Ecological ICMS enables forest restoration in Brazil

Abstract

Application of ecological ICMS (Imposto sobre Circulação de Mercadorias e Serviços), by public managers in conservation, can help and foster environmental improvement in rural properties. The aim of this study was to evaluate the destination of ecological compensation for restoration and appropriateness to the environmental legislation of rural properties in the municipality of Araponga, Minas Gerais (MG). Information on Areas of Permanent Preservation (APP) and Legal Reserves (LR) were obtained from the Rural Environmental Registry’s database. Plans on environmental appropriateness were evaluated and they are: dense planting, enrichment planting, plant spacing, fencing, artificial bird perches and transposition of soil seed bank. A total of 197.39 ha in APP is without forest (26.19 % of APP area) in the rural properties of the municipality of Araponga. In relation to LR, 566.92 ha (20.95 % of LR area) face conflict. The total costs, per year, for all forest restoration techniques were lower than the average value of ecological ICMS received by the municipality of Araponga (US$ 186,873.21 year−1). Therefore, the ecological ICMS allocation to foment the practices of environmental appropriateness enables the compliance of forest legislation in small rural properties in Brazil.