In July a co-operation agreement was signed with the United Nations Development Programme (UNDP), who will independently assess the socio-economic impacts of Veracel's operations on local communities.

When the decision to build the Veracel Pulp Mill was announced in 2003, some NGOs started to raise concerns related to the likely social and environmental impacts of Veracel’s plantations and the pulp mill. The views of Veracel and its owners on some critical issues differed from the stances of the NGOs, and there was little progress in resolving the debate. Veracel and its owners therefore started to look for a credible, independent third party who could conduct a study examining these critical issues, and produce reliable and balanced information on the impacts of Veracel.

Veracel and UNDP – natural partners

The United Nations Development Programme (UNDP) was identified as an ideal partner for such co-operation, and an agreement was signed by Veracel and UNDP Brazil in July 2004. The UNDP sees co-operation with the private sector as a potential way to fight poverty and reduce environmental and social inequalities. The Global Compact forms the basis for the common values.

The objectives of the co-operation project are to identify and analyse the effects of Veracel on the well-being of local populations and communities, and to provide recommendations for future actions. The results of the study will be made public.

The four phases of the UNDP project

1. A baseline study, involving mapping and establishing relationships with Veracel’s stakeholders, and identifying the main positive and negative socio-economic issues related to Veracel’s operations, such as income distribution, alternative sources of income, land access and ownership, demographics and the quality of life in the region. This first phase will be completed in early 2005.
2. Impact analyses based on the issues identified and the information collected during the baseline study.
3. The development of a model capable of generating accurate estimates of the future social and economic impacts of Veracel.
4. The drafting of a development plan for the region, in conjunction with plans for the long-term monitoring of the socio-economic impacts of Veracel, and recommendations for future actions.