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

The Brazilian Forest Service (SFB) transferred R$ 27 million derived from payments generated by federal concessions in National Forests (Flona) 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 allocated.

State governments received the largest share (R$ 16,271,292.30), but the most tangible impacts are expected at the municipal level, where R$ 10,753,382.30 will reach some of the most underserved communities in the Amazon, such as the municipality of Melgaço, which ranks lowest on Brazil’s Human Development Index. Faro, Itaituba, Oriximiná, and Terra Santa are also beneficiaries.

“This is the largest amount ever transferred to locations hosting federal forest concessions and should be celebrated,” said Leonardo Sobral, Forest Director at the Institute for Forest and Agricultural Management and Certification (Imaflora). He explains that these transfers highlight the economic returns of concessions, increasing public understanding of sustainable forest management carried out by concessionaires. “They also help enable investments in projects, activities, and resources aimed at managing and sustainably using forest resources,” he added.

The transfers are direct benefits that add to other gains generated by the activity, as noted by Renato Rosenberg, Director of Forest Concessions at the Brazilian Forest Service (SFB). He emphasized that concessions are often located in deforestation frontier regions. “These are areas vulnerable to environmental and land-related crimes, which are curbed by the presence of people linked to concessions within Conservation Units. Forest harvesting is carried out in a controlled and monitored manner, generating resources, jobs, income, social opportunities, and formalization of the economy,” he said.

He also noted that efforts intensified last year to increase the number of concessions and improve the flow of resources allocated to states and municipalities. The goal was to present available funds and support the selection of projects aligned with the requirements for accessing them. “This process, combined with a budget adjustment, has created a pathway for transfers to be accessed more regularly moving forward,” Rosenberg stated.

Funds with a defined purpose

A forest concession contract typically lasts around 40 years and is based on the implementation of a Sustainable Forest Management Plan, which defines activities and estimates annual timber production. Productivity, however, varies year to year due to multiple factors, and the SFB is responsible for monitoring both the execution of activities and actual production. The concessionaire pays a minimum annual fee established in the contract to the SFB. Once production exceeds this fixed revenue threshold, 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 to these funds are regulated by two legal instruments — the Public Forest Management Law (11,284/2006) and MAPA Ordinance 506/2022 — which establish conditions and procedures for transfers. States and municipalities must submit a plan outlining the projects or activities to be implemented.

These plans must be approved by Environmental Councils, which include provisions for public participation. Another requirement is that initiatives must be linked to the sustainable use of forest resources — meaning actions that support keeping the forest standing. “In practice, we see significant difficulty among stakeholders in distinguishing between general environmental projects and those specifically focused on 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 transform realities

Some of the projects supported by the 2025 transfers directly impact local populations and their relationship with the forest. In Faro, for example, there are plans to build a small processing facility for Brazil nuts and to offer training workshops on best management practices.

In Terra Santa, concession-related transfers have already enabled the construction of a dedicated headquarters for the Municipal Department of the Environment, equipped with proper infrastructure — still rare in the region. Additionally, the acquisition of a vehicle in 2019 expanded the reach of technical and inspection activities in rural areas.

According to the Municipal Secretary of Environment and Mining, Samária L.C. Silva, the most visible impacts will occur directly in communities. With more than R$ 800,000 available for new projects, the municipality has already allocated part of the funds to build a support facility for the Pé-de-Pincha project, focused on turtle conservation, and launched its first public call for proposals from community associations. The funds are supporting forest nurseries, community gardens, agroforestry systems, and meliponiculture. “These projects combine forest conservation with income generation and food security, while strengthening the autonomy of local associations,” she said. There is also a project to build a science support center aimed at research, environmental education, and socio-environmental inclusion.

The municipality of Melgaço will invest in training workshops for environmental compliance of small rural properties, support for obtaining licenses for small-scale sawmills, and the renovation of a forest nursery to grow açaí and cupuaçu seedlings for distribution to rural families, promoting sustainable economic alternatives aligned with local realities. Environmental engineer Juesley B.P. Viegas, from the Municipal Department of the Environment, noted that financial support has also enabled initiatives such as management and environmental education workshops and the restoration of a municipal forest area. “The next step is to expand the reach of these measures. Our territory is vast, and reaching communities requires proper infrastructure. With these resources, we will be able to acquire equipment, boats, and fuel, enabling public services to reach where they are most needed,” he said.

These are just some of the ways in which concession revenues return to surrounding communities, enabling initiatives that would otherwise lack funding. It is the forest making a tangible difference in the lives of those who depend on it — and reinforcing the understanding that a standing forest also has value.