Brazilian Forest Service holds auction for the country’s first forest restoration concession; Re.green wins the bid
- Concessão Florestal
- Mar 25
- 3 min read
The Brazilian Forest Service (SFB) held this Wednesday (25) the auction for the concession of Management Unit II (UM II) of the Bom Futuro National Forest, in the state of Rondônia. The Brazilian company Re.green, specialized in ecosystem restoration, was the winning bidder in the auction held at B3, in São Paulo, and will be responsible for managing the 51,200-hectare area over the next 40 years.
The bidding process represents a milestone in Brazil’s environmental policy, led by the SFB.
It is the first federal concession primarily focused on ecological restoration. The model innovates by granting the private partner the right to commercialize carbon credits and products from native-species forestry as financing sources to support forest recovery.
The initiative is directly aligned with the National Plan for Native Vegetation Recovery (Planaveg 2.0). This public policy aims to restore 12 million hectares of degraded land by 2030, meeting targets under the Paris Agreement while conserving biodiversity. Currently, Brazil already has 3.4 million hectares under restoration — nearly one-third of the target. The plan focuses on restoration while promoting sustainable development, guidelines that underpin the Bom Futuro bidding process.
Climate Effort and Bioeconomy
According to the Minister of the Environment and Climate Change, Marina Silva, the auction represents a fundamental step in the transition to a new development model.
“This is an unprecedented proposal. We are a country with an extractive tradition, even when based on sustainability. Through this initiative, we are advancing the restoration agenda, which in this case generates carbon credits as outcomes. This innovation represents a turning point, a paradigm shift. That is why we celebrate the auction’s outcome,” the minister stated.
Socioeconomic and Environmental Impacts (UM II)
Re.green’s proposal met all the rigorous technical, financial, and environmental criteria required by the bidding framework structured by the SFB. The main projected figures for the awarded unit include:
Total area under management: 51,211 hectares
Area for direct restoration: 6,290 hectares
Estimated investment (Capex): R$ 87 million over 40 years
Climate impact: Potential generation of 1,897,302 tonnes of CO₂ equivalentJob creation: 479 positions in the region (272 direct and 207 indirect)
Financial return: Average annual concession fee of R$ 89,000, with transfers guaranteed to the SFB, National Forest Development Fund (FNDF), State, Municipality, and ICMBio
Indigenous Productive Inclusion
One of the project’s key differentiators is the productive inclusion of local communities. The Karitiana Indigenous people, who were consulted during the structuring of the bidding process, expressed interest and will actively participate in the production chain. They will supply seeds and seedlings of native species, essential inputs for successful ecological restoration in the region.
Model Validation and Legal Certainty
The Director-General of the Brazilian Forest Service, Garo Batmanian, emphasized that the auction outcome demonstrates the viability of the model developed by the institution.
“Restoration is a necessity in Brazil to protect our biomes and ensure that local populations can benefit from the environmental services generated.
The success of today’s auction is a milestone that coincides with the 20th anniversary of the Forest Service, marking the beginning of a new phase. This is our first initiative focused on ecological recovery, but we have been working with concessions for 18 years, totaling 26 active contracts under continuous improvement. This entire dynamic integrates local communities, generating jobs and income. This initiative represents a historic advancement due to the fundamental impact that restoration brings to nature conservation in the country,” said Batmanian.
Next Steps
The Bom Futuro National Forest concession is part of a broader federal effort to structure environmental assets. Currently, in partnership with BNDES and the Investment Partnerships Program (PPI), the SFB is structuring 17 new concession projects, including 10 for sustainable forest management and seven focused on forest restoration.
The SFB will now conduct a detailed technical assessment of this first process to incorporate lessons learned and improve future tenders, including Management Unit I (which received no bids in this round), aiming to increase competitiveness while maintaining environmental integrity.
Text: Brazilian Forest Service • Further information: ascom@florestal.gov.br • +55 (61) 3247-9511
Cover photo: Fernando Donasci/MMA
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