> For the complete documentation index, see [llms.txt](https://bmv.gitbook.io/mundi-token-whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://bmv.gitbook.io/mundi-token-whitepaper/business-context/policy-and-demand.md).
# Policy and demand
Throughout the whole process of origination of the credits, all relevant legal aspects are analysed into a serious and thorough scrutiny, what gives certainty to all participants – from the farmer to consumer – of the ownership and subsequent transactions. It’s based on the concepts provided in the Brazilian Forest Law, which attests the legal form of “intangible and tradable assets” arising from conservation activities. The securities embodying the UCS, the already mentioned CPR, adds an extra layer of certainty. Moreover, the growing number of states and cities that adopt the methodology and the UCS as means of sustainability and environmental policies are good indicators of integrity and efficacy.
From the public hearing, the initial step of the origination process, BMV and UNESP check if the properties are in compliance with the national and local environmental regulation, gather all the available data prior to the project and set a monitoring process for all its length. Elements such as regular ownership, area delimitation through geoprocessing and the Environmental Rural Registry (“CAR”) are verified by a documentational audit in all the deposits of the landowners and determine the eligibility for integration in the project.
After determining the potential of the project in terms of biodiversity preservation and improvement, based on satellite images and in loco verification, important elements such as baseline activity and biologic stocks are assessed for the application of the methodology deposited in the United Nations and other international organizations.
After creation, embodiment and international custody of the Credits, the UCS are made available in the Green Treasure platform and ready to be used for voluntary reasons or to attend a policy requirement.
As stated, many states and cities in Brazil already use the UCS as the main instrument for broader environmental policies designed to create structured demand, encouraging business to take part in the conservation efforts always through incentives, leveraged by the brand and awareness boost that is perceived by businesses with the associated Green Seal, given to those that share the effort of preservation.
To list some of these policies we can name:
| **Regulatory Framework** | | | |
| --------------------------------------------------------- | --------------- | ------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| State | Mato Grosso | State law nº 8.981 of 2008 | Acknowledgment of the source, namely the Nuclei within the territory of Mato Grosso: Xingu, Teles Pires and Arinos. |
| State | Mato Grosso | State law nº 9.498 of 2010 | Idem as above |
| State | Mato Grosso | State law nº 9.497 of 2010 | Idem as above |
| City | Rio de Janeiro | Resolução SEA 509 de 2016 | Intangible asset from forest conservation use for the “Jogos Limpos” (Clean Games) seal, by occasion of the Olympic Games in Rio de Janeiro. |
| City | Goiânia | City law nº 294 of 2016 | These municipalities recognize the Socio environmental retribution quotas as an important tool to achieve their goals of sustainable development and climate change mitigation. It provides a framework for the origination, trading and offsetting within their jurisdictions. Businesses that have fulfilled their quotas with Forest Credits are eligible for benefits such as: brand improvement, environmental offsetting defined for local regulations, environmental licensing of undertakings and constructions.
These municipalities recognize the Socio environmental retribution quotas as an important tool to achieve their goals of sustainable development and climate change mitigation. It provides a framework for the origination, trading and offsetting within their jurisdictions. Businesses that have fulfilled their quotas with Forest Credits are eligible for benefits such as: brand improvement, environmental offsetting defined for local regulations, environmental licensing of undertakings and constructions.
|
| City | Goiânia | City decree nº 1.583 of 2016 | Idem as above |
| City | São J. R. Claro | City decree nº 51 of 2016 | Idem as above |
| City | Nova Maringá | City decree nº 23 of 2016 | Idem as above |
| City | Barra do Garças | City decree nº 3.810 of 2016 | Idem as above |
| State | Amapá | State Law 2.353 of 2018 | For the concession of any fiscal incentives by the State of Amapá it is necessary to have the Green Treasure Sustainability Seal, granted upon the environmental impact offset through the acquisition and cancelling of UCS.
For example, businesses that offset their impact in the State of Amapá are granted input credits for the interstate sale of imported goods.
|
| State | Goiás | State law 19.763 of 2017 | Businesses that have the Sustainability Seal are granted a 50% discount for the repayment of the State’s tax financing program, called PRODUZIR. |
| State | Mato Grosso | State Law 11.001 of 2019 | Businesses that have the Sustainability Seal are granted have benefits such as more attractive finance lines, environmental offsetting for the purposes of the State Law and tax benefits. |
| National | Brazil | Patrimônio Verde bill (PL 7.578/2017) | The bill establishes a national integration and cooperation system among the states that use the Natural Conservation intangible assets, creating a wider market. |
*Regulatory and bills that recognizes UCS and creates benefits to companies with green seal certification. Find* [*more*](http://www.brasilmataviva.com.br/decretos?idm=en) *here*
In April 8th, 2020, the Brazilian National Congress approved the Law 13.986/2020 that explicitly provides for the conservation of native forests and the respective biomes as a rural product. While it is a major advance in the Brazilian environmental law for the protection of forests in rural properties, it only states what BMV has been doing for years.
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