This project showcased the economic and environmental benefits of sustainable forest management in Peru’s Tahuamanu region by analyzing the good practices of MADREACRE, a forestry concession certified under FSC and REDD+ standards. Through legal analysis, ecosystem services valuation, and targeted outreach, CSF hoped to counter misinformation, support conservation, and promote trust in sustainable forestry initiatives.
MADREACRE manages a group of concessions of over 300,000 hectares of forest in the Peruvian Amazon, and has made important progress in sustainably managing important areas of forest. Its projects are certified under FSC and REDD+ schemes, and demonstrate the potential of sustainable forestry management to benefit rural Amazon communities. MADREACRE’s forestry management includes management of key slow-growing species such as Sihuahuaco (Dipteryx ferrea), which take hundreds of years to grow and are able to trap up to 40 tons of carbon. While also providing critical ecosystem services, these slow-growing species are also known for their remarkable hardness, making them prized lumber for construction and targets for illegal harvesting.
In this context, the promotion of positive examples of sustainable forestry management is critical to species preservation and the conservation of critical Amazon forests. CFS analyzed the value of this sustainable forest management model in the Madre de Dios Amazon to gain accurate information that will enable these conservation initiatives to be replicated nationwide.
The study also systematized MADREACRE’s sustainable forest management model, with the aim of both supporting MADREACRE’s work and that of similar projects in the region. It included a review of the legal framework and potential legal gaps that may negatively affect sustainable forestry. CFS also developed an ecosystem services valuation and cost/benefit analysis of MADERACRE's sustainable forest management, comparing it with unsustainable harvesting practices. Further outputs explained how MADREACRE’s forestry model contributes to the UN’s Sustainable Development Goals, local biodiversity, and the benefit of local climate and populations.
The project aimed to encourage sustainable forestry management in the region and improve public perception and understanding of these projects’ positive economic and conservation impacts.
Key Results
Madreacre’s sustainable forest management is both financially and economically viable
- Sustainable forest management in MADERACRE’s concessions is financially viable under current conditions, with a positive Net Present Value (NPV) and Internal Rate of Return (IRR) across all scenarios evaluated.
- Scenario Analysis
- CSF tested multiple scenarios, including variations in timber prices, harvesting costs, and discount rates. Even under conservative assumptions, the project remains profitable.
- Baseline Scenario (Business-as-usual): The NPV over a 30-year horizon was estimated at USD 1.78 million, with an IRR of 18.5%, making the activity competitive in the region.
- MADERACRE’s integration of certified logging practices (FSC-certified), investment in infrastructure, and access to premium markets strengthens the business case for sustainable forestry.
- Environmentally responsible timber harvesting in the Amazon can be both profitable and climate-friendly, challenging the misconception that conservation undermines economic development.
Certifications make a difference
- FSC certification and operational transparency increase access to better markets and pricing, improving financial performance.
Policy support can scale up benefits in Peru and other tropical forest countries
- Supporting companies like MADERACRE through better financing tools, incentives for certification, and infrastructure investment can accelerate scalable, sustainable forest management.
- MADERACRE’s experience can inform national and regional strategies to balance forest conservation with economic development, especially in other tropical forest countries.
The project was funded by MADREACRE, also known as Maderera Río Acre SAC.
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Photo Credit: © MADERACRE SAC