"As the carbon market values integrity, capital goes where positive impacts grow"

Image source: MORFO
June 2023

Ecological restoration of degraded land is an essential aspect of tackling environmental challenges. Founded by Mathias Lessmann, YMBU Agroflorestal is a Brazilian pioneer in indigenous reforestation, with a unique focus on one of the world's most biodiverse semi-arid regions. In an exclusive interview for MORFO 's white paper on The Future of Reforestation Carbon Credits, Mathias Lessmann provides valuable insights into YMBU's innovative approaches to land restoration and the important role of carbon credits in achieving their mission.

Who are you and what is YMBU Agroflorestal?

I'm the founder and CEO of YMBU Agroflorestal.

YMBU is a Brazilian native reforestation business with 2.8k hectares under management in Ceara, North Brazil. Our mission is to restore degraded farmland using high integrity nature based solutions (NBS) in the Caatinga biome, the most biodiverse semi-arid biome in the world.

We have pioneered the first Carbon Project of this kind in the state of Ceara, and our ambition is to lead the NBS market’s development in the region.

Today we have 28 people on our team. With low economic activity in the local region, YMBU is proud to recruit and train a talented local operational team featuring 26 members, of which 24 were unemployed prior to YMBU. We are immensely proud of the trust and collaboration we have generated with the local community.

Looking to the future, our ambition is to triple the reforestation land under management by the end of 2024, in parallel to evaluating other projects such as mangrove restoration along the coastline of Ceara.

Can you give a brief overview of YMBU and the specific projects you've undertaken to restore degraded land?

Our nature based solutions projects center around the reforestation of a native tree, the Sabia, which is well adapted to the semi-arid climate. Today we have two separate land uses that restore degraded farmland.

  1. Active reforestation: a native reforestation carbon project verified by Gold Standard where we planted 9-15 different species to strengthen biodiversity.
  2. Sustainable forest management: forestry operations that sustainably plant, harvest and commercialize the Sabia wood for uses including fencing and plantation infrastructure.

These land uses are operated on completely separate locations, but are both served by a proprietary seed bank and nursery that has the capacity to grow 2m trees a year.

The diverse income streams strengthen the financial sustainability of our operation, alongside creating more employment opportunities within the local community.

YMBU has launched active reforestation carbon projects. Can you tell us about them?

Our carbon project is listed under Gold Standard number GS11648. The "Reforestation and Nature Conservation Project - Biome de la Caatinga, Ceará" aims to reforest 600 hectares of degraded land, which would remain in this state without the existence of this YMBU initiative. Around 2 million native trees will be planted.

Certified as a carbon project under the “Gold Standard 2” Gold Standard, the work is implemented by YMBU in conjunction with carbon consultants CO2logic/Southpole, from Belgium, and Mkaarbon Safari, from Germany.

The project aims to :

  • Mitigate the effects of climate change through carbon capture, restoring a natural and biodiverse forest, through the planting of local/native species;
  • Create a highly vegetated and highly productive area in the Brazilian semi-arid region, by adopting techniques suited to local climatic conditions and recognizing the aptitude of the natural resources present in the region;
  • Protect and improve the biodiversity of the Caatinga Biome;
  • Direct job creation, with wages that respect the minimum wage level in Brazil or above, employing members of the local community in the continuous process from seed to tree.

What are the main challenges you face today?

There are many challenges faced by businesses like ours, ranging from seed availability to financing, however one that is top of mind today centers on the challenges behind preparing land for forestry implementation in The Caatinga Biome. Mechanization can be difficult considering topography, the presence of rocks and shrub lands.

There are specific windows of time during the year where this is most suitable, which means our operational team needs to be highly efficient in their efforts. However, it is an energy intensive process that can be undermined by equipment malfunctions.

Due to our remote location, we do not have a large number of channels to purchase high quality tractors and equipment parts. We are developing strong relationships with local suppliers to minimize operational downtime and maximize planting efficiency.

When launching Caatinga active reforestation carbon project, you wrote that “the type of carbon credit generated through direct planting and reforestation is the most valued in the market”. Could you explain why?

Speaking to carbon brokers in the market there is a clear preference for reforestation projects that restore degraded farmland. Our understanding is that these projects are valued because of the clear and measurable net impact on the local environment, converting unproductive land into carbon removing assets.

What’s the impact of a higher (or lower) price of the carbon credits on your organization and on the reforested lands in Brazil?

In our organization, a higher carbon credit price would influence our strategic planning, dedicating a higher proportion of land under management and reforestation efforts to these activities. It would provide different forms of cash flow that would compliment our diversified business model. Higher prices in general can make conservation efforts more viable in Brazil, permitting smaller landowners to activate the potential of carbon markets and rewarding them on the conservation of native forests and ecosystems.

What’s your general opinion on the carbon offset system, with specific regard to reforestation efforts?

We believe that active reforestation and ecosystem restoration efforts, in conjunction with sustainable practices, are key to mitigating the impacts of climate change.

The creation of the carbon offsetting system has been extremely beneficial for rewarding conservation efforts. It became a stepping stone to evaluate and compensate for our impacts in nature and ecosystems worldwide. At the same time, as science evolves, it is crucial that the frameworks of certification are constantly verified and updated, as more and more data and analysis becomes available. As the carbon market prioritises high integrity, capital goes where positive impacts grow

When we look into the future, we believe scientific efforts will bring more and more understanding of the impacts of living on this planet, and conservation efforts should evolve with our understanding of these complexities.

Do you have any recommendations or advice for companies wishing to invest in carbon credits for reforestation?

First, we would congratulate this company for taking the decision to explore opportunities in this space. Then we’d encourage them to work hard to filter through the noise, challenge existing conventions, and truly understand the real needs of project developers on the ground. There are a variety of ways to participate in this sector and many of them have clear win-win opportunities for buyer and seller. Achieving this will create stronger long-term outcomes across social, economic, and environmental goals.

Chief Writer and Content Manager
Lorie Louque
- Paris, France
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