Landmark study proves the effectiveness of forest concessions in curbing deforestation and generating jobs and income

Concessioned forests in the Amazon generated R$ 240 million in public revenue and led to a 62% increase in employment levels and a 27% increase in the sector’s wage bill, in addition to limiting deforestation to 2% in these areas.

The Institute for Forest and Agricultural Management and Certification (Imaflora), in partnership with the Brazilian Forest Service (SFB) and the consultancy Systemiq, with support from UK PACT (UK Partnering for Accelerated Climate Transitions), today (19/11) launched — during a side event at COP 30 in Belém — the study Federal Forest Concessions in the Legal Amazon: Socioeconomic and Environmental Advances over Nearly 20 Years of Public Policy. “We analyzed data since the creation of federal concessions in the country, and the conclusion is that they are an example of an implementation-focused agenda, showing how efficient public management and sustainable investment can drive the transition to a low-carbon economy, bringing together environmental conservation, job creation, the strengthening of the bioeconomy, and respect for local communities,” said Leonardo Sobral, Director of Forests and Restoration at Imaflora.

Using administrative, geospatial, and technical-operational data from public platforms such as PRODES and SIMEX, along with monitoring data, in-depth interviews, and documentary evidence, the study concluded that forest concessions have delivered conservation outcomes, jobs, and public revenue participation to society.

“Forest concessions are an example of a nature-based solution that confirms Brazil’s potential to be a climate leader. The opportunity now is to scale up the model and attract investment, generating jobs and income while conserving the forest,” said Renato Rosenberg, Director of Forest Concessions at the Brazilian Forest Service (SFB).

Among the necessary improvements, he highlighted the need to promote wood processing within the municipalities that host the concessions, in order to drive greater productive diversification through service and industrial activities, and consequently increase local GDP and public revenue.

 

Key findings

The study analyzed data from eight National Forests (Flonas), which together total 3,570,818 hectares. Within these territories, there are 22 Forest Management Units (FMUs)—that is, areas granted for private sustainable forest management—covering 1,254,075 hectares, or approximately 35% of the total area.

Socioeconomic indicators (such as employment and total wage bill) are based on a panel of 772 municipalities, comparing data from those with active concessions to those eligible for concessions. Below are the main findings of the analysis.

• From their creation in 2010 through 2023, federal forest concessions placed 2.5 million cubic meters of legally sourced and traceable timber on the market, extracted under a sustainable forest management regime with full conservation of the forest. This volume is four times higher than that observed in municipalities without concessions.

• Between 1988 and 2024, only 2% of the territory of National Forests (Flonas) with concessions was deforested, and 92% of this deforestation occurred outside the concession areas. This reinforces the argument that sustainable forest management protects and conserves forests against the advance of illegal and predatory activities.

• In 75% of these areas, there was a 62% increase in employment and a 27% increase in the sector’s wage bill. In 2023, concessions generated 1,616 direct jobs and 3,232 indirect jobs, totaling 4,848 positions. They currently account for approximately 7.5% of formal employment in concession-hosting municipalities.

• From 2010 to 2025, public authorities collected R$ 240.4 million from forest concessions, with the highest revenue peak in 2024 (R$ 40.5 million). Of the total amount collected, R$ 62 million was allocated to the states and municipalities that host the concessions—meaning resources reaching the local level directly. Access to these transfers requires the submission of spending plans developed with social participation.

• The municipality of Terra Santa (PA), for example, used R$ 294,222.94 to build and structure the Municipal Secretariat for the Environment and Mining (SEMMAM). In addition, more than R$ 6.26 million was raised through the income redistribution mechanism known as the Social Indicator. Of this total, approximately R$ 4.91 million has already been invested (2015–2024) in infrastructure for communities living in National Forests under concession. These investments supported improvements in transportation, energy (including solar panel kits), environmental education, and support for local productive value chains.