Misiones Implements Carbon Credit Program

Decree 2179/2024 was published in the Official Gazette of the Province of Misiones on October 8, 2024, approving the Misiones Jurisdictional Reducing Emissions from Deforestation and Forest Degradation Program (REDD+).

The Program aims to reduce emissions derived from deforestation and degradation of native forests through measures that include regulation, strategic planning, consultation with stakeholders and implementing actions, incentives, fire control, and reduction of illegal logging, among others. The Program also includes the commercialization of carbon credits within the voluntary carbon credit market.

The Program—which operates under the VERRA international standard and the Jurisdictional and Nested REDD+ framework (scenario 2)—[1]allows accounting emissions reduced by avoided deforestation and degradation of native forests in the province. These reductions are transformed into carbon credits that can be traded on the international voluntary market to finance forest conservation and benefit owners of native forests. Each carbon credit represents the reduction or removal of one ton of equivalent carbon dioxide.

The carbon credits derived from the Program will be marketed to Mercuria Energy Trading SA, in accordance with the agreement entered into between the Province of Misiones and the company (ratified by Decree 2530/2021).

The funds from the commercialization of carbon credits will be managed through an administration trust approved by Decree 1114/2022, managed by Banco Macro SA. These resources will be allocated according to a benefit distribution mechanism that seeks to economically incentivize landowners and local communities.
 

The Decree provides that private owners of properties with native forests have the possibility of:

1. participating in the jurisdictional REDD+ program,
2. nesting, presenting a particular project,
3. expressly excluding themselves,
4. remaining silent.
    

Thus, the Decree establishes:

1. a period of 30 calendar days for owners of native forests who intend to certify carbon credits for projects between 2017 and 2022 to report such situation to the enforcement authority (currently, the Ministry of Ecology and Renewable Natural Resources),
2. a deadline on December 31, 2024, for private owners to manifest their decision to exercise the right to be excluded from the Program for the same period.

The Ministry of Finance, Public Works, and Services of the Province of Misiones will establish a procedure to manage the funds that would have to be retained by private owners who:

1. remain silent regarding their decision to exclude themselves from the Program, but who
2. also do not complete the procedure to request the benefits corresponding to them.

The trust funds will be distributed to the beneficiaries in accordance with the strategic guidelines defined in the Agreement for Cooperation and Sale of Carbon Credits approved through Decree 2530/2021 and in accordance with the REDD+ Strategy of the Province.

Finally, the Decree creates the Provincial Registry of Projects for the Reduction of Emissions from Deforestation and Degradation of Native Forests. This Registry must be available for projects carried out within the province. Its purpose is to record projects related to the reduction of greenhouse gas emissions to avoid double accounting.