R$ 27 million from federal forest concessions reaches states and municipalities in the Amazon

The Brazilian Forest Service (SFB) transferred R$ 27 million generated from payments related to federal concessions in National Forests (Flonas) to the states of Pará and Rondônia, as well as to five municipalities where the concessioned forests are located. The amount includes revenue from concession production in 2024 and a balance of previous transfers that had not yet been disbursed.

State governments received the largest share (R$ 16,271,292.30), but the most tangible impacts will be felt at the municipal level—with R$ 10,753,382.30 reaching some of the most underserved communities in the Amazon, such as Melgaço, which sadly ranks last on Brazil’s Human Development Index (HDI). Faro, Itaituba, Oriximiná, and Terra Santa are the other beneficiary municipalities.

“This is the largest amount ever transferred to localities hosting federal forest concessions, and it deserves to be celebrated,” said Leonardo Sobral, Forest Director at the Institute for Forest and Agricultural Management and Certification (Imaflora). He explained that the transfers highlight the economic returns of concessions, helping the public better understand the sustainable management carried out by concessionaires. “They also help enable investments in projects, activities, and resources focused on forest management and sustainable use,” he added.

The transfers are direct benefits that add to other gains from the activity, as noted by Renato Rosenberg, Director of Forest Concessions at the Brazilian Forest Service (SFB), who emphasized that concessions often operate along the frontiers of deforestation. “These are areas vulnerable to environmental and land-related crimes, which are deterred by the presence of people linked to concessions within Conservation Units. Forest harvesting occurs in a controlled and monitored manner, generating resources, jobs, income, social opportunities, and economic formalization,” Rosenberg said.

He also explained that efforts intensified last year to expand the number of concessions and improve the flow of funds to states and municipalities. The goal was to present available resources and assist in selecting projects that meet access requirements. “This process, combined with a budgetary adjustment, created a pathway for transfers to be accessed more regularly going forward,” Rosenberg added.

Funds with a Clear Destination

A forest concession contract lasts about 40 years and is governed by a Sustainable Forest Management Plan, which defines activities and estimates annual timber production. Harvest productivity varies year to year due to multiple factors, and the SFB is responsible for monitoring activities and actual production. Concessionaires pay a minimum annual fee set by contract to the SFB. Once production exceeds the level covered by this fixed revenue, the surplus is distributed as follows: 40% to the Chico Mendes Institute for Biodiversity Conservation (ICMBio), 20% to the states of origin, 20% to the municipalities involved, and 20% to the National Forest Development Fund.

The distribution, allocation, and access mechanisms are regulated by two legal instruments—the Public Forest Management Law (Law No. 11,284/2006) and MAPA Ordinance No. 506/2022—which establish conditions and procedures for transfers. States and municipalities must submit a plan outlining the projects or activities to be carried out. These plans must be approved by Environmental Councils, which include provisions for public participation. Another requirement is that projects be linked to the sustainable use of forest resources, favoring initiatives that keep the forest standing. “In the field, we see significant difficulty in distinguishing between general environmental projects and those directly related to forests. That’s why one of the plans for 2025 is to create a permanent guide to support council members and municipal managers,” Sobral explained.

Investments That Change Realities

Several projects leveraged by the 2025 transfers directly impact local populations and their relationship with the forest. In Faro, for example, there are plans to build a mini-processing plant for Brazil nuts and to conduct workshops on good management practices.

In Terra Santa, concession-derived funds have already enabled the construction of a dedicated headquarters for the Municipal Secretariat for the Environment, equipped with adequate infrastructure—still a rarity in the region. In addition, the purchase of a vehicle in 2019 expanded the reach of technical and enforcement actions in rural areas. According to Samária L.C. Silva, Municipal Secretary for the Environment and Mining, the most visible impacts will be felt directly by communities. With over R$ 800,000 available for new projects, the municipality has allocated funds to build a support facility for the Pé-de-Pincha turtle conservation project and launched its first public call to select proposals from community associations. Resources are financing forest nurseries, community gardens, agroforestry systems, and meliponiculture. “These projects combine forest conservation with income generation and food security, while strengthening the autonomy of associations,” she said. There is even a proposal to build a science support center to promote research, environmental education, and socio-environmental inclusion.

In Melgaço, investments will support training workshops for the environmental regularization of small rural properties, assistance in obtaining licenses for small-scale sawmills, and the refurbishment of a forest nursery to grow açaí and cupuaçu seedlings for distribution to rural families—promoting sustainable, locally appropriate economic alternatives. Juesley B.P. Viegas, an environmental and sanitation engineer with the municipal Secretariat for the Environment, noted that financial support also enabled workshops on management and environmental education, as well as the restoration of a municipal woodland. “The next step is to expand the reach of these measures. Our territory is vast, and reaching communities requires adequate logistics. With these resources, we can acquire equipment, boats, and fuel—making a public presence possible where it’s most needed,” Viegas said.

These are just some of the ways concession revenues return to surrounding communities, enabling initiatives that might otherwise lack funding. It’s the forest making a real difference in the lives of those who live with it—and reinforcing the understanding that a standing forest has value.