and capacity building; Forest Allowance and Society which in Uatum supports emergency evacuations (9 ambulance boats) and communication via cellular towers for communities; and Forest Allowance and Income which will install a small woodshop, a fish hatchery project and community capacity building for improved agroforesty production through value-added products.

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Idesam makes the dIfferenceIdeSAM MAKeS The

dIFFereNCeIdesam participated directly on the im-

plementation of the Bolsa Floresta Program (BFP), instituted by the Government of Ama-zonas State in 2007. It is part of the State Pro-gram for Climate Change and its main objec-tive is to benefit the traditional communities of Amazonas committed to the conservation of natural resources and tthe promotion of environmental conservation in State Protect-ed Areas. On the first phase the program was implemented on six State Protected Areas: SDR Uatum, SDR Piagau-Purus, SDR Uacari, SDR Mamirau, Extractive Reserve (Res-Ex) Catu-Ipixuna and SDR Cujubim.

Idesam participated on the conceptual de-sign of the BFP and the coordination and of the implementation of the initial field activi-ties on the programs first phase. Idesam was responsible for doing the socio-environmental survey and in loco registration of the reserve residents; organization of capacity building workshops and raising the awareness about the Bolsa Floresta Program and the global

climate change and yet, the formalization of agreements between the communities and the Government of Amazonas State for the accomplishment of the BFPs rules by the re-serve dwellers and benefit sharing by the State Government.

27 workshops were performed at the six State Protected Areas included in the pro-gram. Also, 2,106 families were registered and assisted by Idesam. After attending the work-shops, they were included on the BFP and started to receive the money in reward for the preservation of the forest.

Currently, the BFP is under the responsi-bility and coordination of the Amazonas Sus-tainable Foundation (FAS) that has the goal of extending the program to another eight pro-tected areas in 2009, attending another 6.000 families. Idesam understands that its contri-bution mission for the BFP is already accom-plished and plans to keep on supporting the programs actions on what refers to predicted activities for the RDS Uatum.

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naturalresources

management program

.03

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An agreement was signed between parties to be allowed in hiring technicians for TTAP in Brazil, therefore provides institutional support and structure for work with further TFTs forest programs. This agreement reveals the mutual benefits for parties, such as:

Increase communication for achievements of institutional activities and project visibility.

New opportunities for business through the networking and information sharing.

Technical and administrative competency building on management of natural resources issues.

Probability of partnership extension for further mutual interest projects like environmental services and global climate changes.

programs3) NATurAL reSourCeS MANAgeMeNT progrAM Idesam believes in the production of goods and services beneath the management of natural resources as the mainstream for forest conservation and promotion of economic development of local communities and indigenous people in the Amazon Rainforest.

Therefore, the Management of Natural Resources Programme is seen like crossing the whole another Programmes and activities developed by the Institute.

With the purpose of the consolidation of achievements from Management of Natural Resources Programme, Idesam has established an important partnership with the Tropical Forest Trust TFT, to bring to Brazil the Timber Trade Action Plan of European Union (E.U. TTAP), a sole initiative of linking business to tackle illegal logging from European timber market.

3.1) IdeSAM ANd TropICAL ForeST TruST (TFT) pArTNerShIp

The Tropical Forest Trust (TFT) is a non-governmental organization founded in 1999, registered as charity, with its Head Offices in Crassier, Switzerland. TFT has been working to conserve tropical forests through promoting sustainable forest management practices, and linking these forests to supply chains from important buyers in Europe.

TFTs Forests Program and E.U TTAP hold over than 90 people working in Africa, Asia, Europe, Latin and North America and Oceania supporting forest producers and factories on the search for business sustainability, promoting a fairly and safety market.

On September 2007, Idesam met TFT in Brazil seeking for a suitable partnership for the implementation of activities of mutual interests, like the management of natural resources and climate changes programmes. As the results, TFT arrived in Latin America on January 2008 with the E.U Timber Trade Action Plan - E.U. TTAP, in which is the manager on behalf of European Comission.

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Help develop European trade federations purchasing policies to ensure consistency with government buyers and FLEGT requi-rements.

Provide guidance to buyers on how to meet EU requirements on legality and chain of custody, and how to minimize the risk of illegal wood entering a supply chain.

Promote the legal verification through independent audits of at least 70 sup-ply chains (forests and factories) in the following 10 producer countries: Bolivia, Brazil, Suriname, Guyana, Gabon, Cameroon, Congo Brazzaville, Indonesia, China and Malaysia.

3.2) The TIMBer TrAde ACTIoN pLAN (e.u. TTAp)

The Timber Trade Action Plan (EU - TTAP) is a project that began in March 2005 and foresight to assist importers participating of European timber trade federations (TTFs) supporting their suppliers to deliver verified legal timber to the EU. TTAP. This initiative performs the execu-tive action plan of E.U. for its FLEGT1 policy (Forest, Law Enforcement, Governance and Trade) for the trade with tropical timber produ-cer countries.

This project has the following goals:

3.3) progrAM For SupporT CerTIFICATIoN FSC

Through the partnership between Idesam & TFT the Program for Support FSC (Forest Stewardship Council) certification helps buyers committed in increasing their certified products portfolio faci-litating and developing the supply chain towards the independent forest certification.

For this, buyers assign their suppliers in which there is or are willing to establish a commercial partnership, progressively promoting such supply chain to achieve FSC Standards.

Technical support works in order to attend on the ground the demands from TFT Members and even self-demands from producers in Brazil or Latin America, endeavoring tied to the supply chain towards the achievement of FSC standards on forest management and Chain of Custody.

Following steps are naturally climbed on the Programme:

1 Contact from the buyer/producer with Idesam ([email protected]).

2 Contact from the buyer with its suppliers to check their interest in come aboard of the Program.

3 Development and agreement with a budget to proceed a Gap Assessment.

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Whilst producer/supplier is running this path beneath the Programme of Support for FSC Certification, it will be entitled to stamp TFT trademark on its product, under pre-defined rules and protocols, ensuring for buyers that the forests supplying their facilities are commit-ted with the progressive compliance with the Certification Action Plan and these sources has been closely monitored by technical team.

TFT trademark on product does not represent a third party certification, although this performs as a consistent tool of segregation of products manufactured with timber sourced with basis on commitments with the sustainability and social & environmental responsibility.

4 Contact from technical team with the sup-pliers/producers to Schedule the field visit for a Gap Assessment.

5 Doing the Gap Assessment and leaving a Scoping Report with the main issues for the Certification Action Plan.

6 Development of a budgeted action plan for certification together with supplier/producer.

7 Development and presentation of a detailed Annual Action Plan for the coming 12 months.

8 Signature of a Memorandum of Understanding embracing the whole commit-ment and responsibilities between the parties, with a maximum of 3 years to comply with the Certification Action Plan and request an FSC Main Assessment.

9 Implementation of the Certification Action Pan through programmed visits throughout the cooperation period.

10 Third Party audit by na FSC accredited organism for forest management and/or chain of custody.

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Financial Statement

2007

Idesams primary expenditures in 2007 were directed to its Protected Areas Program, funded through the Amazonas Sustainable Development Agency (ADS) for the implementation of the Bolsa Floresta (Forest Allowance) Program active in 6 Protected Areas of Amazonas State.

Support for Idesams work elaborating the Management Plan and Identification of Emergency Measures for the Uatum SDR was provided by the Djalma Batista Foundation (FDB), and corresponded to 22 percent of the Institutes finances.

Resources for the Institutes Climate Change Program represented 24 percent of Idesams gross income. The program was financed by: I) The World Bank, through the Amazonas Initiative, targeted at public policy for payment for environmental services and avoided deforestation in the State of Amazonas; II) The REDD Diagnostics Project for the Apu municipality; III) the REDD and Voluntary Carbon Markets event held for State Environmental Secretariats of the Brazilian Amazon, realized with support from The Nature Conservancy (TNC).

Idesams total expenses this year were nearly R$ 501 thousand, against an income of R$ 429,150. The apparently negative balance sheet is due to the Uatum SDR Management Plan, begun in 2006 and whose income was deposited at the of the year and attributed to the previous semesters balance sheet, while activities were only implemented in 2007.

2007

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budget by PROgRAM ToTAL r$ 1.454.612,66

CLIMATe ChANge 58,3% r$ 847.636,50

proTeCTed AreAS 23,2% r$ 337.428,60

NATurAL reSourCe MANAgeMeNT 18,5% r$ 269.547,56

budget dIstRIbuted by exPenses ToTAL r$ 501.654,44

Permanent Staff R$ 290.476,28 57,90%

Field Expenses R$ 148.448,52 29,59%

Honoraries R$ 500,00 0,1%

Operating and Maitenance Costs R$ 11.944,88 2,38%

Travel Expenses R$ 18570,34 3,7%

Equipment and materials R$ 15.110,00 3,01%

Tax and Duties R$ 16.604,42 3,31%

budget lIsted by PARtneR/dOnORs ToTAL r$ 429.155,00

doNor/pArTNer projeCT durATIoN BudgeT %

Amazonas Sustainable Development Agency (ADS/AM)

Implementation of the Forest Allowance Program (Phase 01) in 06 Protected Areas

2007-2009 R$ 229.870,00 53,6%

World Bank Technical Coordination of the Structuring Plan of the Amazonas Initiative

2007-2008 R$ 51.700,00 12,0%

Djalma Batista Foundation/ Gordon & Betty Moore Foundation

Cooperation SDS/Idesam: Study for Creation of a PES Program in Apui

2007-2008 R$ 23.016,00 5,4%

Djalma Batista Foundation / WWF-Brasil

Cooperation SDS/Idesam: Ellaboration of the Management Plan of the Uatum Reserve

2006-2008 R$ 94.444,00 22,0%

The Nature Conservancy (TNC) Organization of the 1st National Meeting of State Secretaries of Environment about Climate Change

2007-2007 R$ 30.125,00 7,0%

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Financial Statement

2008

The expansion and consolidation of Idesam in 2008 was propelled by a significant increase in projects due to 13 new contracts. This year, Idesam generated R$ 1.45 million, incurring costs of nearly R$ 1.37 million.

Approximately 58 percent of 2008 resources were directed to the Climate Change Program through partnership projects established through the Bluemoon Foundation, Avina Foundation, World Bank, Moore Foundation, FAS and the Djalma Batista foundation - re-presenting R$ 847 thousand.

The Institutes resources for its Protected Areas Program totalled R$337 thousand. Supporters of these initiatives included BV&SA of Bovespa, Amazonas Sustainable Foundation (FAS), Amazonas Sustainable Development Agency (ADS) and Djalma Batista Foundation.

Beginning with the 2008 fiscal year, Idesam launched its Natural Resources Management Program, through a partnership with Tropical Forest Trust (TFT), which generated nearly R$ 270 thousand and accounted for 18.5% of the 2008 budget.

budget dIstRIbuted by exPenses ToTAL r$ 1.373.858,66

Permanent Staff R$ 285.000,00 20,74%

Administrative Expenses R$ 340.060,00 24,8%

Field Expenses R$ 93.795,10 6,8%

Honoraries R$ 63.600,00 4,6%

Operating and Maintenance Costs R$ 269.547,56 19,6%

Publication and Divulgation R$ 170.615,50 12,4%

Independent Consultancies R$ 15.562,50 1,1%

Services & Companies R$ 18.148,00 1,3%

Travel Expenses R$ 49.300,00 3,6%

Equipment and material R$ 54.870,00 4,0%

Tax and Duties R$ 13.360,00 1,0%

2008

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budget lIsted by PARtneR/dOnORs ToTAL r$ 1.454.612,66

doNor/pArTNer projeCT durATIoN BudgeT %

Amazonas Sustainable Development Agency (ADS/AM)

Implementation of the Forest Allowance Program (Phase 01) in 06 Protected Areas

2007-2009 R$ 54.870,00 3,8%

Avina GHG Inventory for the Amazon Institute for Permaculture (IPA)

2008-2009 R$ 15.562,50 1,1%

Avina Development of the Pact for Zero Deforestation in Apu

2008-2008 R$ 63.600,00 4,4%

World Bank Technical Coordination of the Structuring Plan of the Amazonas Initiative

2007-2008 R$ 49.300,00 3,4%

Biocarbon Fund Ellaboration of a PIN for the Apu Forestry Project (BioCf)

2008-2008 R$ 13.360,00 0,9%

Bovespa Tourism Plan for the Uatum Sustainable Development Reserve

2008-2009 R$ 93.795,10 6,4%

Amazonas Sustainable Foundation Support to Implementation of the Forest Allowance Program in the Uatum Reserve

2007-2009 R$ 170.615,50 11,7%

Amazonas Sustainable Foundation Elaboration of the Project Design Document (PDD) and carbon methodology for the Juma Reserve RED Project

2008-2008 R$ 285.000,00 19,6%

Bluemoon Fund REDD Project: Study of Opportunities in the Southern Amazonas

2008-2009 R$ 340.060,00 23,4%

Djalma Batista Foundation/ Gordon & Betty Moore Foundation

Cooperation SDS/Idesam: Study for Creation of a PES Program in Apu

2006-2008 R$ 5.754,00 0,4%

Djalma Batista Foundation / WWF-Brasil

Cooperation SDS/Idesam: Ellaboration of the Management Plan of the Uatum Reserve

2006-2008 R$ 18.148,00 1,2%

Gordon & Betty Moore Foundation

Debate Railroad vs. BR-319 2008-2008 R$ 75.000, 00 5,2%

TFT -Tropical Forest Trust Implementation of TTAP 2008-2008 R$ 269.547,56 18,5%

PuBlication coordinator Milena del Rio do Valle Yes Assessoria e Comunicao

text and editing Carlos Gabriel Koury (Idesam) Mariano Colini Cenamo (Idesam) Mariana Nogueira Pavan (Idesam) Milena del Rio do Valle (Yes Assessoria e Comunicao)

translation Pedro Marques (Watershed Consulting)

images Idesam Archive

maPs Andr Luiz Menezes Vianna (Idesam) Gabriel Cardoso Carrero (Idesam) Rmulo Batista (CEUC/SDS)

graPhic design Gabi Juns (gabijuns.com.br)

Printing Grfica Ampla

Print run 600

Printed on recycled paper, 30% post-consumer content.

President

Marcos Coutinho (Brazilian Agricultural Research

Corporation Embrapa Pantanal)

Vice-President

Carlos Bueno (National Research Institute of the Amazon Inpa)

Board of trustees

Elisa Wandelli (Embrapa)

Marcos Coutinho (Embrapa Pantanal)

Carlos Bueno (Inpa)

adVisory Board

Domingos Macedo (CEUC/SDS)

Marcelo Marquesini (Greenpeace)

Paulo Moutinho (Institute for Environmental Research of the

Amazon Ipam)

Paulo Nogueira Neto (University of So Paulo USP)

Philip Fearnside (Inpa)

Roberto Borges (Forest Trends)

Thomas Lovejoy (Heinz Center)

Tim van Eldik (Precious Woods Amazon PWA)

Werner Grau Neto (Pinheiro Neto Law Office)

executiVe Board

Executive Director

Mariano Colini Cenamo

Program Coordinator

Carlos Gabriel Koury

46

www.idesam.org.br

Av. Tancredo Neves, 282, sala 28 Parque 10 de Novembro 69054-700 - Manaus/AM

+55 (92) 3642-5698