# Recycling Cooperative in Itacaré, Bahia, Brasil

**URL:** <https://forum.regen.network/t/recycling-cooperative-in-itacare-bahia-brasil/632>\
**Category:** General\
**Created:** [September 6, 2026, 3:16pm UTC](https://forum.regen.network/t/recycling-cooperative-in-itacare-bahia-brasil/632 "2026-09-06T15:16:30Z")\
**Posts on this page:** 1\
**Page:** 1

<div class="post-metadata">

**Author:** ![IoZ](https://avatars.discourse-cdn.com/v4/letter/i/54ee81/32.png) [@IoZ](https://forum.regen.network/u/IoZ)\
**Post date:** [September 6, 2026, 3:16pm UTC](https://forum.regen.network/t/recycling-cooperative-in-itacare-bahia-brasil/632/1 "2026-09-06T15:16:30Z")

</div>

A New Circular Economy with Digital Currency, Carbon Credits, and Social Technologies

_Consolidated report for the Regional Coordination Forum, covering the entire project from financing to innovative socio-environmental solutions._

* * *

## 1. Introduction

The municipality of Itacaré, on the southern coast of Bahia, is nationally recognized for its natural beauty and for having closed its open-air dump ahead of the legal deadline. It is now about to take a revolutionary step in solid waste management. A new recycling cooperative is being formalized, combining **community tradition, technological innovation, and sustainability**. This document consolidates all the information discussed about the project, from funding sources to the innovative social technologies that will be implemented.

* * *

## 2. Context and Protagonist: The Casa do Boneco de Itacaré

The **Casa do Boneco de Itacaré Association for Afro-Development (CBI)** is the community organization leading this project. Founded in **1988** , the entity acts as a **contemporary urban _quilombo_** , dedicated to mitigating the socio-cultural and economic impacts of capitalism on the Afro-indigenous communities of Itacaré.

With a track record of training hundreds of young people in areas such as bioconstruction and community management, CBI already has experience in recycling. Additionally, it manages the **Quilombo D’Oiti Model Farm** , a self-managed territory that serves as a base for community-based ethnic tourism and the implementation of social technologies. The Association has already collected **100 tons of recyclable dry materials** in just five months of operation of its collectors’ association.

* * *

## 3. The New Recycling Cooperative

Building on this solid foundation, Casa do Boneco is formalizing a **recycling cooperative** to expand its socio-economic and environmental impact in the region. The initial focus will be on three strategic materials:

- **Organic Waste** : with high potential to generate bio-inputs and animal protein.
- **Glass** : 100% recyclable material with strong market demand.
- **Aluminum** : high added value in the recycling market.

* * *

## 4. Innovations and Integrated Projects

The cooperative will go beyond traditional sorting, incorporating four innovative pillars that place Itacaré at the forefront of the circular economy.

### 💱 4.1. ItaCycle – The Digital Social Currency

Inspired by experiences such as the “$iclos Sustentáveis” currency (Espírito Santo) and the **Recircular** project (which uses cryptocurrency to pay waste pickers), **ItaCycle** will be a digital social currency backed by recyclable waste.

- **How it works** : Residents and tourists who deliver recyclable materials to collection points will receive ItaCycles in a digital wallet.
- **Usage** : Credits can be exchanged for products, services, and discounts in local businesses.
- **Technology** : Use of **blockchain and smart contracts** to track each stage of the recycling process, ensuring transparency and traceability.
- **Financial Inclusion** : The system also promotes financial inclusion for waste pickers and families in vulnerable situations.

### 🌱 4.2. Carbon Footprint Calculation and Carbon Credits

The cooperative will implement a carbon footprint measurement system to quantify the environmental impact of its operations.

- **Metrics** : Quantification of CO₂ avoided by recycling each material (glass, aluminum, and organics).
- **Market** : Generation of **carbon credits** for trading on the voluntary market. Similar projects have shown that recycling can generate over **R$ 1 million in credits** for cooperatives.
- **Attraction** : Possibility of attracting companies and events (especially from the tourism sector) looking to offset their emissions, taking advantage of Itacaré’s high season visitor flow.

### 🐛 4.3. Organic Waste-to-Larvae Production (BSF)

Using the **Black Soldier Fly (Hermetia illucens)** to transform organic waste into high-value products.

- **Animal Protein** : The larvae, rich in protein (30-35% fat and up to **50% protein** ), serve as feed for poultry, fish, pigs, and pets.
- **Biofertilizer** : “Frass” (the larvae’s digestion residue) is a powerful agricultural input.
- **Efficiency** : The system can reduce the volume of organic waste by up to **80%**. Each ton of organic waste can generate up to **900 kg of protein** in the form of larvae.
- **Scalability** : Modular systems can process between **24 and 36 tons of waste per month** , producing **3 to 8 tons of fresh larvae** monthly.

### 🥥 4.4. Green Coconut Processing

Itacaré is one of the largest consumers of green coconuts on the southern coast of Bahia, with **12 potential suppliers** mapped in the municipality. It is estimated that the region wastes the equivalent of **872,000 coconut husk units** annually, from which approximately **328 tons of fiber** could be extracted — but today, this material ends up in the landfill.

The cooperative aims to change this scenario with a **green coconut processing** line, transforming the husk into:

- **Fiber** for manufacturing ropes, mats, and handicrafts.
- **Coconut powder** for agricultural substrates and biodegradable pots.
- **Activated carbon** and other high-value by-products.

With the new **National Policy to Encourage Cocoiculture (Law 14.975/2024)**, the sector has gained extra momentum, opening doors to credit lines and tax incentives.

* * *

## 5. Financing and Institutional Support

The formalization and expansion of the cooperative are supported by key institutions and programs.

### 5.1. BNDES and the “Tudo na Circularidade” Program

The **Brazilian Development Bank (BNDES)** launched the program **“Tudo na Circularidade – Investing in Recyclable Material Cooperatives”** in March 2025.

- **Funding** : Initial allocation of **R$ 20 million** from BNDES’s Socio-Environmental Fund, with expectations to raise up to **R$ 100 million**.
- **Objective** : To expand the access of cooperative and waste-picker networks to the **Reverse Logistics Credit (CLR)** market and boost job and income generation.
- **Innovation** : Cooperatives will be compensated **not only for the weight of recycled material but also for the environmental services they provide**.
- **Reverse Logistics Credits (CLR)**: Established in 2023, this is a compensation mechanism similar to carbon credits. Cooperatives are entitled to receive payment for selling the credits generated by their recycling activities.

The program also provides for investments in **technological modernization and innovation** , overcoming challenges such as taxation, logistics, and low profit margins.

### 5.2. Other Support

- **Sebrae** : Active role in strengthening management and cooperativism through the **Pró-Catadores Project** , offering specialized consulting, training, and guidance on formalization.
- **State Government** : Programs such as **Bolsa Reciclagem** (which in Minas Gerais allocated R$ 875,000 to 72 cooperatives in Q2 2024) serve as references for Payment for Environmental Services (PES) policies that could be adapted for Bahia.

* * *

## 6. Impact and Future

With formalization, the cooperative will be able to access public bids, sign contracts with the government, and establish itself as a **reference hub for the circular economy on the southern coast of Bahia**.

By combining the tradition and community organization of **Casa do Boneco de Itacaré** with innovative technologies (digital currency, biolarvae factory, and carbon credits), Itacaré demonstrates that it is possible to turn environmental challenges into opportunities for **income generation, social inclusion, and preservation of Afro-indigenous culture**.

The city, already nationally renowned for projects such as the **Screening and Ecobusiness Center** and the **PROMARES Project** (an international pilot area for fighting marine litter), is solidifying its status as a true **living sustainability laboratory** on the southern coast of Bahia.

* * *

## 7. Conclusion

The recycling cooperative led by Casa do Boneco de Itacaré represents an innovative model that integrates:

| Axis | Innovation |
| --- | --- |
| **Financial** | Digital social currency (ItaCycle) |
| **Environmental** | Carbon credits and reverse logistics |
| **Technological** | Black soldier fly larvae production |
| **Productive** | Green coconut processing |
| **Institutional** | Access to non-reimbursable BNDES funds |

This project demonstrates that the circular economy can be **inclusive, digital, and sustainable** , generating income for families living off recycling while strengthening the cultural identity of Itacaré’s Afro-indigenous communities.

* * *

**📌 Stay Tuned:** The cooperative is in its structuring phase and is seeking partnerships to bring **ItaCycle** and its other innovations to life. The BNDES “Tudo na Circularidade” call for proposals closed in May 2025, but new opportunities and notices are expected to arise soon.

* * *

_This document consolidates information from the Casa do Boneco de Itacaré Association for Afro-Development, BNDES, Sebrae, FATTO, Plástico Transforma, UFSB, ScienceDirect, and Agência Brasil._
