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Reference ID	Created	Released	Classification	Origin
06BRASILIA2449	2006-11-21 15:04	2011-08-30 01:44	UNCLASSIFIED	Embassy Brasilia

VZCZCXRO5186
RR RUEHRG
DE RUEHBR #2449/01 3251504
ZNR UUUUU ZZH
R 211504Z NOV 06
FM AMEMBASSY BRASILIA
TO RUEHC/SECSTATE WASHDC 7429
INFO RUEHBU/AMEMBASSY BUENOS AIRES 4428
RUEHSG/AMEMBASSY SANTIAGO 5938
RUEHLP/AMEMBASSY LA PAZ 5012
RUEHPE/AMEMBASSY LIMA 3264
RUEHQT/AMEMBASSY QUITO 2054
RUEHBO/AMEMBASSY BOGOTA 4018
RUEHAC/AMEMBASSY ASUNCION 5802
RUEHGE/AMEMBASSY GEORGETOWN 1177
RUEHMN/AMEMBASSY MONTEVIDEO 6605
RUEHPO/AMEMBASSY PARAMARIBO 1192
RUEHCV/AMEMBASSY CARACAS 3523
RUEHRG/AMCONSUL RECIFE 5894
RUEHSO/AMCONSUL SAO PAULO 8654
RUEHRI/AMCONSUL RIO DE JANEIRO 3380
RUEATRS/DEPT OF TREASURY WASHDC
RHEBAAA/DOE WASHDC
RUEHC/DOI WASHDC
RUEAWJA/DOJ WASHDC
RUEAEPA/HQ EPA WASHDC
RUEANAT/NASA WASHINGTON DC
RUCPDC/NOAA WASHDC
RUMIAAA/USCINCSO MIAMI FL
RUEHRC/USDA WASHDC
RUCPDO/USDOC WASHDC

UNCLAS SECTION 01 OF 02 BRASILIA 002449 
 
SIPDIS 
 
SIPDIS 
 
DEPT PASS USAID TO LAC/RSD, LAC/SAM, G/ENV, PPC/ENV 
TREASURY FOR OASIA (NLEE, JHOEK) AND KBERG 
USDA FOR FOREST SERVICE: LIZ MAHEW 
INTERIOR FOR DIR INT AFFAIRS: K WASHBURN 
INTERIOR FOR FWS: TOM RILEY 
INTERIOR PASS USGS FOR INTERNATIONAL: J WEAVER 
JUSTICE FOR ENVIRONMENT AND NATURAL RESOURCES: JWEBB 
EPA FOR INTERNATIONAL: CAM HILL-MACON 
USDA FOR ARS/INTERNATIONAL RESEARCH: G FLANLEY 
NSF FOR INTERNATIONAL: HAROLD STOLBERG 
 
E.O. 12958: N/A 
TAGS: SENV EFIN EAID TBIO ECON SOCI XR BR
SUBJECT: BRAZILIAN NGOS CALL GOB FOR TFCA TALK 
 
------- 
SUMMARY 
------- 
 
¶1. A group of Brazilian NGOs invited the Ministry of the Environment 
and the Brazilian Treasury for a discussion about including Brazil 
in the debt conversion/reduction process under the TFCA (Tropical 
Forest Conservation Act).  To date, no formal agreement has been 
made with the USG under the TFCA.  This meeting was intended to spur 
the process.  End Summary. 
 
---------- 
DISCUSSION 
---------- 
 
¶2. NGOs Instituto Socioambiental, The Nature Conservancy - Brazil, 
and RMA (Network of Atlantic Rainforest NGOs) called representatives 
from the Brazilian Treasury and the Ministry of the Environment for 
a meeting on November 13 in Brasilia.  The objectives were: (1) to 
create a baseline of knowledge among all actors as to the concept 
and processes of debt conversion/reduction under the Tropical Forest 
Conservation Act (TFCA); (2) to recognize the representatives of the 
groups involved (Treasury, Ministry of the Environment, and NGOs); 
(3) to set an agenda for actions taken by each group. 
 
¶3.  The meeting brought together four representatives from the 
Brazilian Treasury, one representative from the Ministry of the 
Environment, and representatives from three other NGOs (ISPN, 
FUNATURA, and INESC). 
 
¶4.  The Ministry of the Environment stated that a formal letter was 
sent a few months ago to the Brazilian Treasury, which demonstrated 
its interest in debt conversion/reduction, but no reply had been 
received to date.  Representatives of the Treasury opined that the 
process must have been stalled by recent changes in staffing.  Both 
sides agreed it will be important to set a meeting together to 
deepen the discussion and define the role each Ministry would play. 
 
---------- 
NEXT STEPS 
---------- 
 
¶5.  The Brazilian Treasury pointed to the importance of compiling a 
matrix of all past discussions on the subject in order to form a 
concrete decision within the Brazilian government before approaching 
the USG.  (Comment:  This lack of coordination lends to the 
impression that there has been little movement on this issue by the 
GOB since the TFCA proposal was first presented to them. End 
Comment.  While hopeful that the GOB will soon conduct meetings to 
resolve the point of where this issue stands, the event organizers 
(NGOs) plan to contact a broader network of organizations in order 
to eventually create a formal proposal.) 
 
-------------------------------------- 
BRAZILIAN STATE OF ACRE TAKES THE LEAD 
-------------------------------------- 
 
BRASILIA 00002449  002 OF 002 
 
 
 
¶6.  Although the Brazilian Federal Government does not yet have a 
formal agreement under the TFCA, the State of Acre - which has 90 
percent of its territory covered by Amazon forest - has prepared a 
draft law which attempts to institutionalize the concept of 
Compensation for Environmental Services.  (Note: please contact 
Larissa Stoner to obtain a copy of this draft law.  End Note.)  The 
bill is currently under discussion and will be sent for vote in 
Acre's Legislative Assembly in December.  According to one press 
report, the government in Acre also intends to create an 
institutional environment which would allow 'debt for nature swap' 
processes within the state. 
 
------- 
COMMENT 
------- 
 
¶7.  This meeting was in a sense a 'wake-up call' for those involved 
that action must be taken before the idea is forever lost in the 
Brazilian bureaucracy.  While many doubts about the process itself 
will need to be clarified, it seems that the GOB and civil society 
are taking a positive step forward in at least starting the 
dialogue.  Given Brazil's recent interest in creating a post-Kyoto 
mechanism for paying developing countries to slow and/or stop 
deforestation as part of their contribution for combating global 
climate change, the inability of the GOB to finalize an agreement 
under the TFCA is puzzling.  End Comment. 
 
CHICOLA

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Viewing cable 06BRASILIA2449, BRAZILIAN NGOS CALL GOB FOR TFCA TALK